Last week's Update features a variety of stories, including FlightHub's attempt to resurrect its reputation and US Airways' latest claims against Sabre. Enjoy.
FlightHub's Latest Pitch: Trust
Us
("OTA that was charged a record DOT fine insists it is
trustworthy," April 25, 2022 via Travel Weekly)
When considering the many factors that one may use to evaluate a
potential distribution platform, trustworthiness is really
overblown. At least that's the current pitch of FlightHub
(parent company to both JustFly.com and FlightHub.com). Just weeks
after receiving the Department of Transportation's Office of
Air Consumer Protection's largest fine (which comes on the
heels of a similar settlement with the Canadian Competition Bureau
over similar conduct), FlightHub is in full damage control mode. In
both instances, the consumer protection agencies alleged that
FlightHub's OTAs misrepresented fares, cancellation charges and
ticket refunds and bag fees. Interestingly, FlightHub CEO, Chris
Cave, claims that these "voluntary" settlements are the
best possible evidence of FlightHub's commitment to full
transparency with its travelers. Huh?
US Airways Claims Losses of Nearly $300
Million in Case Against Sabre
("US Airways Tells Jury Sabre Overcharges Cost It Almost
$300 Million," April 22, 2022 via Bloomberg Law) (subscription
may be required)
As the second Sabre / US Airways anti-trust trial begins, lawyers
for the airline told jurors this past week that the global
distribution system had cost the airline nearly $300 million in
overcharges and lost profits. According to counsel, Sabre's
monopolistic position allowed it to overcharge for reservation
services, avoid competing over pricing and block others from
entering the market to provide similar services – namely a
distribution system for airlines and other suppliers to connect
with travel agents.
AirAsia Continues Quest for Super App
Status
("The Wrap: Increased demand for travel to South-east
Asia, Travalyst aviation sustainability framework, AirAsia-Trip.com
partnership," April 20, 2022 via WIT)
In its seemingly never-ending quest to attain Super App status,
AirAsia announced last week that it was partnering with Trip.com to
add Trip.com's 1.2 million hotel listings to the online booking
platform. With this newest partnership, AirAsia now enjoys supplier
relationships with Trip.com, WebBeds and Travelport.
Other news:
Is There a Direct Online Channel
Dilemma?
April 25, 2022 via Hospitality Net
A recent, very heated, discussion on LinkedIn about direct online
vs OTA distribution prompted this article. Some of the direct
distribution "detractors" claimed that the direct channel
was, quite often, more expensive than the OTA channel, pointing
toward ROIs from metasearch marketing, so why bother? Proponents of
direct distribution insisted that the direct channel was more than
just ROIs that allowed the property to "own" the
customer.
CitizenM Launches Loyalty Program:
CitizenM+
April 22, 2022 via Lodging Magazine
CitizenM launched a loyalty program called mycitizenM+. mycitizenM+
doesn't have points to collect, levels to achieve, or welcome
gifts. Members sign up for a monthly fee to get the perks without
the points, and they don't have to spend more to get
rewards.
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