American Airlines seeks to reduce the fee it pays to the global distribution services (GDS) (such as SABRE), to reach travel agents. But GDSs made significant tactical advantage. For example, the GDSs have signed a long-term exclusive contracts with corporate customers, who were American best customers. In addition, travel agents tended to favor whichever, GDS offering the highest commissions - prevents price competition among GDSs. Against this background, the U.S. considered the best way to reduce their costs GDS. "Hide
by Benjamin Edelman Source: Harvard Business School 10 pages. Publication Date: January 12, 2009. Prod. #: 909035-PDF-ENG
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