• Home
  • Reviews
    • Flight Reviews
    • Hotel Reviews
    • Lounge Reviews
    • Trip Reports
  • About
    • Press
  • Contact
  • Privacy
  • Award Expert
Live and Let's Fly
  • Home
  • Reviews
    • Flight Reviews
    • Hotel Reviews
    • Lounge Reviews
    • Trip Reports
  • About
    • Press
  • Contact
  • Privacy
  • Award Expert
Home » American Airlines » Orbitz and American Airlines Fighting Again: Who is to Blame?
American AirlinesNews

Orbitz and American Airlines Fighting Again: Who is to Blame?

Matthew Klint Posted onAugust 26, 2014December 6, 2016 3 Comments

American Airlines has pulled fares from Orbitz (again) and will also pull US Airways’ fares starting on September 01, 2015. Though AA is a partial owner of Orbitz, the carrier and the online travel agency have been unable to agree on a fee arrangement for selling AA/US flights. History makes me hopeful this blockage is temporary in nature, but is nevertheless detrimental to consumers. Which side is to blame for this latest squabble?

american-airlines-orbitz

Here’s American’s rationale:

American Airlines fares are no longer available through consumer websites powered by Orbitz, including orbitz.com and cheaptickets.com. We also anticipate removing US Airways fares from Orbitz on September 1, 2014. You can continue to compare and purchase American Airlines and US Airways flights or fares through other online and brick and mortar travel agencies. Corporate clients that use Orbitz for Business to book travel are not affected by this change.

Tickets already purchased through Orbitz websites remain valid for travel, but changes to reservations must be made through each airline’s reservations department.  If changes to travel are needed, please contact the reservations center for the carrier operating the flight…

AA also offers some FAQs including this one:

Are there additional incentives for booking travel directly with American or US Airways?

American Airlines and US Airways flights are offered at the lowest available fares on each airline’s website at aa.com and usairways.com and you will pay no online booking fees. Only on these sites will you find convenient booking, online check-in, flight status notifications, the ability to earn AAdvantage® miles or Dividend Miles® on flights, hotels, cars and more – providing an all-in-one experience from booking to takeoff. 

It is telling what “additional incentives” are not noted here.

The conventional travel agency has been driven to near extinction over the last 15 years as the online revolution as pushed nearly all consumers to purchase airline tickets themselves online. Mega online travel agencies like Expedia, Travelocity, and Orbitz were formed to allow consumers to search prices across multiple airlines between two city pairs and offer bundled hotel, car, and accommodations purchases along with airfare.

As technology has become more advanced, however, airlines (with Southwest and AA leading the charge) have been more reluctant to sell tickets through online travel agencies because of the increasing ability to 1.) custom tailor airfare search results based on the person searching and 2.) sell bundled packages that are either impossible or more much difficult to offer on a site like Orbitz.

For example, with AA you can pay for premium seating, priority boarding, baggage, and extra miles all at the point of purchase on aa.com – that additional ancillary revenue brings in big bucks each year and the airline doesn’t have to pay out anything, even a token amount, to a third party site for selling the ticket.

Thus, it comes as no surprise that AA is playing hardball with Orbitz because each day it makes less financial sense to market through Orbitz when AA.com has the possibility to generate much more revenue.

american-airlines-orbitz-2

No more AA on Orbitz!

But for the consumer, this news is bad. Certainly, Kayak, Expedia, and Travelocity (and even Orbitz for Business) still offer AA and US Airways flights, but Orbitz is the easiest of the online travel agencies to use, in my opinion, and best for searching multi-segment itineraries and tickets that include more than one operating carrier.

Further, while AA allows a complimentary one-day hold on revenue tickets, it does not have a free 24hr cancellation period after booking. With Orbitz, you have at least 24 hours to cancel (in some cases more) and that offers some a more preferential security when booking a non-refundable ticket.

Who is to blame?

We don’t know. Anti-climatic I know, but neither side has offered specifics and it is not clear whether the two sides are close to agreement or far from consensus. Last time it was a court order that mandated the two sides play nice and this matter may work itself to court again. 

But the effects of the increasing attractiveness of selling airfare only through channels you have full control over will continue to rear its head. Technology will eventually catch up to the online travel agencies as well, but in the meantime note that the bickering between Orbitz and American is merely a symptom of the new era in the sale of airfare in which shopping for a deal becomes harder and in which carriers, flush with publicity through social media and web advertising, no longer need any assistance in selling tickets.

Rocky offers his perspective as well.

Get Daily Updates

Join our mailing list for a daily summary of posts! We never sell your info.

You have Successfully Subscribed!

Previous Article Massive British Airways Executive Club Devaluation Coming?
Next Article How I Learned That I Could Never Be A Farmer

About Author

Matthew Klint

Matthew is an avid traveler who calls Los Angeles home. Each year he travels more than 200,000 miles by air and has visited more than 135 countries. Working both in the aviation industry and as a travel consultant, Matthew has been featured in major media outlets around the world and uses his Live and Let's Fly blog to share the latest news in the airline industry, commentary on frequent flyer programs, and detailed reports of his worldwide travel.

Related Posts

  • a group of people in blue uniforms

    United Airlines’ Uniforms Get A Facelift—And A Political Filter

    May 28, 2025
  • Southwest Airlines Checked Bags

    Suicide: Southwest Airlines Eliminates Free Checked Baggage

    May 27, 2025
  • American Airlines Meghan Markle

    Meghan Markle Defends American Airlines Flight Attendant After Captain’s Insult

    May 26, 2025

3 Comments

  1. Chris Reply
    August 26, 2014 at 10:39 pm

    It seems like the future will be more like an expanded version of Hipmunk. Since users book through the carrier’s website they would have a much harder time making any claim about pulling their data other than, “We want to make it harder for you to compare prices.”

  2. MeanMeosh Reply
    August 27, 2014 at 12:16 am

    You’ve alluded to this, but the other lynchpin here is AA’s attempt to force the OTAs to use AA’s “Direct Connect” system whereby AA can sell both fares and ancillaries on the OTA and bypass the middleman, the GDS. I don’t necessarily see blame on either side, as much as both sides fighting tooth and nail to protect their business interests. AA wants Direct Connect because it is cheaper for them, provides enhanced ancillary upsell opportunities, and cuts out the fees paid to the GDSes. The GDSes, understandably, don’t want to give up that revenue stream. Eventually, I think a move to Direct Connect systems across all airlines is inevitable, and the GDSes will either adapt by working out some kind of deal to keep a smaller cut of the pie, or come up with a better mousetrap that is superior to Direct Connect. In the meantime, until everything shakes itself out, we’re likely to see more spats like this, which stinks for consumers.

  3. Dan Reply
    July 19, 2017 at 6:00 am

    This is really helpful, thanks.

Leave a Reply

Cancel reply

Search

Hot Deals for May

Note: Please see my Advertiser Disclosure

Capital One Venture X Business Card
Earn 150,000 Miles Sign Up Bonus
Chase Sapphire Preferred® Card
Earn 100,000 Points
Capital One Venture X Rewards Credit Card
Capital One Venture X Rewards Credit Card
Earn 75,000 Miles!
Capital One Venture Rewards Credit Card
Capital One Venture Rewards Credit Card
Earn 75,000 Miles
Chase Ink Business Unlimited® Credit Card
Earn $750 Cash Back
The Business Platinum Card® from American Express
The Business Platinum Card® from American Express
Earn 120,000 Membership Reward® Points

Recent Posts

  • Turkey Fine Passengers Unbuckle
    Impatient Flyers, Beware: Turkey Will Fine You For Standing Up Too Soon May 28, 2025
  • Korean Air First Class Lounge ICN Review
    Review: Korean Air First Class Lounge Seoul (ICN) May 28, 2025
  • a group of people in blue uniforms
    United Airlines’ Uniforms Get A Facelift—And A Political Filter May 28, 2025
  • Dog Diversion Delta
    Delta Flight Diverts To Care For Sick Dog. Justified? May 28, 2025

Categories

Popular Posts

  • United Airlines Polaris Lounge Chicago Review
    Review: United Polaris Lounge Chicago (ORD) May 1, 2025
  • United Airlines Refresh Polaris Lounge Chicago
    First Look: United Airlines Reopens Renovated Polaris Lounge In Chicago (ORD) April 29, 2025
  • a hand holding a blue card
    Chase Sapphire Preferred 100K Bonus Offer Ending Soon May 2, 2025
  • Aegean Airlines Feast
    A Feast Fit For A King On Aegean Airlines May 23, 2025

Archives

May 2025
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  
« Apr    

As seen on:

facebook twitter instagram rss
Privacy Policy © Live and Let's Fly All Rights Reserved. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Live and Let's Fly with appropriate and specific directions to the original content.