Last week, American Airlines and Delta Airlines pulled their airfares from popular online travel sites like Orbitz. "The essential to budget travel is to prepare in front. When it comes to family trips, globetrotting, well-deserved holidays and/or going to see new places we have never been before, the reality of expense and budgeting is always in the back of our mind. Arranging and consuming our travel budget carefully is a main concern for most families. Lowering consuming and charges, while still delighting your vacation to its fullest, is the key to guaranteed achievements and fiscal responsibility. Your pocketbook and family will thank you! The reasoning behind saving money while touring is simple: Even if your personal finances is incredibly small, you can still take a break and enjoy life! Simply put, life is just too short to never step out of the door or leaving the homestead! Also keeping in mind that while traveling, regardless of whether on a resources or not, even the smallest of things can all add op to a large vacation or travel costs!..". Now, other online travel sites are getting their revenge as Expedia stopped selling airline tickets for American Airlines.
Unlike American Airlines' inability to reach an agreement with Orbitz, Expedia made this decision without any disputes with the airline. However, this move escalates the feud between the individual airlines and the popular online travel websites. While many airlines want to cut out the middle man and sell their own deals through their websites, it could mean a huge loss.
Many travel websites like Expedia, Orbitz, Priceline, and others are responsible for a good percentage of ticket sales for the airlines. While the airlines look at this as a strategic move to save money, it could cost them a lot more in sales. One advantage of the online travel sites for travelers is the ability to combine airfares on various airlines to find the best deals.
American Airlines may want to turn to the Southwest model of cheap flights and airfares by selling flights exclusively on their own website. However, with American already established on a number of online travel sites for airfares, this change will mean a huge shift in how their airfares are purchased.
Southwest's model works for them because they are a budget airline and have established the business model of selling airfares on their website only for years. If American Airlines seeks to change their model for how they sell their airfares, they may take a drop in sales as many people still rely on the popular travel sites to find airfares for all the major airlines due to international travel and other factors.
Southwest works because airfares for them are much simpler. This could change a little bit with their acquisition of AirTran. With domestic and international airfares on American, it may be much easier to search for and compare with other airlines to find the best deals through the travel sites. American may not think so and if Expedia and other online travel sites force their hand, we will soon find out whether the American Airline shift to the Southwest airfare model will work.
What do travelers prefer? Do they still want the popular online travel sites to search for airfares? Do they trust that the cheapest flights will be found on the individual airline sites or do the online travel sites and their ability to search numerous airlines and flights lead to better deals and cheap flights?
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