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Publication Summary
Global distribution systems (GDSs) have been the backbone of travel distribution for over three decades. But rumors of their demise have been circulating for the past 14 or so years as new, cheaper technology has entered the marketplace. In every case, GDSs hunkered down and weathered the attacks, which included things like competing distribution platforms and global new entrants. The mainstay of GDSs' market position was as much due to business relationships as it was to their entrenchment in legacy technology and travel agents' preference for the cryptic "green screen."
The most recent attack has been led by American Airlines (yes, AA created Sabre, but it was a messy divorce) through its direct-connect and traveler authenticated content, which has evolved into an open systems connectivity initiative called Open AXIS. These initiatives are the most serious threat to the GDSs to date. With direct connect and Open AXIS as a backdrop, PhoCusWright interviewed each of the major GDSs about a variety of subjects concerning their current and future plans and expectations.
We addressed the same set of questions separately to each GDS and added supplemental questions on occasion. We state each question and follow with the interviewees' responses. The GDSs are listed in alphabetical order.
Interviewees
Ian Wheeler, Vice President, Marketing and Distribution, Amadeus
Chris Kroeger, Senior Vice President, Marketing, Sabre Travel Network
Gillian Gibson, Chief Marketing Officer, Travelport
Table of Contents
Part 1
13 Pages
INTERVIEW QUESTIONS
At a high level, describe your current competitive strategy.
What do you see as your greatest opportunities? Challenges?
How are you evolving your technology to support the new ancillary sales and merchandising models that airlines want to introduce?
We have heard a lot of noise about high booking fees. From your perspective, what is the future of booking fees?
The conflict between Open AXIS direct-connect, traveler-uthenticated ancillary content, and air pricing (on one side) and ATPCO-distributed fares and ancillary content (on the other) is hotly debated in the industry. How do you see this resolving? Will it take government intervention?
Several TMCs have developed their own distribution platforms along with a superPNR. How does this fit with your overall strategy?
While the customer in the end always pays, in air travel, airlines disburse the payments. The easyJet deal changed that model. Do you see the easyJet approach as a model for the future or a unique circumstance?
What do you expect in your upcoming Participating Carrier Agreement contract negotiations?
Part 2
15 Pages
INTERVIEW QUESTIONS
We are hearing more and more about making Long Tail content
bookable in advance. Where are you going with Long Tail content?
Hotels are a special case of Long Tail content. With the decline of air revenues, how will you evolve your hotel strategy to derive more revenue for and from hotels? What are your plans (if any) to extend your reach to previously nonbookable hotels?
What about rail? With problems with the Railteam common booking
system in Europe, will GDSs find an opportunity in rail distribution?
How is the industry responding to your new multi-GDS desktop initiative in terms of adoption? What are the key issues relating to your new desktop?
What (if any) are your plans for metasearch?
Several TMCs have developed their own distribution platforms along with a superPNR. How does this fit with your overall strategy?
Do you have any plans to customize content to make it more relevant to the shopper? If so, please discuss what you can.
Another hot button is social media. Any plans there?
Merchandising and ownership of the traveler are popular topics these days. Do you have any plans that will assist your TMCs/travel agencies in fostering customer loyalty? How about tools to enable merchandising?
Where do you see your GDS in three years' time?
What do you see as your critical success factors in getting to that three-year vision?
