Just when you thought it might be a quiet week leading up to the holidays…SURPRISE! The story of the week was American Airlines distribution, but the FCC’s actions regarding net neutrality will be much more far reaching in their effect.
I hope everyone had a safe and happy holiday weekend. For those of you in the Northeast, stay inside and stay warm. Only 4 more months until all that snow starts to melt.
- An Illinois judge clears the way for American Airlines to pull its fares from Orbitz. Travelport certainly did a number on itself in how they managed the issue. Norm Rose wondered whether this would set off permanent changes in air distribution landscape, but just when it looked like a banner day for American Airlines …
- Expedia puts a lump of coal in AA’s stocking. And then it just got a little sad when American tried to play the victim, when Expedia employed a Bush/Cheney-doctrine like move with a pre-emptive strike, rather than waiting for AA to turn their attentions to them. American may try to guide prospective flyers to Priceline and Kayak as alternatives, but given that Priceline doesn’t sell a lot of air travel and Kayak doesn’t actually take bookings, I’m not sure how well that’s going to turn out…especially if the prospective traveler has to go to AA.com to learn they should go to Kayak or Priceline in the first place.
- Got predictions? The Tnooz staff and nodes do.
- The prospects of Net Neutrality seem dim. It seems the FCC is dead-set on screwing the consumer and benefiting the telecom providers. And while this legislation has more holes than in Swiss cheese on the wired ‘Net, look out when it comes to wireless Internet access. If you thought your cell phone bill was high now, just wait. I can’t believe I’m saying this, but it’s looking like I’m going to be rooting on the Republican congressional leaders to save us from this ruling. Wired shows us a PPT of what the telecom providers evil plan might look like. Apple co-founder Steve Wozniak wrote and interesting piece for the Atlantic. His last paragraph says it best.
- How aggressive is your company’s adoption of Web 2.0 tools and techniques? The answer may materially impact the performance of your company. McKinsey Consulting came out with a new research report says that “highly networked enterprises” were 50% more likely to report increases in market share and profit margins than other firms.
- TripAdvisor deepens their Facebook integration, getting us closer to real social leverage in travel and not just “liking” different brands.
- Robert Cole pens another opus on the state of the hotel industry. The Reader’s Digest version is that things are much better than last year, but keep things in perspective. If you want to pop a bottle of champagne, you may opt for Korbel instead of Krug.
- Delta also makes a move against smaller OTAs, snubbing CheapOair, Bookit and OneTravel. I don’t quite buy Delta’s analogy between the Apple Store and BestBuy. Has Glen Hauenstein been to a BestBuy recently? It’s actually a pretty good purchasing experience and they do have an Apple Store-within-a-Store concept staffed by Apple experts. If his comparison was Target & Wal-Mart, I’m all in. But is Delta.com that great of a purchasing experience…on an Apple level? Hudson Crossing’s Tom Botts makes a good distinction between Delta’s move and AA’s – that Delta is just trying to enhance the quality of their distribution channel, as opposed to changing the fundamental relationship with the entire channel.
- I amongst millions of people have come to depend upon Skype as an important business communication tool, trailing behind my phone and email. But to my great horror, Skype was down for more than 24 hours. Dan York explains what a supernode is helps you understand the reasons behind the outage on his Disruptive Telephony blog.
- In another blow to Travelport, United announces they will leave Apollo in favor of HP’s SHARES reservation system, used by Continental. One of the many system consolidations that will occur as a result of the merger. On top of the AA dustup, this almost assures Travelport won’t IPO in the next year unless they have some dramatic wins.