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

Online Scams Up, Credit Card Hacks Down

Consumers face a rising threat of online rip-offs, but they may be worried about the wrong thing more »

A centralized MMS system

Nokia's MMS Solution Enables TeliaSonera's pan-Nordic Multimedia Messaging Launch more »

Gartner: IT services revenue to grow

Companies will spend slightly more on IT services in 2003 than last year more »

North Korea's School for Hackers

In North Korea's mountainous Hyungsan region, a military academy specializing in electronic warfare has been churning out 100 cybersoldiers every year for nearly two decades more »

search.lt news

search.lt presents newest links more »

Computer Crime Losses Drop Significantly

Financial losses from computer crime are down significantly from last year according to the latest Computer Crime and Security Survey more »

College plans virus-writing course

While many students would be expelled from their computer science programs for writing a virus, the University of Calgary plans to make writing such malicious programs a part of the curriculum more »

Danish prince celebrates 35 with Web site

hkhkronprinsen.dk - a personal Web site of Danish Crown Prince Frederik more »

724 wins messaging upgrade in Estonia

724 Solutions announced Radiolinja Eesti of Estonia will upgrade its messaging gateway to 724’s X-treme Mobility Gateway (XMG) more »

The front runner

EURID will manage .eu top-level domain more »