I always use www.kayak.com or sidestep.com to find the best fare in the market. I used orbitz.com couple years ago and was not happy, so I sought an alternative. Either Air or Car both sites pretty much give you the best bargain and then takes you to the site where you can book. I can see AA's reason to try to trim cost.
American pulls tickets from Orbitz
- Thread starter damajagua
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Corn Field
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I would honestly be surprised if Expedia has grounds to suppress AA fare results unless AA has also delivered notice to Expedia that AA intends to no longer allow access to AA fares.
Either way it appears AA is aware of the costs involved and has settled in for the long haul. Unless AA files suit against Expedia, it would seem that AA will lose its position in both Orbitz and Expedia.
Other sites such as Kayak are exactly what AA wants... but they are less popular.
E,
do you know the similarity between AA and other carriers to AA's direct booking product?
eolesen
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Expedia's contract with AA expires in early 2011. Not sure if that is in 1Q or 2Q.
Quote from SFGate.com:
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/12/26/businessinsider-expedia-buries-american-airlines-listings-2010-12.DTL#ixzz19GmpuSvQ
Can't comment.
Quote from SFGate.com:
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/12/26/businessinsider-expedia-buries-american-airlines-listings-2010-12.DTL#ixzz19GmpuSvQ
Can't comment.
Interested
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I thought AA also advertises they have the lowest fares from AA.com
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I understand the desire for people to "one-stop" shop for airfares on Orbitz, Expedia, etc. But how much more time and work is it to visit each airlines' websites?
Didn't JetBlue innovate that whole idea with JETBLUE.COM being affixed so clearly on their aircraft and in advertising?
Everything I purchase, be it a car, electronics, and any other item that costs a nice chunk of change, I shop around. And most of the shopping is done via the internet visiting various websites. But sometimes looking at an item online is not the same as seeing it in person, with the exception of airfares!
Frank Szabo
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The "One Stop" shopping you're referring to is why Beijing Tire and Supply (ie, WalMart) is doing so well. If I go there, it's due to the simple fact what I want is not available elsewhere locally or on a NetStore.
There's much more that is symptomatic of the "One Stop" you're referring to, Mr. Hopeful, but that's a different subject entirely.
eolesen
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There's a difference between shopping and buying.
If you're only looking for airfares, there are options like Kayak which will show you the price options. From there, you go to the supplier's website, be it Jetblue, AA, Southwest... And yes, you do see Southwest and Jetblue options on Kayak.
Where Kayak makes their money is on the click thru (similar to shopping on Google).
Expedia and Orbitz aren't just shopping -- they are retailers. They want you to shop and buy thru them. That allows them to also try to sell you a car/hotel (which is where commissions start to kick in).
But they also don't sell Southwest or Jetblue, nor do they show their flights & fares.
Personal opinion/observation only here...
What's a bit ironic is that AA has directly or indirectly put themselves on the same playing field as Southwest and Jetblue. And I don't know that you can argue that either of the latter two are hurting by not being available on Orbitz or Expedia.
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Network airlines need shopping comparison websites because their pricing structures have traditionally been so complex. The irony is that Orbitz was created by the network airlines to help counter the growth of other shopping type websites.
But just as network airline pricing structures have changed fairly rapidly as a result of low cost competition, so have the types of distribution systems that are needed.
Low cost carriers have always had a reputation of fair pricing even if they are often more expensive. The greater range of prices from network carriers means that passengers are more likely to want to comparison shop before buying.
With much of the US domestic fare structure now influenced if not controlled by low fare carriers, the network carriers really are on a similar playing field with respect to fares... but the network airlines have added fee structures that are far more complex than the low fare carriers.
TO think, however, that the network airlines are making a mistake with their complex fare structures is a mistake. Multiple network airlines including AA have tried to simplify their fare structures only to find that the complexity of their fare structures translates into more revenue than the simplified fare structures that low fare carriers use. Given that network carriers have higher costs, it is the complexity of their fare structures that allow them to be profitable which they could not do with low fare carrier pricing structures on network carrier cost bases.
AA is making a calculated long term risk by attempting to manage the complexity of their fare structure using tools which it believes are sufficient to provide comparisions against competitors w/o bearing the costs that come w/ many comparison sites.
It is likely that AA identified its highest value customers who booked through Orbitz ane Expedia before it started this initiative and is working to move those customers over to AA.com. It is very likely that AA will lose some revenue from some of these sites - and it might not be insignificant (even 5% of AA's nearly $20B in annual revenue is alot of money at risk) but they are apparently willing to take the risk now and manage the risks in hopes of setting the stage for a leaner, more efficient distribution system.
If AA succeeds at reducing the costs of 3rd party booking costs (CRS and commission related), the other network airlines will owe AA a big thank you.
But just as network airline pricing structures have changed fairly rapidly as a result of low cost competition, so have the types of distribution systems that are needed.
Low cost carriers have always had a reputation of fair pricing even if they are often more expensive. The greater range of prices from network carriers means that passengers are more likely to want to comparison shop before buying.
With much of the US domestic fare structure now influenced if not controlled by low fare carriers, the network carriers really are on a similar playing field with respect to fares... but the network airlines have added fee structures that are far more complex than the low fare carriers.
TO think, however, that the network airlines are making a mistake with their complex fare structures is a mistake. Multiple network airlines including AA have tried to simplify their fare structures only to find that the complexity of their fare structures translates into more revenue than the simplified fare structures that low fare carriers use. Given that network carriers have higher costs, it is the complexity of their fare structures that allow them to be profitable which they could not do with low fare carrier pricing structures on network carrier cost bases.
AA is making a calculated long term risk by attempting to manage the complexity of their fare structure using tools which it believes are sufficient to provide comparisions against competitors w/o bearing the costs that come w/ many comparison sites.
It is likely that AA identified its highest value customers who booked through Orbitz ane Expedia before it started this initiative and is working to move those customers over to AA.com. It is very likely that AA will lose some revenue from some of these sites - and it might not be insignificant (even 5% of AA's nearly $20B in annual revenue is alot of money at risk) but they are apparently willing to take the risk now and manage the risks in hopes of setting the stage for a leaner, more efficient distribution system.
If AA succeeds at reducing the costs of 3rd party booking costs (CRS and commission related), the other network airlines will owe AA a big thank you.
PhatSappy
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Ditto!
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thanks... but sometimes there is good news and sometimes there is bad. Listening to only one side of the story makes for a pretty distorted view of life.
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AA's not the only one, just more high-profiled in the news. http://travel.usatoday.com/flights/post/2010/12/delta-pulls-flights-from-travel-sites/136239/1
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<_< -------- Umm! More of the same! http://news.yahoo.com/s/ap_travel/20110101/ap_tr_ge/us_travel_brief_american_airlines_expedia No surprise!
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Obviously both sides have settled in until there is a win on someone's side.... no one is going to back down. AA obviously doesn't really care if Orbitz/Expedia win, they just are not interested in seeing it done at AA's expense. Not sure the inverse is true though.
The spectators are lining up to see how it will all end.
The spectators are lining up to see how it will all end.
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<_< ------- So what do we have here?------ A game to see who will blink first?-------- Are you so sure AA can afford to play games at this point in time? :huh:
