Airlines and travel websites face off over flight perks

Discussion in 'General Discussion | Travel' started by sobore, Mar 1, 2013.  |  Print Topic

  1. sobore
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    sobore Gold Member

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    Behind the ease of booking a flight seat online lies mounting tension between two industries.
    Airlines are increasingly moving toward offering customers bundles of travels perks, everything from extra legroom to pre-boarding privileges to more frequent-flier points, for additional fees. In an industry with low margins, airlines are trying to eke out revenue by differentiating their bundled services.

    The problem is, bundles are hard to buy on third-party travel sites.
    And that’s the root of a new push by airlines such as Air Canada to draw customers toward their own e-commerce sites, where the bundles are laid out in more detail, and away from third-party reservation sites. For each customer that does book directly, airlines save the $15 or so in fees that third-party reservation bookings charge. Particularly for cheap fares under $200, that $15 makes a substantial difference to airline profit margins.

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  2. ducster
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    ducster Gold Member

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    Wow! I had no idea that the revenue number was so high- 70%? It seemed from the article that the number only included OTAs, and not traditional travel agents. Having only ever booked on an OTA once in my life, I can't even relate.

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