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