Go Back  FlyerTalk Forums > Miles&Points > Discontinued Programs/Partners > American Airlines | AAdvantage (Pre-Consolidation with USAir)
Reload this Page >

AA "de-preferenced" by Expedia - "suspension" now lifted April 4, 2011

AA "de-preferenced" by Expedia - "suspension" now lifted April 4, 2011

 
Old Dec 23, 2010, 1:15 pm
  #31  
FlyerTalk Evangelist
 
Join Date: Dec 2003
Location: Benicia, California, USA
Programs: AA PLT,AS,UA PP,J6,FB,EY,LH,SQ,HH Dmd,Hyatt Glbl,Marriott Plat,IHG Plat,Accor Gold
Posts: 10,820
Originally Posted by chongcao
Without the extra expense in GDS, anyone who book directly with AA could benefit from it as no booking fee or credit card fee would ever impose to customers.

Smart consumer will still shop around for choice. But AA made the move as the first in industry to get rid of middleman, which is logical, and long being seen as future of airline indutrsy. If AA successed, other mainline airlines will follow.

The point is, AA is doing its best in deliverying value to customer. The end result may differ from individual case, but I do hope AA could achieve its goal on cost saving.
While I don't quite agree with the last paragraph--AA is doing its best to help itself, regardless of whether it delivers value to the customer--I more broadly agree with your overall point. The middlemen such as Expedia that charge for comparing ticket prices (and then buying through them) are adding to both AA's and the customer's costs. With online alternatives that simply compare ticket costs without being travel agents/middlemen, the point of companies such as Expedia is diminished.
Thunderroad is offline  
Old Dec 23, 2010, 1:18 pm
  #32  
 
Join Date: Dec 2007
Location: Las Vegas
Programs: DL Platinum, AA Lifetime Gold, Hilton Diamond, Marriott Platinum, Radisson Premium
Posts: 6,635
Looking at this a second time, I'd say it's a kind of in your face move by Expedia. It purposefully makes it more difficult for the customer to book on AA "just because."

No one knows how to conduct themselves like adults anymore it seems.
demkr is offline  
Old Dec 23, 2010, 1:19 pm
  #33  
 
Join Date: Oct 2010
Location: SEA
Programs: UA 1K, AS MVPG, DL GM, Marriott Titanium, Hilton Diamond
Posts: 2,266
Originally Posted by 3Cforme
The AA brand is plenty strong enough to go that route if AA wishes.
Is it???

I don't believe it is at all. They are already a struggling airline and losing a couple of the main third party companies is only going to hurt their revenue. I know of quite a few businesses that are pretty large in size that use Orbitz for Business to book tickets.....with AA gone, they just lost a lot of revenue there that will now have to go to other airlines.

Another large issue that AA will face is that Expedia and Orbitz allow customers to see all options for airlines, times, etc in one spot. Only loyal AA frequent flyers will be going to AA.com. AA will lose a huge chunk of the leisure segment that just buys tickets based on price/convenience. Since AA won't be listed on these sites, they are in trouble and will lose a number of passengers. While I understand that these passengers are low yield, they are a necessary part of business.....they are filling last minute seats, giving AA guaranteed revenue and baggage fees and other ancillary revenue (change fees, onboard purchases, etc). I personally think this is a really really stupid move on AAs part and is going to make their business take a big revenue hit. Never fun losing customers (no matter how low yield they are) because that is $$$$ out of AAs pocket and bottom line as well as empty seats that could have been sold via these third party sites.

I wish AA the best of luck but I fear that this will hurt them and if other airlines don't follow suit, AA will be secluded again and in the financial situation they are currently in, we could have some real issues ahead for AA....
GYEWorldTraveler is offline  
Old Dec 23, 2010, 1:23 pm
  #34  
FlyerTalk Evangelist
 
Join Date: Aug 2003
Location: MSY (finally); previously NYC, BOS, AUH
Programs: AA EXP, 6MM; BA GLD
Posts: 17,203
Originally Posted by demkr
No one knows how to conduct themselves like adults anymore it seems.
Why do you keep making moral judgments about something that is just business?
Blumie is offline  
Old Dec 23, 2010, 1:24 pm
  #35  
PHL
FlyerTalk Evangelist
 
Join Date: Dec 2000
Location: PHL, NYC
Programs: AA PLT, DL SLV, UA SLV, MR LTT, HH DIA
Posts: 10,035
When AA sees big drops in bookings, they'll know that aa.com hasn't been the place people go to book. If that happens, it won't be long before we see them back on Orbitz and Expedia.
PHL is offline  
Old Dec 23, 2010, 1:27 pm
  #36  
Suspended
 
Join Date: Jul 2001
Location: Watchlisted by the prejudiced, en route to purgatory
Programs: Just Say No to Fleecing and Blacklisting
Posts: 102,103
If Orbitz, Expedia and such online TAs manage to push back successfully against AA's efforts that have got the OTAs riled up, that's good news for this consumer.
GUWonder is offline  
Old Dec 23, 2010, 1:28 pm
  #37  
FlyerTalk Evangelist
 
Join Date: Aug 2003
Location: MSY (finally); previously NYC, BOS, AUH
Programs: AA EXP, 6MM; BA GLD
Posts: 17,203
Originally Posted by PHL
When AA sees big drops in bookings, they'll know that aa.com hasn't been the place people go to book. If that happens, it won't be long before we see them back on Orbitz and Expedia.
Don't you think AA knows the precise sources of its bookings today?

Last edited by Blumie; Dec 23, 2010 at 5:45 pm
Blumie is offline  
Old Dec 23, 2010, 1:36 pm
  #38  
Suspended
 
Join Date: Jul 2001
Location: Watchlisted by the prejudiced, en route to purgatory
Programs: Just Say No to Fleecing and Blacklisting
Posts: 102,103
Originally Posted by FlyMeToTheLooneyBin
Why go through all this complication of hiding AA? Why doesn't Expedia just drop AA then? If they want to protest it, go all the way!
Expedia doesn't want those customers who select AA as their preferred carrier when starting searches to jump away from using Expedia.
GUWonder is offline  
Old Dec 23, 2010, 1:36 pm
  #39  
 
Join Date: Aug 2010
Location: Texas
Programs: AA EXP, UA Premier Plat, Alaska MVP Gold, HHonors Diamond, SPG Platinum, Hyatt Platinum
Posts: 2,053
Originally Posted by 3Cforme
AA can double-down with a few TV commercials and newspaper ads:

Don't bother looking on Expedia or Orbitz for tickets on American Airlines. Look to aa.com, always for our guaranteed lowest fare.

The AA brand is plenty strong enough to go that route if AA wishes.
And for consumers looking specifically for AA tix, like those in hubs who fly AA for their annual christmas trip home, etc., the click after expedia not showing them AA fares will be.... to aa.com.

I don't see this as a big deal.
mreed911 is offline  
Old Dec 23, 2010, 1:40 pm
  #40  
Suspended
 
Join Date: Jul 2001
Location: Watchlisted by the prejudiced, en route to purgatory
Programs: Just Say No to Fleecing and Blacklisting
Posts: 102,103
Originally Posted by mreed911
And for consumers looking specifically for AA tix, like those in hubs who fly AA for their annual christmas trip home, etc., the click after expedia not showing them AA fares will be.... to aa.com.
Unless AA pulls the plug on letting Expedia make bookings on AA ticket stock, I don't see that as being the case necessarily. Expedia customers who are looking specifically for AA tickets can still do so on Expedia by searching in the manner that such customers do: by selecting American Airlines on Expedia.
GUWonder is offline  
Old Dec 23, 2010, 1:42 pm
  #41  
Suspended
 
Join Date: Sep 2006
Programs: AAdvantage PP
Posts: 13,913
Originally Posted by Blumie
Don't you think AA knows the precise sources of it's bookings today?
I would also assume that a bulk of these people (but not every single one) are using a third party site to find the cheapest fare. Of course, the fee cuts into probably what is already a near non existent margin. However, as others have said not having the listing excludes AA from a number of potential flyers and not to mention all the wonder fees which are the real profit driver.

My guess this is AA's way of attempting to get Orbitz to lower their fees.
MiamiAirport Formerly NY George is offline  
Old Dec 23, 2010, 1:42 pm
  #42  
 
Join Date: Aug 2010
Location: Texas
Programs: AA EXP, UA Premier Plat, Alaska MVP Gold, HHonors Diamond, SPG Platinum, Hyatt Platinum
Posts: 2,053
Originally Posted by ty97
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)
In essence, you're right. Both companies (AA and Expedia) care about their STOCKHOLDERS, which is exactly what they're legally required to do.

Whether this means more of a push for business extraa, or working directly with corporate travel departments, or AA simply testing the waters to see what other airlines and travel sites do, there's certainly a plan and a calculated set of risks/benefits they're watching. They've also likely determine which consumers will be affected, and how that balance will shift out. Without knowing where AA's revenue comes from (in terms of each set on the plane, each plane on the schedule, etc.), it's hard to know where they expect to see offsetting benefits and losses, but you can be sure they've made their prediction.

Either way, while they provide services to consumers, they provide VALUE to stockholders... and that's who provides the significant source of funding for their ongoing operations.
mreed911 is offline  
Old Dec 23, 2010, 1:49 pm
  #43  
 
Join Date: Jan 2010
Location: MIA
Programs: AA, DL, BA
Posts: 117
Originally Posted by mreed911
And for consumers looking specifically for AA tix, like those in hubs who fly AA for their annual christmas trip home, etc., the click after expedia not showing them AA fares will be.... to aa.com.

I don't see this as a big deal.

I think this holds true only if we are talking about knowledgeable travelers {And I believe that Flyertalkers are not a true sample of the general public}

- Most leisure travelers do not know about the hubs. I am willing to bet that half of the people in Miami and Dallas do not know that American is by far the dominant airline there.

- As long as Expedia shows a couple or more choices with prices the average traveler will make his choice from the ones displayed.

- People care about their time, going to another website makes it inconvenient to the traveler even the business traveler.
vgacolor is offline  
Old Dec 23, 2010, 1:56 pm
  #44  
 
Join Date: Sep 2008
Location: CTS
Programs: AA:1MM
Posts: 743
Originally Posted by MrPink
Well this should make redeeming thankyou awards interesting too...
yes.... another nail in the citi rewards program...
virmaior is offline  
Old Dec 23, 2010, 2:15 pm
  #45  
 
Join Date: Jun 2010
Location: DFW
Programs: aa EXP, dl GM, mar LTPLT, hh DIA, spg PLT, ich AMB, nat EE, hertz PC
Posts: 317
Originally Posted by PHL
When AA sees big drops in bookings, they'll know that aa.com hasn't been the place people go to book. If that happens, it won't be long before we see them back on Orbitz and Expedia.
I dont think it will be long before the other carriers follow suit.. Southwest doesnt use that travel model and they dont seem to be having any issues.. now do they?

I used to use the corp travel dept for all my travel.. they would charge my dept dept $20 just to book a ticket.. then if you had an issue with travel after hours its another charge. Forget that.. AA.com works just fine for me. As much as I travel.. I think I am mentally competent enough to figure out if I am being scr*wd on a fare to a location.
Deltican is offline  

Thread Tools
Search this Thread

Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.