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Troubled skies ahead for online travel
NEW YORK – Reports are that American Airlines is about to pull its airline listings out of Kayak and is considering doing the same with Orbitz. If it does so, other airlines such as Continental and Northwest may follow suit, says TechCrunch.
“Airlines don’t like the booking sites because they have to pay them a referral fee for every ticket they sell, as opposed to capturing the full fare when travelers book on their individual sites.
“Even though that only amounts to a few dollars per ticket, every dollar counts to the troubled airlines…especially now with fuel prices going sky-high and the consumer spending going down,†adds the site.
American Airlines cites Kayak as a particular problem because it tends to show AA flights through its partnership with Orbitz instead of directly from American. That means American has to pay a double tax — once to Kayak and once to Orbitz.
The decision to sever ties with Kayak supposedly has already been made, reported TechCrunch.
The question now is whether Orbitz can salvage its relationship with the airline.
Report by David Wilkening
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