PPRuNe Forums - View Single Post - American Airlines distribution
View Single Post
Old 30th Jan 2011, 10:01
  #7 (permalink)  
Hartington
 
Join Date: Apr 2002
Location: UK
Posts: 1,225
Received 9 Likes on 7 Posts
Here's my view.

The legacy airlines in the USA have found they can make more money by unbundling their fares and charging fees for things like baggage that used to be included. But, particularly on international, not eveyone has fallen in line.

Whether you agree with what the unbundlers have done, or not, there is a vociferous lobby in the USA that claims this has all made the comparison of fares more complex. They argue that the airlines should distribute the fees data via the GDS allowing agencies (on and offline) to factor the fees into their calculations without having to run around searching websites etc. The arguement then goes this will allow agencies to quote a "complete air fare".

I'm not totally convinced that's a solution. With so many people looking blindly for "the cheapest" fare how many agencies will include fees up front? So you'll get a fare and then be asked what fees you want to add from a menu and only then will you get your complete charge.

The AA approach doesn't stop that happening, just changes the method and requires the agency to connect to AA direct. It would be interesting to know what, if any, rules AA are trying to impose about how data from their direct route can be merged with data from he GDS.

But the AA approach allows them to recognise the passenger (if that is available early enough in the booking process) and return a complete price based on previous purchasing patterns and negotiated agreements. This wouldn't simply add the fees to the fare. I can see them (particularly in the corportae environment) offering a bundle where you get (for example) the lounge, one piece of baggage and priorty security/boarding for a fee that is less than the whole.

Which brings me to "confuser pricing" as in "this mobile phone tarriff includes n free minutes and nn free texts and this free phone". Despite the existence of price comparison websites that try and make sense of and compare such prices (not just phones, insurance, energy.....) I defy anyone to say they KNOW they have the cheapest price for such services. I can't help feeling that AA are wondering/planning to take their pricing in that direction.

If they're going to follow that route they would either have to come to rather complex (and potentially expensive) agreements with GDS who will do almost anything if you pay them or follow the route that AA are ploughing which, in turn, saves them GDS fees.
Hartington is offline