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

LINUXWORLD - True believers still see Linux on desktop

Linux evangelists are keeping the faith, even when it comes to the elusive Holy Grail of the open-source operating system: taking a significant chunk of the desktop market. more »

Does Official Taliban Site Exist?

Afghanistan's Taliban government, which declared the Internet unholy and banned its use for millions of Afghan citizens last June, maintained a website until shortly after the Sept. 11 terrorist attacks more »

Web Welcome From Korea

This big Korea tourism site is designed to be the first port of call for providing information to overseas visitors to Korea. more »

FTC opens antifraud Web site

In court and on the Internet, the FTC and several states are cracking down on the practice with a Web site and lawsuits to help consumers "ditch the pitch." more »

Pentagon Denies GPS to Taliban

The Pentagon said on Friday that it won't limit the accuracy of positioning information that's beamed to civilian global positioning system (GPS) receivers. more »

Microsoft Lobbies For Strict New Zealand Copyright Rules

Microsoft has asked the New Zealand government to implement strict regulations to protect online intellectual property more »

Nokia Unveils Roaming Solution Using GSM, WLANs

Nokia Communications and Finnish operator Sonera reported today that they conducted wireless LAN roaming using the GSM core network and roaming infrastructure. more »

Surprise: E-Biz is Doing Fine

On Wednesday morning, the mass media abounded with pseudo-apocalyptic horrors. Dozens are "exposed" to anthrax. more »

Intertainer, Microsoft launch online film, video service

The market for watching movies over the Internet is uncertain, so few people have the necessary high-speed connections. more »

Hacking for the Cause

Group Claims Bank Hack Attacks; Others Not So Sure more »