Expedia drops American Airlines
Marketing strategy deemed ‘anti-consumer and anti-choice’
Internet-based travel company Expedia said it has suspended the sale of American Airlines tickets from its website, calling American’s new direct marketing strategy “anti-consumer and anti-choice”.
“As a result, the sale of American Airlines flights on our website has been suspended,” Expedia said in a statement, adding however that it rem-ained “open to doing business with American Airlines on terms that are satisfactory to Expedia”.
“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,” it added. The airlines’ AA Direct Connect model “would compromise travel agents’ ability to provide travellers with the best selection,” said Expedia, adding the new commercial strategy “we believe is anti-consumer and anti-choice”.
American Airlines recently indicated it wants to take greater control of how it sells tickets and other goods and services to online travel agencies.
American hopes to con-vince future online ticketing clearinghouses to use an electronic pipeline of its own creation, called AA Direct Connect.
Despite its row with Expedia and Orbitz, American Airlines said ticket sales have gone up since December 21, with the loss of the two online travel giants compensated by other sites, including Priceline and Kayak and its own AA.com website.