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, 10, 10:06 am
  #1  
FlyerTalk Evangelist
Original Poster
 
Join Date: Mar 1999
Posts: 12,097
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:
“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.”
--------------------------------------------------------------------------------
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.
As of Jan 1, 2010, Expedia no longer displays AA flights at all:

Originally Posted by hillrider View Post
The spat intensifies...

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.”
(more on the article linked above)

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, 11 at 4:04 pm Reason: updated mod note
hillrider is offline  
Old Dec 23, 10, 10:08 am
  #2  
 
Join Date: Dec 2007
Location: New England
Programs: Delta Platinum, United Silver, Hilton Diamond, Marriott Titanium, Radisson Gold
Posts: 6,287
Wirelessly posted (BlackBerry8530/5.0.0.654 Profile/MIDP-2.1 Configuration/CLDC-1.1 VendorID/104)

Shameful. AA did it to themselves. A global "Culture of Stingyness" can bite a business in the back sometimes
demkr is offline  
Old Dec 23, 10, 10:33 am
  #3  
 
Join Date: Nov 2009
Location: Austin
Programs: AA EXP +2MM- LT PLT! HH Diamond
Posts: 5,222
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
teemuflyer is offline  
Old Dec 23, 10, 10:42 am
  #4  
 
Join Date: Oct 2009
Posts: 314
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.
EXP4ME is offline  
Old Dec 23, 10, 10:43 am
  #5  
 
Join Date: Mar 2006
Location: Hotlanta.
Programs: I've gone underground!
Posts: 3,437
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.
emma dog is offline  
Old Dec 23, 10, 10:44 am
  #6  
FlyerTalk Evangelist
 
Join Date: Aug 2003
Location: NYC/BOS/MSY/AUH
Programs: AA EXP, 5MM; BA GLD
Posts: 15,640
Originally Posted by demkr View Post
Wirelessly posted (BlackBerry8530/5.0.0.654 Profile/MIDP-2.1 Configuration/CLDC-1.1 VendorID/104)

Shameful. AA did it to themselves. A global "Culture of Stingyness" can bite a business in the back sometimes
Shameful? Gimme a break. AA has made a business decision, not a moral one.
Blumie is offline  
Old Dec 23, 10, 11:03 am
  #7  
 
Join Date: May 2008
Location: NYC
Programs: DL PM; AA 1MM
Posts: 3,336
Originally Posted by demkr View Post
Wirelessly posted (BlackBerry8530/5.0.0.654 Profile/MIDP-2.1 Configuration/CLDC-1.1 VendorID/104)

Shameful. AA did it to themselves. A global "Culture of Stingyness" can bite a business in the back sometimes
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)
ty97 is offline  
Old Dec 23, 10, 11:14 am
  #8  
FlyerTalk Evangelist
 
Join Date: Aug 2003
Location: NYC/BOS/MSY/AUH
Programs: AA EXP, 5MM; BA GLD
Posts: 15,640
Originally Posted by ty97 View Post
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)
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?
Blumie is offline  
Old Dec 23, 10, 11:14 am
  #9  
 
Join Date: Dec 2002
Location: Hawaii
Programs: AA PLT, AAdv since Day One
Posts: 2,580
Originally Posted by ty97 View Post
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)
True, but as a practical matter I can instantly find one of many other ways to search and buy AA tix. Getting the network signal, if available elsewhere, may be more costly and time-consuming with other implications.

This is all game a chicken.
inlanikai is offline  
Old Dec 23, 10, 11:19 am
  #10  
FlyerTalk Evangelist
 
Join Date: Dec 2003
Location: STL
Programs: AA 2MM, AS MVP Gold, Hilton Diamond
Posts: 12,966
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.
gemac is offline  
Old Dec 23, 10, 11:20 am
  #11  
 
Join Date: Mar 2006
Programs: AA EXP, UA 1K, F9 Elite, Hyatt Diamond, Hilton Diamond, Marriott Gold
Posts: 1,308
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.
denCSA is offline  
Old Dec 23, 10, 11:23 am
  #12  
 
Join Date: Jun 2010
Programs: AA Plat,PC Plat, HHonors Gold
Posts: 904
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
kyunbit is offline  
Old Dec 23, 10, 11:28 am
  #13  
 
Join Date: May 2008
Location: NYC
Programs: DL PM; AA 1MM
Posts: 3,336
Originally Posted by Blumie View Post
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?
Nope, just saying it is pointless to paint one side of this as evil/wrong.
ty97 is offline  
Old Dec 23, 10, 11:39 am
  #14  
 
Join Date: Feb 2009
Location: SFO
Programs: Grounded
Posts: 660
Well this should make redeeming thankyou awards interesting too...
MrPink is offline  
Old Dec 23, 10, 11:51 am
  #15  
FlyerTalk Evangelist
 
Join Date: Aug 2003
Location: NYC/BOS/MSY/AUH
Programs: AA EXP, 5MM; BA GLD
Posts: 15,640
Originally Posted by ty97 View Post
Nope, just saying it is pointless to paint one side of this as evil/wrong.
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.
Blumie is offline  

Thread Tools
Search this Thread
Search Engine: