Distribution Costs & How Low-Cost Carriers Avoid Them

The art of selling airline tickets is extremely complex, and often involves multiple different third parties and auxiliary distribution channels, meaning that the price a consumer pays for a ticket is not always directly aligned with that received by an airline. There are numerous different third parties involved in airline ticket sales, ranging from Global Distribution Systems (GDS), which primarily connects business travelers to airlines, to third-party Online Travel Agents (OTAs) like Expedia and Kayak.