US Airways to offer all services on Travelocity

By Dow Jones Newswires
Posted March 1 at 1:23 p.m.

Travelocity said Tuesday it signed a multiyear deal with US Airways¬† to offer the carrier’s full range of content through the Sabre Holdings global distribution system, a third party agent that owns Travelocity.

As part of the deal, US Airways and Travelocity will also develop the means to offer the airline’s ancillary products directly to Travelocity customers, a touchy bargaining point for traditional middlemen such as Sabre. The deal follows a similar contract US Airways signed in January with Expedia Inc., which allowed for the airline to develop more direct-connect technology with the site.

Airlines have been unbundling traditional services from base fare and selling them separately to increase their revenue, but systems such as Sabre have been slow to adapt.

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