Published on Monday, August 1, 2011

American and Travelport make friends again

American Airlines and Travelport have resolved their long-running dispute over content.

They have issued a joint announcement confirming that their full content agreements have been extended but did not disclose further details.

The move brings to an end industry-wide concern about the future of the global distribution system model.

The two parties had threatened to take lawsuits against each other for anti-competitive behaviour following American’s decision to terminate an agreement with online travel Orbitz, part-owned by Travelport.

Instead, American was hoping to drive bookings through its on online booking system, Direct Connect.

American had also had a similar dispute with GDS Sabre, but following the truce with Travelport it is expected that it will also be able to reach an agreement with Sabre.

by Bev Fearis

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Undercutting is not for the long-term. Demise of volume players.

The recent insolvency of Low Cost Travel Group, one of the large players in the travel industry had a big impact on the travelers, hotels and all related players from both wholesale & retail arms. There were about 27,000 people on a holiday who had booked through the company comprised of a €200 million wholesale arm and €500 million OTA / retail arm.