Battle Escalates Between Airlines and Online Agents 279
Ponca City writes "The Epoch Times reports that online travel booking giant Expedia has removed American Airlines from its travel website over disagreements with American's fee structure in the latest incident in an escalating battle between airlines and online travel agents. Although American gets roughly two-thirds of its revenues from third-party travel agents like Expedia, American has been looking for online agents to cut their fees as one way to lower fares — something that Expedia was not prepared to do. Expedia released a statement that American's action 'will result in higher costs and reduced transparency for consumers, making it difficult to compare ticket prices and options with offerings by other airlines,' while American urged customers to book directly on American's website for the lowest prices. Meanwhile Google is waiting in the wings with its recent proposal to purchase ITA Software, the developer of the Internet's leading technology to compare flights fares. 'Though 49 percent of travelers purchase travel online, it is still time consuming and slow to search for travel options online,' says a statement from Google, defending the ITA acquisition which is being opposed by Microsoft on anti-trust grounds. 'We plan to work with ITA to create a new, easier way for users to find better flight information online.'"
Expedia eats up profit margins for the hotels (Score:4, Informative)
According to a hotel manager I know expedia wanted 1/3 commision on hotel rooms.
Sure, he appreciated the extra business, but at the same time it was a major cut in their profit margin.
And expedia (and other hotel booking services) now wield so much power that it's hard for hotels to say now. More so for hotels that are not part of a chain that can afford to say no.
Expedia vs Kayak (Score:4, Informative)
Re:On the bright side... (Score:3, Informative)
the meta-search site www.kayak.com pretty much does this...
Try your brick and motar travel agent (Score:5, Informative)
You may be surprised, but in certain cases going to your local travel agent can get you a lower price. If they don't, compare what they are offering you and be sure to let them know you can get it cheaper online. A real-life travel agent can reduce their commission, while a web site won't.
And nothing of value was lost (Score:5, Informative)
I just flew on American Friday night from Honolulu to Chicago; 45 minutes out of Hawaii, the captain turned the "Fasten Seats Belts" light back on - at the first excuse for a mild bump - and then left it on uninterrupted for the next 7.5+ HOURS - in smooth. clear air - all the way until we landed - 36 hours later, and my feet and ankles are STILL swollen. I had noticed on the way out that American seemed to have developed this policy of keeping everybody fastened in at all times, but the ride home confirmed that in spades. American CLEARLY has developed a policy to keep you seated at all times, your personal comfort and blood clots be damned. I also noticed that they've changed the "...and we suggest you keep your seat belt fastened while seated..." part of the stdrap.h to "...we REQUIRE you to keep your seat belt fastened while seated...". Fuck you, you're just cattle (who has already paid your money) at the other end of a toggle switch. And we have "federal regulations require you to obey us" on our side.
It's clear to me that they've changed the policy both as a convenience to the flight attendants and as a sop to their cowardly lawyers in case some passenger bumps their knee during a flight and decides to sue.
On they way out, it cost $25 per checked bag, and one, which was over 50lbs (52.7 to be exact), cost an ADDITIONAL $50 over that.
Of course, there's no free food anymore, but they'll SELL you a chicken sandwich for $10, or a can of Pringles for $4.50. What I found interesting was that they don't take cash anymore - just credit/debit cards - I guess that "...all debts, public and private..." printed on the money doesn't mean anything if you're an airline.
All in all, flying American recently is the worst (modulo TSA related fun, which is a different rant) in-air experience I've had in the last 35 years, and that includes the flight from Nairobi to London on Air India - which was about as bad as you would expect.
Welcome to the Airline Industry Expedia / Orbitz (Score:5, Informative)
Airlines long ago eliminated commissions for in-person travel agents because they had the market power and how were 1000's of mom and pop agents going to fight the airlines? Fearing dis-intermediation, the airlines continued to pay Expedia / Orbitz and the reservations systems such as Worldspan commission for deal flow but now the airlines have the market power with their own sites.
Its a hard dose of reality for the online sites, who don't offer much functionality above what you can get on Southwest.com. My mom is a travel agent- and while she is computer challenged she can run command line commands into Worldspan faster than I can login to Orbitz. I've never understood why someone would spend hours online finding a site when a travel agent can do it all for you for almost nothing. My mother selected 3 of the 4 hotels for my honeymoon, the other coming from the NY times travel section. Guess which one was the dump with paper thin walls and crappy beds?
I wonder why MS says NO! (Score:5, Informative)
Just happened to look at ITA Software's website.. and look at their customer list: :)
www.itasoftware.com/about/customers.html
I do believe I see Bing as one of the customers
Re:They're all bad (Score:5, Informative)
Really? Did you try Virgin America? Their planes are new, with stylish white plastic and black leather interior, with disco color lighting. They have a Linux-based entertainment system with free games and movies, seat-to-seat chat, and a shopping-cart style electronic ordering system for food/drinks. To celebrate the holiday, the internet was free for all of December. And the price is comparable to shitty airlines like Delta and US Air. Virgin America kicks ass.
Re:And nothing of value was lost (Score:4, Informative)
It is if they render goods or services before being paid - which they do. I've always seen them give people their items before taking the person's card.
Re:Not really (Score:5, Informative)
My tip for long-haul flights: phone ahead of time and book the vegetarian meal ( regardless of whether or not you are a veggie ) . Not only is it usually more extensive and of much better quality than the "standard" meals but it is often cooked first, so you can be tucking-in to some decent nosh whilst the other passengers' stomachs are still rumbling.