Airline Industry Study Defends Orbitz Project

Published: 16 March 2001 y., Friday
"New entrants in travel distribution are being met with substantial opposition from the old guard and from leaders in the online travel marketplace," the report says. "More specifically, the agency community is opposing consumer-direct distribution by travel suppliers, and in particular, attempts to aggregate multiple suppliers onto a single site." Published by Global Aviation Associates, the report accuses the travel-booking industry of mounting a concerted and well-funded lobbying push against Orbitz, in order to protect its profit margins. The report "does restate the idea that Orbitz is bringing some needed competition" to the industry, Orbitz spokesperson Stacey Spencer said today. But travel agents haven't been the only Orbitz detractors. Since news of the airline industry joint Internet venture first surfaced in 1999, consumer advocates, travel industry groups and regulators have expressed concern about the proposed project. A collaborative effort owned jointly by American Airlines, Delta Air Lines, Continental Airlines, Northwest Airlines and United Airlines, Orbitz intends to offer a one-stop-shop for online ticketing. By obscuring the need for travel "middlemen" Orbitz could squeeze other competitors out of the market, Orbitz detractors contend. The Orbitz-funded report goes on to accuse operators of travel industry "global distribution systems" (including Travelocity.com owner Sabre Inc.) of maintaining artificially high ticket-booking prices, in a bid to pad their own profits. The underlying costs for running those systems, which coordinate ticket sales across huge networks, have dropped as prices for computer technology and telecommunications services have fallen. Still, prices associated with global distributions systems (GDS) actually have increased, the report said.
Šaltinis: Newsbytes
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

What impact will sites like Facebook and YouTube have in the EP elections?

Networking sites like Facebook and YouTube are changing politics. more »

Santander Selects Wincor Nixdorf for its ATMs

Vendor to service almost 4,000 existing ATMs and supply another 450. more »

WINCOR: Check 21, deposit automation will revolutionize the branch

The advent of deposit automation, facilitated in many ways by the implementation of Check 21, is not only improving check-handling processes at the self-service terminal – it also is improving handling within the bank branch itself. more »

Moroccan Post Office chooses Bull

The Moroccan Post Office, Barid Al-Maghrib, has selected Bull to act as project manager on the automation project for its International Mail Center in Casablanca. more »

Gemalto Wins Austin Business Journal Tech Innovation Award

Gemalto has taken home one of the most coveted technology prizes in Austin with its Smart Enterprise Guardian (SEG). more »

So-called 'bam-raids' on Aussie ATMs get bankers' attention

Banks in Australia are rushing to install gas detectors into their ATMs, as gas-explosive attacks on ATMs in the country continue to climb. more »

EMC and Microsoft Extend Strategic Alliance Through 2011

EMC CEO Joe Tucci and Microsoft CEO Steve Ballmer showcase deep technology collaboration at New York CIO Summit. more »

Gemalto and mChek Join Forces to Serve Mobile Payment Markets in South Asia

India-based mChek looks to offer its secured SIM-card-based mobile applications through partnership with Gemalto. more »

Heartland Payments CEO says end-to-end encryption could prevent card, data breaches

Nearly one week after news emerged of the big data breach at Princeton, N.J.-based merchant acquirer Heartland Payment Systems Inc., it remains unclear how much damage actually happened and who did it. more »

Wincor Nixdorf launches new ATM tech that shields ATMs from attacks

Wincor Nixdorf AG has announced the release of an enhanced security product for bank branches called ProTect. more »