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Nelson Placa

IATA & GDS Companies Butt Heads - 1 views

atwonline.com/...erchandising-capabilities-0321

shared by Nelson Placa on 08 Sep 12 - No Cached
  • IATA waded into the controversy over the optimal method of distributing ancillary products, claiming that GDSs “are unable to handle the rapidly increasing range of product offerings from airlines.” In an article in its Airlines International magazine, IATA said that “a GDS screen today looks much like a screen from the 1970s.” The article included lengthy quotes from Montie Brewer, former chief executive officer of Air Canada and a long-time critic of GDSs.
  • Nelson Placa on 08 Sep 12
     
    In this article, Michele McDonald describes how the IATA Organization which represents thousands of travel agents across the world and GDS Companies are butting head over merchandising capabilities with GDS systems. Travel Agents are starting to feel the impact of technology with GDS systems. The IATA organization describes today's GDS screen much like a screen from the 1970's. The IATA members' main concern is the capability of the system; Brewer a member of the advisory board of Everbread, an air fare shopping company explains how airlines and consumers are becoming more sophisticated with technology and with the outdated GDS's systems consumer trends are being hindered. The major GDS's companies do not agree with the IATA organization, they feel that their systems are adequately able to perform the role. Should GDS's companies switch to more web-based systems allowing travel agents to perform their roles more efficiently? This is probably a question that Sabre, Amadeus, and other companies should keep in mind as technology continues to advance. I also feel that both the airlines and GDS's companies should partner with the workforce; the travel agents who are the frontline to determine what things should be updated if needed.
Deborah Fromer

IATA Chief Cites GDS Partner Role, But Remains Critical - 0 views

www.travelmarketreport.com/technology

IATA; chief partner ; GDS; XML; Open AXIS; Farelogix; American Airlines

shared by Deborah Fromer on 16 Jul 12 - No Cached
  • While remaining critical of GDSs, IATA director general Tony Tyler sounded a somewhat less combative tone toward “our global distribution system partners” during his keynote speech at the IATA annual general meeting in Beijing.
  • Giovanni Bisignani, who retired as director general last year after 10 years in the post, made the GDS industry a frequent target of his famous “Basta!” moments over segment fees.
  • More recently, Tyler has excoriated GDS companies for what he called a failure to meet the changing needs of airlines as they adopt new merchandising methods.
  • ...8 more annotations...
  • Our global distribution system partners help us to sell 60% of our tickets,” he said. “Beginning four decades ago, when these systems were created, their cutting-edge technology expanded our distribution horizons.”
  • But are blocking innovation
  • Open AXIS messages were in turn donated by Farelogix, the company that developed American Airlines’ Direct Connect technology.
  • GDSs, which are built on operating systems dating from the 1970s, have not been able to facilitate innovation like we have seen in other industries.”
  • multimillion dollar airline product investments “cannot break free of product descriptions limited to booking classes like F, C, or Y and their derivatives. And personalized offers based on availability, customer needs, preferences or histories are effectively impractical.”
  • IATA is working on new distribution standards to enable airline product differentiation, he said. Those standards are based on XML messaging schema adopted as “standard” by Open AXIS, the U.S. organization that promotes XML as the ideal technology connection linking airlines with distributors.
  • “XML standards and customer-friendly interfaces are the new cutting edge, facilitating revolutions in how the world does business.
  • IATA will define the foundation standard this year
  • Deborah Fromer on 16 Jul 12
     
    The International Air Transport Associate (IATA) at their annual general meeting in Beijing have had enough with the outdated Global Distribution Systems technology. The new Director General Tony Tyler indicated that in the 70's the system was cutting edge technology expanding distribution for airlines but years later the technology lacks innovation and must be brought up to date with airline product differentiation. This can be done by adopting new standards through XML messaging schema. Farelogix has donated XML through Open Axis, an organization that promotes the XML technology for linking airlines with distributors, similar to the technology that American Airlines has been using. IATA indicates that this year they will define the foundation standards in partnership with the GDSs, a necessary progression.
Endrich Reveil

IATA Urges GDS Systems Reform | Travel Agent Central - 0 views

www.travelagentcentral.com/...urges-gds-systems-reform-35877

GDS NDC travel tourism transport IT

shared by Endrich Reveil on 29 Jan 15 - No Cached
  • The International Air
  • The International Air Transport Association (IATA) is encouraging strong information technology (IT) partnerships to strengthen the air transport industry, but says the Global Distribution System (GDS) model is now holding the industry back.
  • the GDS model is too clunky to adapt easily to the emergence of trends such as fare unbundling and merchandizing,” said Tyler.
  • ...4 more annotations...
  • To move forward, IATA said it is working on a new distribution capability (NDC) that will bring the industry up-to-date with online retailers and revolutionize distribution.
  • “The GDSs and system providers have an important role to play in working with us to optimize this NDC and to take advantage of the opportunities it will offer the entire value chain,” Tyler said.
  • Tyler noted that IT continues to facilitate improvements in operational efficiency. “For example, e-ticketing, the flagship program of IATA’s Simplifying the Business (StB) initiative, was about far more than eliminating paper. It brought multiple benefits across the supply chain and greater convenience for passengers.
  • “By 2020, our vision is for 80% of passengers to be able to be offered a complete self-service suite,” said Tyler.
  • Endrich Reveil on 29 Jan 15
     
    Even though the GDS had reformed the distribution system of the travel industry, will it continue to grow and update it's current model to upkeep the growing age of tourism? The International Air Transport Association (IATA) is looking for newer ways to revolutionize the travel industry. Tony Tyler, IATA CEO, feels that the Global Distribution System (GDS) is lacking upgrades and says "the GDS model is too clunky to adapt easily to the emergence of trends". As a result, the IATA is working on a new distribution capability (NDC) that will enable the industry to become on trend with online retailers and transform distribution. However, the GDS will still play an important role in aiding the NDS to get there. Tyler spoke at the SITA Air Transport IT Summit in Belgium, asking the IT partners to help innovate the air transport industry. He also explained that the IT already did and will continue on doing a great job with facilitating the operational efficiency.
anaslip

New Distribution Capability (NDC) in air travel: Airlines, GDS and the impact on the in... - 0 views

www.traveldailymedia.com/ndc-in-air-travel

hospitality industry airlines business

shared by anaslip on 15 Sep 19 - No Cached
  • New Distribution Capability (NDC) in air travel: Airlines, GDS and the impact on the industry By Altexsoft Team On Mar 3, 2019
  • Two fundamental needs connect all airlines: revenue and passenger satisfaction.
  • Considering that getting in touch with the end user is nearly impossible via the channels provided by global distribution systems (or GDSs), a new standard emerged to resolve the issue. The air travel industry confronted big changes when the New Distribution Capability (or NDC) debuted in 2012. Lufthansa, British Airways, American Airlines, and Iberia were the first to adopt NDC. And the technology continues to make its way in airline distribution, as well as other means of improving airline operations.
  • ...9 more annotations...
  • NDC stands for the New Distribution Capability, which is essentially an XML standard created by the International Air Transportation Association (IATA) to allow airline service providers to deliver rich content and ancillaries to their customers.
  • Personalised shopping experience and access to customer information. Currently, most of the customer personal data remain in the hands of middlemen, OTAs and GDSs. This means that airlines get just basic information about their clients, which doesn’t allow for personalising the shopping experience, the thing that has become a standard in modern travel eCommerce.
  • Content and pricing autonomy.
  • Currently, most airlines publish their tariffs via ATPCO, the tech provider and main source of pricing data.
  • Rich content offers, ancillaries, and discounts. Distributing the flight data via GDS’s EDIFACT (Electronic Data Interchange for Administration, Commerce, and Transport), airlines are unable to include ancillaries in their offers.
  • Product differentiation. The traditional GDS model only permits airlines to display prices and schedules.
  • Reduced reliance on legacy systems. Most airlines use legacy passenger service systems (PSS) that contain reservation info, fares, and schedule.
  • As a result, NDC was supposed to break the oligopoly of GDSs that formed over time.
  • According to the latest IATA NDC program update, the list of certified deployments reached 65 carriers. The number seems to have grown significantly since 2017 when IATA reported only 50 airlines adopting NDC. But, compared to the overall number of airlines connected to the major three GDSs, which is over 400, NDC adopters seem to be a minority.
  • ayenkiah on 15 Sep 19
     
    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.
  • anaslip on 07 Jun 20
     
    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.
kakaboshi

Travel advisors urged to take active role in NDC implementation: Travel Weekly - 1 views

www.travelweekly.com/...ive-role-in-NDC-implementation

Travel NDC GDS Airlines TravelAgents

shared by kakaboshi on 11 Sep 19 - No Cached
  • While the major GDSs -- Sabre, Amadeus and Travelport -- initially resisted NDC, all three eventually reversed course and last year announced that they would develop and test NDC-enabled solutions.
  • "It is clear that the GDSs are now en masse embracing NDC and trying to at least equalize the airline dot-com content and experience and trying to bring that to the indirect channel,"
  • Sabre earlier this month released its first set of NDC application programming interfaces (APIs) with United Airlines. That gave some agency customers the ability to make NDC bookings, which Kathy Morgan, vice president of NDC at Sabre, called "huge."
  • ...9 more annotations...
  • As far as integrating NDC into its agency points of sale, Morgan said some capabilities are expected to be integrated into Sabre Red 360 by the third quarter this year.
  • By 2020, IATA wants 20% of sales with a group of airlines known as the Leaderboard to be powered by NDC.
  • Five airlines are currently supplying NDC content on Travelport's platform, and Ferguson said more will be introduced throughout the year; access to NDC content via Smartpoint will also continue to expand.
  • Considering many major airlines' bookings are split roughly 50-50 between direct bookings and agents, Ferguson said meeting IATA's goal would require that about 10% of agent bookings are powered by NDC by the end of 2020.
  • Gianni Pisanello, head of Amadeus' NDC-X program, said that in 2018, the company worked to develop NDC using test programs with airlines and agencies. This year, Amadeus is in deployment mode.
  • "We're trying to implement this with as many airlines as we can and as many agencies as we can this year," Pisanello said. "Next year, 2020, is really going to be a fine-tuning year." 
  • "We are dependent on airlines and their airline systems to be ready before we can do our bit as a GDS provider," Pisanello said. "And, of course, then the agencies are dependent on us as an intermediary to upgrade them and enable them to integrate those services into their own systems. So there is a sequential path here to the deployment of NDC."
  • The ability to make NDC bookings is expected in Amadeus' point of sale app, Selling Platform Connect, by this summer. As with the other GDSs, functionality will initially be limited. At first, agents will be able to complete an essential booking flow: the ability to search, book and settle. Additional features, such as the ability to change bookings, will be rolled out as they are developed.
  • Now is the time for travel advisors to step up and get involved with their GDS's efforts to implement IATA's New Distribution Capability (NDC), thus helping to shape its future
  • kakaboshi on 14 Sep 19
     
    GDS companies continue to evolve and implement new technology to stay in line with current consumer demands. After initial resistance, they are implementing the NDC program into their system. NDC (New Distribution Capability) is a travel-industry supported program launched by IATA for the development and market adoption of a new XML-based data transmission standard (source: https://www.iata.org/whatwedo/airline-distribution/ndc/Pages/default.aspx) This article discusses the need of the airlines to upload useful content and for the travel agents to be more actively involved in order to make it useful for them. However, with major airlines' bookings split between 50% direct booking and 50% agents, and the airlines' efforts to drive more direct booking traffic, I wonder what is the sentiment of the companies to provide with more content and information on a platform that competes directly with their efforts to increase direct sales from their websites. Selling air tickets directly from their sites not only allow the companies to decrease booking fees and commissions but also allow them to collect much needed date from the consumers who use their services.
Irina Stepanenko

IATA Offers Views of GDS, Agents and Distribution - 0 views

www.travelagentcentral.com/...-agents-and-distribution-33825

GDS

shared by Irina Stepanenko on 21 Sep 12 - No Cached
  • “Technology with origins dating back to the 1960s, such as that imposed upon travel agencies by the GDS middlemen, simply cannot support the nature of the data required to provide accurate, dynamic price quotes consistent with the way consumers are buying travel today,"
  • But at least 50 percent of the world’s flights continue to be sold through travel agencies, which rely on global distribution systems (GDSs) to display and compare airline products. And the areas of comparison are limited to some very basic metrics such as price, time, and routing—just as they were four decades ago.
  • "Although GDSs have made an invaluable contribution to the industry and made global distribution possible, a GDS screen today looks much like a screen from the 1970s. They are unable to handle the rapidly increasing range of product offerings from airlines."
  • ...3 more annotations...
  • There is a real challenge in getting these new products and services to the customers in the way they now want to purchase them while legacy carriers are still using the old structures and networks they relied on in the past.”
  • “Airlines are becoming increasingly sophisticated in the types of product they are offering and consumers are becoming increasingly sophisticated in their purchase decisions. The frustration is that these trends are being stymied by the outdated systems of the GDSs.”
  • It is important that US legislators and federal regulators recognize that as monopoly suppliers, GDSs have no incentive to innovate in order to allow passengers to purchase the airline services that meet their particular needs,
  • Ashley Reed on 21 Sep 12
     
    The limits of GDS's are discussed in this article, as well as the lack of initiative of the big 4 GDS's to adopt and develop newer and more updated systems because of their prevalence in travel. According to the article, the face of the GDS systems look nearly the same as they did in the 1970s, and the airlines systems are not up-to-date enough to meet consumer demands. The author points to consumer trends in the demand for personalization, package variety, and simply the desire for more packages.
  • Irina Stepanenko on 01 Feb 13
     
    Global Distribution System is an outdated technology, that cannot be consistent with the ways travel is purchased nowadays, according to International Air Transport Association (IATA). Airlines are constantly adding service or 'bunbundling' their products. The ability to buy priority boarding or seating options, meals and baggages cannot be reflected through the GDS, thus the only way to purchase them is through the airline website. This is harmful to both airlines and customers. Even though, GDS has played an important role, it is time to start developing a new product that will 'present full product or data offerings via a new interface'. IATA is being involved into creating the necessary standards before starting to work on a new platform. GDS-managed technology is slowing the process down. However, there may be some legal issues involved in exchanging the system, which has to be resolved before the launch of a new technology.
henderson_goh

IATA - Radio Frequency IDentification - 0 views

www.iata.org/...rfid

Technology hospitality software business tech travel solution mobile airlines

shared by henderson_goh on 24 Jul 22 - No Cached
  • henderson_goh on 24 Jul 22
     
    Highlights: -RFID for baggage tracking provides the data that allows airlines to efficiently track the bag through all airport processes. -With IATA's Resolution 753 now in effect, airlines have started to implement baggage tracking. -IATA recommends the use of the RFID technology, which is much more effective that the bar code technology mostly in use currently. -RFID also meets passenger expectations for real time tracking of baggage.RFID uses -Radio-frequency electromagnetic fields to transfer data that uniquely identifies each bag. -RFID does not require line of sight to the bag, and so can identify many bags at once. -The most common type of RFID used in the aviation industry is passive Class 1 Gen 2 Ultra High Frequency (UHF).
  • henderson_goh on 24 Jul 22
     
    Summary: This article talks about Radio Frequency Identification (RFID) system in the aviation industry. The aviation industry uses RFID system to track checked baggage throughout the airport. This system is endorsed and strongly recommended by the International Air Transport Association (IATA). Many air travelers also appreciate this system because it gives them real time tracking of their baggage. They normally able to do so via the airline's application on their smart phones or tablets. The passive ultra high frequency RFID is the most common type of system used in the aviation industry.
samanthapoorman

The Technology That Changed Air Travel - The Startup - Medium - 0 views

medium.com/...hanged-air-travel-1c15c84a1be7

air travel changed

shared by samanthapoorman on 28 Jan 19 - No Cached
  • Airlines used to employ fleets of operators just to process reservations. They sat around circular tables with scores of index cards — one for each flight — housed on a rotating shelf
  • The process would take 90 minutes for each reservation.
  • After CRS systems became commonplace, travel agents became the airline industry’s bottleneck.
  • ...9 more annotations...
  • These terminals would only be useful if they let agents search for flights from multiple airlines all together.
  • CRS systems started sharing data with one another,
  • Global Distribution Services (GDS)
  • As the middleman, the GDS charged airlines and travel agents a fee for each booking.
  • Their goal is to charge each customer the most they’d be willing to pay.
  • The solution is to have seats at many different price points.
  • To maximise revenue, airlines optimise fare class sizes and prices by analysing historical trends.
  • different Google searches often yield different fares for the same seat on the same flight
  • only travel agencies that have been accredited by the IATA (International Air Transport Authority) can use them, and accreditation is an arduous process riddled with acronyms.
  • samanthapoorman on 28 Jan 19
     
    GDS changed the way airlines book flights. The process went from 90 minutes to a few seconds. GDS allowed agents to search for flights from multiple airlines. 
jessielee214

Travel Data Collective - 0 views

traveldatacollective.com/...ew-distribution-capability-ndc

shared by jessielee214 on 11 Sep 20 - No Cached
  • What is New Distribution Capability (NDC)?
  • NDC aims to transform the airline industry by addressing the current limitations in distribution
  • What is NDC?
  • ...30 more annotations...
  • New Distribution Capability (NDC) is a new technology created by IATA to streamline the airline distribution process.
  • It's an XML-based communication standard originally developed by Farelogix in 2010 to create direct connections between airlines and third party distributors.
  • This was standardized in 2012 by IATA to replace the old EDIFACT messaging standard, which global distribution systems (GDSs) rely on.
  • NDC was orginally created as a way to bypass the GDS providers, but slowly these providers have become more involved in the process. The basic idea is that NDC is supposed to give indirect distribution channels, such as GDS and metasearch, the same capabilities as an airline’s website.
  • Who's Involved in NDC?
  • There are several different players involved in the NDC process: travel agents, airlines, aggregators and IT providers.
  • Travel agents and airlines are straightforward. The aggregators are the different intermediaries involved in communicating the travel agent's request to different airlines.
  • IT providers are responsible for integrating NDC into the airline’s IT infrastructure.
  • The integration layer method is less complicated, and companies such as Openjaw, Farelogix, and Paxport have created solutions by sitting above the airline’s PSS.
  • third party distribution process works as follows when a traveler needs to reach their destination at a certain time and price:
  • The traveler goes to their travel agent who then queries the GDS system.The GDS pulls information about schedules and fares from a third party. The GDS builds the offer, then goes to the airline to get information about availability. When the offer is available, the information is relayed back to the travel agent and passenger who can then see the airline, price and schedule.
  • In a complete NDC solution, the process goes like this:
  • A travel agent will create a shopping request which will be sent to an aggregator. The aggregator will then create an offer request to be sent out directly to airlines. The airlines will then determine a product that fits the offer.
  • The product is sent back to the travel agent through the aggregator and the offer will "evaporate" after a certain amount of time.
  • According to IATA, this process will eliminate confusion over what's included in the offer. It will also be able to simplify the airline ticketing process.
  • How Can NDC Be Implemented?
  • wo recommended ways
  • One is by integrating directly to the airline passenger service system (PSS), the other is an integration layer outside of the PSS.
  • Third Party Distribution Today and Under NDC
  • In order to set up a full NDC suite, airlines have to create an offer and order management system, which will interact with the PSS.
  • How is NDC Being Used Today?
  • There are currently 62 airlines who are either NDC Certified or XML-capable.
  • NDC connections mostly use it in limited cases, and not to its full potential. United has partnered with Amadeus to have an NDC connection to their GDS for selling their economy plus product.
  • Many airlines are piloting these simple types of connections through NDC (instead of developing their own direct connection) as it will be easier to increase the scope with other distribution providers.
  • Other carriers such as GOL are using NDC connections for offer and order management, providing ability to purchase seats, bags, upgrades, meals, car rentals, and travel insurance, as well as ability to bundle the products (this is being done with Navitaire as their IT provider).
  • What's the Future Outlook for NDC?
  • In the future, there are hopes that NDC will be able to connect to chatbots, allow purchasing and upsell through things such as Amazon and Alexa.
  • Part of the challenge is getting airlines, travel agencies and GDSs to spend money on the infrastructure needed to implement NDC.
  • Airlines are hoping that by using NDC connections either through GDS or directly to travel agents/metasearch they will be able to pull in additional revenue for each ticket sold
  • Some airlines such as Lufthansa, IAG (British Airways, Iberia, Aer Lingus), Meridiana, and Ukraine International Airways are introducing fees for tickets booked through GDS, however the fees are waived for tickets booked through NDC connections.
  • jessielee214 on 11 Sep 20
     
    The article talks deeply in NDC from the past to now and is very clear about how it works. NDC can help airlines to know the need for customs and without the commission. I think one day, NDC can instead of GDS, but it still needs to take such a long time.
Cecilia Lucas

New airport tech could shrink security checks to 5 seconds -- Government Computer News - 0 views

gcn.com/...econd-security-iris-scans.aspx

shared by Cecilia Lucas on 28 Mar 12 - No Cached
  • new contraption June 7 that could get you through an airport security line in five seconds
  • Instead, airline travelers would pass through one of three 21-foot tunnels based on the passengers’ status as known travelers, normal travelers or enhanced security travelers
  • TA and the Homeland Security Department have not commented on the cost of collecting and storing millions of travelers’ iris scans. According to IATA, the association is working with the Homeland Security Department on DHS' Checkpoint of Tomorrow program to revamp a tedious and often contentious security process at airports.
  • Cecilia Lucas on 28 Mar 12
     
    The International Air Transport Association introduced a new security system at the 67th Annual General Meeting and World Air Transport Summit in Singapore in 2011. This new system would divide travelers in three different categories: known travelers, normal travelers and enhanced security travelers. Each level would have different security procedures and then passengers would pass through different tunnels, one for each category of traveler. For example, if you are a known traveler you would need to pass a iris recognition system which would confirm your identity and you would pass through a tunnel with minimal scanning technology. The scanning procedures get more invasive for normal passengers and even worse for enhanced security travelers.
Gabriela Moreno

The travel business: The ineluctable middlemen | The Economist - 0 views

www.economist.com/21560866

Technology software travel business

shared by Gabriela Moreno on 13 Sep 12 - No Cached
  • Some of the tastiest margins in the travel business are enjoyed by the “global distribution systems”
  • The airlines’ chronic unprofitability is partly the result of a wave of competition
  • These were originally created by several of the largest airlines to distribute their flights through travel agencies but have since become independent firms. Most flights booked through a physical or online travel agent go through a GDS, which charges the airline a fee of about $12 per round trip, passing a few dollars of that to the travel agent.
  • ...7 more annotations...
  • But it is also due to two moves by the airlines, from the 1990s onwards, that in retrospect were strategic errors. One was to stop paying direct commissions to travel agents. The other was to set the reservation systems free to become (as the airlines see it) profit-gobbling monsters that devour their parents.
  • Some airlines have thrown in the towel and let a GDS take over the running of all their in-house systems for handling passengers—in some cases, even their websites
  • In recent years the main hope for restoring airline profitability has been ancillaries: all those extra charges for meals, checked bags, less-cramped seats and the like
  • Hoping to solve these problems, the airlines’ international association, IATA, is working on a grandly titled “new distribution capability”
  • The GDSs could make use of such services, so as to sell the airlines’ full range of extras as well as just flights. But perhaps of more interest to the airlines is that it would become easier for travel agents to build computer systems that deal directly with airlines. It would also become easier for search engines to scour the web for flights, assemble a list of options for travellers, then let them click through to the website of their chosen airline to complete the booking—again without a GDS’s involvement.
  • IATA hopes to have its new technical standards agreed by the end of the year—though as a rule, getting airlines to agree on such things is tricky
  • The airlines argue that the cost of the middlemen adds to the price of tickets (though the superficial evidence suggests that it is airline shareholders who suffer). They say they want to reform the distribution system to offer flyers a wider choice and a more individually tailored service. The GDSs argue that they provide travellers, through their agents, with impartial comparisons of all available flights, allowing them to get the best value.
  • Gabriela Moreno on 13 Sep 12
     
    This article gave me a different perspective as to how the GDS system has affected the airline industry.  According to The Economist, the airlines chronic unprofitability is due to two strategic errors of their own doing. One was to stop paying direct commission to travel agents and the other was to set the reservations systems free. Despite their best efforts airlines are now having very hard time getting travelers to bypass GDS agents and come to their websites. A majority of the profit margins in the travel business are seen by the GDS systems and airlines are left footing the bill. In hopes of resolving this problem, the airlines international association is working what is called "new distribution capability." Through use of this service it would become easier for travel agents to utilize computer systems that would deal directly with the airlines. However, ambitious IT projects have failed hundreds of different times across hundred of different industries and getting the airlines to agree to make such a dramatic change in IT would be a daunting task. Both the airlines and GDSs argue they hold the true consumer advantage.  On one hand, airlines are able to provide flyers with personally tailored service, while on the other, the GDSs allow customers to compare flights for the best value. Whether it be the airlines or the GDSs that prevail, the future of travel is now online. 
swhit149

What is Global Distribution System (GDS)? - Guide For New Travel Agencies - 0 views

colorwhistle.com/gds-travel-agency-guide

gds travel system tech hospitality training agents

shared by swhit149 on 17 Mar 21 - No Cached
  • Many travel agents around the world are using the Global Distribution System (GDS) as their major booking channels
  • significant growth of the travel industry.
  • s the brain of the travel industry.
  • ...15 more annotations...
  • provides real-time information to companies such as airlines, hotels, car rental and travel agencies.
  • can find the availability of hotel rooms, flight seats or cars on behalf of their clients and book through the same GDS.
  • When a traveler requests information from a travel company, the agent will find the most accurate and cost-effective itinerary.
  • Travel companies are charged every time they access the GDS or they can buy a particular software offered by the GDS on a yearly basis
  • The airline industry created the first GDS in the 1960s to track flight schedules, availability and prices
  • They were used by the airline industry to automate the booking system, but, later travel agents were also given access
  • Amadeus
  • Travelport
  • Sabre
  • Effective in attracting international travelers24/7 access to inventoryEnables business models such as retail travel agency and OTA (Online Travel Agency)Offer consumers increased pricing transparencyTravel agents can get a global platform with a strong market penetrationProvide best rates to your customers which no other system can providePlace travel services to many clients without affecting your marketing budget
  • To use a GDS, you have to be a professional travel agent. For that, you must have a proper industry ID such as an ARC (Airlines Reporting Corporation) or IATA (International Air Transport Association) number.
  • Some airlines will not allow you to issue tickets even if you have a full IATA license.
  • they may sell it to you for $150-$160/year (contact the GDS provider to know the exact amount). The software will allow you to reserve tickets on any airlines.
  • A corporate travel agent who books on behalf of corporate clients or an individual working at a corporation who needs to book flight tickets for all their employeesComplex itinerary agents who have steady clients with multiple travel plansHigh volume booking of air-only travel
  • While changes will continue to impact the future growth of GDS, there will definitely be a role for them.
  • swhit149 on 17 Mar 21
     
    This article thoroughly explains how GDS was brought into the airline industry and how a travel agent may get access with the proper training. GDS systems will not be going anywhere I do feel as if it will only improve on helping those that use for travel. As the article states its goal is to impact growth for the future!
Rochelle Perez

BBC - Travel - Could carbon-removal tech make travel more sustainable? - 3 views

www.bbc.com/...g-make-travel-more-sustainable

green hospitality Tech technology travel

shared by Rochelle Perez on 31 Jul 20 - No Cached
  • As few as 1% of airline passengers participated in voluntary carbon offsetting before virus-induced travel restrictions took hold, according to The International Air Transport Association (IATA), indicating that purchasing carbon “credits” from your airline or a certified carbon offsetting organisation to compensate for your travel emissions likely wasn’t high on your priority list to begin with.
  • The difficulty in accurately quantifying most carbon-offsetting programmes (it’s difficult to gauge, for example, the volume of emissions you’ll offset by contributing to a clean cookstove project, an energy efficiency initiative typically funded by offsetting organisations) hasn’t helped.
  • Could this be the new carbon offsetting?As permanent carbon removal becomes more accessible to travellers through these two schemes, environmental sociologist and University of Southampton research fellow Dr Roger Tyers, who explored carbon offsetting in his PhD, says it may help to bolster the offset industry.“More measurable offsets like direct air capture (either for permanent removal or for creating alternatives to fossil fuels) could lift standards across the whole offset market,” he said. “They might also help shine a light on cheaper and less effective offset schemes that have dominated the market so far, which are often too good or cheap to be true.”Until carbon removal with permanent storage becomes more financially viable for travellers to adopt, other offset providers perhaps shouldn’t be too worried about losing customers. But the founders of Climeworks and Tomorrow’s Air hope that the need for urgent action on climate action will encourage travellers to incorporate permanent carbon removal into their carbon offsetting strategies sooner rather than later.
  • Rochelle Perez on 31 Jul 20
     
    The article describes the travel industry's attempts at carbon-removal and allowing a way for travelers to feel involved in carbon-offsetting
jordanskj

A GDS Primer: What is the GDS and Which Travel Agents Need It? - 0 views

hostagencyreviews.com/...what-is-gds

Technology Hotel tech business software travel Hospitality

shared by jordanskj on 14 Sep 19 - No Cached
  • The advantage to travel agents is that the GDS not only can show you many fares from multiple airlines, but it also offers a great depth of information about each flight in one place. The carrier, the times, the costs, the class of the seat, aircraft type and so much more. It’s a smorgasbord of options. So if you’re booking a high volume of tickets, it’s great to have access to every minutiae of information from multiple carriers in one go.
  • In today’s world, the GDSs have a bit of a split personality. There is the old school, traditional GDS commonly called “the green screen.” Then there’s the hip side of the GDSs, which people will call “point and click” or “GUI” (Graphical User Interface). Essentially, it’s a more intuitive and prettier looking version of the GDS.
  • To learn the GDS green screen takes intense training, and to become proficient takes tons of practice and constant use. That means daily use with a mentor (for at least 6 months to a year), not just booking a ticket for a client every few weeks.
  • ...16 more annotations...
  • While new agents can partially navigate the GDS with the GUI interface, the code that comes back still has important information like fare types and rules that the agents really needs to understand. So many agents, in the end, need to learn the green screen (and find it faster) regardless.
  • One of the reasons that most leisure agents don’t need the GDS is because the air will be included in a vacation package by the tour operator, or you can book it with the cruise line and you don’t need to use the GDS.
  • Global Distribution System (GDS) is a travel agent’s motherboard for booking airline tickets and other sorts of travel goodies (like hotel and car)
  • It can be easy to confuse the GDS with a Central Reservation System or Computerized Reservation System (CRS). CRSs are automated inventory-tracking systems that were (originally) owned and run by individual vendors (like airlines, car companies and hotels).
  • GDSs function as an umbrella for many many CRS systems. It’s like a CRS motherboard. (In fact, many vendors outsource their CRS systems to a GDS.)
  • an show you many fares from multiple airlines, but it also offers a great depth of information about each flight in one place. The carrier, the times, the costs, the class of the seat, aircraft type and so much more. It’s a smorgasbord of options. So if you’re bookin
  • If you are a leisure travel agent, there’s a huge whopping huge chance that you don’t need to use a GDS
  • American Airlines created the first CRS system in 1946. And while this helped automate inventory for vendors, travel agents did not have direct access to that inventory. Travel agents would need to call the airline’s booking center, who would then contact one of their CRS operators, then relay the results to the travel agent over the phone (literally, like playing telephone). It took a lot of people power to book a single airline ticket. Travelers booking their own ticket? Forget about it! 
  • There are many GDS options, and each GDS system will has access to their own pool of carriers. The four largest GDSs are: Amadeus, Sabre, Travelport (which is the parent company of Apollo/Galileo and Worldspan).
  • Let me be blunt: unless you’re some kind of prodigy, the GDS green screens are not user friendly. Be afraid, be very afraid.
  • he GUI is the point-and-click version of the GDS. You may have heard of options such as Sabre Red Workspace and TravelPort Smartpoint. So why doesn’t everyone use it? Here’s the problem: At its current stage of development, even GUI users need to understand the language of the green screen.
  • Essentially, the GUI interface isn’t quite there yet . . . and developing this technology is reeeeeally expensive and comes with a lot of growing pain
  • To book in the GDS, you must have an IATA/IATAN accreditation number, in addition to an ARC accreditation number if you’re located in the United States.
  • As a new agent, you can’t get these accreditation numbers because they require a lot of experience. So you come into the industry under a host agency (more on what a host agency is) and use their accreditation number instead.
  • Corporate travel agents book a whole lot of air, so the GDS is pretty much a must for them.
  • If your specialty is around the world tickets or you have a steady stream of clients with multi-stop itineraries, the GDS will be a necessity. 
  • llaff002 on 14 Sep 19
     
    This article looks at GDS and GUI systems and gives a holistic viewpoint of performance, positives and negatives, and what type of agencies can utilize each system. I felt that the more complicated system and its requirements for agency users to have and understanding of coding, made the GUI system more likely to have a higher utilization in the future.
  • mfont039 on 25 Jan 20
     
    The article delves into the importance of GDSs and travel agents along with the controversy surrounding their evolution as airlines are trying to encourage more direct bookings to make more profits and avoid paying commission to travel agents.
  • jordanskj on 12 Sep 22
     
    This article goes into detail about GDS's, the history of GDS's, and if travel agents actually need to use them. The article first explains what a GDS system is, a brief description stating "Global Distribution System (GDS) is a travel agent's motherboard for booking airline tickets and other sorts of travel goodies (like hotel and car)". The article then quickly goes into a brief history of the GDS. GDS was created by America Airlines in 1946, making it easier to check inventory for vendors, though it would still take some time for this technology to reach the travel agents. "Travel agents would need to call the airline's booking center, who would then contact one of their CRS operators, then relay the results to the travel agent over the phone (literally, like playing telephone). It took a lot of people power to book a single airline ticket". We then take a turn, and learn about the usability of a GDS, and that it's quite low. GDS's are not user-friendly, but sadly sometimes a necessity for certain types of travel agents. These types mostly being the ones who book lots of corporate travel arrangements. Lastly, the article discusses if a GDS is right for your business, and if you decide it's not, how to go about booking things without it.
Catherine Gibson

GDS Will Evolve Into 'Value Creation Hubs,' Harteveldt Says - 0 views

www.travelmarketreport.com/...-Creation-Hubs-Harteveldt-Says

shared by Catherine Gibson on 27 Jan 13 - No Cached
  • Airline distribution will migrate from global distribution systems to “value creation hubs” over the next five years, according to airline and travel industry analyst Henry Harteveldt.
  • Value creation hubs, or VCHs, will be aggregators that enable extensive airfare and product transparency, dynamic pricing, and rich merchandising and retailing,
  • “The GDSs have served airlines well for many decades,” Harteveldt wrote. “GDSs’ security, reliability, speed and accuracy are among the best in any transactionally based industry. “
  • ...12 more annotations...
  • Airlines want more flexible, robust commerce platforms built on contemporary software and architecture,” Harteveldt wrote.
  • “Airlines want commerce platforms that can support extensive fare and product transparency, dynamic pricing, rich basic and ancillary product merchandising and retailing and the ability to reliably and securely process the massive volume of shopping sessions.”
  • The airlines also believe that new providers who enter the airline distribution and commerce space will generate more competition and better selling solutions,
  • They will use the new-generation commerce technology infrastructure that powers airline CRS/PSS host systems and e-commerce solutions, thus reducing the need for lengthy, costly disruption in a conversion to a new passenger services system.
  • Like GDSs, value creation hubs will be designed to support high-frequency, high-volume shopping.
  • value creation hubs will be developed with the database-commerce operating and business environment in mind and will be designed to provide extensive fare and product transparency, support dynamic pricing and enable rich merchandising and retailing.
  • A key difference between GDSs and VCHs will be the business level at which they operate. Unlike GDSs, which work with individual airlines, VCHs will be developed for each major alliance – Oneworld, SkyTeam and Star Alliance.
  • Because the VCHs will operate at a “group” level, rather than at a single-airline level, the VCHs will house a “community link,” similar to the common platform operated by Amadeus, which will function as the “hub of the hub,” he said.
  • An important distinction between the GDS and VCH models will be the commercial relationship with subscribers, including agencies and other intermediaries.
  • Does this mean GDS companies will disappear? No, Harteveldt said.
  • Value creation hubs, or VCHs, will be aggregators that enable extensive airfare and product transparency, dynamic pricing, and rich merchandising and retailing, Harteveldt predicted in a white paper on “The Future of Airline Distribution.” The paper was underwritten by IATA
  • They will use the new-generation commerce technology infrastructure that powers airline CRS/PSS host systems and e-commerce solutions , thus reducing the need for lengthy, costly disruption in a conversion to a new passenger services system.
  • anonymous on 27 Jan 13
     
    This article is explaining how Henry Harteveldt, an airline and travel industry analyst, believes that GDSs will evolve into value creation hubs, or VCHs, over the next five years. He believes GDSs have served airlines the best among many transactionally based industried; however, many areas of airline marketing, sales, distribution and e-commerce are looking for more. He specifically states that airlines are looking for "more flexible, robust commerce platforms built on contemporary software and architecture", as well as "commerce platforms that can support extensive fare and product transparency, dynamic pricing, rich basic and ancillary product merchandising and retailing and the ability to reliably and securely process the massive volume of shopping sessions." VCHs will be used to support the high-volume, high frequency shopping, similar to GDSs, and the system will the new technology that powers airline CRS/PSS host systems, reducing the need for costly conversion disruption.
cpaez007

Airline ticket distribution: How airlines might reduce Global Distribution System (GDS)... - 0 views

pwc.blogs.com/...ystem-gds-fees-by-encoura.html

shared by cpaez007 on 04 Feb 18 - No Cached
  • After a quick search I found and booked the same ticket through an online travel agency for a bit more than the price on the airline website, but less when you included the €8 fee. Unfortunately this small change in booking method would have cost the airline a substantial amount of money. Here’s why…
  • Selling costs generally represent around 4% to 8% of overall airline expenses
  • Many airlines sell a large proportion or the majority of their tickets through indirect channels.
  • ...10 more annotations...
  • A key driver for the high cost of selling tickets through indirect channels is the fees charged by Global Distribution System (GDS) companies for each ticket sold. With airline profit margins under constant pressure airlines need to find ways of reducing distribution costs by selling tickets to customers directly instead of through 3rd parties.
  • The fees to distribute tickets through the GDS are relatively high averages around US$12 per return ticket [2]. In 2012, it was estimated that approximately US$7 billion in GDS fees was paid by airlines which was over twice the industry’s expected net profit for that year [3].
  • Quite simply, the GDS is something that airlines cannot live without. Why? If your competitors are using the GDS and you are not then your tickets will not appear in any searches by 3rd party distributors meaning it is unlikely your tickets will be sold by the 3rd party.
  • Even low-cost carriers such as Air Asia and Ryanair that have avoided the GDS for years have recently started selling tickets through the GDS as they have realised that they are missing out on revenue from not selling tickets through the GDS.  
  • The ‘New Distribution Capability’ (NDC) is a XML-based data transmission standard set by the International Air Transport Association (IATA) and provides a set of guidelines for communications between airlines and 3rd party distributors. The NDC will allow for the sale of ancillary products (for example, baggage, meals, special seating etc.), something which the GDS currently cannot handle. However, while the NDC has the potential to help airlines boost revenue, there are still questions as to whether there will be any benefits stemming from reduced distribution costs.
  • How can we make our direct channels so attractive that customers will want to use them over indirect channels?”
  • The simplest solution is to ensure that the user experience on the airlines website is seamless and easy. Users are highly likely to abandon online bookings and use another booking website if they encounter difficulties. Simple actions such as ensuring customers are not diverted to an error page can translate into a significant increase in direct bookings
  • Airlines might also want to re-think the way it provides incentives and commissions for ticket sales.
  • With the trend moving towards airline consolidation (for example, partnerships, equity interests and mergers) airlines might also consider how they can work together to sell each other’s tickets on their websites. This strategy goes well beyond the sale of interline or codeshare tickets and will give customers benefits including the ability to book multi-airline itineraries directly from an airline website. Of course airlines must be wary of how they do this to ensure they are not in breach of any anti-trust regulations.
  • There is no ‘one size fits all’ approach and for an airline to decide on the best distribution strategy it will need to conduct a solid analysis into their customer behaviours, channel usage and also the commercials of their different distribution systems.
  • cpaez007 on 04 Feb 18
     
    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.
corrie242

Is there a future for the GDS in a modern travel industry? - Blog - WHM Global - 0 views

www.worldhotelmarketing.com/...ure-gds-modern-travel-industry

shared by corrie242 on 11 Sep 19 - No Cached
  • A GDS is a network that facilitates automatic transactions between travel service providers like airlines, hotels and travel agencies. They have traditionally been used to provide services, rates and products to consumers.
  • The main advantage of being on a GDS is that it gives anyone selling travel products – including hotel owners with rooms to fill – a virtual marketplace on which to advertise them, meaning they are more likely to be sold to someone who wants them. It also means smaller, independent properties can bundle up packages such as those including accommodation, flights and admittance to a special event for a certain price and offer them straight up to their consumers.
  • Many airlines have also been criticising the lack of innovation within the GDS, which is preventing the airlines themselves from updating their business models to become more competitive against those that aren’t restricted by a GDS.
  • ...5 more annotations...
  • However, when the real internet did arrive, its advances started to pose a big threat to the GDSs that has never been as evident as it is today. Airlines in particular are now connecting directly to the consumer to reduce GDS fees – indeed, the lobby group Take Travel Forward estimates that airlines across the world are paying somewhere in the region of $7 billion a year in fees alone for GDSs.
  • A survey by Business Travel News suggested reliance on GDS channels will start to wane by 2020, while half expect their relevance to decline. CEO of Trip Bam Steve Reynolds opined that they won’t exist at all in seven years. Can GDSs evolve and survives clear that unless the GDS changes to meet the needs of a travel industry that is ever-changing, it may cease to be relevant and die completely.
  • GDS could continue to be relevant for travellers, particularly those travelling for business. People still need to comparison-shop quickly and easily, which a GDS enables them to do while continuing to meet their duty-of-care responsibilities at the same time.
  • GDSs will become a direct corporate booking tool as opposed to one used solely by travel agents and other industry insiders.
  • IATA study showed that airlines crave flexible platforms that offer them fare and product transparency, product merchandising, dynamic pricing and support for multiple transactions all at the same time, something a good GDS could still help them with. Perhaps it will be consolidation and the development of a consumer-facing product that helps to save the GDS in the 21st century.
  • corrie242 on 11 Sep 19
     
    This article highlights the benefits of GDS and how it is becoming obsolete to major airlines. Experts in the industry have been suggesting that the days of the GDS are numbered as technology evolves.
Olivier

Amadeus, Travelport and Sabre GDS Systems helping travel agencies grow using OTA model - 0 views

medium.com/...w-using-ota-model-8ef8b499ee04

shared by Olivier on 10 Sep 19 - No Cached
  • GDS is and will remain as the most important channel of distribution for airlines, hotels, and car rental companies alike.
  • Travel agents require the assistance of GDS and it is for the sake of their own profits.GDS serves as direct sellers of the Air Fares travel agents get into an agreement to the GDS and get access to a list of fares what he/she can again sell to the customers.
  • For Years, GDS has been serving the travel industry with reliability, security, speed and accuracy to airlines, hospitality, car rentals and many more. As per IATA study, the future of GDS is very huge and it will create a robust e-commerce platform for the travel industry
  • Olivier on 10 Sep 19
     
    This is an article about the 3 main GDS in the world and how GDS helps Travel agencies to grow more using an OTA model. It explains the importance of the GDS in the travel industry as well as the possible future for it.
sherylvelazquez

The Future of Global Distribution Channels: New Horizons for Airline e-Commerce - 0 views

w3.accelya.com/...orizons-for-airline-e-commerce

technology hospitality

shared by sherylvelazquez on 25 Jan 20 - No Cached
  • Earlier this year, Lufthansa announced that it was adding a surcharge to all bookings made via global distribution systems in an attempt to funnel traffic to direct bookings
  • Nonetheless, distribution has seen a number of interesting trends that may spell new opportunities for airlines looking to capture new markets, bring in additional revenue via ancillaries, and keep pace with the competition. Airlines are more interested than ever in alternative distribution, with the majority of airline marketing/sales/distribution executives saying they are very or extremely likely to adopt an alternative to GDS by 2017.
  • Overall, travel “distribution” is becoming more like “e-commerce,” with campaigns, offers, and channel marketing edging out the simpler “product push” of yesteryear.
  • ...3 more annotations...
  • Pay-per-click advertising is a huge boon for the travel industry – travel and tourism was the third highest spending industry on Google AdWords in 2014,
  • Metasearch is a great opportunity for airlines because, again, it meets comprehensive or complex travel shopping needs.
  • With IT solutions that can gather, store, and analyze data in a variety of ways, airlines are better able to monitor performance across channels, quickly adjust offers based on a variety of situations and circumstances, and optimize communications and transactions by device.
  • sherylvelazquez on 25 Jan 20
     
    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.
teallemejia

Coronavirus: Is virtual reality tourism about to take off? - BBC News - 0 views

www.bbc.com/...business-54658147

Virtual Reality

shared by teallemejia on 19 Sep 21 - No Cached
  • In the absence of travellers, tourism boards, hotels and destinations have turned to virtual reality (VR) - a technology still in its relative infancy - to keep would-be visitors interested and prepare for the long road to recovery.
  • Iata predicts that travel will not resume to pre-pandemic levels until 2024.
  • "The impact of Covid-19 may have allowed VR to somewhat shake off its image of being a gimmick in tourism,"
  • ...3 more annotations...
  • Digital applications cannot, and are not intended to, replace the experience of real-world travel
  • But VR and AR (augmented reality) applications are essential elements in keeping interest in Destination Germany alive during travel restrictions, getting potential customers excited about our product and providing inspiration for real-world travel."
  • With travel still largely at a standstill, it remains too early for Ireland and Germany to gauge their return on investment: that is, the number of people who, having seen a destination virtually, actually book tickets and visit.
  • teallemejia on 19 Sep 21
     
    Technology has been present in the travel and hospitality industry for years but only until the pandemic has it really blossomed. Technology is changing the way we travel and it's going to accelerate with VR in a post-pandemic environment. Countries like Germany and Ireland are turning to VR to capture visitors virtually and this results in them actually booking tickets with the goal of one day visiting the country. VR technologies are a cost-effective method to help people feel more comfortable and more willing to travel.
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