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Clear Field
Steve CosgroveContributing Writer

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More Bumps and Grinds in '03

Jan 10, 2003

Traditionally, the first part of January is a time for predictions, so let me dust off my wonderful little crystal ball and tell you what I see:

The airlines continue to use the Web to promote even lower fares so they lose money on every ticket sold, but make it up in volume. Yeah, right!

Certain cruise lines and tour operators, for some unknown reason, like the way the airlines market on the Internet and try to generate more direct bookings themselves.

ARC decides daily reporting works so well that they go to hourly reporting, thinking it will be even better.

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Amtrak turns a profit; airlines try to figure out how.

Cruise lines develop new home ports in Chicago and Detroit as they run out of home ports in the Gulf Coast, East and West coasts.

Saddam decides he likes living, so he moves to Mongolia. No war means that travel agencies hit record sales and profits in 2003. Airlines, however, manage another record year of losses so a local agency doing just $1 million in sales is more profitable than the top 5 airlines combined.

All four of the major CRS companies decide to become online travel agencies and get out of the travel agency business. Travel agents at first are shocked, but decide they can manage just fine.

Airlines decide to pay agents 10 percent commission if they will book in the CRS, take responsibility for debit memos and chargebacks and report all sales through ARC.

Agents tell airlines where to stick their 10 percent commission proposal. Happy days again.

Oh, and at least one more airline will file Chapter 11.

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