If it costs the airlines billions to conduct business through OTAs and the GDS then what will it take for the hotel industry to address its current conventional distribution strategy?
The recent actions by American Airlines to move forward with their “direct connect” model has stirred the preverbal pot to say the least.
According to an article released by Fairlogix, “A Picture is Worth $7 Billion, The real story behind airline distribution, travel supply chain, and consumer value”, it costs the airlines roughly $7 billion annually to conduct business through their current indirect distribution channels such as Orbitz and Sabre.
To set the record straight “direct connect” is not a new phenomenon in fact Orbitz introduced its own version of direct connect in 2002 with none other than the same airline that they are now battling.
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