IN OTHER NEWS:
Tourist-dependent Napa assesses quake damage
Hotel costs could force value-based commissions
WWW.TRAVELWEEKLY.COM SEPTEMBER 1, 2014
[ A MESSAGE AIMED AT OTHER OTAS ]
AA raises ante
in Orbitz feud,
pulls all listings
See ORBITZ on Page 38
See QUANTUM on Page 40
By Danny King and Kate Rice
American Airlines has removed its fare listings from Orbitz for the second time in less
than four years as part of its continuing efforts to lower distribution costs while pushing third-party bookers to sell high-margin
ancillary products and services.
American Airlines, which merged with
US Airways last year to become the world’s
largest carrier, pulled its fare listings off all of
Orbitz’s sites last week and said it planned to
remove US Airways fares on Sept. 1. Corporate clients that use Orbitz for Business will
still be able to book American flights.
“We have worked tirelessly with Orbitz to
reach a deal with the economics that allow us
to keep costs low and compete with low-cost
carriers,” American Airlines President Scott
Kirby said in a statement last week.
For its part, Orbitz issued a statement
saying, “Our sites offer hundreds of air-
lines, which are eager to capture the revenue
American is choosing to forgo.”
While both companies declined to com-
ment further, the impetus for American’s de-
cision appears to be an effort to both reduce
third-party digital-distribution costs and
increase revenue from higher-margin sales
of ancillary services such as onboard meals,
preferred seating and prepaid baggage fees.
“This integration [of ancillary service
sales] or lack thereof on the part of Orbitz is
its basic structure but awaits all of its inte-
rior appointments plus a few special features
such as the North Star observation arm,
which has yet to be installed.
But the ship was complete enough last
week for Royal Caribbean International to
open it to a small group of reporters and
about 50 travel agents for a sneak peek at the
next big thing to sail the high seas.
Royal officials are increasingly confident
that in the Quantum, they have a ship that
By Tom Stieghorst
PAPENBURG, Germany — A little more than two months from
completion, the Quantum of the
Seas looms large over the flat north
German countryside at the Meyer
Werft shipyard here.
The powder-blue-and-white ship now has
Royal’s preview of Quantum draws praise
will give the groundbreaking Oasis-class vessels, which the line introduced in 2009, a run
for their money.
“I think you’re going to have two reactions,” Royal Caribbean Cruises Ltd. Chairman and CEO Richard Fain told agents a day
before the three-hour tour of the 167,800-
ton work in progress. “You’re going to think
the ship is magnificent, and you’re going to
say, ‘It will never be done on time.’”
Clearing the air
ways to improve
fuel efficiency and
strategies to reduce
their carbon footprint.
BY KATE RICE PAGE 16
THE TRAVEL INDUSTRY’S TRUSTED VOICE
‘They chose Orbitz to make a
Tara Tours is offering a seven-night
statement. It’s a headline, not a
— Lorraine Sileo, PhoCus Wright
Richard Fain discusses progress on the con-
struction of Royal’s Quantum of the Seas.
Guatemala itinerary in December.
Resist the temptation to bask in all-inclusive
heaven, and get a taste of the real Cancun.
The AA-Orbitz war poses the risk of inflicting
more collateral than direct damages.