In a filing pursuant to its complaint before the Department of Transportation (DOT), the American Society of Travel Agents (
In a filing pursuant to its complaint before the Department of Transportation (DOT), the American Society of Travel Agents (
Our intent is to gain fair access to air fares for travel agents, said Richard M. Copland, CTC, ASTA president and CEO and Hillside Travel co-founder and CFO. The actions taken by most airlines in this country are an attempt to unfairly control both production and distribution of the air travel product. Without equal access to all fares in the convoluted airline pricing structure, it becomes increasingly difficult for travel agents to meet the needs of their clients while providing them with the lowest cost. In the long run, it is the consumer who will suffer if airline practices are allowed to continue.
The initial complaint before the DOT was filed March 28, 2002, against Delta Air Lines, United Airlines, American Airlines, Northwest Airlines, Continental Airlines, US Airways, America West Airlines, American Trans Air, Air Canada and Orbitz, LLC. Yesterday`s filing systematically dismantled arguments made by the respondents in response to the original complaint.
The airlines essentially admit that they want to drive as many customers as possible away from travel agents and toward airline controlled distribution devices, either their owned Web sites or their owned retail fighting ship, Orbitz, said Copland. If the airlines were interested in fair competition and allowing consumers true freedom of choice, they would provide at least a wholesale-retail pricing structure that would sustain competition at the retail level. … The airlines don`t do that because they want to control both the production and the distribution of their product. That condition has never really existed in the modern air transportation marketplace and the public will pay a high price if the airlines are successful.
Orbitz argued in its answer to the complaint that the challenges facing travel agents are not caused by airline actions but are the result of computer reservation system (CRS) monopoly pricing. To this, ASTA replied, The answer surely is not to replace CRS market power with the market power of the five largest airlines through their chosen instrument for dominating the retailing of air travel on the Internet and elsewhere.
The Society challenged the claim that travel agents can easily use the Internet to access and book Web fares for clients, outlining the problems that arise when an agent gives up control of a passenger management record by booking through the Internet and explaining the financial implications for agents of booking outside of their CRS systems.
ASTA contested the dual assertions that the services of travel agents have no value to the airlines and that distribution through Orbitz is cheaper than distribution through agents. The reply urges the DOT to require the Five Founders to document the total cost of Orbitz, including promotion commitment, investment, and all other cost components versus the return from Orbitz in booking fees, rather than accepting that airlines lower costs and increase revenue by selling through Orbitz.
The ASTA filing contends that the airline respondents want to eliminate [travel agents] from the marketplace as an effective national competitive force for the patronage of consumers … by reducing their compensation and raising their costs.
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