American Airlines row with travel agents
Most airlines offer their fares and availability via GDS (‘Global Distribution Systems’, which are used by both bricks-and-mortar travel agents and most online agencies.
It is convenient for agents to use just one GDS system to book all travel.
Knowing this, the GDSs have had a licence to print money by charging airlines a hefty fee for every sector booked, and for other services. The GDSs earn so much, that they have been known to give some of their earnings back to the travel agents, as an enticement to use their systems.
American Airlines has decided enough is enough and is now making a charge for booking via GDS systems and is insisting that agents use “direct connect” as an alternative.
Direct Connect is a facility whereby agents can develop direct interfaces with the airline, so AA can avoid the GDS fees. Agents are unhappy with this option. (Even though a similar situation already exists with some of the “internet-only” airlines, like RyanAir
Some agents have tried to refuse to offer American Airlines which is not really in the interest of you – the consumer!
The flight search system we offer, already uses direct connect to American Airlines (and many others) so we can promise that you will continue to be provided with an unbiased range of airfares.
This entry was posted on Friday, January 21st, 2011 at 7:00 pm and is filed under Industry News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
