Despite rumors of their imminent demise, global distribution systems (GDSs) are still alive and well. The technology that supports the business services they provide will have a profound and lasting effect on travel distribution. Phocuswright posed a series of questions regarding technology and travel distribution to three leading GDSs – Amadeus, Sabre and Travelport. This analysis summarizes the GDS’ key initiatives and strategies, and also includes detailed Q&A that sheds light on their approach to technology and the future of travel.Analyst: Bob OffuttTopic: Technology InnovationResearch Type: Report
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The global reach and size of corporate giants such as Google, Amazon and Facebook enable them to shape digital interactions with a significant portion of the world’s population, and their power is viewed by many with growing concern. In travel, too, a handful of behemoths – both on the supply and distribution side – exert extraordinary influence. This article explores the impact of travel’s commerce kings, with an eye toward their impact on innovation, competition and the future of the industry.Analyst: Michael GerraTopic: Technology InnovationResearch Type: Report
Mobile itinerary aggregation apps put all the components of trip plans into travelers’ hands. Until recently, a comprehensive view of the trip was only available if the booking was made through an intermediary using a GDS. Itinerary apps can now harvest details from the traveler’s emails to provide a complete view of the trip, irrespective of where and how the travel was booked. This article explores the innovation that has occurred in the itinerary aggregation space, including analysis of some of the leading mobile apps available to business and leisure travelers.Analyst: Gillian HuntoonTopics: Business Travel, Technology InnovationResearch Type: Report
For nearly two years, the Lufthansa Group was alone in Europe in its efforts to establish direct connect as a new standard in airline distribution. Finally, the New Distribution Capability (NDC) seems poised to become a real air distribution standard. This analysis focuses on the status of airline distribution in Europe and the outlook for airlines, OTAs, TMCs, corporations, GDSs and technology providers.Analyst: Dirk RoglTopic: Technology InnovationRegion: EuropeResearch Type: Report
Today, the technology used and services provided by the three major global distribution systems (GDSs) represent the foundational capability for most travel agencies and travel management companies (TMCs) and are realized by the end user through online travel agencies (OTAs) (Expedia, Orbitz, etc.) This GDS capability seems relatively stable and straight forward, but that has not always been the case, nor will it be going forward. The path to the current state has been fraught with numerous startup efforts and road kill on the travel distribution super highway. The saga continues.This paper is an effort to identify the business initiatives and technology advances that have the potential to disrupt and possibly redefine our current travel distribution system. Analyst: Bob OffuttTopic: Technology InnovationSegments: Air, Hotels & LodgingResearch Type: Report
Airfare shopping and booking, once a cut-and-dried symbiosis between travel agents, global distribution systems (GDSs) and airlines has begun to unravel over the past 15 years. Not that the relationships were ever particularly cordial. Airlines wanted a reduction in the fees that they paid the GDSs while the GDSs wanted higher fees to fuel their technology investments and their bank accounts. The travel agents just wanted enough money (fees and commissions) to be viable businesses. All of these potentially conflicting views put air distribution under substantial tension. Technology has become a catalyst to address that tension. Capitalizing on this tension, a major German airline, Lufthansa has a taken a 2 pronged approach: 1) A surcharge for air bookings using a GDS and 2) Encouraging its connected travel agents to bypass the GDS.Analyst: Bob OffuttTopic: Technology InnovationSegment: AirRegion: EuropeResearch Type: Report
Download the presentation deck and audio recording of the November 10, 2015 webinar. Phocuswright and h2c shed light on the challenges and preferences of independent properties to provide a better understanding of their wants and needs.Analysts: Michaela Papenhoff, Lorraine SileoTopic: Market Overview & SizingSegment: Hotels & LodgingRegions: Europe, U.S. & CanadaResearch Type: Report
Salesforce is arguably the world’s most popular CRM platform for businesses. Given its success worldwide, it may be interesting to envision what a similar approach to the unique business of travel distribution might look like using a Salesforce-like product designed just for travel agencies and travel management companies. This article addresses the components and implications of a hypothetical “Travelforce.”Analyst: Bob OffuttTopic: Technology InnovationSegment: Traditional Agencies & TMCsRegion: U.S. & CanadaResearch Type: Report
In the early 1990’s, air shopping and booking was largely dominated by four GDSs, which handled communication and data transfer between suppliers, intermediaries and various other points of sale. Today, air shopping is increasingly influenced by a range of other entities and platforms, including metasearch, third-party search, large computer systems on commodity hardware, open source software, large online travel agencies, airline fee reductions and cloud services. This Analysis examines the components of the legacy airfare shopping process, and the new technologies and user expectations that could potentially be the catalysts for reshaping airfare shopping.Analyst: Bob OffuttTopic: Technology InnovationSegment: AirRegion: U.S. & CanadaResearch Type: Report
Independent properties vary widely in terms of their size, structure and resources. While they are in the minority in the U.S., they dominate the European hospitality market. This report represents an effort to study the independent lodging marketplace in six major markets and includes insight on market size and structure, channel distribution and more.Analysts: Peter O'Connor, Ralph Merten, Felica Eisenbeis, Lorraine SileoTopics: Market Overview & Sizing, Technology InnovationSegment: Hotels & LodgingRegions: Europe, U.S. & CanadaResearch Type: Report
Download the presentation deck and audio recording of the July 14, 2016 webinar - in partnership with IATA and sponsored by Amadeus and CyberSource - to explore the impact of fraud on today's agency landscape, including the fraud rate of travel bookings and the revenue impact on agencies.Analyst: Mary Pat SullivanTopics: Consumer Trends, Technology InnovationSegments: Air, Cruise, Hotels & Lodging, Online Travel Agencies, Tours & PackagesRegion: U.S. & CanadaResearch Type: Report
The average leisure traveler visits 4-5 websites when planning a leisure trip, and many remain frustrated when shopping for and booking travel online. Surprisingly, despite the scope of this problem (and the vast opportunity it presents), there are few quality solutions currently available. This articles addresses some interesting technology that has the potential to significantly impact online travel planning and booking: The Semantic Web, Google’s Knowledge Graph and Information Cartography.Analyst: Bob OffuttTopics: Technology Innovation, Social & SearchResearch Type: Report
U.S. public online travel agencies (OTAs) began their 2015 campaign on a strong note. While aggregate gross bookings for the three publicly listed U.S. OTAs – Expedia, Orbitz and Priceline – rose 14%, their combined growth softened considerably year over year. This was due, in part, to suppliers' efforts to increase their direct business amid improving fundamentals and recovering demand in the U.S. market. In addition, strengthening of the U.S. dollar masked OTAs' actual international growth.Analysts: Chetan Kapoor, Lorraine SileoTopic: Market Overview & SizingSegment: Online Travel AgenciesRegion: U.S. & CanadaResearch Type: Report