Travel Advisor Trade Group Weighs In on Air Travel Competition in Response to the DOJ and DOT Inquiry

International

Selling 735,000 air tickets daily, travel advisors have witnessed first-hand the effects of airline consolidation throughout the history of commercial aviation

The American Society of Travel Advisors (ASTA) submitted its response to the jointly issued Request for Information (RFI) from the Departments of Transportation and Justice relating to the state of competition in air travel.

In the decades following airline deregulation in 1978, mergers and acquisitions approved by the DOJ have contributed to an alarming decline in competition in the U.S. airline industry, resulting in both higher prices and fewer choices for consumers. ASTA formally brought these concerns to the attention of both agencies more than a year ago, and welcomed the opportunity presented by the RFI to share our members’ views on this critically important issue. There is a significant degree of interdependence between airlines and the various intermediaries, such as the global distribution systems (GDSs), traditional travel agencies and travel management companies (TMCs), adding a layer of complexity to the analysis.

In summary, ASTA's RFI response underscores the integral role that distribution intermediaries play in protecting the interests of consumers. Topics relevant to competition that are discussed in ASTA’s filing include:

Airline deregulation
Air carrier consolidation
Airport capacity and access
Immunized international alliances
New Distribution Capability (NDC)
Channel price discrimination
Airline reward programs
Intermediary aggregation

To ensure that air ticket distribution intermediaries can compete on an equal footing with the airlines themselves, regulators must ensure that air carriers provide the GDSs with full access to fare, ancillary, schedule, and availability information. Likewise, airlines must not be permitted to utilize their substantial market power to disadvantage, pricewise or otherwise, the 40 percent of consumers who prefer to book air tickets through the travel agency distribution channel. Transparency is essential if the air transportation market is to function in a manner most likely to consistently deliver a high level of service at the lowest possible price.

ASTA looks forward to working with the incoming Trump administration to advance its positions outlined in its RFI response and is eager to support the advancement of the U.S. travel economy.