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This article discusses what travel agents think about the enhanced ability of both corporate and leisure based travel agencies to sell airline ancillaries because of improved Global Distribution Systems' technologies. Ancillaries are products and services that airlines sell to gain additional revenue on top of your ticket price. Ancillaries have become increasingly popular in the airline industry because of the sky rocketing price of jet fuel. To keep ticket prices down airlines are "unbundling" items from the overall experience. This presents them with an opportunity to turn a profit by charging fees for bags (carry on, checked, additional), on board food and drink, credit card purchases, headphones. It seems like everything you encounter from when you arrive at the airport to when you disembark the plane has a fee. This phenomenon is especially present in Low cost carriers such as Spirit, Air Tran, Jet Blue, etc. However there are consumers who disagree with this additional costs as is apparent in Southwest's continuous marketing campaign. I'm sure everyone has seen the commercials with Southwest representatives 'flagging' down unnecessary fees in order to promote their 'bags fly free' campaign. Anyhow the reason I am explaining ancillary revenue is because travel agents are now starting to sell more ancillary products such as hotel accommodations, travel insurance, rental cars because of GDS technologies. They can track the sale of fees through EMD (Electronic miscellaneous Documents) which is the current industry standard. In the article some agents state that the EMDs are hard to understand and use. I believe until the EMDs become "seamless and easy to use" there will exist some hesitation to sell airline ancillaries. However on the other hand the article states that Travelport is working towards a simple and uniform platform called Travelport Universal API/Desktop. Once this comeplete perhaps more agents will feel comfortable selling ancillaries. This is a goo

I still remember when most airlines used to include breakfast or dinner for their passengers including alcoholic beverages well that doesn't happen any more. I believe when Travelport Universal Desktop becomes available it would become more clear to travel agencies the transaction process and for the consumers what products and services they are ofering.

I too miss the days of free sodas and peanuts. "Sigh-" sometimes its the little things in life that bring the most joy. I agree I think the new Travelport Universal Desktop will be a valuable tool if utilized correctly.

This article introduces the role of PMS(property management system) to increase ancillary revenue. PMS encourages hotels to be competitive with high-end technology, and to provide the service beyond guests' expectations, which in turn, increases the top line revenue. The first role of PMS can be related to room upselling. With cloud-based hotel technology, hotel staff can know the guests' preferences, so before check-in, they can figure out the guest preference, and based on that, they can offer upselling. This tactic will be helpful for both guests and hotel because hotel can make ancillary revenue by upselling, and guest can get personalized service. Second, PMS system can track the guest journey through the previous visiting record. PMS has personalized record depending on the guest. It means hotel is able to offer the most attractive journey to guests. Third, PMS helps to solve the problem instantly, which increases guest satisfaction. The Internet and lots of applications at hotel deliver the instant responsiveness, and improve guest gratification. It will be related to better reviews and loyalty toward the hotel. As can be seen here, adopting the developed technology helps the hotel to build a good relationship with guests, and increase the number of loyal guests. Lastly, by having employees use mobile devices to check-in guests and solve special requests smoothly with other departments, it enables to build the strong personal relationship with guests, and enhance trust. Depending on the personality of guests, they might or might not like personalized services. However, it is obvious that hotel should offer the right service based on their need or want, at the right time, without giving any pressure to them. It can be the way to drive ancillary revenue by using property management system properly.

The article describes how hotels have been late in adopting the cross-selling and up-selling trip extras that airlines have been so successful with over the last decade or so. It also summarizes the results of research done by Phocuswright with iSeatz which found that the majority of business travelers surveyed are interested in purchasing additional on-site extras and off-site extras. The research also found that the hotels that were surveyed cite reasons such as a lack of technology and stretched resources at hotel level as barriers to implementation.

The author fails to recognize that the e-commerce platforms developed by the airlines over the past decade have been focused on selling unbundled extras, whereas until recently the hotel e-commerce platforms have been very focused on offering the customer bundled packages and only had limited capability for up-selling and cross-selling.

Sabre, one of the three largest Global Distribution System signs a long-term agreement with United Airlines. This agreement would allow customers to provide ancillary products and services to customers through the Sabre market place. With United airlines and Sabre joining forces they will use the latest technology allowing both companies to provide more personalize products and services to customers. Sabre will market United Airline ancillary products including air fares and economy plus seats to passengers that buy products and services from Sabre in a way that would differentiate United Airlines products from that of its competitors. Other Global Distribution systems such as Amadeus and Travelport are presently making it a standard policy, mandating airlines to provide ancillary products and services to GDS. American airline one of the major airline who for a long time was reluctant to market its ancillary products through GDS is now one of the many airlines that are presently jumping aboard the GDS wagon. The airlines are beginning to see the benefit of expanding their brand globally through GDS and reaping substantial revenue beyond the sale of air fares.

This article is about Hostelworld, which is the global hostel-focused online booking platform and its $3 million investment in a company called Tipi Pty LTD. Tipi provides technology solutions exclusively to the hostel market, enabling guests to check-in and download their keys prior to arrival. Hostelworld is a go-to platform for hostel travellers and have a key focus on investing in the best technology for the hostel market. In my opinion, this article brings out two key points about a couple topics that have been brought out and one that is to come. One being the video about technology revolution and staying ahead of the curve. The other being Proximity Marketing, which is a future topic. By Hostelworld investing in Tipi, it positions them as a market leader in the hostel sector. This will generate a huge revenue growth in the company. In regards to Proximity Marketing, giving customers access to their brand centered platform during their stay, it will increase ancillary revenue and improve guest satisfaction scores.

Ok so this article is lengthy but comprehensive. And the general consensus is the GDSs are never going away. They will likely change with new technologies, but they won't be replaced completely by something new. Heck, even though air travel is dominant among travel options, we still have trains, right? Overall this article takes the reader through the birth of the GDSs, their evolution to today and thoughts about what to expect in the future. One part of the article of particular interest is the talk about New Distribution Capability for airlines that uses XML coding language to allow airlines to sell ancillary products like seat upgrades. This layers directly into revenue increases through revenue management of seats on flights. There are already price differences between cabin classes. But instead of all seats being one price in the main cabin, seats closer to the front of the plane could be sold for a slight premium. There could be a different fare for window or aisle or exit row. There are 3 levels of this certification for an airline and although some airlines like American Airlines has been certified as level 3, full capability, most airlines have not gone beyond level 1. None of the GDS companies offer level 3 for New Distribution Capability which means you need to go a company's site directly to be able to purchase the specific desired attributes of your seat. By not having that capability, the GDSs disadvantage themselves as a distribution channel.

This article states the differences in job description of both digital marketing manager and revenue manager, but LaRose focuses on the importance of having them work closely to best reach their goals. Basically you cant have one without the other and each position has something unique to offer to the hotels growth and popularity. Every hotel must sell a story and meet the demands of their guests, consistently adapting and changing, adding and subtracting when needed in order to maximize revenue and continue to be attractive to its consumer.

In this article marketing software that hotel's can use to send pre-arrival emails to guests is discussed. This type of contact allows hotels to increase revenue by offering additional services or upgrades as well as create detailed profiles about their guests. These profiles can be used to further segment and advertise as well as just improve the guest experience. 

The article's main point ties into the third question on this week's discussion: is there a need for the GDS today? Hoteliers have recently been focusing on the OTA sales channel, which leads them to ignore their high-value, corporate guests, and guests who like to use traditional travel agents. The main reason for this is because hoteliers do not want to pay the fees associated with GDS's; however, they are still paying commission fees to OTAs. On average, hotels pay a 20% fee to a GDS when a room is booked, which is typically less than what is paid in commissions to the top OTAs. So why do they still use OTAs and pay the fees? Because they work, and GDS's work also. By eliminating a tried and true method such as the GDS, you are shooting yourself in the foot by getting rid of an effective channel that was bringing in revenue. The author argues that a GDS is still useful in creating more visibility and increased revenues from bulk bookings, travel agents, and especially from corporate and luxury travelers. Corporate and luxury travelers are less concerned about price and typically pay higher rates. They also spend more on ancillary charges in the hotel, which leads to recouping some of that money spent on fees. Given this perspective, I would agree with the points made in the article and how the GDS is still a viable system to be used today. It is especially important to gain exposure to corporate travelers, which is a big market that you don't want to leave untapped.

NDC or New Distribution Capability is a new subset within GDS systems to provide airlines with detailed information about customer in order to enhance the personalized service. NDC will be able to provide pricing independence and direction information to airlines about their passengers. The system is more flexible and accurate in order to improve the experience from what GDS would provide.

This article tells us about a new communication protocol which is called NDC. NDC stands for the New Distribution Capability. You can also find some information about how airline distribution works in general.

This article describes the potential in the airline industry for practicing revenue optimization based on the data they collect from their customers and using it to tailor their prices. The argument is that these companies already have much of the data stored they just are not currently using it to its full potential in this digital age. The benchmark the author uses is Amazon. This is part 1 of a 2 part series. 

It appears that American Airline is about to remove itself from the tradition global distribution system and introduce its own distribution system. American Airlines is advocating for distribution companies to utilize AA direct connect which is a direct link into AA's host reservations system. Currently American Airlines fares are no longer available on Expedia or Orbitz sites. This is because no contractual agreement was reached for the distribution of AA products. Travel professionals are waiting to see the result of this bold move by American as this has great implication for the future of airline distribution systems. If American Airlines pulls away from the mainstream GDS, consumers and travel specialist alike will be faced with the inconvenience of going to a separate reservations system to compare fares. Although travel professionals are now urged to use direct connect on a trial basis, the general feeling is that eventually they will be charged to sell American Airline flights. To defend this move American Airline is only saying that direct connect will make it easier for them to tract ancillary fees like priority seating. It was noted in the article that Southwest Airline for the most part is a stand alone reservations system but they do not negotiate with the GDS companies to sell their flights. It is therefore quite evident that this move by American is really to reduce expenditure by eliminating the middle GDS companies while increasing revenue by charging travel partners for utilizing direct connect. American Airlines clearly wants to globally control their distribution system and maximize revenues. Contract renewal for both world span and sabre are due and the experts are waiting to see if American will renew with them. Sabre is owned by American Airlines so its a wait and see game to see how all this will be panned out. The real problem for the consumers and travel specialists are that if other airlines are to follow this move by American the tra

This article explains the distribution route American Airlines is taking to sell their flights. Due to not seeing eye to eye with the two most probably used websites for travel, Expedia and Orbitz, American has now taken their products away from both airline distribution sites. American suggest that all travel agencies and distribution companies begin using Direct Connect, which is a system for only American Airlines flights. If this would happen, travel agencies and companies will then begin having to pay for the system in order to sell Americans flights. At the moment you can still book flights through other distribution sites, but until when will that be? They already stopped Orbitz and Expedia, what's not to stop the others. The future of global distribution systems will be up in the air if all airlines choose to sell their own systems to be able to sell reservations. The only positive that was pointed out in this article was that if this system takes over, then more consumers will have to go back to using travel agents to secure the best reservations for flights and such.

With the contracts for major global systems, Worldspan and Sabre, being up for renewal in the near future, this article analyses the possible outcomes for airlines, and alternatives should they choose not to forgo continuing use of GDS

Technology is in the hands of nearly every person this day and age, so why not take advantage of it? When it comes to hospitality people love to see pictures to see both the venue and the experiences people are having. it lets them imagine their own personal experience and creates a ideas to set up their own personal experience. Digital Marketing also allows to build relationships with clients an is a great place to advocate. It also allows for influences. On top of that, it will allow for people to see exactly what functions, features, attributes, etc. is going on without the hassle of having to call and find out. Technology also allows for easy work for the employees. They are able to use smart watched or portable tablets so they can be mobile with assisting clients and guests with their needs and questions. Digital marketing allows for testimonials of the great place it is.

This article introduces 2017 digital marketing trends for the hospitality industry. The first trend is visual content. Instead of the explanation contents, pictures will influence more to catch customers' attention considering the characteristics of the hospitality industry. Second, social media becomes a great intermediate between potential customers and the business. The business in the hospitality industry should be involved in social media to expose their brand and build client relationship. Third, virtual reality becomes popular to demonstrate the various functions and features lively. Also, adopting wearables or using storytelling production can be a new trend as a marketing tool. It can produce ancillary revenue and get customers more engaged in brand concept. Lastly, digital marketing should be monitored and evaluated for sales trends, supplier orders and employee overtime in a real time to improve more marketing strategy.

This article is about the future of global distribution systems and how airlines are making a push towards direct bookings. They are using things like performance adverting, metasearch networks, and data based e-commerce in increase revenue and improve operations.

This is an informative article, published by Sabre, on how to utilize certain technologies and stay agile during Covid-19 in the hotel business. It emphasizes how to keep and maintain a hotel during these trying times. Never stopping trying to improve and to keep an eye on all aspects of sale, occupancy, and position in the GDS. It's important to keep everything in the perspective of short and long term solutions.

Understanding what each hotel system works for and the departments they connect or overlap with can benefit from integrating such systems to make smoother operations. By integrating PMS and POS in a hotel, it can be easier for the guests to check in, etc., but it's also easier for staff to manage and track all guest information this way too.

This type of integration is not new to the hospitality industry. Many hotels link their PMS system at the front desk to the POS system at the outlets. This integration is very efficient and convenient because guests can just simply charge their spending at the outlets to their folio, also known as "charge to the room."

Computer reservations have become the primary means of disseminating air travel information to the airline-sales distribution system. These systems have greatly impacted competition within the airline industry. Sophisticated automation is changing the method by which reservations are requested and accepted. Never before have airline reservations come from so many varied directions. The lack of capital barrier to entry, the mobility of financial and physical capital and a well established information and distribution system seem to preclude any carrier from maintaining unreasonable rates and services without inviting a timely competitive response

In this article we discuss the issues that airlines are having with the GDS system. They give an example of someone attempting to purchase a ticket through an airline website, and then through a travel agency. The direct airline method was only cheaper, if the guest provided information to a direct bank account. The cost for airlines to sell is a bit less than 10%, and they are sold mostly through indirect channels, like travel agencies. The main reason this can happen, is the integrated GDS system. A GDS system is a data facility that shares inventory information for various airlines to different 3rd party channels. The issue with this, is that the total in fees for the use of the GDS system was around $7billion, which is twice the amount of net profit they are receiving. People state that the airline system cannot survive without the GDS, but is that statement really true? Airlines like Air Asia or Ryanair have really attempted to focus on selling tickets directly, and really expand on their profit. How can this be achieved? Well, airlines are making the booking process easier for guests to manage, which gives them more of a reason to book through there. Also, they are offering greater loyalty rewards for directly booking through the site. Different incentives need to be created to attract guests to book directly. Lastly, they would like to create another distribution system, to put GDS out of business. This new system will work to allow guests to handle meal and baggage fees. Concepts that the GDS cannot handle. With that said, will this new system reduce costs for airlines? I guess they will have to wait and see.

This article talks about the challenges of internet referral webpages that is hurting American Airlines and other big airlines.  This is an example of how this travel business is loosing profit by paying referral fees.

TLabs Showcase on travel startups featuring UK-based Tripbox, a online travel agency focusing on low-cost hotels, travel ancillaries and flights. This article introduces the Tripbox's financial support to launch the business, their key customers, their revenue model and also it proides an SWOT analysis of the tool.