On-line travel is in danger of being dominated by the “joint
market power of the largest airlines” according to the American
Society of Travel Agents (ASTA). An ASTA representative told a
House subcommittee that Congress action for on-line travel may be
necessary, unless a pending Justice Department investigation of
travel site Orbitz rectifies the situation.
Orbitz, a US-based web site owned by a consortium of airlines,
was also accused by Travelocity.com of “precluding selective price
discounting by airlines”.
A report released last month by the US Department of
Transportation did not find Orbitz responsible for anti-competitive
practices. It said, however, that the site's ticket venture could
have “a negative effect on airline competition.”
Orbitz claimed that its representatives could not attend the
hearing on Friday, due to lack of notice and a scheduling conflict.
However, Orbitz said in testimony written for the hearing that its
purpose is to “bring new competition to automated distribution.”
According to vice president Gary Doernhoefer, price competition has
increased since the site was launched 13 months ago.
ASTA argued that “the e-commerce market place for travel
services is being distorted and misused by airlines who seek
collectively to dominate the internet space.”
