Thursday, February 17, 2011

CLASH BETWEEN AIRLINERS AND ONLINE TRAVEL AGENTS

The past few years also saw people opting lesser and lesser for airways to travel what with the ever escalating ticket fares. But then of late the sales are increasing again even as people are opting to travel more and more. However there has been another issue that has taken centre stage.

This being the fact that airliners are looking more so at directly serving their customers and doing away with the involvements of third parties which may as well end up helping them do a lot many savings running into even billion plus annually. This apart the airliners are again looking at catering a lot more to the users then just plain seats.

Luggage pick-up at home, special security lanes at the airport, designer snacks on the plane and even paragliding lessons after landing are all in the offing from the airliners. This is even as the there might be a drastic change in the involvement of a third party travel agents while a customer is out to buy tickets .

These travel agencies as of now sell as much as sixty percent of the air tickets. This is where Many U.S. carriers are looking at getting better and stronger controls over the process of ticket buying. For once they are also looking at capitalizing and bettering their profits through boarding, extra legroom among other things.

They had collected last year as much as $8 billion in ancillary fees. This means as much as six percent in revenue. AMR Corp.'s American Airlines is looking at getting more and more revenue directly from its own website. This is after it had a big row with many leading online travel agents including Expedia and Orbitz Worldwide Inc that simply stopped displaying American Airlines tickets. The third largest airlines in the whole of US in terms traffic is surely finding itself in the middle of some tremendously heated up action.

The airliners have also come into dealing with ITA Software that will develop more customized offerings to the customers. For once this will have the customers directly buying tickets from the airliners and at a much cheaper rate. Monte Ford, American's senior vice president of technology spoke of how they are simply looking at getting more personal and direct with their customers offering them the best of what they have.

Tim MacDonald, Expedia.com, general manager, in mean while stated how the airliners even directly selling their own tickets are still some time away from beating online travel agents at the game. For starters they simply sell the tickets of their own airlines and do not give customers the option of choosing from other carriers.

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