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cwilliamsiona

Southwest Will Put Content on GDSs: Business Travel News - 0 views

  • Southwest Airlines at long last will provide content and full booking capabilities in global distribution systems via agreements with Travelport and Amadeus
  • Southwest president Tom Nealon said the GDSs are the "third leg of the stool" in Southwest's distribution strategy for business travel, the other two being direct channels and the Swabiz booking tool.
  • Southwest has rolled all those approaches and its recently revamped sales team into a newly named Southwest Business umbrella
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  • "We have a great business product, but we've been harder to do business with in terms of how you book, transact and settle," Nealon said
  • "The shift away from our [Basic Booking Request] and the basic approach to an industry-standard GDS is important.
  • Southwest projects that the GDS presence will bring between $10 million and $20 million in additional revenue during the second half of 2020
  • "We're going to compete hard and compete to win
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    In sum, this article discusses the long awaited partnership with Southwest airlines and global distribution channels Amadeus and Travelport. In the past, there have been many debates regarding the topic of "full content" between airlines and travel intermediaries. However, according to Southwest, this agreement will bring "the highest level of participation." As Southwest continues to revamp and improve the way it competes in the global market arena, Tom Nealon, President of Southwest has stated that, "GDSs are the third leg of the stool in Southwest's distribution strategy for business travel. With its great business product, Southwest is hoping to improve the way consumers book, transact and settle by using global distribution systems. With a conservative outlook, Southwest is hoping that the newly formed partnership with Amadeus and Travelport will generate between $10-$20 million in additional revenue in the second half of 2020.
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    The article demonstrates the benefits of implementing GDS in the hospitality industry. According to the article, installing GDS will enable Southwest Airlines to improve its level of participation by allowing buyers to not only book but also to "change, change, cancel, and modify reservations" via the system. Besides, the implementation of GDS will lead to increase revenue for the company.
dsada005

Southwest's GDS deals to help agents, but how much?: Travel Weekly - 0 views

  • Southwest's pending move into the Travelport and Amadeus GDSs, coupled with the carrier's entry into ARC's settlement and reporting system, will simplify workflow for travel advisors and make it easier for TMCs and leisure agencies alike to process Southwest purchases.
  • "If it becomes easier to sell Southwest, the competing airlines may take a look at it and say, 'We might be losing share,' and they may address it in a competitive way."
  • "In some instances, we have found lower fares on the Big Three carriers. I don't believe we will see an increase in competition, since they are already competing in the marketplace."
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  • Southwest announced on Aug. 5 that it will provide full content in the Amadeus and Travelport systems beginning in mid-2020.
  • Travel advisors booking Southwest through Amadeus and Travelport will be able to change, cancel or modify reservations directly through the systems. Agents who currently book Southwest through Sabre must call the airline for any ticket modification that is not a cancellation.
  • For Southwest, broader entry in the traditional agent channel will serve as a third prong in the airline's distribution offering for business and leisure agency partners, joining its direct channel and the SWAbiz booking tool.
  • The company projects that it will earn between $10 million and $20 million in additional revenue in the second half of 2020 as a result of the move.
  • "It's an intelligent compromise on Southwest's part, because to compete with other airlines in the corporate market they have to sell their tickets through the channels that corporate customers want to use,"
  • Last month, Southwest joined NDC Exchange, an airline product marketplace operated by ATPCO and SITA that facilitates direct-connect capabilities between airlines and agencies using NDC protocols. While NDC is especially useful in enabling airlines to sell ancillary products such as fare bundles and checked bags through the agent channel, Offutt said it's also important as a way to attract ordinary ticket sales through alternative booking paths. 
  • "I think Southwest realized that as NDC moved from aspirational toward practice, they had to go down that path or be left behind,"
  • while the increased functionality will make sales-tracking more efficient for agencies, it will also provide greater visibility of Southwest purchases to competing airlines, thereby making it easier for those carriers to monitor whether agencies with which they have corporate contracts are meeting market-share goals.
  • Southwest's broader entry into the GDSs will result in the legacy carriers boosting the incentives they offer corporate and leisure agencies.
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    GDS systems are predominantly used by travel agencies to book both individual and corporate travel. By expanding their listings to Travelport and Amadeus, Southwest opens themselves up to increases in bookings but also potentially moving into better competition with larger airlines. Moving into these systems also allows them to offer further NDC enabled content, such as fare bundles and checked bags, helping to build even more bookings.
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    Southwest has always been on the outskirts when it comes to the top airlines. The "big three" are known as American, Delta and United. In order for Southwest to stay in the game, they are providing full content in Amadeus and Travelport systems. Amadeus is known for its European market and Travelport is known for its US market. Southwest already belongs to Sabre, which is also a US market. However, "those offerings will both complement and exceed Southwest's current limited-content availability on Sabre" (Silk). Henry Hartveldt states that "given Sabre's leading presence in the U.S. market, Southwest will elevate its participation in the Sabre GDS as well" (Silk). Of course, by only belonging to one GDS presence, Southwest was not able to compete with the big three, however, now Southwest is back in the game. In order to sell your tickets, you must be available in the channels that customers prefer to use. Southwest realized that "they had to go down that path or be left behind" (Silk). Vlitas believes that "Southwest's broader entry into the GDSs will result in the legacy carriers boosting the incentives they offer corporate and leisure agencies" (Silk). Other airlines may fear more GDS entries from other airlines, however, it is clear that GDS is here to stay.
blevi022

Southwest Airlines Expands Corporate Booking Through the GDS – Skift - 0 views

  • For the first time, the majority of the airline’s content and booking capabilities are available in global distribution systems (GDS) at an industry-standard level of participation, instead of at a basic booking level.
  • In August 2019, the airline announced that after nearly 50 years in operation, it would significantly expand the amount of content it offers in the GDS through agreements with Travelport and Amadeus
  • Nearly every other major U.S. airline is in all three of the main GDS providers: Amadeus, Travelport, and Sabre, at an industry-standard level of participation. Prior to this May’s launch, Southwest only offered limited participation in Sabre and Apollo
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  • This strategic move has been a long time coming for Southwest and its corporate travel buyers — and it’s more important than ever during such a turbulent time.
  • Additionally, the airline is partnering with the Airline Reporting Corporation (ARC) to ensure the expanded offerings act in accordance with industry standards and to efficiently manage the reporting and settlement of tickets booked through the Travelport and Amadeus channels.
  • August 2019, the airline announced that after nearly 50 years in operation, it would significantly expand the amount of content it offers in the GDS through agreements with Travelport and Amadeus. The move to make the majority of its fares available in the GDS marks a big step forward for the airline in how it reaches business travelers and provides a more consistent customer experience for its corporate travel
  • Southwest Airlines is one airline that has its eyes set on a rebound to emerge stronger on the other side. One way it plans to do so is by shifting its distribution strategy. For the first time, the majority of the airline’s content and booking capabilities are available in global distribution systems (GDS) at an industry-standard level of participation, instead of at a basic booking level
  • uthwest Airlines is upping its corporate travel game by significantly expanding its presence in the global distribution system (GDS) network. This is set to enhance the relationship between the airline and its corporate buyers and agencies.
  • Nearly every other major U.S. airline is in all three of the main GDS providers: Amadeus, Travelport, and Sabre, at an
  • Prior to this May’s launch, Southwest only offered limited participation in Sabre and Apollo. Most corporate bookings were made on Southwest’s direct channels: SWABIZ, its corporate booking channel, and the Southwest API direct connect. Those that did book within the GDS were unable to perform
  • The process was not only atypical for a major U.S. airline, but was often frustrating and more costly for corporate buyers and agencies.
  • The agreement will give both Amadeus and Travelport industry-standard access to Southwest’s fares and functionality, like allowing travel managers to change and cancel flights through the system without having to pick up the phone and call the airline directly.
  • This move was in direct response to customer feedback. For the past few years, we’ve been told that the GDS is the preferred channel among business travelers and corporate travel buyers for booking travel. But it’s a timely shift as well. This new channel strategy will put Southwest in a strong position when a recovery begins,” h
  • The key benefit of the GDS is that it allows us to perform the booking in a standard workflow. The ability to serve our clients will be more efficient, and it will ultimately result in allowing us to offer a more effective and comprehensive service.”
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    This article is about Southwest expanding their GDS game. They are going to enhance their relationship with travel agencies and corporate customers.
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    Southwest Airlines had long resisted using GDS. It has been known for only allowing direct booking through its website. Last year, Southwest began to significantly increase the amount of tickets offered through GDS. This is viewed as good move for Southwest to help increase sales for the Corporate Travel market. This shows that GDS continues to have a use and airlines who did not use them are now willing to use them to help sell their inventory especially in the wake of COVID-19.
esuarezrijsdijk

Why Southwest just became more appealing for business travelers - 1 views

  • Most airlines around the world depend on three major platforms in sell seats on their planes — direct sales to consumers and business travelers, through ticket agents, a website or app; codeshares through airline partners; and consumer and business sales via a third-party travel agency, often an online travel agency (or OTA), or a corporate booking platform.
  • Southwest Airlines has long stood apart from most airlines around the world, insisting on marketing its flights exclusively through its own platforms
  • By making its flights available to more customers, Southwest will be in a better position to sell seats to a broader range of flyers, expanding the potential for lucrative corporate contracts
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  • Last year, however, Southwest announced plans to grow integration with business travel platforms, making it possible for corporate travel managers to book, modify and cancel Southwest reservations with ease
  • more Southwest loyalists will have access to the carrier’s flights for work-related travel, when their options may have been limited before. Road warriors may have a worthy new alternative, too
  • with another appealing program to choose from, elites sticking with legacy carriers could end up battling fewer travelers for upgrades and preferred seats — a win-win for customers across the board
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    This article discusses Southwest Airlines' new strategy to allow bookings through GDS's, beginning with Apollo and Worldspan and continuing later this year wit Amadeus. Previously, Southwest had required its customers to book exclusively through its own platforms. Among the advantages listed are the possibility to sell seats to more more types of flyers (especially valuable during the pandemic) and brand loyalists' ability to book corporate travel through the airline. The article makes a compelling case for GDS's continued relevance, especially in the managed corporate travel sector.
anonymous

Future of Global Distribution for Airline Travel - 1 views

  • Imagine if every airline used a separate reservation system to distribute flight information, instead of the familiar global distribution systems (GDS) in place now
  • As travel professionals are aware, Southwest Airlines are not available in most systems for booking reservations. However, they do not negotiate with distribution companies to sell their product.
  • Then travel companies would be charged to have the Direct Connect system in the long run, thus paying for the opportunity to sell American flights.
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  • American suggests that distribution companies begin using Direct Connect, powered by Farelogix. Travel professionals view this alternative concept as having to use a separate system for American Airlines reservations, possibly complimentary on a trial basis to the travel management company.
  • This may be the biggest travel industry news in the United States and beyond, since the deletion of travel agency commissions. There is also the possibility that more consumers will begin relying on travel agents to locate the best airfares.
  • They suggest it will make ancillary fees, such as priority seat and meal fees easier to track for business travel.
  • Imagine if every airline used a separate reservation system to distribute flight information, instead of the familiar global distribution systems (GDS) in place now. Individuals and travel professionals would have to compare flight costs on every reservation website or call each airline separately.
  • If every airline decides to utilize a different system and charge for their product to be sold, then travel companies may have to forward their costs to travelers, hence driving up the price of airfares.
  • American Airlines airfares can no longer be found on Expedia or Orbitz websites, or any site powered by Orbitz. These are two of many airline distribution sites that consumers can compare and book flights they choose. Each did not come to an agreement with American Airlines for a new contract to distribute American Airlines' product.
  • The contracts for the global distribution systems, Worldspan and Sabre, will be up for renewal soon this year. What will happen with American flights and air fares in those systems? Will American not be offered in those systems as well, if an agreement cannot be made? What happens if other airlines decide to join with American? This may be the biggest travel industry news in the United States and beyond, since the deletion of travel agency commissions.
  • Though this is a major obstacle for travel agencies and other travel management companies, travel agencies, being fearful of the outcome for consumers, are ready to stand their ground and protect themselves and consumers alike.
  • As travel professionals are aware, Southwest Airlines are not available in most systems for booking reservations. However, they do not negotiate with distribution companies to sell their product. For the most part, Southwest is self-contained and stands on their own, as far as distribution methods go.
  • As travel professionals are aware, Southwest Airlines are not available in most systems for booking reservations. However, they do not negotiate with distribution companies to sell their product. For the most part, Southwest is self-contained and stands on their own, as far as distribution methods go.
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    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
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    Global distribution systems (GDS) are used within the travel industry for the booking of flights a service that was once performed by travel agents. With the introduction of GDS many jobs were loss. Because GDS are contracted services with World- span and Sabre renewal and renegotiation of contracts may pose a problem. There are many pros and cons to the GDS for consumers such as booking of flights anytime and the loss of personal relations with the travel agents. According to Bonnie Burgess, the renewal of the GDS with world-span and Sabre is eminent which might create a problem for consumes if the negotiation falls apart. There was a similar situation Direct TV and the provider of many channels to Direct TV when they could not come an agreement, and, in the final analysis the consumers were the ones who suffered. Southwest and American airlines are two airlines who defended why they felt that booking directly at the website is the best options for travelers. The conclusion, is that there are advantages and disadvantages to the GDS. one of the overarching disadvantage is when there are difficulties with meeting of the minds in contractual negotiations.
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    The article highlighted reports how hard would be for travel agents to work without and Global Distribution System due to difficulty to generate price comparison reports to customers. It is also mentioned that American Airlines Airfares are no longer posted to the two majot websites for price comparison (Expedia and Orbitz). American Airlines will be using another website called Direct Connect which will be complimentary on a trial basis. In order to have full access, customers or travel agents would have pay for a membership. The process will have a higher cost and will be more time consuming. Southwest Airlines is acting the same way. The intention is to avoid comparison and encourage direct booking with the airlines. This difficulties presented by hotels and airlines may require more usage of a travel agent to do research for consumers. GDS's contracts are up for renewal and the concern is whether or not airlines will get into an agreement where rates will still be posted on the system avoiding several searches in multiple sources.
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    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.
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    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
mirandajaye

At long last, Southwest to enable GDS bookings: Travel Weekly - 1 views

  • Southwest Airlines at long last will provide content and full booking capabilities
  • hey expect content to be ready for bookings by mid-2020
  • The agreements will bring "the highest level of participation
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  • enable buyers and agents to book, change, cancel and modify reservations through the GDSs
  • outhwest has been investing in both of those other "legs," as well
  • joining ATPCO and SITA's NDC Exchange platform
  • Southwest projects that the GDS presence will bring between $10 million and $20 million in additional revenue
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    The article provides information on how Southwest Airlines will finally be participating in the GDS system starting in the year 2020 which is coming up soon. They feel as though this will help their customers modify and customize their reservations and also be able to change, book their own and cancel their reservations at their leisure without needing a Travel Agent. They know they have not been the easiest airline to work with and feel as though this will help and bring in $10-20 million more for them in revenues. I feel as though this is a good move for Southwest Airlines.
kesca010

Southwest Airlines Partners With Sabre, Now Offering Flights on GDS | TravelPulse - 0 views

  • Southwest Airlines has partnered with Sabre to provide business travelers and business travel planners with the ability to book Southwest Airlines on one of the leading corporate booking channels in the country, through the use of Sabre’s global distribution system (GDS).
  • we're able to provide the ability for more organizations than ever before to quickly book and modify travel with just a few clicks.
  • those who are used to traveling for business want to do so again, with many desiring more direct input into the travel-planning process, including choosing their own accommodations and airlines. Southwest’s partnership will make the airline more accessible for business travelers.
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    First of all this article shows how Southwest Airlines is partnering with one of the Global Distribution Systems. It goes to mention how the pandemic has not completely eliminated business traveling. In fact, Southwest airlines wants to make it easier for business travelers to plan their trips.
croja081

Q&A: Southwest Airlines on its GDS, corporate business strategy | PhocusWire - 0 views

  • announced deals to participate in the Amadeus and Travelport global distribution systems, providing content and full booking capabilities for the first time.
  • We have such a great business-friendly product, such a strong schedule, and the policies and fares are so accommodating. But we've been harder to do business within terms of how you book, transact and settle and all of that kind of stuff.
  • The shift away from our [basic booking request] and the basic approach to an industry-standard GDS is really important.
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  • When will content be available on the GDSs?We're still going through the implementation and the sequencing and who comes up first. I think we'll be up and live by mid-2020. I would love that to be both partners. We'll have to see how the work pans out, but that's what we're trying to do.
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    This article focuses on the impact that two new GDS programs will have on Southwest flights and their cooperate progress. While they dive into other observations in the article, the main points are being made about GDS and how it is newly implemented in their company. Based on the GDS that is now with Southwest, they can now "provide content and full booking capabilities for the first time." This is important as they are trying to open their flights to make more Hawaii trips and this helps their cause. The reason that this article strikes me of such importance because it shows a real-life example of GDS being used to this day. GDS is still a prevalent force in the travel industry and while stated in the article that it will take some time to be fully operationally, the company still believes that it is a plus. When studying about GDS, there were many opinions saying it is not as relied on anymore as it once was. Yet as we have here, GDS is still here as it is being used to it strengthens and helping a major airliner like Southwest.
dlcrawford

Southwest Expands Booking Access for Business Travelers - Skift - 1 views

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    Southwest has been historically known to almost exclusively book through direct bookings, aside from limited booking availability through Sabre. By mid-2020, Southwest Business is going to offer booking to travel managers through Amadeus, in order to encourage more business class travelers.
hankunli

Southwest Airlines Expands Booking Access and Content in the GDS to Reach More Business... - 2 views

Summary: This article by Southwest Airlines (SWA for short) and Skift has some vital points to know. First, SWA has improved its cooperation with GDS companies to an "industry-standard level" inste...

hospitality technology solution

Nicole Beveridge

American Airlines Battles Expedia in Online Ticket War - TIME - 1 views

  • Southwest requires that consumers go directly to its website to book a trip. That makes it more difficult for passengers to comparison-shop, but Southwest has won customer trust, and loyalty, by delivering consistently low fares for decades rather than make consumers hunt them down. Capturing customers on its own website also allows Southwest to get additional revenue from ancillary items such as rental cars and frequent-flyer credit cards — a revenue stream American has undoubtedly taken note of.
  • In bypassing the online travel agents, American saves on distribution costs, but can also raise its ticket prices more easily, since its fares won't be displayed directly beside those of its competitors.
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    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
msoma003

What Will Change in the Future of Global Distribution for Airline Travel? - 1 views

  • have to compare flight costs on every reservation website or call each airline separately
    • msoma003
       
      Not effective. Millennials will not spend the time searching multiple websites
  • American Airlines airfares can no longer be found on Expedia or Orbitz websites, or any site powered by Orbitz.
  • American suggests that distribution companies begin using Direct Connect, powered by Farelogix
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  • Southwest Airlines are not available in most systems for booking reservations
  • They claim they have the lowest American Airlines prices guaranteed, and they have no online booking fees.
  • Then travel companies would be charged to have the Direct Connect system, in the long run, thus paying for the opportunity to sell American flights.
    • msoma003
       
      Is it really worth the extra fee? Each agent will need to examine the ROI
  • Southwest is self-contained and stands on their own, as far as distribution methods go.
    • msoma003
       
      This could help lower the cost paid to third party sites but also lowers company visibility.
  • then travel companies may have to forward their costs to travelers, hence driving up the price of airfares.
  • While the airlines are all in one distribution system
  • companies are able to offer comparison reports on travel expenses
  • There is also the possibility that more consumers will begin relying on travel agents to locate the best airfares. This will remain to be seen.
    • msoma003
       
      This will be interesting because travel agencies have been on the decline due to advancements in technology.
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    The article discusses how American Arlines (AA) flights could not be found on Expedia or Orbitz because the company could not reach an agreement with Expedia. AA then suggested customers book flights directly via their website or via Direct Connect, a new system. Southwest airlines is another company that does not sell via third party or GDS sites, they only sell on their on site. When companies begin to remove themselves from traditional GDS systems it changes the way consumers and travel agents begin to book flights. It will make more difficult because we will spend more time comparing multiple sites and we we will never be sure if we are getting the best deal.
Carl Miller

Meeting the Expectations of Last-Minute Mobile Bookers. - Wednesday, 25th January 2012 ... - 0 views

  • “Travellers are increasingly demanding the ability to access and do anything, anywhere from any device. Their push of travel purchases towards the moment of necessity, coupled with their growing spontaneity, has created a new segment of mobile consumers
  • HotelTonight’s research shows that these last-minute mobile bookers, if not for Impulse Rates and the convenience of mobile apps, would have stayed with a friend or at home instead of a hotel.
  • Travellers no longer plan the details of their trip in advance, and instead rely on instant advice,
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  • We obsess over user feedback via user emails and phone calls, app store reviews and social media.
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    This article describes how a new company, HotelTonight, is attacking the market of spontaneous travelers. The company made an app for iPhone an Android users that sends "Impulse Rates" to users who have the app. Impulse Rates are heavily discounted rates on hotel rooms offered by hotels through HotelTonight for rooms that have been unsold that day. If users like the offer, they can book the room through the app in eight seconds with only three clicks.  There is also a little interview with HotelTonight CEO, Sam Shank in which he answers questions about how the company runs.  I think this is a great idea for company. It helps everyone involved - hotels increase revenue by selling rooms that otherwise would have been empty, consumers get great deals on rooms, and HotelTonight profits off of a nominal fee for processing the transactions. This is similar to the Ding! app from Southwest airlines but designed solely for mobile devices. 
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    Here is a link to the company's website. I don't have the app but it looks like it would be pretty easy to use. http://www.hoteltonight.com/
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    A great idea. Truly a win-win for all. I'm glad that they are finding the impulse rates are not affecting the amount of regular booking guests. I would like to try this myself and live life to the fullest.
Melissa Krajewski

Travelport agent survey finds support for GDS ancillary sales - Travolution.co.uk - 0 views

  • Corporate and leisure travel agencies can expect more technology to help them sell airline ancillaries after a global survey found high levels of support for this service through GDSs.
  • Agents understand that as the airline product continues to evolve and ancillaries form an increasingly significant role in the purchase decision and buying process, travel customers continue to look to agents to support them in purchasing itinerary solutions.
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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
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    Diigo keeps cutting off my descriptions... This is a good start to acknowledge the opinions of travel agents using GDS to sell airline ancillaries but the arguments were confusing and hard to follow. From reading the article I would address ethical concerns that airline agents may have in selling ancillary revenue for commission since 44% of those polled did not impose fees for attaining the additional products and services. I understand the airlines need to stay in business with the increase of jet fuel prices but there must be some way to avoid imposing the fees besides raising ticket prices and laying off employees (American Airlines announcing 13,000 layoffs).
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    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.
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    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.
Jessica Schwec

2014 Business Travel Survey: GDS Booking Volumes Still Rising - Business Travel News - 1 views

  • For all the talk of their ultimate demise, global distribution systems process growing volumes of travel transactions
  • Each of the three primary players continues to provide an array of services to travel management companies, corporate buyers and travelers, and their parent companies are pushing IT services to airlines, hotel companies and others.
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    All of the big three global distribution systems were still expanding as well as increasing productivity and revenue as of June 2014. Amadeus, Sabre and Travelport have each made significant moves in the hospitality industry, although primarily for airlines. Amadeus is by far the largest and currently most successful GDS with the highest profit, booking volume, and market share (air travel). As of 2014 Southwest Airlines was their biggest client, but they provide GDS services and access to over 100 other airlines as well. Sabre is second best to Amadeus. The company elected to go public in 2014 and since then their billable bookings, booking share and growth have all increased modestly. During the same year they gained American Airlines, newly reformed at the time, as a client. Presently, the company expects continued improvement in revenue. Travelport has made the decision not to compete directly with Amadeus or Sabre in that they have chosen not to provide "full passenger services systems to airline on a multi-host basis." However the company is still working closely with Delta Airlines and researching "add-on" features with their main focus being the continued growth of "beyond air" activities. Honestly, I was shocked that Amadeus is the largest and most successful GDS. I truly expected it to be Sabre. This belief was based on what I have personally experienced: every OTA I have used required a link to the Sabre GDS, but I can only recall one that required one to the Amadeus GDS. After reading the chapter 8 of D.V. Tesone's "Hospitality Information Systems and E-Commerce, along with the research report from our discussion forum I have changed my paradigm. Regardless, GDSs are still used widely in the hospitality industry. Different segments of the market prefer to book in different ways: via offline Travel Agents, OTAs, hotel websites or on the phone. Those that use either form of TA are using a GDS.
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    Leisure guests tend to book for themselves with rare exceptions including some forms of international travel and cruise travel. These guests use OTAs or intermediaries such as Travelocity (Owned by a GDS company) or TravelZoo. In the case of TravelZoo, a guest uses the TravelZoo website to access information such as availability and pricing that TravelZoo pulls from a GDS before making a selection and processing a transaction. On the other hand, business and corporate travelers are more likely to use an offline TA. An offline TA is better equipped to meet the needs of a customer whom is travelling for business. Offline TAs require less information when booking a hotel room then an OTA does, making it simple for a secretary to book the travel arrangements for the guest. In addition, offline TAs can work easily with a hotel to make special accommodations. The hotel receives contact information for the travel agency that booked the stay in case clarifications on requests are needed. In conclusion, as long as either form of TA is in the market, a GDS will be necessary to streamline bookings and ensure that each TA has the correct pertinent information when making a booking or completing a transaction. As a result, as new OTA options or hospitality enterprises enter the market GDSs are continuing to morph, merge and grow.
danakissane01

How contactless technology is defining the customer experience post-COVID-19 - 0 views

  • Contactless technologies have proven to be a game-changer for the air transport industry and beyond in recent months.
  • touchless technology remains a high investment priority between now and 2023.
  • Amazon and Disney have implemented in order to minimise the spread of viruses and reduce the interaction between passengers and staff – ranging from contactless check-in and security processes, to ‘Zero-Touch’ IFE and contactless food & beverage pre-ordering.
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  • in April Etihad became the first airline to trial new contactless self-service technologies, which can estimate a passenger’s vital signs, to allow for touchless health screenings at airport kiosks and bag drops.
  • AirAsia also quickly followed suit and in May the airline introduced several contactless procedures for essential travel including contactless kiosks, Passenger Reconciliation System (PRS), contactless payments at the airport, as well as enhanced features on its mobile app to help ensure a smooth and safe travel experience.
  • Biometrics technology also has a major part to play in creating a touchless travel experience. The implementation of the technology in the aviation industry has been well underway in the past few years, but its potential to facilitate a more contactless travel experience has accelerated the adoption even further in the wake of the COVID-19 pandemic.
  •  Southwest Airlines, for instance, launched a series of improvements across its Inflight Entertainment Portal, which allows customers to stream inflight content without having to download an app before they board.
  • Qatar Airways announced plans to offer passengers touchless technology for its Oryx One inflight entertainment system (IFE) across its A350 fleet. The Zero-Touch technology, introduced in partnership with the Thales AVANT IFE system, will enable passengers to pair their personal electronic devices (PEDs) with their seat-back IFE screen by connecting to ‘Oryxcomms’ Wi-Fi and simply scanning a QR code displayed on the screen. They can then use their PEDs to navigate and enjoy more than 4,000 options on offer through the airline’s Oryx One IFE system.
  • in Europe, Schiphol Airport launched a pilot which allows passengers to pre-order food and drinks at Schiphol’s food & beverage outlets after security control. Passengers can now scan a QR code from one of the physical banners or media screens located at and after the airport security check. The QR code will allow them to place their order, pay online and choose a time to pick up their order after going through security.
  • The MagicBands let customers do everything seamlessly – from unlocking their Disney Resort hotel room doors and entering the theme parks, to making food and merchandise purchases. Since the COVID-19 pandemic hit, Disney has brought even more contactless engagement, by using signage with QR codes throughout the park to encourage guests to use features on the park’s mobile app.
  • Disney has also highlighted that last year food and mobile order utilisation skyrocketed from 9% to 84%, and nearly 90% of all payments are now cashless. The company is also implementing contactless security screening using artificial intelligence at its theme parks and Disney Springs centre.
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    This article explains how due to Covid-19 more and more companies for developing and investing in contactless technology for customer experience.
rhoff019

Breakdown of Lufthansa and Sabre Deal Signals New Risks for Corp Travel - Skift - 0 views

  • Lufthansa Group on Tuesday informed its travel agency partners that its fares would soon be removed from the global distribution system Sabre.
  • Sabre had terminated the distribution agreement with its airlines
  • This dispute won’t go down well with those corporate travel agencies, or their clients, holding thousands of unused tickets, potentially worth tens of millions of dollars.
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  • The termination also affects Abacus, Sabre’s Asia-Pacific booking system.
  • Lufthansa Group is the leader of the pack in Europe when it comes to New Distribution Capability
  • The absence of a renewal reflects Lufthansa’s push towards selling directly — although Lufthansa told Skift it wanted to reiterate Sabre cancelled the agreement, not the airline group.
  • With the contract due to end soon, one industry observer believes the distribution deadlock is simply a negotiating tactic.
  • Many airlines have had time to weigh up distribution strategies over the past few months, but with the no real end to the crisis in sight, it would make little sense to limit their options.
  • Southwest, for example,  recently placed its full family of fares on Travelport’s Apollo and Worldspan global distribution systems.
  • Sabre in particular is having a hard time, with net airline bookings falling 111 percent in March.
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    Sabre has canceled its distribution agreement with all airlines from the Lufthansa Group. These include Austrian, Swiss, and Brussels Airlines. Flights have also been removed from Abacus, which is Sabre's Asian booking system. Lufthansa sets the standard in Europe when it comes to distribution, and Lufthansa is currently working on a redeveloped distribution platform of its own.
Chang Ren

The case for a new airline distribution model [INFOGRAPHIC] | Tnooz - 1 views

  • The GDSs charge the airlines for each ticket sold through their systems, with the average charge being in the $12 per ticket range.
  • Multiply that $12 by 600,000,000 tickets per year and you get about $7 billion dollars.
  • Clearly, the GDS companies are critical pieces of the travel supply chain and it is foolish to suggest they go away. However, it is also fair to advocate for use of lower cost technologies and modernized business models that can lower costs across the board, including for consumers at the proverbial ticket counter.
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    This GDS allows over 300 major airlines to get connected with thousands of points of Sale and this platform, consisted by only 3 major ticket distributors known as a GDS other than the airline website. Airlines are paying around $7 billion dollars per year for using GDSs. This is a huge amount and consumers have to pay this.  But at this moment, GDS is still needed as a neutral technology platform especially for small travel agencies.  
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    Chang, Great Post! Technology continues to advance daily, with new technological advances we will be able to book airline tickets different ways and the need for GDS will continue to reduce. Southwest Airlines has been able to maintain cost by the limited involvement the company has with GDS's. Hopefully by decreasing GDS's cost, we will be able to afford cheaper airlines tickets with other carriers (http://blog.compete.com/2011/01/26/american%E2%80%99s-gds-gamble/).
Jennifer Koren

Airlines' New Online Marketing Strategies - Articles - Executive Travel - 0 views

  • Rather than eliminate the need for travel, however, the Internet seems to have enhanced it as airlines stoke the public’s appetite to go places and social networks turn airline passengers into cheerleaders for airlines and destinations.
  • Virgin Atlantic uses a hip voice along with photographs and design to excite customers about the travel experience.
  • By 2008, the entire airline industry had transitioned from paper to e-tickets for a savings of $18 billion, according to the International Air Transport Association.
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  • “The handheld device has broached a whole new paradigm of convenience.”
  • Southwest Airlines felt the online wrath of several passengers who posted videos to YouTube after airline employees told them they were too fat to fly. An anonymous traveler wrote to Richard Branson complaining about the food on a Virgin Atlantic flight, a letter that—along with photographs of the offending meal tray—soon went viral. And David Carroll, a Canadian folksinger whose guitar was broken while in the custody of United Airlines, became the voice of customer rage when the airline declined to reimburse him for the broken instrument. Carroll posted on YouTube three bitingly funny music videos assailing United. More than 10 million people have viewed them.
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    In this article, Christine Negroni discusses the future of airline booking and travel. Over the last ten years, there has been a shift from telephone reservations to computer reservations with the birth of the World Wide Web. With new mobile devices and smart phones, customers are now trying to find the newest, easiest way to work a plane ticket or a vacation. Companies have to strategically plan how they will market to thei customers. FOr leisure, companies will want to reach them through Facebook and Twitter. With the internet, airlines today need to focus on their image. The image is just as important as the product you sell, or the plane ticket the customer purchases. With Youtube, anyone can post whatever they'd like, so hospitality companies and airlines especially, need to be weary. Because the aviation industry is so large, the internet give customers and companies a way to interact on a deeper, more personal level.
Chris Cardoso

Hotel firm upgrades accounting system - 0 views

  • LBA Hospitality Partners with M3 Accounting + Analytics to Enhance Accounting Processes and Increase Efficiencies July, 31 2013 M3 Accounting + Analytics Seeking to update and streamline accounting processes for its 70-plus Southeast properties, Dothan, Ala.-based Larry Blumberg & Associates, Inc. (LBA Hospitality) recently announced an expanded partnership with M3 Accounting + Analytics, the national leader in hotel-specific accounting software, operations reporting, and business analytics. “If we are to continue to be an industry leader, we must have the ability to meet the requirements of our stakeholders and provide accurate, real-time and relevant information for our management team and owners,” said LBA President Beau Benton.  LBA sought the ability to swiftly handle budgets, forecasts, and reports, and to dissect business data, all while insuring that the back-office accounting platform functionality was state-of-the-art and industry-specific.  In choosing M3, Benton cited how the company integrates accounting, business intelligence, and reporting, while eliminating most redundancy, software investment and annual hardware/software maintenance. In addition, Benton and LBA were looking for continual and automatic upgrades, backup and disaster protection, and minimized downtime.  LBA is implementing the full suite of M3 products: accounting through the AccKnowledge platform, time, attendance and labor management through the newly released RightTime solution and LaborWatch, and payroll services through RightPay. The company will also continue to use M3 Link business intelligence reporting, as LBA will be expanding it to bring financial data, operating stats, Smith Travel feeds and guest satisfaction data (including verbatim responses) into one completely customizable dashboard. LBA, which launched its business by developing a Sheraton Inn in 1973, is rapidly growing its management business and securing more and more agreements from sophisticated owners and investors.   Scott Watson, M3 Vice President of Sales & Marketing, said, “While our core product remains our accounting solution, we’ve continued to evolve and offer new products and services that meet the current and future needs of the hospitality industry. It is truly exciting that our product platform will help Beau and LBA achieve the aggressive growth they are anticipating over the next five years.”  The implementation and training process for all LBA properties is expected to be complete by December 1.  About LBA Hospitality Based in Dothan, Ala., LBA Hospitality is a hospitality management company focused on maximizing return, safeguarding assets and enhancing value. Founded in 1973, the company now manages 70 properties throughout the Southeast, from Texas to Virginia. More information is available at http://www.LBAHospitality.com.  About M3 Accounting + Analytics M3 is the national leader in hotel-specific accounting software, operations reporting, business intelligence and analytics, processing more than $8 billion in financial transactions for more than 3,000 properties. M3’s integrated suite of hospitality accounting products includes: AccKnowledge, Link, payroll and labor management services, and document imaging and retrieval – all designed to help provide hotel operators, owners and managers unsurpassed access to the information they need in the most integrated and cost-effective manner. The company was founded in Gainesville, Ga. in 1998, and also has a base of operations in Tampa, Fla. More information is available at www.M3AS.com. 
  • “If we are to continue to be an industry leader, we must have the ability to meet the requirements of our stakeholders and provide accurate, real-time and relevant information for our management team and owners,” said LBA President Beau Benton.  
  • continue to be an industry leader, we must have the ability to meet the requirements of our stakeholders and provide accurate, real-time and relevant information for our management team and owners,” said LBA President Beau Benton.  
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  • “If we are to continue to be an industry leader, we must have the ability to meet the requirements of our stakeholders and provide accurate, real-time and relevant information for our management team and owners,” said LBA President Beau Benton
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    LBA Hospitality Partners with M3 Accounting plus Analytics to enhance accounting processes and increase efficiencies." As an industry leader LBA's Presidents feels they need to ability to meet requirements of their stakeholders and provide accurate real-time information for management and owners. When choosing M3 LBA's president noted how the company integrated accounting, business intelligence, and reporting while removing redundancy, software investment and annual hardware/software maintenance. Part of the requirements for choosing a company was continuous automatic upgrades, backup, disaster protection and limited downtime. LBA chose to implement a full suite of M3 products: Accounting through the AccKnowlege platform, time, attendance and labor management through RightTime solution and LaborWatch and payroll through RightPay. LBA will be expanding to bring financial data, operating costs, Smith Travel feeds and guest satisfaction data in one customized dashboard using M3 Link business intelligence reporting. LBA continues to grow after developing the Sheraton in 1973. Scott Watson of M3d is happy that M3 can meet the needs of their customers even though their core product is accounting solutions. They continues to help companies as they grow. Through this partnership they hope to continue to grow as meet the needs of their guest, investors and team. While it is important to have a core product to offer, I think it's also important to have additional products that meet the needs of your customer much like S. Watson said about M3 continuing to evolve and meet the needs of the hospitality industry. I feel this would make the company more marketing. It looks as if the President of LBA reviewed what the company's needs were and then chose to partner who leads the company in hotel specific accounting software. The president recognized the need to be able to report numbers accurately and forecast real data to its team, owners and investors. When I m
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    The Larry Blumberg & Associates hospitality firm (LBA Hospitality) partnered with a management company, M3 Accounting & Analytics, to integrate new software in it's 70 properties throughout the southwest, fro Texas to Virginia. The services that will be provided by M3 will range from Accounts Payable, to General Ledger, Daily Sales Report, Labor Cost, Check Writing, Cash Management, Forecast, Budget, etc. M3 provides products and services that will continue to evolve and improve to be cutting edge in hospitality. LBA is using M3 to streamline an aggressive five year growth plan. Other hospitality business will begin to incorporate a service provider that can encompass all accounting needs.
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