Tourexpi
Travel Advisor Trade Group Weighs In on Air Travel Competition in Response to Inquiry
The
American Society of Travel Advisors (ASTA) submitted
its response to the jointly issued Request
for Information (RFI) from the Departments of Transportation and
Justice relating to the state of competition in air travel.
In
the decades following airline deregulation in 1978, mergers and acquisitions
approved by the DOJ have contributed to an alarming decline in competition in
the U.S. airline industry, resulting in both higher prices and fewer choices
for consumers. ASTA formally
brought these concerns to the attention of both
agencies more than a year ago, and welcomed the opportunity presented
by the RFI to share our members’ views on this critically important issue.
There is a significant degree of interdependence between airlines and the
various intermediaries, such as the global distribution systems (GDSs),
traditional travel agencies and travel management companies (TMCs), adding a
layer of complexity to the analysis.
In
summary, ASTA's
RFI response underscores the integral role that distribution
intermediaries play in protecting the interests of consumers. Topics relevant
to competition that are discussed in ASTA’s filing include:
-
Airline deregulation
-
Air carrier consolidation
-
Airport capacity and access
-
Immunized international alliances
-
New Distribution Capability (NDC)
-
Channel price discrimination
-
Airline reward programs
-
Intermediary aggregation
To
ensure that air ticket distribution intermediaries can compete on an equal
footing with the airlines themselves, regulators must ensure that air carriers
provide the GDSs with full access to fare, ancillary, schedule, and
availability information. Likewise, airlines must not be permitted to utilize
their substantial market power to disadvantage, pricewise or otherwise, the 40
percent of consumers who prefer to book air tickets through the travel agency
distribution channel. Transparency is essential if the air transportation
market is to function in a manner most likely to consistently deliver a high
level of service at the lowest possible price.
ASTA
looks forward to working with the incoming Trump administration to advance its
positions outlined in its RFI response and is eager to support the advancement
of the U.S. travel economy.
Image
Credit: © AA
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