Distribution at American Airlines (A) Harvard Case Solution & Analysis

American Airlines sought to condense the fees it pays to international distribution services (GDSs) (including SABRE) to reach travel agents. But GDSs held critical tactical advantages.

For example, GDSs had signed long-term exclusive contracts with the corporate customers who were American's finest customers. Furthermore, travel agents tended to favor whichever GDS offered the maximum fees - impeding price competition among GDSs. Against this backdrop, American considered how its GDS prices to cut on.

PUBLICATION DATE: January 12, 2009 PRODUCT #: 909035-PDF-ENG

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