29 July 2008

Troubled skies ahead for online travel

NEW YORK - Reports are that American Airlines is about to pull its airline listings out of Kayak and is considering doing the same with Orbitz. If it does so, other airlines such as Continental and Northwest may follow suit, says TechCrunch.

ââ¬ÅâœAirlines donââ¬â¢t like the booking sites because they have to pay them a referral fee for every ticket they sell, as opposed to capturing the full fare when travelers book on their individual sites.

ââ¬ÅâœEven though that only amounts to a few dollars per ticket, every dollar counts to the troubled airlinesââ¬~¦especially now with fuel prices going sky-high and the consumer spending going down,ââ¬~ adds the site.

American Airlines cites Kayak as a particular problem because it tends to show AA flights through its partnership with Orbitz instead of directly from American. That means American has to pay a double tax -- once to Kayak and once to Orbitz.

The decision to sever ties with Kayak supposedly has already been made, reported TechCrunch.

The question now is whether Orbitz can salvage its relationship with the airline.

Report by David Wilkening

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• GDS Commission Free?
  
  

  Reading this item suggests that AA and others don't pay money to GDS which, of course, they do. There must be other reasons why AA is once again leading the latest degradation of buyer options. Most Travel Agents will remember AA was the lead airline in eliminating agency commission. Travel Agents still have the upper hand - do any airlines guarantee their Clients money is safe? Many countries have failure protection for passengers buying from a Travel Agency. Travel Agents should use this fact as a marketing tool as a means to retain business.

  By Jon Hewson, Tuesday, July 29, 2008