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rderonville

Jury sides with US Airways against Sabre in GDS antitrust trial of the century - Tnooz - 0 views

  • The jury has returned its verdict in US Airways’s $134 million antitrust lawsuit against travel technology giant Sabre.
  • The airline’s lawyers successfully argued that Sabre had threatened it, saying that it had to accept a contract on Sabre’s terms or else be cut off from a network of thousands of travel agents worldwide who depend on the inventory that the tech giant provides via desktop software.
  • During contract negotiations, Sabre never offered a deal for less than full-content, the airline said. Full-content contracts typically require an airline to provide the same fares it offers via any other channel, such as its own website, to Sabre, too.
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  • full-content contracts are widespread between major airlines and the three major global distribution systems (Sabre, Amadeus, and Travelport), who act as middlemen for plane ticket sales worldwide.
  • Sabre argued that its fees are justified relative to the cost an airline would incur to distribute its fares comparably by other methods. It said consumers benefited by agents having a full array of options for price comparison.
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    The role of GDSs in the travel industry has a major impact on revenue, competition, and reservations. In this article, Sabre, one of the largest known GDSs was sued by US Airways for failing to provide a fair contract to the airline. The lawyers from US Airways claimed that Sabre threatened to "cut off the airlines from a network of thousands of travel agents worldwide who depend on inventory that the tech giant provides via desktop software". The jury concluded that Sabre indeed violated antitrust law. Sabre, apparently, charged US Airways increased fees though their cost per transaction decreased because of the advances in technology. According to the article, Sabre argued that the fees were justified relative to the cost that an airline would incur to distribute its fares by other methods. This helped the agents have access to a plethora of information regarding price comparison. In my opinion, this is just a messy situation. However, it goes to show how important and how much of an impact that GDSs have on airline companies. They determine what consumers or agents readily see on the site. They determine how much of a presence a company has. The GDSs provide company information to a worldwide network that markets to consumers. Having a GDS system hold back or increase fees has proved to be detrimental. Ethical issues have come into play. The fact cannot be ignored that the technology being used by Sabre is helping lower cost for transactions. This decrease in cost should have resulted in a decrease in fees for the airlines. Nevertheless, the key to this article is that GDSs have the power (though Sabre did illegally) to determine which avenue a company goes through in regards to apparent competition and markets. The advancement of GDSs is resulting in lower cost transactions and giving agents and consumers "more bang for their buck". So it is important that the relationship between GDSs and airline companies remain ethical in all ways, especially dealing with
Diamond Williams

The Future of Hospitality Hangs in Balance of Mobile and Social Implementation | Top Stories | | Hospitality Magazine (HT) - 0 views

  • A study by Expedia presented at the conference pointed to the fact that more internet access occurs through mobile devices than by laptop or desktop. Moreover, two-thirds of Americans sleep with their mobile device in range, something we cannot say about desktops. Expedia anticipates that the current number of bookings via mobile device, currently about 16 million, will double by 2016.
  • So, besides sleeping with them, what are people doing with their mobile devices? Many of them are booking a hotel for tonight. Expedia has found that a substantial number of mobile bookings are for same-night stays.
  • Mobile makes this possible. That’s the present, but it’s also the future. Most of the people who are using their smartphones and tablets in this way are under 30.
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  • Mobile writes a similar story for restaurants. People who are seeking a restaurant at the last moment tend to be your younger customers, and they simply expect the technology to be there.
  • A study by the National Restaurant Association confirms that these mobile guests are checking out customer review sites as they make their choices.
  • Customer reviews are also important to the hotel industry, but the jury is still out on exactly how hotels should interact with people who post reviews.
  • The hospitality industry and its allied businesses will continue to expand their interaction with mobile devices and social media. Things are moving fast, but we also can be sure that there are curves ahead.
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    As mobile devices become more advanced, particularly cell phones and tablet devices, more pressure to keep up with mobile and social trends is placed on the hospitality industry. People are using their mobile devices more now than they have in the past. So much so, that "two thirds of Americans sleep with their mobile device in range, something we cannot say about desktops". A world of information is at your fingertips because of the capability of mobile devices. Information that can help us make decisions about anything. Even last-minute decisions about hotels and food. More people are using their mobile devices to book rooms and many of the people that do this, are booking a hotel for the same night. The fact most of the people who do this are under 30 means that it is very likely that this trend will increase. People are expecting the technology to be there so that they can pick a hotel and a restaurant to go to if they are unfamiliar with a city. They are expecting a hotel chain to have a mobile site or better yet an "app" that will not only allow them to book a room, but, one that will give them directions from where they are to the hotel. The same can be said for restaurants. Potential customers want to be able to look over the menu and determine if they want to come to the restaurant, all from their mobile device. Mobile guests are also using customer review sites to determine where they will lodge or dine. They are using sites like TripAdvisor which allows you to post comments about your stay. The sight even allows the guests to post pictures. "Customer reviews are also important to the hotel industry, but the jury is still out on exactly how hotels should react with people who post reviews." It is always great when a guest posts a positive review of the hotel, but imagine how one bad stay could tarnish a hotels reputation. And what if there are cleanliness issues that the guest can photograph and upload to the site? Exactly what to do in this type of e
luis capote

Apple, Samsung face off in court over patents to iPhones, iPads; opening arguments Tuesday - 0 views

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    Apple filed a lawsuit against Samsung last year alleging smartphones and computer tablets made by the world's largest technology company are illegal knockoffs of Apple's popular iPhone and iPad products. Cupertino-based Apple is demanding $2.5 billion in damages, an award that would dwarf the largest patent-related verdict to date.
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