I was playing with the stock of the big 3 public OTAs and the 4 largest airlines to compare their stock performance over the past 6 months.
In the wake of the decision by Delta Airlines to use the Farelogix distribution system, it is clear that the US market for distribution has now been clearly redefined. The big 5 US traditional model airlines - US Airways, American Airlines, Delta and Continental/United have now all signed up for the service. Technically Southwest may have too as they are consuming Air Tran who is also signed up with Farelogix. (So that is how I got to 6)
If the market as determined by the stock prices represents the wisdom of the crowd then I think we can clearly see that Orbitz is being spanked.
Click on the image to see a clearer image of the lines.
The Stock symbols are:
OWW = Orbitz
EXPE = Expedia
AMR = American Airlines
DAL = Delta Airlines
UAL = United Continental
LUV = Southwest Airlines
The recovery of Expedia since the change of direction is beginning to show.
I think we just witnessed a seismic shift in distribution balance.