The three month impasse between American Airlines and Expedia is over. The companies confirmed in a joint announcement that AA fares are once again being sold through the Expedia and Hotwire websites.
For now the fares are being delivered via Global Distribution Systems, which AA doesn’t like because of the fees incurred, but in time Expedia will access AA product through American’s direct connect system, using aggregation technology provided by a GDS. “This is good news for both organizations,” Henry H. Harteveldt from Forrester Research told the New York Times.
“The good news for Expedia is that it has obviously regained the inventory of one of the largest airlines. And the good news for American is that it regained access to a travel agency that in 2010 accounted for more than 5 percent of its sales.”
Mr. Harteveldt said the companies had reached an agreement that both parties could tolerate.
American “wanted a more cost-effective distribution model,” he said, but “Expedia wouldn’t have agreed to this if American Airlines did not agree to business terms that would allow them to earn revenue from the sales of those tickets.”