Cheap discount airline ticket
Aggressive fare wars affects discount ticket business
AIRLINE INDUSTRY INFORMATION-(C)1997-1999 M2 COMMUNICATIONS LTD
Aggressive `fare wars` and heavy discounting by airlines is apparently affecting the business done by discount ticket vendors.
Cheap Tickets, which sells air tickets at `non-published` prices, said that fare sales by the carriers meant that consumers had less incentive to turn to other resellers to purchase a discount fare. Cheap Tickets is expecting that a `prolonged fare war` by US airlines will reduce its results for 4Q`99, but the company`s CEO said he did not think that the current trend of heavy discounting by airlines would continue in the long term.
Other companies such as Sabre Inc`s Travelocity, Expedia Inc and Preview Travel Inc, which act similarly to traditional travel agencies, are not expected to be affected by the ongoing fare war, nor is Priceline, which has said it is `very much on track` to meet analysts` expectations according to reports.