GDS Will Evolve Into 'Value Creation Hubs,' Harteveldt Says - 0 views
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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.
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Value creation hubs, or VCHs, will be aggregators that enable extensive airfare and product transparency, dynamic pricing, and rich merchandising and retailing,
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“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. “
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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.