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New York Times opposes airlines’ new fare model

Excerpt from The New York Times

Mar 04, 2013 7:24 am

Skift Take

It isn’t often that mainstream media weigh into the travel distribution wars, but The New York Times has done so. An editorial opposes IATA’s proposed New Distribution Capability, which would have airlines market to travelers based on their preferences and frequent flyer status.

— Dennis Schaal

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Airlines could soon start offering customized fares to travelers based on how regularly they fly, where they live and the kind of trip they are taking.

The world’s largest airlines have agreed to adopt a new standard for distributing airfare information that could significantly compromise the privacy of customers and allow carriers to charge travelers different prices for the same trip. Many airlines have struggled with high fuel costs and aggressive competition from low-fare carriers. They may be counting on the new airfare pricing standard to increase revenue and profits. It is hard to see how this approach could result in more competition or anything but higher costs for many travelers.

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