Orbitz is a serious threat to independent on-line travel agents, such as Travelocity, because Orbitz is owned by the very same airlines that supply tickets through on-line travel agents. The fear is that Orbitz will have preferential access to the best fares that these airlines provide. Some analysts on Wall Street feel that although the travel pie is large, Orbitz may represent a greater threat to Travelocity than some other potential entrants, given its more than $100 million advertising investment and the participation of most major airlines. Interestingly, however, agencies such as Travelocity and Expedia generate revenues through advertising, travel commissions, and a cut of the GDSs’ booking fees. Because Orbitz is the owner of its own inventory, it does not generate revenue through booking fees or commissions. Orbitz also cannot sustain the levels of advertising and marketing expenditures to build brand awareness that it had made prior to its launch. How will Orbitz generate revenue? On December 2, 2001, Orbitz announced that customers would now pay a fee on top of the ticket price when purchasing from Orbitz. This fee is similar to the fee imposed by some traditional travel agents who saw their revenues cut when airlines reduced commissions paid to travel agents. Imposition of this fee is good news for other on-line agencies, such as Expedia and Travelocity.