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

Wincor Nixdorf expands consulting competence in business intelligence

Wincor Nixdorf is enhancing its consulting portfolio for the banking business. more »

PC/E Cash Management Guarantees Optimal Cash Management

Wincor Nixdorf is set to present its ProClassic Enterprise Cash Management software for effective and rational organization of end-to end cash management processes in banks at the Retail Delivery Show. more »

Yahoo CEO to resign

Yahoo said Jerry Yang will step down as chief executive as soon as the board finds a replacement. more »

Wincor Nixdorf: Opportunities even in the financial market crisis

Wincor Nixdorf AG has turned in the best year in its history. more »

Visa offers payWave contactless payment to transit operators

Visa Inc. is working with the Los Angeles transit authority to allow train, subway and bus riders to pay fares with Visa’s payWave-enabled contactless cards. more »

Google's phone debuts

Customers line up in New York City to be the first to buy Google's new G1 phone. more »

A safer internet for children

Children and teenagers are keen internet users - 12 to 15-year-olds spend at least three hours a day on screen - but are not always aware of the dangers: not just sites showing child pornography or violence but also the risk of bullying or grooming. more »

Switching off CO2

A European Commission study found that devices left on stand-by throughout the European Union in 2005 consumed the same amount of electrical energy as a country the size of Greece or Portugal in 2008. more »

European Commission launches “Study in Europe” website to promote European higher education

The European Commission has launched a new web portal called “Study in Europe” to promote the attractiveness of European Higher Education to students from other parts of the world. more »

Protecting Europe's children from internet dangers

With the increasing availability of the internet, children are being exposed more and more to illicit images and content. more »