Expedia (EXPE) ups the ante in the showdown between American Airlines (AMR) and online travel...


Expedia (EXPE) ups the ante in the showdown between American Airlines (AMR) and online travel agencies, dropping the airline's flights from its listings. Earlier in the month, American pulled its listings from Expedia rival Orbitz (OWW).
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Comments (5)
  • Jake Huneycutt
    , contributor
    Comments (1423) | Send Message
     
    This could potentially get interesting. On the face of it, the online booking sites have more bargaining leverage because the legacy carriers have "more to lose" by having their listings removed from the most frequently used sites.

     

    On the other hand, what if the legacy carriers teamed up, created a joint venture to create a new online travel website, and went head-to-head with effectively neutered competitors? This would be similar to how some of the major media companies teamed up to create Hulu.

     

    From the airlines perspectives, why are they allowing the online travel sites to take such a juicy slice of the profits? Why not use their own leverage to take that slice of the profits themselves?
    2 Jan 2011, 03:33 PM Reply Like
  • Tack
    , contributor
    Comments (16378) | Send Message
     
    Good point.

     

    American's original "Sabre System" pioneered the computerized reservations industry. Maybe, we come full circle.
    2 Jan 2011, 04:19 PM Reply Like
  • mikeybronx
    , contributor
    Comments (382) | Send Message
     
    i am not privileged to the commission that travel agents get or the websites for airline bookings, but i believe the websites and travel agents get a much larger commission for booking accomodations. the air tickets are really miniscul, like $50 a ticket, the money is in package deals. as long as there is increasing fuel prices the Airlines will squeeze out as much profit as possible, ie. baggage fees. there will always be a need for online travel websites and they will exist. websites like Liberty Travel will always have access to airline tickets because they are real full service travel agents. i would think that an airline would want as much exposure as possible to sell tickets.
    2 Jan 2011, 09:42 PM Reply Like
  • ebworthen
    , contributor
    Comments (2799) | Send Message
     
    You get the lowest prices by comparison shopping between travel sites.

     

    Expedia is stupid unless Travelocity and Kayak and Hotwire and Priceline and (etc., etc.) join them.

     

    I have no loyalty to any of them, and go where I get the best price and service (imagine that).

     

    The airlines can't sell seats the way ten different websites can, the airline prices are ALWAYS higher for the same flight # and seat, and the travel sites are how the airlines fill seats on the planes that aren't sold out.

     

    Bad move by Expedia.
    3 Jan 2011, 03:11 AM Reply Like
  • Hammer7576
    , contributor
    Comments (6) | Send Message
     
    They did have a joint effort. It was orbits. It was backed my airlines.
    2 Jan 2011, 07:56 PM Reply Like
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