CHICAGO -- United, American and US Airways have gotten on board with Priceline.com, the name-your-own-price Internet ticket service.
That means that nearly all major U.S. airlines now sell seats through Priceline. The move also doubles the number of seats Priceline can sell.
The agreement announced Wednesday gives travelers more reason to buy tickets online and provides airlines with a proven way to peddle unsold seats at the last minute.
It also deals another blow to travel agents, which are seeing their airline commissions cut and getting stiff competition from travel Web sites. Most airlines now sell tickets on their own sites, and last week United, Delta, Continental and Northwest announced plans for a joint site.
Priceline's three new airlines — Nos. 1, 2 and 6 in the country — join Delta, Continental, Northwest, TWA and America West on Priceline. Among major airlines, Southwest is still not participating.
At Priceline.com, buyers can choose their own price for hotel rooms, cars, home mortgages and equity loans. The deal is sealed when the seller accepts the buyer's bid.
Priceline's new partners had previously been reluctant to sell tickets there, particularly American, which was afraid to compete with Travelocity.com, the travel Web site controlled by American's parent, AMR Corp. All three airlines also sell tickets at their own Web sites.
But results apparently persuaded the three airlines. Priceline said its weekly sales of airline tickets have increased to more than 50,000 a week, up 1,000 percent from January.
An American Airlines spokesman said the partnership is an acknowledgment that Priceline "is growing up.''
"It comes down to the fact that Priceline has shown itself to be a viable distribution channel that makes sense as one of many distribution channels at this point,'' spokesman Tim Smith said.
On Wall Street on Wednesday, stock in Stamford, Conn.-based Priceline soared $8.25 to $77 a share, a 12 percent rise, by midafternoon on the Nasdaq Stock Market.
November 17, 1999
Source: Newswire