American Airlines tried the fees it pays to the global distribution services (GDS) (as SABRE) reduce to reach to travel agencies. But instead of GDS significant tactical advantage. For example, GDS had long-term exclusive contracts with corporate customers, the American best customers were signed. In addition, tended to favor whichever GDS travel agencies offered the highest commissions – hamper price competition among GDSs. Against this backdrop, American and best viewed his G. .. cut Read more »

American Airlines tried the fees it pays to the global distribution services (GDS) (as SABRE) reduce to reach to travel agencies. But instead of GDS significant tactical advantage. For example, GDS had long-term exclusive contracts with corporate customers, the American best customers were signed. In addition, tended to favor whichever GDS travel agencies offered the highest commissions – hamper price competition among GDSs. Against this background, how you look at the best American to reduce its GDS costs.
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from
Benjamin Edelman
Source: Harvard Business School
10 pages.
Release Date: 12 January 2009. Prod #: 909 035 PDF-ENG
Sales at American Airlines (A) HBR case solution

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