AA "de-preferenced" by Expedia - "suspension" now lifted April 4, 2011
Dec 23, 2010, 10:06 am
#1
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AA "de-preferenced" by Expedia - "suspension" now lifted April 4, 2011
Firing a salvo before its contract with AA expires and AA does the same thing it did with Orbitz (see thread http://www.flyertalk.com/forum/ameri...2-21-10-a.html), Expedia has "de-preferenced" AA according to this article.
AA now appears at the far end of its list of available airlines and prices will not be shown, replaced with a link to a results page elsewhere on the site.
Expedia's statement says:
--------------------------------------------------------------------------------
MODERATOR'S NOTE
As of April 1 2011, Expedia is again showing AA flights:
As of Jan 1, 2010, Expedia no longer displays AA flights at all:
For related threads, see:
http://www.flyertalk.com/forum/ameri...21-2010-a.html
http://www.flyertalk.com/forum/ameri...ug-2011-a.html
Update regarding AA Flight Availability listings on ExpertFlyer
http://www.flyertalk.com/forum/ameri...18-2011-a.html
dstan
AA Forum Co-Moderator
AA now appears at the far end of its list of available airlines and prices will not be shown, replaced with a link to a results page elsewhere on the site.
Expedia's statement says:
“American Airlines has shown it only intends to do business with travel agencies through a new model that is anti-consumer and anti-choice.
“We believe American Airlines’ proposed direct connect model will result in higher costs and reduced transparency for consumers, making it difficult to compare AA ticket prices and options with offerings by other airlines.
“American Airlines’ direct connect model is of questionable, if any, benefit to travelers, costly to build and maintain and would compromise travel agents’ ability to provide travelers with the best selection.”
“We believe American Airlines’ proposed direct connect model will result in higher costs and reduced transparency for consumers, making it difficult to compare AA ticket prices and options with offerings by other airlines.
“American Airlines’ direct connect model is of questionable, if any, benefit to travelers, costly to build and maintain and would compromise travel agents’ ability to provide travelers with the best selection.”
MODERATOR'S NOTE
As of April 1 2011, Expedia is again showing AA flights:
http://www.prnewswire.com/news-relea...119209709.html
FORT WORTH, Texas and BELLEVUE, Wash., April 4, 2011 /PRNewswire/ -- American Airlines, a wholly owned subsidiary of AMR Corporation, and Expedia, Inc. announced today a memorandum of understanding (MOU) that will allow the companies to resume doing business together, effective immediately. Access to fares and schedule information of American Airlines and its subsidiary American Eagle has been restored for search and ticketing on Expedia and Hotwire sites worldwide initially via global distribution system (GDS) technology.
Expedia said it plans to access American's fares, schedules, and customized travel products and services via American's direct connect link by using aggregation technology provided by a GDS. Expedia is committed to working with airlines, GDS and other technology partners to ensure continued innovation within the Expedia marketplace.
Additional terms were not disclosed.
FORT WORTH, Texas and BELLEVUE, Wash., April 4, 2011 /PRNewswire/ -- American Airlines, a wholly owned subsidiary of AMR Corporation, and Expedia, Inc. announced today a memorandum of understanding (MOU) that will allow the companies to resume doing business together, effective immediately. Access to fares and schedule information of American Airlines and its subsidiary American Eagle has been restored for search and ticketing on Expedia and Hotwire sites worldwide initially via global distribution system (GDS) technology.
Expedia said it plans to access American's fares, schedules, and customized travel products and services via American's direct connect link by using aggregation technology provided by a GDS. Expedia is committed to working with airlines, GDS and other technology partners to ensure continued innovation within the Expedia marketplace.
Additional terms were not disclosed.
The spat intensifies...
Source: http://www.tnooz.com/2011/01/01/news...rlines-flights
(more on the article linked above)
Source: http://www.tnooz.com/2011/01/01/news...rlines-flights
Push came to shove and Expedia says it suspended American Airlines flights on Expedia.com today [1 January] after the two sides failed to reach a new agreement.
The prior contract expired Dec. 31.
The American Airlines blackout impacts all Expedia Inc. leisure websites globally, including all of the Expedia-branded sites and Hotwire, but does not impact Expedia Inc.’s corporate travel agency, Egencia, which still features American Airlines flights for business travelers.
Expedia pinned the failed talks on American Airlines’ direct-connect strategy.
Expedia stated: “We have been unable to reach an agreement with American Airlines due to American Airlines’ new commercial strategy that we believe is anti-consumer and anti-choice. American Airlines is attempting to introduce a new direct connect model that will result in higher costs and reduced transparency for consumers, making it difficult to compare American Airlines’ ticket prices and options with offerings by other airlines. American Airlines’ direct connect model is of questionable, if any, benefit to travelers, would be costly to build and maintain and would compromise travel agents’ ability to provide travelers with the best selection.”
The prior contract expired Dec. 31.
The American Airlines blackout impacts all Expedia Inc. leisure websites globally, including all of the Expedia-branded sites and Hotwire, but does not impact Expedia Inc.’s corporate travel agency, Egencia, which still features American Airlines flights for business travelers.
Expedia pinned the failed talks on American Airlines’ direct-connect strategy.
Expedia stated: “We have been unable to reach an agreement with American Airlines due to American Airlines’ new commercial strategy that we believe is anti-consumer and anti-choice. American Airlines is attempting to introduce a new direct connect model that will result in higher costs and reduced transparency for consumers, making it difficult to compare American Airlines’ ticket prices and options with offerings by other airlines. American Airlines’ direct connect model is of questionable, if any, benefit to travelers, would be costly to build and maintain and would compromise travel agents’ ability to provide travelers with the best selection.”
For related threads, see:
http://www.flyertalk.com/forum/ameri...21-2010-a.html
http://www.flyertalk.com/forum/ameri...ug-2011-a.html
Update regarding AA Flight Availability listings on ExpertFlyer
http://www.flyertalk.com/forum/ameri...18-2011-a.html
dstan
AA Forum Co-Moderator
Last edited by JY1024; Apr 4, 2011 at 4:04 pm Reason: updated mod note
Dec 23, 2010, 10:08 am
#2
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Shameful. AA did it to themselves. A global "Culture of Stingyness" can bite a business in the back sometimes
Shameful. AA did it to themselves. A global "Culture of Stingyness" can bite a business in the back sometimes
Dec 23, 2010, 10:33 am
#3
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Between this and Orbitz this is really going to cause some major headaches. I just tested our company's travel tool site, where AA is a preferred carrier, and even there you have to now double click to get to the AA flight options vs. the others. What are they thinking
Dec 23, 2010, 10:42 am
#4
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My general understanding is that out of all the consolidators, Expedia is by and far the one with the largest audience. This might sting AA more then the Orbitz fight......
Did a test booking for a flight ORD-NRT I want to take in October. It wasn't listed on the first page of options, and even after scrolling you had to click through to another page to find AA. The flights are listed in order cheapest to most expensive, so it appeared as if AA was priced over $5000 for the trip when in reality it was only $1200.
Did a test booking for a flight ORD-NRT I want to take in October. It wasn't listed on the first page of options, and even after scrolling you had to click through to another page to find AA. The flights are listed in order cheapest to most expensive, so it appeared as if AA was priced over $5000 for the trip when in reality it was only $1200.
Dec 23, 2010, 10:43 am
#5
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My corporate is via Expedia and as it was I had to do some somersaults to get AA to be "allowed" vs DL. I'm not sure what the implication of this is really going to be other than lots of lost sales to AA.
Dec 23, 2010, 10:44 am
#6
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Shameful? Gimme a break. AA has made a business decision, not a moral one.
Dec 23, 2010, 11:03 am
#7
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Like when a network pulls its signal from a cable or satellite provider over fees, both sides are being greedy in this and throwing the consumer in the middle of their fight for higher profits. (Neither side ever gives a crap about the consumer, of course)
Dec 23, 2010, 11:14 am
#8
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So when two sides to a business transaction are not able to reach an agreement, what do you propose? Should they come together, hug, and sing Kumbaya?
Dec 23, 2010, 11:14 am
#9
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This is all game a chicken.
Dec 23, 2010, 11:19 am
#10
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We are looking at this from the outside, without most of the information that AA, Orbitz, or Expedia have that they are basing their decisions on. It is pretty difficult for us to have any meaningful judgement on this one. Just hoping everyone gets back to playing nice with each other soon.
Dec 23, 2010, 11:20 am
#11
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This is very interesting. Orbitz is one thing, somewhat small in the scheme of things. Expedia is huge, HUGE in the OLTA (online travel agency) sector! Not only that, but as I posted in the Orbitz thread, OLTAs comprising both leisure and corporate travel bookings (compared to corporate bookings through traditional agencies) surged big time in 2010 vs the 2005-2009 period. AA is already hurting on the revenue and cost fronts (vs competition), so why it is choosing this strategy now is beyond me.
Dec 23, 2010, 11:23 am
#12
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I dont think it is going to hit AA much in the long run, apart from the fact that travel agents wont be able to sell AA flights combined with other carriers. There are some combinations that yield low fares which AA's site will never give. For example, pairing for AA and LX. And consumers do lose out on them. But from AA's point of view I dont think they earn much from these and lose a lot in publishing data to GDS's
Dec 23, 2010, 11:28 am
#13
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Dec 23, 2010, 11:39 am
#14
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Well this should make redeeming thankyou awards interesting too...
Dec 23, 2010, 11:51 am
#15
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I don't get that from your prior post, but it's a sentiment with which I completely agree. This is a business negotiation, plain and simple. And if you think about it, the impact on the consumer is fairly minimal.