Edelman, Benjamin. “Distribution at American Airlines (A).” Harvard Business School Case 909-035, January 2009. (Revised June 2009.) (educator access at HBP. request a courtesy copy.)
American Airlines sought to reduce the fees it pays to global distribution services (GDSs)–such as SABRE–to reach travel agents. But GDSs held significant tactical advantages. For example, GDSs had signed long-term exclusive contracts with the corporate customers who were American’s best customers. Furthermore, travel agents tended to favor whichever GDS offered the highest commissions–impeding price competition among GDSs. Against this backdrop, American considered how best to cut its GDS costs.
Supplements:
Distribution at American Airlines (B) – Supplement (HBP 909036)
Distribution at American Airlines (C) – Supplement (HBP 913034)
Distribution at American Airlines (D) – Supplement (HBP 913035)
Teaching Materials:
Distribution at American Airlines (A-D) – Teaching Note (HBP 909059)
Distribution at American Airlines – Slide Supplement (HBP 914039)