May 2011 should be the month where we see an improvement in the numbers from ARC. Expedia settled with AA so we should be seeing a better set of numbers all round. Or should we?
We have been hearing a consistent story that the US market is stagnating. Further the US market is seeing a channel shift to direct from the Agency community.
With the US economy looking like it may be in a mild double dip recession - the nature of the beast is that the agency based transactions are not moving ahead. Further things are not looking good for the rest of the year for the corporate budgets. With many companies showing that their budget share is now spent higher than was anticipated due to the rising cost of air fares I think we are going to see corporate budgets quietly cut after Labor Day.
You have been warned.
Cheers
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