Author Question: Why do you think that U.S. tourism-promotion money is mostly spent to promote domestic tourism? ... (Read 84 times)

JGIBBSON · **on:** Sep 11, 2019

Question 1

How have the GDSs contributed to the financial woes of the network airlines?

What will be an ideal response?

Question 2

Why do you think that U.S. tourism-promotion money is mostly spent to promote domestic tourism?

What will be an ideal response?

aprice35067 · **Reply #1 on:** Sep 11, 2019

Answer 1

When the GDSs initially appeared, they were owned by the network airlines. During this time, airlines made sure that the displays highlighted their own inventory at the expense of their competitors. The Justice Department eventually abolished this practice and then the airlines sold off their GDS subsidiaries. Once free, the GDSs became a tight oligopoly and took advantage of their former parents by overcharging on bookings fees. These charges increased distribution costs for suppliers and contributed to a weakened financial condition at the airlines. The GAO found that the GDSs did overcharge but since there were alternative bookings sources, this was not an anti-competitive action.

Answer 2

The United States is a large nation that is not dependent on international tourists to the same extent as some smaller countries. The country is also surrounded by oceans, which limits its appeal because foreign visitors must fly rather than drive when visiting the United States.

European countries like France benefit from being surrounded by large tourism generators including Germany and the UK.