Airlines as Cookie Manufacturers

Airlines, Distribution, Travel
Four decades ago airlines began the race to the bottom that ensured commoditization of their once luxurious and glamorous product. This was to be a great boon for customers -- lower airfares, better schedules, increased availability and so on. Of course, reality turned out a little differently. Commoditization has chipped away at the value of the airline brand; indeed even the once vaunted frequent flier program has become a commodity. So, it's interesting to see airlines that form the Open AXIS Group compare themselves with cookie suppliers in the ongoing distribution wars with travel agencies and GDSs. The carriers make a good point about needing to update the travel distribution supply chain for the 21st century. However, the analogy with cookie manufacturers may not necessarily help. While needing a radical…
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