WestJet to renegotiate with online travel agencies like Expedia and Travelocity

There was an agreement between Calgary- based airline company WestJet and Sabre Travel Network on the noon of Friday. WestJet had nearly ended the contract with famous websites that provide online booking.  It took more than a year to renew its contract with travel websites. 

WestJet’s ticket booking system is provide by Sabre Travel network which also provides distribution service travel industry and used by many agents to make reservation of flights and hotels online.

There was news in October, according to which WestJet would stop using Sabre from 26 January. The main reason behind this announcement was the charges by Sabre which was $5 per every flight, hotel room or rented car. The price was the key concern in the meetings of WestJet and Sabre.

Bob Cummings, the vice-president of sales and marketing said that airline is putting every effort to keep prices low. He further added that margins are very less and cost of sales is very important to them.

The biggest online travel agency in world is Expedia. The air industry analyst Robert Kokonis said that WestJet would want to be in that position where there is lot of engagement in Expedia and WestJet would not be there.

Expedia sold how many tickets for WestJet, there is no data available. The sales of WestJet from its website are almost half and from Expedia it is five to seven percent of total sales.

 Opinion

Expedia and Travelocity are the largest online travel agencies in world. WestJet will loose large share of customers if they cut off with these online companies. They should see the benefits rather than cost charge by external companies. They will loose large number of customers doing so. So WestJet must negotiate with Expedia on this matter and renew their licenses.

Question 1

Why the online travel agencies are important source of tickets for WestJet?

Question 2

How can WestJet make their reservation system better?

Bibliography

Johnson, T. (2014, January 24). WestJet reaches deal to stay on Expedia, Travelocity. Retrieved January 21, 2014, from cbc.ca: http://www.cbc.ca/news/canada/calgary/westjet-reaches-deal-to-stay-on-expedia-travelocity-1.2509414