Distribution costs: The buck stops here
13 September 2012
Mainstream airlines are starting to follow their budget rivals by shedding their distribution costs and passing them down to the customer
One largely unnoticed segment of the total cost of travel is the price purchasers pay for distribution of travel reservations. It has tended to escape attention because it is relatively small – perhaps 5 per cent, in all – but buyers should start to watch this area because it is tipped to grow quickly over the next couple of years.
The catalyst for change has...