It really isn't my plan to talk about only online travel here, but this post on The Internet Stock Blog caught my eye.

Seems Stifel Nicolaus analyst Scott Devitt downgraded Expedia Inc. (NASDAQ: EXPE) to “Hold” yesterday, due, among other things, his view that there is a revenue risk associated with their Worldspan CRS deal.

Now, going into detail around the arcane and obtuse workings of CRS agreements, kick-backs, regulations and money flows just isn't going to happen here. But, broadly speaking, is the reduction in CRS revenue, and conversely cost associated with direct-connect a real issue and challenge for any online player, especially one reliant on another party for said revenues?

Damn right it is.

Technorati tags: expedia