4 Responses

  1. Sice
    Sice at |

    This fight benefits neither the airline nor the OTA. Over time this will only result in the OTA either going away or somehow luring passengers into paying more for the experience.

  2. Brian Ketchum
    Brian Ketchum at |

    Call it a fight, but really nothing more than a common sense business decision by Frontier to reduce the nearly $50m (as in MILLION!) they pay the OTAs annually. Frontier competes with Southwest who does not participate with OTAs, instead driving a huge chuck of their bookings through their website. You can’t even call 800-IFLYSWA and get the same deal you would on the website. I would consider that a “penalty” providing an incentive for their customers to book at the website. Frontier pays between $20-$26 for every seat sold via OTA compared to less than $2 via their website. Every Frontier ticket sold via OTA must still be priced to compete with Southwest, which effectively gains a $20-$26 cost advantage by avoiding OTAs. With CASM (costs) already competitive with Southwest, any suggestions on how to close the gap currently being siphoned off to OTAs?

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