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How Flying became a NIGHTMARE
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Let’s start talking about how you booked that ticket.
Back in the 80s, as you were sitting at the travel agency, that nice lady would have used a platform called Sabre to find the ticket and book it.
Sabre is one of 3 or 4 of the largest GDSs, or Global Distribution Systems, and their job is to make all fares from different airlines indexable, and to allow these travel agents to book the flights, electronically.
So that travel agency would have probably made a 10% commission on the price of that ticket- which the airline was happy to pay, because the only alternative was having a branch of their own.
Fast forward to today, and the middle-man (or middle-lady) of the travel agency is all but disappeared. When platforms like Expedia or Orbitz or Travelocity (bullshit- did you now they are all the same company?).
Anyway, these online travel agencies came to life precisely to monetize on that 10% booking fee.
They still connect to platforms like Saber, but it was much more efficient to convince you to buy flights online, than employing real humans in Manhattan- and of course, you also could scale, all over the world!
It was great business. It is still great business. They no longer make 10%, it’s under 5% these days- but still, we are talking billions of dollars in flights.
And you not only shop at Expedia or one of their alt-names because it’s convenient for you, you shop there because they have made it their mission to help you find great deals.
Because the single most important factor for most travelers is money.
So in 2023 you boot up your favorite platform, search for that NYC to AUS flight, and you are presented with over 100 flight options per day.
Not only that, you can use the date grid to find out pricing if you fly a day earlier, or a date later- or compare fare restrictions side by side, even leg room.
Now, you may be willing to spend a little extra to fly on the airline where you hoard your frequent flyer miles, might throw a little extra to fly direct vs having a layover- but how much is that, really?
The rise of Expedia and other similar platforms not only gave us that ease of use, it literally put airlines right next to each other to give you the most efficient, convenient and cheap way to get to your awkward family weekend.
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