Battle Escalates Between Airlines and Online Agents
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 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
Southwest has been doing this for some time now. Sounds like a bunch of FUD from Expedia.
"We are just a war away from Amerikastan. When god vs god the undoing of man." Dave Mustaine
I am going to have to support Expedia on this one
Wasn't this already posted as Comcast versus Netflix? Maybe we'll get lucky and all the big megacorps will end up at each other's throats for once, instead of at the consumers'...
I sense the emergence of some job openings for programmers and software engineers skilled in the art of swiftly building, and iterating as needed, scraper agents to aggregate numerical and geographic data from multiple multi-step forms driven websites...
It's the propaganda wing of the Falun Gong cult.
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.
Harald
It's Expedia. Who cares? Just use Kayak.com
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.
Jumpstart the tartan drive.
You might want to read that sentence again.
It's funny that this story comes out now, as I was just considering changing my sig to "Have a pleasant, comfortable flight - or fly American Airlines." I'm really considering starting a blog about how BAD american Airlines has become.
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.
No folly is more costly than the folly of intolerant idealism. - Winston Churchill
I just thought that everybody used these services (WebJet in australia) to research flights and prices, and then went to the airline's own sites to book? You might on a rare occasion find the flight you chose booked out in the few seconds it took you to switch sites, but, if that happened, you'd just go back and choose a second flight.
Prediction for end of Universe #42: Fencepost error in Quantum_bogosort.cpp
US Air and Southwest are the only two airlines that have not regularly fucked up my travel.
Give them time and I promise that will change. I've flown quite a bit on pretty much any US carrier you care to mention and they're all pretty much equally crappy. If you haven't had bad luck with one of them I applaud your good fortune.
For as long as I can remember (practically since deregulation) the airlines' approach has been to maximize profits through increased pricing complexity - or "efficient yield management" as they are more likely to label it. The core reason for the existence of airline fare search engines is to reduce pricing complexity. Therefore it seems obvious that the airlines would do everything they can to kill the search engines - but they can only go so far because they more they squeeze, the more consumer demand they create for the search engines. Where is equilibrium? I dunno. I would like for it to be at the point where the airlines quit the pricing games and try to compete on service instead, but that would be too easy.
When information is power, privacy is freedom.
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 booked a trip to Phoenix last Christmas on a ride share flight (USAir flight booked as a United flight via Expedia). I was not able to confirm my reservation on either United's or USAir's websites. I called USAir, they told me to call United. United customer service wanted to charge me $20 per ticket (!) for the privilege of helping me, which I declined. I called Expedia, who assured me everything was fine. When I got to the airport, I was informed that my flight had changed and had left 2 hours prior. No one bothered to tell me, despite having multiple means of contact and my good faith effort to check in prior to the flight. Expedia denied all responsibility (there was at least one more irate family in line with us that had the same experience).
To USAir's credit, they stepped up and got us to our destination in time for Christmas. I don't know if this was just a giant fuck-up, or whether United/Expedia were just pissing on each other with me in the middle, but I won't use Expedia ever again.
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
Expedia has been trying hard for several years to become a travel retailer that determines the pricing themselves, and they want travel companies (hotels, airlines, and rental cars) to give them wholesale pricing. Right now, like any travel agent, they get a percentage of the rate that is normally determined by the travel company, but they would like to be able to set whatever rate they think they can get and give the hotel/airline/car company a flat wholesale rate. This would give Expedia a lot of control over rates, and they could make a lot more profit because they could take everything above the negotiated rate, instead of the fixed percentage. Luckily the travel companies see that this model would destroy their own business and have resisted.
Naturally the travel companies would prefer that people book through their own websites, because they don't have to pay the commission, which is typically around 10% of the price.
American Airlines was my first experience sitting on a tarmac for five hours (at Boston's Logan Airport)... BEFORE taking off. Like if you are not going to take off right away, why put us on board, fucktards. A trip to Calgary that should have been at maximum five hours with the other airlines I normally flew on (even changing planes in Toronto or Chicago), took almost twelve with these idiots. Worse, American had no music on board... no movies... no newspapers... no magazines... other than what others brought on themselves. American has the least comfortable seats and less service than anyone I've ever seen with the exception of Delta, who suck shit too. I have never flown on American since (and stopped flying Delta after my one no leg room knee bruised on the seat in front of me flight). Not once in at least a hundred thousand miles of air travel since (granted I stopped flying mostly about a year after that... I had enough). I have never had that experience before or since. And that was twelve years ago. American can go fuck themselves... right behind Delta. Bitter? Hell yeah.
-- I ignore anonymous replies to my comments and postings.
Yeah, my mom can be a practical joker like that too ;)
A polar bear is a cartesian bear after a coordinate transform.
But most people won't, and it doesn't say anywhere prominently on their site that they're a sectarian organization, like, say, The Christian Science Monitor.
Like if you are not going to take off right away, why put us on board, fucktards.
Because they need that gate space for the next load of unfortunates.
That doesn't result in a ticket commission from American Airlines.
Happened to me once on Orbitz, too: the flight changed to an earlier time and they and the airline neglected to tell me (but I noticed the discrepancy when printing boarding passes the day before so it was fine).
.sig withheld by request
If you book online with American Airlines, make sure to add $50 per checked bag. I bought an AA flight because it was cheaper, only to find out it was actually $100 more expensive ($50 checked bag, both ways). It would be nice if it asked you this when comparing tickets.
When I have to fly I try Southwest first, then Jet Blue. If I can get their on either of those I drive or I don't go.
If you are a "casual" traveler - i.e. you typically travel for personal reasons or at your own discretion - you're dead on. Southwest, JetBlue and Virgin America are inexpensive, comfortable and usually will get you where you need to go on time. These airplanes don't offer much in the way of perks or status programs (other than getting you a free flight now and then), but as a casual flyer that's not a big deal.
But if you fly fairly often (say, 50,000 miles a year or more) for work etc., then the traditional carriers start making a lot more sense - mainly because they do have multiple classes, perks programs etc. For example, United is a pretty terrible airline - more expensive, bad customer service in many cases, less nice cabins ... if I were a non-frequently flyer, I wouldn't touch them with a 10-foot pole. However, because I fly a lot on United and its code share partners, I get a lot of perks. Specifically, I know that if my schedule changes and I need to fly standby, I will be able to get on ahead of pretty much anybody else. Ditto for if my flight is cancelled and I need to be rebooked. It's also worth the extra money to me (especially since I'm not usually the one paying it) to know in advance I won't get a middle seat, will get to board first and not have them run out of overhead luggage space, occasionally get upgraded to first class, and so forth. American Airlines to me falls into that group of airlines I'd never look at as a casual flyer but would think strongly about as a business/frequent traveller.
So I think which airlines you look at should be based on your travel profile. I can almost analogize it to business class vs. consumer class Internet services - consumer class is cheaper and is good enough most of the time. If you have special needs or are a heavy user, paying more for the business service is the way to go.
"95% of all Slashdot
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.
Probably because travel agents don't like to work from my home office at 3am.
I am Slashdot. Are you Slashdot as well?
Yeah, a lot of times it isn't the airline that's at fault in this kind of situation. I've been lucky enough to avoid 5 hours on the tarmac, but I've done 2 plenty of times, and it's pretty much always been due to apron traffic control or air traffic control giving the poor pilot (and the 80 people sitting on the plane) the fuck-around.
If libertarians are so opposed to effective government, why don't they all move to Somalia?
I travel alot, and wish the ticket prices where cheaper if booked directly from the airlines (american in particular) . But they are NOT they are the same price regardless if booked through travelocity, expedia, aa.com or where have you. If AA was trying to save money or cared about the consumer then their direct website price would be lower by whatever fee it is the travel sites are getting paid. But it is not.
Actually I've found their articles to be insightful. They have real stories on China that don't get covered elsewhere, especially on the inner workings of the communist party.
As for "cult," that's what the communist party calls Falun Gong :-), so check your sources. I haven't seen any evidence that term is accurate: charge money (no), keep a membership list (no), coercive (no). The Falun Gong has been subject to a massively brutal persecution -- kudos to them for enduring the CCP and without violence. People can believe what they want, doesn't make them less deserving of human rights last time I checked.
I think there is also money involved. They get charged a fee if they want to unload passengers and then reload them. The airline will know pretty quick if there is a long wait involved, but don't want to pay the gate fees if they don't have to, and will screw their customers over that fee. I really wish they had legislated the traveler's bill of rights like they were going to.
-- I ignore anonymous replies to my comments and postings.
Can't the airlines just put a license agreement at the bottom of the page, combined with a robots.txt entry, that says that the user is prohibited from aggregating and publishing prices? This is the standard method of protecting databases in the US.
If airlines were so hurt by websites like Expedia, then you'd think they'd inform users that they could get better prices if they just went to the AA website. But every time I've tried finding a flight on Expedia, and then going and finding the same flight on AA, the price is outrageously high with AA. Really, I think it's like TV networks fighting netflix and Hulu (on TV boxes), the networks want to divide up the market and overcharge you for crap you don't want, and Netflix just makes it too convenient for people to get what they want at the lowest price. Same thing with Expedia, services like that need to stick around.
Until quite recently, one of the major online travel booking sites used to add their own change fee if you wanted to change your flight. You still had to pay the airline's fee, so the reward that the website gave you for using their site was increasing your cost.
I was using Hotels.com (really Expedia, I think) for hotel bookings. However, I stopped after one bad experience. I booked through hotels.com and when I arrived at the hotel, they denied that I had booked the room. When my credit card statement came through and I saw both the Hotels.com and the actual hotel's charge for the room, I called hotels.com and demanded a refund. While I was on the phone, they confirmed that I had stayed in the hotel and had paid the hotel directly, athough they claimed that the hotel had received the booked (but really, after the fact, who knew whether the booking had been transmitted before I arrived at the hotel?). Knowing this, they said I would have to call back again to ensure that I got the refund. I told them that my next call would be to my credit card company to dispute the charge. The operator even had the gall to claim that his supervisor wasn't there (yeah, right -- a call center without a supervisor there?).
So I stopped using hotels.com. In truth, the same rates are available directly from the hotels. The websites provide some value in locating the hotels, but after that, there is no value.
The real "Libtards" are the Libertarians!
Baggage fee are not new. You have a certain weight authorized with your ticket, (depending on class and trip it can go from 25 Kg to 40 Kg) and everything over that is Excess Baggage, for which a fee will be asked. We (yeah I wqork in airline nindustry) even have a document named EBD (Excess Baggage Doc) for this case, and when I started 10 years ago it was already existing. What might be new, is that the agent are asked to ENFORCE the rule strictly on baggage weight instead of being more relax and allow a kg or 2 of coolance. In other word if you were not paying before for baggage over the allowance it was NOT because the fee did not exists, but because the CKI agent skipped it. So now you are paying what you should always have paid. And really that is not a big deal. WEIGHT your luggage at home on a personal weighter, the one you use yourself, and remove crap until you get it OK.
As for food, make the concurrence work on that one. Other airline are still giving the crappy sandwich for free. A fee european airline comes to mind for that, and they are even airline which are "in the black" making profit. I think for example LH is still giving crappy food without asking money. If the crappy food (and it *IS* crappy) is that important, then check around for other airline. Otherwise do like we all do, buy MUCH less crappy food for the same price after you are thru security, in the gate area.
C. Sagan : A demon haunted world:
http://www.amazon.com/gp/product/0345409469/
visit randi.org
I have also been double charged by the hotel and the booking site. Most annoying, but at least in my case, the hotel removed the doubled charge. However, in another incident, I was charge an "environmental charge" for smoking in my room. I informed them that I have never smoked in my life and I wanted the charge removed. They refused. I spoke to the manager. They refused to remove the charge. So I called American Express and told them to remove X amount from my bill from the hotel. Thank goodness the credit cards at least will look after the consumers interests.
If you are not allowed to question your government then the government has answered your question.
If you are a high-status member of American's AAdvantage frequent flyer program, you are probably already booking directly on the AA.com site or through a travel agent who has access to all of American's flights through SABRE or one of the other reservation systems. If you want to fly in or out of DFW, you may know that American has about 85% of the total traffic, since Southwest flies to the more convenient Love Field. But that doesn't cover a very large percentage of American's potential customers. While many of us know about Kayak and other fare comparison sites, there are a lot of people who automatically go to Travelocity or Expedia to arrange their flghts. If the American flights don't pop up on a search, then these people are going to choose from the options that are shown. It's not as if American has retained the strong passenger loyalty that they had back in the days when their crew smiled at you and fed you. So American loses those revenue opportunities, and gives a different carrier the opportunity to fill the seat. If I were an AMR stockholder, I would bail. AMR stock was even in 2010 while JetBlue, Southwest, Delta and other airline stocks were up. Without a presence on a major reservation site, AMR is likely to lose market share (and thus stock value) in 2011. I can't imagine what American execs have been smoking to have made such a poor decision.
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.
Hours online finding A site? Man, you really need to upgrade from dialup.
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.
For someone like me, who flies > 120,000 miles a year, one of my conditions of employment is that I do my own travel booking. By the time I've explained to an agent which airline I want, which flights, which airports I want to transfer through and/or do not want to transfer through, etc etc etc... i might as well have booked it myself. Every time I've had something booked by an agent, it's had something wrong with it. (on a non-partner airline, crappy seat/no seat booked, wrong hotel, etc...)
OTOH, as someone who has top tier status with my airline (Air Canada), making a change is much simpler if I book directly with the airline. I can call the Super Elite desk, get a helpful and knowledgeable human within 30 seconds, and make the changes. If you book through an agent, you're often stuck dealing with them instead, and they keep shorter hours than the airline's call center does.
...si hoc legere nimium eruditionis habes...
crickey, I reckon you must be working for them, what an advert! Personally I wouldn't choose my airline on the grounds they have "stylish white plastic and black leather interior". Since when has white plastic been stylish? :-) And who cares?! Get me there on time and do it comfortably.
This might be the saddest comment I've ever read in slashdot history. You had your mother book your honeymoon suites? Did she also pick out the condoms, and provide a stack of index cards dictating the order of foreplay?: "Honey, I'd love to squeeze your left breast right now, but mother says it is pertinent that I first graze my tongue against your popliteal fossa, but try not to get too excited, mother has ordered up a bunch of bananas so that we can mind our potassium."
AA wasn't one of the airlines to see the benefits of the OTAs in the first place. That was up to Delta, United, Continental and Northwest in the late 90's, which spawned Orbitz. Orbitz later built, maintained and hosted AA.com, AFAIK, still hosts it. The 'war' here is going on because AA wants to negotiate rates that are beneficial for itself, but costly for the OTA's. AA wants to pay nothing for OTA bookings, which means the OTAs would lose money providing AA fares. Every fare search costs the OTAs money, as does transaction processing on bookings. AA will take a hit if they pull their rates out of the OTAs. They are hoping to recover that loss by somehow generating more direct bookings through their own site. AA accounts for less than 5% of the major OTA's bookings, so the OTA's really don't care all that much. The OTA's account for a much larger percentage of AA's bookings though. AA can't just start doing what Southwest does. They are too large and have way too many routes. Southwest's model is very different.
I think they probably should start using some sort of search engine.
It really does take a long time to find sites if you just punch in random numbers or words.
If corporations are people, aren't stockholders guilty of slavery?
I used to fly American all the time. Then their service started getting really bad. Then not only did they started charging for baggage, their fairs where hardly ever competitive.
They say go to their website to get the cheapest fairs, well going to their website vs Expedia usually meant you paid at least twice the price. I haven't flown American in over two years. I stopped buying flights on their website over five years ago. I wasn't going to pay double the price for the same flight Expedia was offering.
They're wild-eyed and a bit unstable. They may have good reason for their fanaticism, and I'm sure they have legitimately been persecuted, but it's fanaticism none the less.
No, no, I've been married for 6 years, and my mommy didn't dictate neither where nor what position to bed my bride. Nice assumptions though! They worked out real good for ya.
Only someone fanatical would put themselves through that. That doesn't mean it isn't noteworthy, but it does mean they're a bit unbalanced.