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Online travel giants battle on

Monday, 27 December 20103 min read

In what is being described as a show of solidarity, Expedia Inc. is hiding pricing information for American Airlines flights on its web sites.

It’s clearly a display of unity with Orbitz Worldwide Inc., the Chicago company that is enmeshed in a contract dispute with the nation’s third-largest carrier.

The online travel giants are warring with American over the airline’s attempts to take greater control of the way it sells tickets and other services.

American Airlines is seeking new contract terms that would drive down its cost of doing business with online agencies such as Orbitz and Expedia as well as the global clearinghouses that provide the ticket data sold over the Internet, analysts said.

"You have to keep in mind that the online travel agencies have a lot at stake in this game," said Douglas Quinby, senior director of research at PhoCusWright Inc. "They are really trying to call American’s bluff on this."

Consumer advocates worry that if other major carriers follow American’s lead, traditional and online travel agencies like Orbitz, Expedia and Priceline could lose the ability to display the best available fares to bargain-minded consumers.

By David Wilkening