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

Web Influences Offline Purchases, Especially Among Teens

The growth rate of e-commerce sales has begun to slow from its torrid pace of recent years, but online consumers continue to use the Web for shopping, if not buying. more »

The Internet store

The company ``Lattelekom`` opened the Internet store ``www.collectoria.lv`` more »

NTL and Telewest working together to build Broadband Britain

9 million homes ready for broadband now. By end 2002, 11.6 million homes will be broadband-capable more »

Online Shopping a Tough Sell for Online Retailers

A study of more than 4,000 Web users by Brigham Young University (BYU) found that Internet retailers need to re-target their marketing, address customer fears over credit card security and make the experience less technologically challenging. more »

search.lt news

search.lt presents newest links more »

SAP Evicts Cybersquatter

The World Intellectual Property Rights Organization has ordered India-based cybersquatter D. P.Singh Bhatia to transfer the domain names Sapmaster.com and Sapwizard.com to the German multinational e-business concern, SAP AG. more »

Korea Plans For Broadband Everywhere By 2005

The Korean government aims to have 84 percent of the nation's households accessing the Internet at a super-fast 20 megabits per second (Mbps) by 2005. more »

Jupiter's report

Mobile commerce to remain a niche more »

Alcatel reveals innovative One Touch 511 mobile

Alcatel gave the world its first tantalizing preview of the new One Touch 511 mobile phone, set to be on the market in early July. more »

Tilde's Internet Dictionary

English-Latvian-English base dictionary contains 41 802 English words, 29 947 English expressions and 86 442 Latvian words. more »