American Airlines sought to reduce the fees it pays to global distribution services (GDSs) to distribute travel services to travel agents. But GDSs held significant tactical advantages.
For 'movie, GDSs had signed long-term exclusive contracts with the corporate customers who were Americans best customers. Furthermore, travel agents tended to favor whichever GDS
offered the highest commissions— impeding price competition among GDSs. Against this
backdrop, American considered how best to cut its GDS costs.