Was JetBlue sending a message to online travel agencies such as Expedia, Travelocity, Orbitz and Priceline that the airline's participation on their websites should not be taken for granted?
JetBlue officials, speaking Jan. 27 during the airline's fourth quarter earnings call, noted that the direct-to-consumer model is still the basic way the airline generates sales despite its participation in the GDSs.
Robin Hayes, the airline's chief commercial officer, said "business through the GDS channel, while it's significantly grown, it's still a small slice of the pie. We remain and continue to remain a largely consumer-direct business. So to some extent, we don't have the same skin in the game as some of the more traditional airlines have."
Hayes said the airline has seen strong yields from corporations through the GDS, adding, "We can do that within the GDS infrastructure. We don't need direct-connect for that."
Then came her message for online travel agencies.
"I think the online travel agents, we said before, the jury is still out," Hayes said. "We are not sure how much of that distribution is truly incremental and so [there is] a lot of focus from us on making sure that channel, if we're going to participate in it [my italics], is at the right cost level."
JetBlue participates in the major OTAs, but perhaps is looking for some steep discounts if the airline is to remain on board.
The comments come several weeks after one major carrier, American Airlines, removed its flights from Orbitz Worldwide, and saw Expedia Inc. remove the airline's flights as negotiations on a new contract stalled.
Unlike JetBlue, American Airlines is pursuing a direct-connect strategy.
The term direct-connect should not be confused with direct distribution.
American Airlines says it wants to distribute through GDSs, OTAs and traditional travel agents, but it wants them to hook themselves up to American Airlines Direct-Connect.
In contrast, JetBlue wants to drive direct traffic to its website, but is not pursuing a direct-connect strategy with intermediaries.
JetBlue CEO Dave Barger emphasized the airline's direct-to-consumer roots.
"I think the headline [is] this direct model, that hasn't changed, it's right in the fabric of our DNA since day one and even with the conversion to Sabre [for the airline's internal reservations system] and as we're in the GDS world and the OTA model, I mean, the direct model certainly has not changed," Barger said.
Barger added that JetBlue's percentages of direct sales have shifted over time, but the basic direct model is "not going to shift for us."