Stung by its dispute with American Airlines, Expedia Inc. revealed it signed a multiyear content agreement with US Airways, with the two connecting through global distribution systems.
Using language it doesn’t usually use in such announcements, Expedia stated: “Under the agreement, US Airways has committed to offer all of its content to Expedia through the global distribution system (GDS) model, a central reservation system which is used by travel agencies to search and book travel.”
In the dispute with American Airlines, which saw Expedia remove the airline’s fares Jan. 1, the airline pushed for Expedia to establish a direct-connect to American, bypassing the GDSs for content.
Under the US Airways-Expedia agreement, the airline will will continue to provide its “full range of products and services, including all fares and inventory, through Expedia, Hotwire and Egencia sites around the world,” Expedia says.
On the ancillary services front, Expedia does not have all of US Airways’ content at this juncture.
“In addition, Expedia has committed to working with US Airways to enable the distribution of its Choice Seats product (offering customers the benefit of purchasing window or aisle seats toward the front of Coach class) through new channels, including the Expedia online travel marketplace,” Expedia says.
You can interpret this sentence to mean the following: Choice Seats is not yet available to travel agents, online or offline, through the GDSs and US Airways is working on making the product available through the GDSs. When that happens, Expedia sites globally will get access to Choice Seats, as well.
In addition, it is believed that under the terms of the content agreement between Expedia and US Airways, Expedia similarly will get access to the airline’s ancillary services when the airline makes them available through the GDSs.
If US Airways opts to retain an ancillary service exclusively in its own direct channels and not make it available to the GDSs, then Expedia would not get access to the service.
This will cause US Airways to go end of time. AA does it only to keep away GDS and OTA. OTA are useless when they now have gain volym. We have GDS, airlines. Why? It sounds stupied! The market only needs Airlines connecteted to price comparisments site, Google and Affilites. AA argue is good!