Steve Says

Budget cautious consumers have become accustomed to searching the internet looking for the very best deals when traveling.

Many of us know this search is not limited to individual airline websites, but now travel websites as well.  I often use them because they are a central location for all of my options on a variety of carriers.  I also know that they don't always offer a more competitive rate than the airline itself, but I like that I can see all of my options and then compare.

Well... not anymore. 

According to the folks at kayak.com, American  Airlines is asking for exclusivity when it comes to their fares.  For example, if I search Kayak for a ticket from Dallas to New York, American wants Kayak to ONLY list the aa.com fares and exclude fares from other travel sites like Orbitz or Cheap Tickets offering American fares.  They are not asking Kayak to exclude fares from competing airlines, but instead want any potential American Airlines customers to be directed only to the AA.com website for a direct purchase (I would assumer that this would work to increase American's revenue- but who knows)

They have given a date of August 1st for Kayak to meet their request.  If Kayak doesn't agree American will not allow them access to any AA.com fares.  In short- you can show our direct fares ONLY if you show ONLY our direct fares.  Since you won't, YOU are technically denying US access to show results on your site.

In response, Kayak has denied American's request saying that it is not appropriate for any carrier to dictate which fares are shown.   They compare it to an electronics company telling a retailer which brands they can carry.

So what will happen?  Well, apparently (and this is where it gets a little confusing) part of American's request is that if kayak DOESN'T show only aa.com fares for American flights, American Airlines will no longer allow Kayak access to aa.com web fares AT ALL.

So let me get this straight- Publish ONLY my airline's direct  website fares, or I'll deny you access to my website's direct fares all together? 

The only logic I can imagine here is that AA feels that their direct web fares are SO competitive that consumers will be driven away from Kayak.com when they are left only with sites like Orbitz and Cheap Tickets to book AA travel through on Kayak.

As per the folks at Kayak, this is all just talk until the August 1st date rolls around- but we'll see. 

What I find most interesting is American's statement regarding this issue:

American Airlines statement on Kayak Content Discontinuation

 

 

Kayak/Sidestep has advised American Airlines that they will no longer display American’s content effective August 1, 2008. Following is American Airlines’ statement:

 

“We are disappointed and hopeful that this issue can be resolved in the near future so that American Airlines will again display on the Kayak/Sidestep sites.

 

“Our schedules and fares remain available through many other Meta-Search Engines such as Mobissimo and Farecast for purchase through our award-winning website, AA.com.  Tickets already purchased remain valid for customers traveling on American."

 

I'm thinking the conversation went something like this:

American: "We want you to show only our direct aa.com fares for American travelers- and eliminate AA fares offered by competing travel websites."

Kayak: "Sorry we won't do that"

American: "Ok, then we won't give you access to our aa.com fares at all!"

Kayak: "Ok.. well then I guess we won't be showing your fares at all."

American: "Hey everybody!  Kayak won't show our fares!"

 

Good gosh.. I'd hate to see what would happen if Kayak took American's last crayon on the playground!

In case you are wondering, Kayak.com makes their money through referral fees from their travel partners, as well as advertisements on their website.

You'll notice they say nothing about what, Kayak says, is the underlying ultimatum.  Their statement makes it sounds like Kayak is choosing not to display AA.com fares.  In essence they ARE making that choice- in that, as they explain it, the only way to show the AA.com fares is to show them exclusively.

Your thoughts?