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

Italian police shut down hacker rings

Tipped off by American officials, Italian police shut down two rings of hackers who attacked Web sites belonging to the U.S. Army and NASA more »

Yokohama to let residents decide participation in network

Yokohama Mayor Hiroshi Nakada decided Friday to allow residents of the city to choose whether their personal data can be registered in a national resident registry network to be launched Monday by the central government more »

Light speed

An Israeli startup takes on Moore's law--and Texas Instruments more »

Cheap PCs With Lindows Are Well Intentioned but Flawed

Wal-Mart, the most mass-market retailer imaginable, is committing an outrageous form of computing heresy: On its Web site, it's selling Windows-compatible personal computers without Windows more »

Users divided on the meaning of spam

Businesses in the US and UK agree that spam is a problem, but according to MessageLabs many users cannot reach a consensus on its definition more »

search.lt news

search.lt presents newest links more »

The investigation

FORMER FSB OFFICER TESTIFIES ABOUT 1999 APARTMENT-BUILDING BOMBINGS... more »

Gates: Slow going for .Net

Microsoft on Wednesday acknowledged that its .Net plan has been slow to catch on and laid out an agenda to move the software strategy ahead more »

Virus Dials 911

Police Show Up Only to Find Infected WebTVs. more »

AOL blasted for anti-semitic postings

Filters fail to block 'pro-terrorist' messages more »