Travelocity

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Online travel agencies score big with shoppers

Online travel agencies remain a big hit with shoppers, new survey data show, but the sites’ popularity could fade if contract battles with airlines leave them with fewer airfares to lure bargain-chasing consumers, researchers warned.

With airfares soaring and the economy stuck in the doldrums, consumers continue to flock to travel sites to plot dream vacations and research deals and steals, a market that’s expected to total $104.6 billion in 2011, according to market research firm PhoCusWright Inc. Get the full story »

American Airlines holds ground in Sabre spat

American Airlines sparred with third-party ticket sellers on Wednesday in an ongoing battle over distribution costs and methods as one key provider of airfare data vowed to stop offering the airline’s flight information.

Privately held Sabre Holdings Corp operates a global distribution system that provides information on airfares to travel agencies like Travelocity. The company said it would end its distribution deal with American in August — a month before the end of its contract.

The company said it would discontinue price discounts on American Airlines tickets that have stimulated sales. The airline is also at odds with Chicago-based online travel agency Orbitz Worldwide and last month stopped selling tickets on Orbitz. Get the full story »

Analysts see holiday airfares rising, no late deals

Air fares are up dramatically this holiday season — so there’s no point in waiting for last-minute deals because they’re not going to happen, experts say.

“You have a lot more pent-up travel demand chasing fewer seats,” said Rick Seaney, chief executive of Farecompare.com. “There’s just no incentive for airlines to lower fares.” Get the full story »