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-   -   Northwest drops Expedia (https://www.fodors.com/community/air-travel/northwest-drops-expedia-262699/)

Peter Oct 2nd, 2002 08:14 AM

Northwest drops Expedia
 
We will no longer be able to use Microsoft Expedia to book Northwest airline flights. They state that they will continue their arrangements with Orbitz and Travelocity and of course their own website. Is this the beginning of exclusivity agreements with web sites for on-line booking. This will surely aggravate travel agents (yeah!!).

gone Oct 2nd, 2002 10:39 AM

S'true. Stripped out of the "Search for this airline" box already. NW flights don't show up for city pairs where NW has many flights daily.<BR>Why did this happen?

kkj Oct 2nd, 2002 10:43 AM

Actually, this should aggravate self-bookers. One less place to do price comparisons. Pretty soon, you'll only be able to book at airline approved sites. Then getting a low fare will be tough to get. You'll have to check each airline's web site and see what their fare is. Then you'll have to hope by the time you check all the sites you'll actually be able to get the fare you originally found. That's what the future will be. Travel agents aren't the enemy, the airlines are.

Mazzy Oct 2nd, 2002 11:02 AM

Why is this bad for travel agents? I think it's worse for you and me. Did I miss something?

travelagent Oct 2nd, 2002 11:23 AM

Peter,<BR>who cares? We do not use Expedia!<BR>you are showing your ignorance..<BR>If you knew anything about this<BR>industry you would know that <BR>Northwest is now offering ALL <BR>travel agents access to ALL of<BR>thier webfares..Get a job..

Peter Oct 2nd, 2002 01:07 PM

Travelagent - where did I say agents use Expedia? First - good self-bookers always check the airline websites first before Expedia, Orbitz, etc. so this move won't affect us. Second - I see this as a negative for the TA's because it shows that the airlines continue to leave the message "my way or no way". To extrapolate this direction suggests that airlines will eventually market their product only thru sources that "bend over". This to a group that has already been whinning about their commissions being cut! Its clear to me that they are in the drivers seat and when they realize that TA's add absolutely nothing to the sales transaction, they'll concentrate on the web with both their site and other .coms that play the game.

travel agent Oct 2nd, 2002 01:14 PM

First of all I am not whining at all!<BR>I still get a generous commission from<BR>Northwest Airlines! You obviously have<BR>no clue on what is really going on in<BR>my industry. Whom ever is paying you to<BR>pick fights on these threads are getting<BR>ripped off, as you not informed with all<BR>the correct information. All the agents I know think you and your posts are <BR>negative and anyone who takes what you say as informative is silly as well..<BR>again, get a life and a real job..

Vic Oct 2nd, 2002 02:44 PM

A letter from NW to Expedia explaining the dispute was made available to AP:<BR><BR>The sticking point was Expedia's refusal to offer the exact terms offered by Orbitz.<BR><BR>Expedia was "unwilling to commit to display Northwest's products in an<BR>unbiased manner as Orbitz does and ... you would not offer the cost of<BR>distribution economics offered by Orbitz," NW said.<BR><BR>As a result, NW contends Expedia had become its highest-priced<BR>distribution outlet, both online and off -- an untenable relationship "in these<BR>very difficult financial times for our industry."<BR><BR>Expedia spokeswoman Andrea Riggs said the company -- which is based in<BR>Bellevue, Wash., will continue<BR>talks with NW "and look forward to reaching a mutually acceptable<BR>agreement." She declined to elaborate on the dispute.<BR><BR>Faced with nearly $8 billion in losses for the second year in a row, major<BR>carriers are aggressively trying to rein in their costs. The cost of distributing<BR>tickets is the industry's third largest expense behind labor and fuel.<BR><BR>NW said it is willing to offer Expedia the same compensation and fares<BR>made available to Orbitz and is "open" to further negotiations.<BR><BR>Orbitz, though, has been accused by rivals Expedia and Travelocity.com Inc. of trying to reduce, if not eliminate, competition. Competitors say Orbitz' owners -- American, Continental, Delta, Northwest and United -- withhold from them certain "Web fares," the heavily discounted tickets promoted on their own<BR>Internet sites. The goal, they say, is to drive customers away from Expedia and<BR>Travelocity and toward Orbitz and the airlines' own Web sites.<BR><BR>Both AA and NW have offered travel agents access to all their fares. That's fine. However, agents will continue to be at a disadvantage because they must charge fees while the airlines will not charge fees on their own sites, and Orbitz will continue to charge $5. Additionally, websites give customers 500 or a 1,000 miles for booking directly. Airlines sell their frequent flyer miles for about 2 cents each. So the booking bonus is worth anywhere from $10 to $20.

mercy Oct 2nd, 2002 04:08 PM

My airline ticket sales have increased by 32% this year. Some will not book on the web. The more web fares that are offered by more outlets, the fewer there will be. Airlines are bleeding and the web fares aren't helping. Sell at a loss and you cannot make a profit. all those FF miles won't be worth much if NW goes belly up.

xxx Oct 2nd, 2002 06:20 PM

As far as web airfare, Expedia beat me out with an unusal airfare from Seattle To Dallas, AA.com$1181.00, AA reservations 2000 plus, Expedia $332.00, good for the traveler, but just when the airlines are crying for lost revenue, they offer something like that? Do they want to remain in business or do they want another government bailout at the tax payers expense? Somebody at AA get a brain.<BR><BR>I am a travel agent, been doing this business of 18 years. It is my job. Look if I was looking for myself I would of booked Expedia as well. I help the callers that want my service and I don't cry about the ones who don't. Life goes on. I would really like to keep my job however.

sss Oct 3rd, 2002 10:29 AM

who deleted my post? <BR><BR>I said " Peter is a MOST appropriate name" for this joker.

but Oct 10th, 2002 12:19 PM

"travel agent" - <BR><BR>Peter did not pick the fight. You did. <BR>I had gotten the e-mail from Northwest and Orbitz about this as well, so I was a bit curious as to the reasoning behind it. Thanks to Vic for posting the info from the AP.

TravelAgent Oct 10th, 2002 01:42 PM

Dear You started it ..<BR>see post one by Peter <BR>aggravate TA's Yeah<BR>post 6<BR>Whinning about commissions<BR>end of story..<BR>amusing how a recent JP Morgan <BR>analyst stated how the airlines are<BR>losing money with web fares. OMG<BR>did they make a bad business decision?<BR>Are the people of the USA willing to <BR>dump more tax dollars into the airlines<BR>bad business models?


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