Friday, January 12, 2007

Expedia axed by American Airlines for business and first class tickets

Hugely interesting development in the world of online travel agencies today when American Airlines announced it would be halting the sale of first class and business class tickets through Expedia in the US.

The web is awash with rumours about why the US carrier has decided to pull out of such a high profile agreement, but needless to say AA's refusal to go into much detail is fuelling speculation that this could be the first in a series of moves by some airlines to trim distribution costs.

In other words: cut commissions to agencies (off and online) on high value tickets, such as business and first class seats, and push more content through their own websites.

The move only impacts on the Expedia.com site. Travolution was able to search for and obtain fares for AA business and first class tickets inbound to the US.

Kevin May, editor, Travolution

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