Northwest
Airlines on Monday said it
created a Web-based booking
tool for travel agents and
will supply the same fares on
it that it does to consumers
through its main Internet
site.
The
new Web site, called
WorldAgent Direct, is designed
to relieve travel agents'
complaints that they can't
offer customers the same low
fares that Northwest does to
people who buy directly from
its public Web site, nwa.com.
The
site is similar to one
announced last week by
American Airlines. But travel
agents criticized the American
site, called EveryFare,
because of fees the airline
imposed for using it.
Northwest said it won't charge
travel agents to use its new
site, which begins operation
on Oct. 22.
Travel
agents can use the public Web
sites of airlines to buy
tickets for customers, but
they rarely do because the
sites don't help them perform
accounting and other functions
as do the more sophisticated
computer reservation systems
they've used for years.
By
offering the same services,
including accounting and
billing, Northwest's new Web
site for travel agents may
start to reduce agents'
reliance on the existing
reservation systems, which
both agents and airlines pay
to use.
Travel
agents for several years have
complained about the ultra-low
fares airlines offer to
consumers who book directly
with them via the Web. The
acrimony grew this spring when
most airlines stopped paying
commissions to travel agents,
leading to congressional
hearings on the tug-of-war
between airlines and travel
agents.
The
Web's emergence in the
mid-1990s increased the number
of people who buy tickets
directly from airlines, but
travel agents still sell about
three of every four airline
tickets. Shifting more agents
to Web-based booking is yet
another way for airlines to
lower costs.
For
Northwest, the average ticket
sells for about $300 and about
$14 of that goes to the fees
imposed by the operators of
computer reservation systems.
It is a co-owner of one of
those systems, WorldSpan, with
Delta Air Lines and American.
But its new Web site for
travel agents will be run from
its internal computers, not
WorldSpan.
"It's
hard to predict exactly how
the economic model will play
out," said Fay Beauchine,
vice president of sales and
customer relations at
Northwest. "What is known
is airlines need to reduce
their distribution costs. This
is one way to do it."
The
airline is holding a
sweepstakes contest to get
agents to try the system and
will periodically offer
special fares to them through
it.
After
American's system last week
left travel agents
unimpressed, Richard Copeland,
president of the American
Society of Travel Agents,
expressed wariness about
Northwest's new system. But he
said, "The Northwest plan
needs further scrutiny."
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