JetBlue Airways has severed relationships with about 10 of its longstanding online travel booking companies in a cost-cutting strategy.
The airline explained that the move is part of its structural cost program to reduce costs across the airline. The change marks the first phase of a new online distribution strategy, which will focus on direct bookings through jetblue’s website and select third-party channels.
The distribution cost structure through third-party channels makes it challenging to offer a full range of fares. By eliminating lower-yield online travel agencies, JetBlue will not only support its structural cost efforts but also help ensure that customers traveling with JetBlue have the best experience possible since direct bookings deliver benefits to customers:
Direct bookings save the airline costly third-party transaction fees, which allows the airline to reduce costs and keep ticket prices low.