Barney Harford Biography

In the first public indication that American Airlines means to enforce its direct-connect strategy the carrier told Orbitz it would end its participation in Orbitz’ websites including Orbitz for Business on Dec. 1. Orbitz chief executive Barney Harford characterized the move as “the first salvo” fired in the carrier’s “broad attack on the distribution landscape.”
American plans to connect directly with large travel distributors such as online travel agencies and major travel management companies. It would connect with smaller agencies and other distributors via third parties such as Farelogix. Ultimately American has said it will sever its Edifact connections with GDSs. It would however offer its XML direct connection to GDSs.
American also has said it will distribute its growing collection of ancillary products only via its direct connection. Under current conditions that is the only way that it can marry its proprietary customer data to its ancillary products in order to create highly customized offerings it says.
The strategy has caused a stir in the travel distribution community. Travel management companies see it as further fragmentation of the marketplace that will create inefficiencies. They fear that if several airlines adopt similar strategies their ability to truly manage corporate travel will be diminished. That scenario also would cut sharply into the productivity incentives that GDSs pay travel agencies. The incentives have become an important source of income since the airlines eliminated base commissions.

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