To The GDS's: Either Evolve Or Dissolve -- It's That Simple - Aviation Articles and Commentary - Swelblog / Swelbar on Airlines - 0 views
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In the early years following deregulation of the airline industry, GDS were largely owned by airlines and used to provide information to intermediaries to sell tickets on particular carriers.
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In fairly short order, the government stepped in to regulate the bias. As a result, the GDS
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became a tool of the travel industry to sell a service. Today, the airlines pay an intermediary to distribute their product – and they are paying a price much higher than the prevalent transaction costs.
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This article talked about the development history and facing challenge of GDS in the airline industry. It also analyzed the changing role of GDS in the travel industry, and how the airlines tried to be survived by providing new products and services to generate more revenue. Finally, the article came to the conclusion that the airline industry cannot be duopolists nor monopolists.