JetBlue Airways Drops a Dozen Online Travel Agencies in Cost-Cutting Move
Photo Credit: Kiwi.com is one of a dozen websites that has lost its right to list JetBlue Airways tickets. JetBlue, like many airlines, would prefer to sell directly to consumers. Kiwi.com
Skift Take
On its own, this is no big deal. Not many people book JetBlue tickets on Vegas.com or whatscheaper.com. But JetBlue called this phase one, so we'll be watching closely to see the airline's next step.
In a cost-cutting measure and the first part of a strategy to push passengers to its website, JetBlue Airways said Thursday it has stopped selling tickets through a dozen less-known online travel agencies, though it remains on larger ones, including sites owned by Expedia Inc. and Priceline Group.
The sites dropped by JetBlue represent a "very small percentage" of overall ticket sales, according to the airline. Sites no longer selling JetBlue include SmartFares.com, FlightSearch.com, VacationExpress.com, FlyFar.ca, FlightNetwork.com, and Vayama.com. JetBlue calls them "lower-yield" online travel agencies.
"We looked at the cost structure and recognized that we had a intersection of a relatively high-cost channel and some relatively low-value customers," Marty St. George, JetBlue's, executive vice president for commercial and planning, said in an interview. Passengers who bought tickets through the sites not only chose cheaper fares, but also spent less on ancillary items, he said
