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This article is about
American is in a standoff over the fees it must be pay to list its flights with
the agencies. Question on how American’s tickets are displayed and marketed to
travellers is at stake. There are dispute between the American and the travel
agencies as travel agencies does not want to adopt the new airline’s technology.
The government has severe impact towards the design of the channel and
influence channel activities.
As the travel agencies
have to work with the American in order to continue its business in America, many
decided to leave while a few will remain. This result in customers would no
longer find American flights in these sites which will then lead to loss of
tourist to America.
The services provided is
indirect channel, moreover, the American has less control in this distribution
channel. Besides, the relationship between the supplier and the intermediary is
bad as both parties do not want to give in.
The government of America
should resolve this problem by maintain the communication and create long term
relationship with agencies to produce positive operating climate.
Reference
L.Levere, J.
(2011, January 4). American Airlines in Fee Battle With Web Agencies.
Retrieved January 30, 2011, from The New York Times:
http://www.nytimes.com/2011/01/05/business/05air.html?pagewanted=1&sq=distribution&st=cse&scp=8
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