U.S. Travel Association Raises Alarm on Possibility of Airfare Pricing Collusion
July 6, 2015
The U.S Travel Association’s President and CEO Roger Dow issued a strong statement after an article came out by The Washington Post that said the U.S. Justice Department was launching an investigation into whether some of the top airlines have colluded to keep prices high.
The article states that prices were driven up by limiting routes and affordable seats. The article also states that representatives from Delta Air Lines, Southwest Airlines, American Airlines and United Airlines confirmed they were among those being investigated and said they were complying with Justice Department requests.
"We fervently hope that the U.S. airlines targeted by the Justice Department's inquiry are cleared of these allegations,” Dow said.
He added, “American consumers are already jaded enough about flying that we've been wondering for a while how many more gut-punches they could absorb before we see a dip in air travel demand - and therefore a dip in the related econometrics for cities and businesses across the country.”
After a series of mergers, what used to be a much larger field of carriers now has narrowed down to the main four - Delta, Southwest, American and United.
In the meantime, even after Sept. 11 had a major impact on all airlines, most now are posting record profits.
"If not for the radical consolidation we have seen in the airline industry in the last few years, we probably would not even be having this conversation,” Dow said.
He added, “Now that four carriers control 85 percent of domestic routes, 'collusion' is a thought that's constantly going to be in the back of the minds of federal regulators.”
The remedy as at Congress’ fingertips, Dow said, adding they need to “make adjustments to airport financing so that individual airports can raise funds to expand terminal space and allow new carriers into their markets. More competitors significantly lessens the possibility that collusion can occur, and the pressures upon prices and service would be tremendously favorable to travelers, and therefore the broader economy”
He urged their partners in the airline business to cooperate fully with this investigation, “and for Justice officials to bring it to the fastest possible conclusion, so that the summer and fall travel seasons can go on unimpeded."
Partner Voices
Overview:
The award-winning Orange County Convention Center (OCCC) goes the extra mile to make every day extraordinary by offering customer service excellence and industry-leading partnerships. From their dedicated in-house Rigging team to their robust Exhibitor Services, The Center of Hospitality brings your imagination to life by helping you host unforgettable meetings and events. With more than 2 million square feet of exhibit space, world-class services and a dream destination, we are committed to making even the most ambitious conventions a reality.
In October 2023, the Orange County Board of County Commissioners voted to approve allocating Tourist Development Tax funding for the $560 million Phase 5A completion of the OCCC. The Convention Way Grand Concourse project will include enhancements to the North-South Building, featuring an additional 60,000 square feet of meeting space, an 80,000- square-foot ballroom and new entry to the North-South Building along Convention Way.
“We are thrilled to begin work on completing our North-South Building which will allow us to meet the growing needs of our clients,” said OCCC Executive Director Mark Tester. “As an economic driver for the community, this project will provide the Center with connectivity and meeting space to host more events and continue to infuse the local economy with new money and expanding business opportunities.”
Amenities:
The Center of Hospitality goes above and beyond by offering world-class customer service and industry-leading partnerships. From the largest convention center Wi-Fi network to custom LAN/WAN design, the Center takes pride in enhancing exhibitor and customer experience.
The OCCC is the exclusive provider of electricity (24-hour power at no additional cost), aerial rigging and lighting, water, natural gas and propane, compressed air, and cable TV services. Convenience
The Center is at the epicenter of the destination, with an abundance of hotels, restaurants, and attractions within walking distance. Pedestrian bridges connect both buildings to more than 5,200 rooms and is within a 15-minute drive from the Orlando International Airport. The convenience of the location goes hand-in-hand with top notch service to help meet an event’s every need.
Gold Key Members
The OCCC’s Gold Key Members represent the best of the best when it comes to exceptional service and exclusive benefits for clients, exhibitors and guests. The Center’s Gold Key memberships with Universal Orlando Resort, SeaWorld Orlando and Walt Disney World greatly enhance meeting planner and attendee experiences offering world-renowned venues, immersive experiences and creative resources for their events.
OCCC Events:
This fiscal year, the OCCC is projected to host 168 events, 1.7 million attendees, and $2.9 billion in economic impact.
The Center’s top five events during their 2022-2023 fiscal year included:
AAU Jr. National Volleyball Championships 2023
200,000 Attendees
$257 Million in Economic Impact
MEGACON 2023
160,000 Attendees
$205 Million in Economic Impact
Open Championship Series 2023
69,500 Attendees
$89 Million in Economic Impact
Sunshine Classic 2023
42,000 Attendees
$54 Million in Economic Impact
Premiere Orlando 2023
42,000 Attendees
$108 Million in Economic Impact
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