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Expedia flies with Delta

Expedia has struck a long-term deal to sell tickets for Delta Air Lines, less than a week after Delta said it will no longer pay commissions to both online and offline travel agents. The terms of the deal, which analysts had expected, were not released. But analysts have said that such deals would include "merchant model" arrangements, when a travel agency obtains the rights to sell large numbers of an airline's tickets at a discount and then is free to price the tickets however it chooses. Travelocity has also struck a deal with Delta. The airlines cut separate deals with Travelocity and Expedia because they sell large numbers of tickets. Other travel sites may not have the leverage to negotiate such deals.

Expedia has struck a long-term deal to sell tickets for Delta Air Lines, less than a week after Delta said it will no longer pay commissions to both online and offline travel agents. The terms of the deal, which analysts had expected, were not released. But analysts have said that such deals would include "merchant model" arrangements, when a travel agency obtains the rights to sell large numbers of an airline's tickets at a discount and then is free to price the tickets however it chooses.

Travelocity has also struck a deal with Delta. The airlines cut separate deals with Travelocity and Expedia because they sell large numbers of tickets. Other travel sites may not have the leverage to negotiate such deals.