One post tagged with "Airlines"

For decades, air travel sales functioned with a simple division of labor: airlines flew planes, travel agents sold most of the tickets, and a handful of intermediaries connected the two sides. This setup worked. However, despite functional relationships between these parties, they were rarely satisfying to airlines.

While carriers struggled with thin margins and often danced with bankruptcy, distribution intermediaries and travel agencies enjoyed healthy profits.

Airline executives watched this disparity with envy as these businesses thrived on the profits of selling the airlines product. Could airlines one day cut them out and keep the money?