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 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.
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?
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.
Yeah, my mom can be a practical joker like that too ;)
A polar bear is a cartesian bear after a coordinate transform.
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?
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.
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.
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.
so small that if you show up with a standard sized carry on, they make you check it.
Depends on your value for "standard sized". Most of the carry-ons I see are far bigger than the "standard" (ie., the little rack out by the check-in desk that demonstrates the correct carry-on size).
Really, next time, try to fit your "carry-on" into the sizer. If it doesn't fit, expect to pay. Just because it has wheels and a handle and is smaller than full-sized luggage doesn't make it carry-on.
A house divided against itself cannot stand.