Online agencies facing stiffer competition from airlines

Airlines are increasingly offering their best deals on their own sites and not sharing them with Expedia, Travelocity, Kayak, Sidestep and other online travel agencies, or OTAs, and so-called aggregators. Many low-cost carriers are now selling all their fares only on their own sites.

It's pretty clear why this is happening. Airlines are forced to pay OTAs and other third-party sites a commission when a consumer buys an airfare, just as they used to pay travel agents, who once got a standard 10 percent commission on every airline ticket sold. If the airlines can skip the middleman, not only do they save the commission expenses, but they build consumer loyalty and drive traffic to their sites.

American Airlines and Southwest Airlines have both launched computer applications that alert consumers to special deals that can only be bought on their respective sites. In addition, many other U.S.-based airlines and several large international airlines are increasingly marketing lower fares on their own Web sites than they sell on third-party sites.

What all this means for the future of online travel agencies and aggregators is anyone's guess, but if I were in their shoes I'd be sweating. For consumers, this trend results in savings, but also requires them to shop around more because even an airline offering a discount on its own site might still not always have the lowest fare on any given route.

Also of note, these "private" fares will not be listed on fare comparison listing sites (as opposed to fare search sites) or taken into consideration by fare prediction sites.

Here's a short list of airlines that are currently offering great deals on their own sites only (complete list available in the blog section of www.airfarewatchdog.com):

Allegiant (www.allegiantair.com): This airline, which mostly flies from Rockford to Las Vegas, Orlando and St. Petersburg, only sells fares on its own site. Sign up for its newsletters.

American (www.aa.com): AA recently launched DealFinder, which offers discounts typically of 20 percent to 25 percent on various routes. This tool works on most Windows computers, but not Macs, and requires that you download software. Recent deals include 25 percent off to the Caribbean and Mexico, and 15 percent off to Hawaii.

JetBlue (www.jetblue.com): This carrier's fares are not listed on Orbitz, and although they do appear on Travelocity, Sidestep, Kayak and Cheapair, among others, we frequently see special deals available only on its site. Recently, for example, it was offering $30 off each round trip booked via a link on its site for passengers buying fares with an American Express Card.

Southwest (www.southwest.com): Visit www.southwest.com/ding and sign up for an applet that alerts you, often once or twice a day, to short-lived sales that are only available to Ding! users. Fares are typically $10 to $30 lower than Southwest's other fares. Whether Ding! or not, Southwest lists and sells its fares only on its own Web site.

Spirit (www.spiritair.com): This spunky low-cost carrier has almost weekly sales with fares as low as a penny (plus tax, of course) for specific dates, sometimes far into the future. Typically the lowest fares are only available for four to six travel dates in each direction, but other deals are available over a broader travel period. Join its $9 Fare Club (trial memberships cost $9, or free if you apply for its branded credit card) and you'll have a wider choice of fares, all of which are bookable on site only.

USA3000 (www.usa3000.com): Frequently offers coupon codes, generally $10 off each one-way fare. This airline's fares are not listed on all OTAs, but they do appear on Sidestep.

AirTran changes A+ Rewards

AirTran Airways (www.airtran.com or (800) 247-8726) recently announced that Elite level A+ Rewards frequent-flier members and A+ Visa cardholders will get two years to redeem their credits, up from the standard one year.

Here's hoping AirTran will extend this new policy to regular members soon. More information is available at www.aplusrewards.com.

And on other news, A+ Rewards members can now redeem credits and book flights online at www.airtran.com. Members will be able to a review rewards seating calendar, choose their flights and reserve their seats. Members can even mix and match by using a reward ticket for one direction of a round trip and a paid fare on the other.

Reach George Hobica athobica@gmail.com, Kim LiangTan at KimLiangTan@aol.comor log on to www.airfarewatchdog.com.