Surcharge Raises Ire - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance
News
8/27/2004
02:50 PM
50%
50%

Surcharge Raises Ire

The only no-fee ticket on Northwest is an online ticket from the airline's Web site

When Northwest Airlines Corp. said last week it will charge extra fees for tickets not bought on its Web site, it caused a chain reaction in an industry still grappling with the impact of the Internet.

Starting this week, Northwest will charge travel agencies and Web sites such as Expedia and Travelocity an average of $7.50 on each round-trip ticket they buy through "distribution networks" such as Sabre Holdings Corp.'s Sabre Travel Network. That will help offset fees Northwest pays to those networks; the airline says it paid $180 million last year, a cost that low-fare competitors don't have to bear.

"Since we compete with the low-cost carriers on price, it's essential that we take steps to compete with them on distribution costs," said Tim Griffin, Northwest's executive VP of marketing and distribution, during a conference call last week. Northwest also said it would charge an additional $5 on tickets booked through its call center or at airport ticket counters.

Sabre, the nation's largest distribution network, countered with a breach-of-contract lawsuit. Sabre and rival network Galileo, a subsidiary of Cendant Corp., said they will display Northwest fares less prominently to agents. A day after Sabre filed its lawsuit, Northwest filed its own breach-of-contract suit against Sabre.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Slideshows
IT Careers: 10 Industries with Job Openings Right Now
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/27/2020
Commentary
How 5G Rollout May Benefit Businesses More than Consumers
Joao-Pierre S. Ruth, Senior Writer,  5/21/2020
News
IT Leadership in Education: Getting Online School Right
Jessica Davis, Senior Editor, Enterprise Apps,  5/20/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll