Expedia vs. American Airlines

January 17, 2007

Does anyone really care that Expedia no longer offers first- and business-class fares from American Airlines? Well, maybe not, but the war of words surrounding the whole incident is too juicy to be ignored.

It all started in early January, when American issued a terse press release saying: “Effective immediately, American Airlines, the world’s largest airline, will no longer sell international tickets or domestic first or business class tickets through Expedia.com or any other website powered by Expedia.com to customers purchasing travel from the United States. Domestic coach tickets on American will still be available through Expedia.”

In a subsequent report, an American spokesman said the decision “came down to economics” and the airline’s desire to balance many ticket-selling outlets with the need to control costs.

Expedia retaliated the next day, firing off an email to customers and corporate travel managers, in which it claimed, “Expedia chose to stop offering international, domestic first and business class fares from American Airlines.”

“Please note,” it added, “that this decision is specific to Expedia.com. Expedia Corporate Travel inventory is not affected, and we do not foresee any changes that will limit access to American Airlines content to Expedia Corporate Travel customers.”

In other words, American didn’t fire us — we quit! And it’s wrong about “any other website available through Expedia.” We still have the fares on Expedia Corporate Travel. Nya, nyaa!

Then American’s representatives sent out another memo to corporate travel managers, reiterating the airline’s position. (Incidentally, I am not a corporate travel manager, though I have one to thank for sending me these memos.)

“Who’s telling the truth?” wonders my travel manager friend. “Well, I note I can book first-class and business-class tickets through Expedia Corporate today, so I’m guessing Expedia.”

OK, so what if Expedia is right? Does it really make a difference?

This is all about who gets to say they walked away from the relationship, and who gets to spin it their way. I know what that’s like. I’ve been there many times before myself.

Sometimes, the best thing to say is nothing at all. American and Expedia should have ironed out their differences in private. Now their customers have conflicting information and we get to watch them fling mud at each other in public.

Grow up, already.

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