The recent decision by American Airlines to pull its inventory from Orbitz caused quite a stir. A major change in an $800 million relationship will do that, of course. Some industry-watchers, however, don’t see it as a permanent situation. In a report by WFAA, Tom Parsons, owner of BestFares.com, said, “Three months down the line, nobody will even know American’s there, and I think the loser will be American.”
He believes that consumers still have plenty of choices, which is likely to lead to a gain for other carriers working with Orbitz.
But, it’s a situation that could cut either way. When Southwest Airlines pulled away from Orbitz, it assumed a similar risk. Now, the low-cost carrier moves 85 percent of its tickets via its website. While this has worked for Southwest, it does operate in a fundamentally different market.
Parsons believes that Orbitz and American Airlines will work together again, according to WFAA.
[photo by DavidMartynHunt via Flickr]