Travel Agents File Comments to Antitrust Immunity for oneworld Alliance

 

ASTA and ITSA said that any granting of ATI that extends to dealings with travel distributors such as travel agents is likely to cause consumers significant harm “first, by ultimately reducing travel distributors’ bargaining power and marginalizing independent distribution through commission reductions and withholding inventory, and second by increasing fares paid by consumers as the number and effectiveness of independent travel distributors are reduced and consumers’ ability to find and compare competing airline service offerings becomes increasingly limited.”

 

The comments went on to note that whereas consumers and travel agents want lower fares and increased service, ATI and alliance status are not “factors in consumer choice — lower fares and more frequencies on nonstop flights matter the most.” Nor is ATI necessary to provide efficient coordination between carriers, the two groups explain. In fact, “the Joint Applicants utterly fail to show how efficiency requires immunized joint dealing with travel agents ... the Joint Applicants do not make it clear that immunizing joint dealing with travel agents would benefit anyone other than the Joint Applicants.”

 

Consumers, as already noted, will also come out on the losing end should this ATI be granted for a variety of reasons, not the least which being that any resulting reduction in the “number and effectiveness of travel agents would also increase fare for consumers by reducing their ability to find and compare competing airlines service offerings.”

 

For more information ASTA’s senior vice president of legal and industry affairs.

 

ITSA is the trade association for online travel companies and global distributions systems, and is their voice on matters of public policy.

 

The mission of the American Society of Travel Agents (ASTA) is to facilitate the business of selling travel through effective representation, shared knowledge and the enhancement of professionalism. ASTA seeks a retail travel marketplace that is profitable and growing and a rewarding field in which to work, invest and do business.

Picture: Carstino Delmonte/ Touristikpresse.net