Online Travel Update: FlightHub Insists It’s Trustworthy; US Airways claims losses of nearly $300 million in case against Saber; and AirAsia continue quest for Super App status | Foster Garvey PC

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Last week’s update features a variety of stories, including FlightHub’s attempt to resurrect its reputation and US Airways’ latest claims against Saber. Enjoy.

FlightHub’s Latest Pitch: Trust Us
(“OTA Who Was Charged With Record DOT Fine Insists It Can Be Trusted”, April 25, 2022 via Travel Weekly)
When you consider the many factors that one can use to evaluate a potential distribution platform, reliability is really over the top. At least that’s the current pitch of FlightHub (parent company of JustFly.com and FlightHub.com). Just weeks after receiving the largest fine from the Department of Transport’s Airline Consumer Protection Bureau (which follows a similar settlement with Canada’s Competition Bureau for similar conduct), FlightHub is in scrutiny mode. total damage. In both cases, consumer protection agencies alleged that FlightHub’s OTAs misrepresented fares, cancellation fees, ticket refunds and baggage fees. Interestingly, FlightHub CEO Chris Cave says these “voluntary” settlements are the best possible proof of FlightHub’s commitment to full transparency with its travelers. Eh?

US Airways claims losses of nearly $300 million in case against Saber
(“US Airways Tells Jury Saber Overcharges Cost It Almost $300 Million”, April 22, 2022 via Bloomberg Law) (subscription may be required)
As the second Saber/US Airways antitrust trial begins, airline lawyers told jurors last week that the global distribution system had cost the airline nearly $300 million in overcosts and lost revenue. . According to the lawyer, Saber’s monopolistic position allowed it to overcharge reservation services, avoid price competition and prevent others from entering the market to provide similar services – namely a system distribution platform allowing airlines and other suppliers to connect with travel agents.

AirAsia continues quest for super app status
(“The Wrap: Rising demand for travel to Southeast Asia, Travalyst aviation sustainability framework, AirAsia-Trip.com partnership”, April 20, 2022 via WIT)
In its seemingly endless quest to achieve Super App status, AirAsia announced last week that it is partnering with Trip.com to add Trip.com’s 1.2 million hotel listings to the platform. online booking. With this new partnership, AirAsia now enjoys supplier relationships with Trip.com, WebBeds and Travelport.


Other news:

Is there a direct online channel dilemma?
April 25, 2022 via Hospitality Net
A recent and very heated discussion on LinkedIn about direct online distribution versus OTA distribution prompted this article. Some of the “detractors” of direct distribution claimed that the direct channel was, quite often, more expensive than the OTA channel, pointing to metasearch marketing ROI, so why bother? Proponents of direct distribution insisted that the direct channel was more than just returns on investment that allowed the property to “own” the customer.

CitizenM launches a loyalty program: CitizenM+
April 22, 2022 via Accommodation Magazine
CitizenM launched a loyalty program called mycitizenM+. mycitizenM+ has no points to collect, levels to achieve or welcome gifts. Members sign up for a monthly subscription to get the benefits without the points, and they don’t have to spend more to get the rewards.

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