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

Symantec Offers SMBs a Better Sense of Security

Firewalls, VPNs, intrusion detection are becoming as common in the business vernacular as balance sheets, P & L statements and chart of accounts more »

IBM To Bulk Up On-Demand Centers

IBM is set to make a major push in its drive to become the top provider of utility, or "on-demand," computing services more »

search.lt news

search.lt presents newest links more »

CeBIT'2004: Talking technology

Talkative future for every gadget more »

The accusation

Internet suppliers have to connect abroad in order to connect with Poland more »

Panasonic preps 1GB Secure Digital card

Panasonic announced on Friday that it plans to launch a 1GB Secure Digital card first in Japan in April more »

Who should govern the Net?

It's no longer merely an academic question more »

NEC shrinks music, grows phones

NEC has launched the e616, its latest feature-packed 3G handset at CeBIT more »

Sony doubles up with AIT-4

Sony has launched the fourth generation of its AIT (Advanced Intelligent Tape) format at CeBIT more »

ICANN surveys proposed Net domains

The Internet's real estate may soon be expanding, with the proposed addition of up to nine new top-level domains, including .jobs, .xxx, .travel and .mail more »