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

Google Makeover Gets 'Personal'

Looking to stave off aggressive competition from rivals such as Yahoo and Microsoft, search technology powerhouse Google has started testing a personalized Web search feature more »

search.lt news

search.lt presents newest links more »

Ballmer rues Web-search decision

Internet searching is a hot technology business, but you wouldn't know it from looking at Microsoft more »

Lindows plans US gov backed global assault on Windows trademark

Lindows.com intends to use a US Department of Commerce programme to have Microsoft's trademarks of Windows invalidated worldwide more »

CeBIT'2004: All in One Screen

Why have two or more screens when you can make do with just one? more »

Sony Ericsson banks on 3G appeal

The future looks bright for third generation mobiles, according to the boss of phone maker Sony Ericsson more »

New Standard Would Let Devices Communicate by Touch

Visa has already distributed millions of so-called contactless credit cards cards that can be read by simply waving them in front of small machines more »

The "Swissmemory USB Victorinox"

It's got everything from a toothpick to a bottle opener and screw driver more »

No Bigger than A Pen

German company Siemens introduced its latest contribution to the mini phone rage: the PenPhone more »

Dancing Robots

Kunitake Ando, President of Sony, unveils the Japanese company's contribution to artificial intelligence: a dancing robot more »