Airlines Doing More Online Marketing Deals

It’s becoming almost a daily occurrence – an airport evacuated, someone
trying to storm the cockpit, passengers overcoming an ominous suspect.

So it’s no wonder the airlines are doing more deals like the one announced
today by Northwest Airlines , which signed “a
comprehensive distribution agreement” with online travel operation Travelocity .

The deal “combines the value and convenience of Northwest’s product with
Travelocity’s reach into the online market,” said Al Lenza, vice president of
distribution and e-commerce at Northwest Airlines. Financial terms were not
disclosed, but there’s no doubt every extra ticket sold will help both
parties.

Travelocity provides Internet and wireless reservations information for more
than 700 airlines, but it doesn’t have special marketing relationships with
all of them. It did sign a similar deal with Continental in January and has
deals with British Airways, JetBlue and America West, among other airlines.

Airlines are scrambling to fill seats and make their customers happy, that’s
clear. British Airways just this week signed a deal with the Worldwide Travel
Exchange (WWTE) hotel-booking arm of Expedia Inc. company
Travelscape, enabling the airline’s passengers to book rooms at more than
40,000 hotel properties.

“WWTE has enhanced British Airways’ online offering, giving travelers the
opportunity to book hotel accommodations worldwide when visiting the site,”
said Simon Parks-Smith, head of eBA.

Launched in July 2001, WWTE delivers private label booking solutions
to online travel suppliers.

Of course, the airlines were interested in selling tickets online before
Sept. 11, as witness the creation of online travel site Orbitz, founded by American, Continental,
Delta, Northwest and United airlines.

The big question for the air carriers is when air travel will return to
normal. And that won’t be soon, if you believe the International Energy
Agency (IEA), which said in a recent report that Western demand for aviation
fuel is unlikely to bounce back quickly this year even with a speedy recovery
for the world economy.

Demand for kerosene jet fuel after the events of Sept. 11 slumped by nine
percent in the fourth quarter on average among the industrialized nations,
led by a 14 percent dip in North America, the industry group reported, adding
that a turnaround is unlikely because ambitious carriers had already
over-reached themselves, creating unfeasible levels of demand before Sept.
11.