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American Airlines wants to deal directly with corporate travel managers and is attempting to cut out the middleman by putting up pay wall for Global Distribution Systems (GDSs), Online Travel Agents (OTAs) and Travel Management Companies (TMCs) to access the content on AA.com. Predictably there is a chorus of opposition from intermediaries; but Wall Street likes it. Meanwhile, airlines around the world will be watching avidly.
“At the airline firm level, this probably seems very rational to (American),” said Business Travel Coalition (BTC) Chair Kevin Mitchell, who is leading a fight to stop Direct Connect. “It generates more revenue while lowering and shifting costs. But it also throws so much complexity and burdens the industry with so many new costs, it is irrational at the industry level. The airlines just don’t get it. They want to eliminate the middle man but corporations have a very efficient and time-tested way of doing business and this will undermine that."
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
