Tag Archive | "GDS"

Farelogix video: Full content deals bad for travel agencies

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Farelogix video: Full content deals bad for travel agencies


Executives at global distribution systems lose years of sleep worrying whether they will sign airlines to full-content deals in the next round of negotiations, but, in a new video, Farelogix argues that these agreements actually are bad for travel agencies.

Here’s the video, entry #4 in Farelogix’s Ask the Question series:

Of course, when American Airlines threatened to withdraw from the Sabre GDS several years ago, some major travel management companies signed on with Farelogix, which distributes airline content, to access American and other carriers as a sort of GDS insurance in the event that major carriers opt to quit a GDS or two.

Perhaps Farelogix should be asked some questions, as well.

What would it do to your value proposition if American Airlines or Air Canada decided to give you only a portion of their content? Would that be good for Farelogix and its TMC clients?

Probably not.

And does Farelogix, which is set up to distribute American Airlines’ ancillary services, which aren’t in the GDSs, benefit if airlines decline to deliver full content to GDSs?

I think the answer would have to be yes.

Still, does Farelogix make any valid points in the video?

Do full-content deals hurt travel agencies economically, thwart airline innovation and force travel agencies to compete on price?

After all, the GDSs will be negotiating full-content agreements with major U.S. airlines in 2011, although the term “full-content” is a misnomer since so much inventory these days is offered exclusively on Twitter, Facebook or airline websites.

But, what do you think about Farelogix’s main points?

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GDS Bitesize – service news, agreements, products from Amadeus, Travelport and Sabre

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GDS Bitesize – service news, agreements, products from Amadeus, Travelport and Sabre


The latest news from the GDS world, including new airline agreements, product news and initiatives.

2 September 2010:

  • Philippines low cost carrier to unbundle fares with Sabre [full story]
  • Travelport points finger at airlines over ancillary development [full story]

1 September 2010:

  • Sabre sells Nexion subsidiary to travel management firm Tzell. Sabre bought Nexicon, a host agency for travel agents, in 2003. Terms of the deal were not disclosed.
  • Amadeus releases H1 2010 results [full story]

30 August 2010:

28 August 2010:

27 August 2010:

  • Amadeus and SNCF pledge to improve rail ticket distribution. The pair are introducing a new system to agencies to allow to book French rail fares and Rail Europe tickets, using existing Amadeus Selling Platform and PNR technology.
  • Travelport – the waiting game [full story]

24 August 2010:

  • DerbySoft and Amadeus unite to give travel agents access to mid-range and independent hotels in China. More than 103,000 travel agencies in the Amadeus network will be able to source and book properties on the Shanghai-based DerbySoft system.

20 August 2010:

  • Amadeus and Deutsche Bahn reveal Chinese agency plans. The pair have collaborated to open the German rail giant’s first travel agency in China, using booking technology from Amadeus to sell DB tickets and other European rail providers.

19 August 2010:

  • Travelport appoints new airline directors for Australia-New Zealand and South East Asia. Ex-Travelport director of sales for Australia, Ailsa Brown will be based in Sydney and takes responsibility for commercial opportunities and ancillary revenue as part of the new Universal Desktop programme. Chan Tze Yuan will have a similar role, based Singapore, covering Malaysia, Indonesia, Singapore, Thailand, Philippines and Brunei.

18 August 2010:

  • Amadeus and OAG agree to extend existing technology and intelligence partnership. The deal means the pair share technology and data for schedules, flight status, and end-to-end travel information and other selected services.
  • Travelport appoints new country manager for Australia and New Zealand. Sean Cummins joins from AOT Group and previously held positions at Amadeus, Flairview and Constellation Hotel Group.

17 August 2010:

16 August 2010:

  • Sabre Travel Network partners with Kanoo Travel in the Middle East. Kanoo, one of the latest travel agency groups in the Middle East, will use the Sabre GDS to supply content and other technology to agents in Iraq.

12 August 2010:

  • Travelport plans a $250 million private offering of senior notes, which would be used to reduce debt and for business development, the company says.
  • Cathay Pacific and Travelport ink five-year distribution deal. The standard agreement gives Apollo, Worldspan and Galileo-connected agents full access to the airline’s content and fares.

9 August 2010

  • Amadeus debuted its Amadeus One open technology platform at the National Business Travel Association conference in Houston today. Amadeus says the platform enables travel agency users of its Web-based desktop to use an “an open, service-oriented architecture” to integrate existing and new IT tools and service.

6 August 2010

  • Travelport’s GTA unit appointed David Painter chief operating officer, effective immediately. Based in London and reporting to GTA President and CEO Ken Esterow, Painter will handle global hotel contracting and inbound operations, Travelport says.

5 August 2010

  • TravelPort reported its second quarter 2010 earnings. In its GDS business, net revenue increased 1% to $520 million, compared to the year-earlier period, and EBITDA for the segment dropped 4% to $160 million. See the full results press release here, and a related story here.

4 August 2010:

  • Travelport extended its content agreement with United Airlines through 2013 and says travel agents connected to its GDSs will be able to book the airline’s Economy Plus seating later this year. Full story here.
  • Amadeus North America bolsters commercial team with new VP Darrin Deck. Ex-TRX vice president of product operations, Deck joins as VP for sales and account management covering both the US and Canada, based in Chicago.

3 August 2010:

  • Joint technology product from Travelport-Rearden Commerce secures Nippon Express as first customer. The technology is a Travelport-branded version of the Reasons Personal Assistant system, giving TMCs access to travel management tools as well as existing air, car hire and hotel services.

2 August 2010:

  • Travelport signs multi-year agreement with Kuoni. The extended deal with Travelport covers 11 countries and gives the long haul tour operator access to a number of Galileo applications and ticketing systems.
  • Amadeus integrates Hotel Shopper tool for Vacation Link users in North America. The service is boosted by partnering with CCRA Travel Solutions, giving agents access to over 160,000 hotel properties worldwide.
  • Travelport agrees air fare distribution partnership with Proflight Zambia. Full ticket and distribution content from the carrier will be available for five years for Galileo-connected agents.

30 July 2010:

  • Russian travel agency chain Sputnik signs agreement with Travelport for GDS services. The deal was sealed through Travelport’s Russian travel partner and online flight search provider AlpOnline and sees Sputnik agencies gain access to low-cost carrier and scheduled fares.

28 July 2010:

  • Travelport renews long-term relationship with Cassidy Travel. The Ireland-based travel agency group will extend its 17-year agreement with Travelport to use the Worldspan GDS platform for air, hotel and car hire products.

27 July 2010:

  • Standard message: Sabre, Amadeus, Travelport step in line over Open Axis [full story]
  • Sabre claims huge jump in revenue for Mamaison after technology switch. The chain apparently saw a 100% leap after switching ten properties across Central and Eastern Europe as a result of changing to the SynXis CRS by Sabre Hospitality Solutions.

23 July 2010:

  • GetThere agrees seat sale strategy with United Airlines. The Sabre-run GetThere will handle United’s Economy Plus range from later this year, a decision Sabre claims is a first for any travel management system.

22 July 2010:

  • Amadeus and Premier Inn sign global distribution deal.  The agreement sees 580 of the budget hotel chain’s properties made available through the Amadeus GDS across its worldwide network of agencies.
  • Study: Winners in airline ancillary revenue [full story]

21 July 2010:

20 July 2010:

  • Amadeus partners with Airconomy to launch market intelligence service. The pair have created a product, Amadeus Total Demand by Airconomy, to provide market data for airlines, airports and travel agencies on routes around the world, including distribution from low-cost carriers and via direct sales.

19 July 2010:

  • Travelport announces investment in Bahrain. The company has taken over distribution of its Galileo platform following end of agreement with Middle East Computer Services (part of Al Safar Group) and will service existing clients from new operation in Manama.

15 July 2010:

  • Avis Budget Group and Travelport sign multi-year distribution agreement. The deal hands agents on the Galileo and Worldspan platform full access to ABG’s operations in over 70 different countries around the world.
  • Travelport gushing over strong start to Leisure agent portal [full story]

13 July 2010:

  • Shangri-La Hotels and Resorts renews distribution agreement with Sabre. The chain of 66 Shangri-La properties around the world will continue to use Sabre’s SynXis Central Reservation System, part of Sabre Hospitality Solutions, claiming a 35% increase in GDS revenue year-on-year.

10 July 2010:

9 July 2010:

8 July 2010:

  • Sabre acquires flight crew management system [full story]
  • Travelport unveils major airfare partnership for Russia [full story]

6 July 2010:

  • Travelport appoints new country manager for Spain. Antonio Loureiro comes with 18 years experience in the GDS sector and will also cover Travelport’s interrests in Portugal and Brazil.
  • Amadeus to trial new ancillary services platform through CorsairFly [full story]
  • Sabre Travel Network signs Hogg Robinson Group to TripCase mobile programme. HRG will give clients access to a dedicated TripCase travel itinerary platform allowing them to manage travel plans and communicate directly with agents.

5 July 2010:

  • Travelport named as preferred GDS partner for TTA Worldchoice. The agreement is an extension of a nine-year  relationship with Worldchoice and now includes the agency members of the Travel Trust Association.
  • Amadeus bolsters Ireland and Scotland teams. Siobhan Bocket joins as commercial manager after 11 years with American Holidays in Northern Ireland.

3 July 2010:

  • Amadeus signs three-year partnership with Kanoo Travel. The three-year partnership with Kanoo, a major corporate travel agency in the Middle East, includes use of the Amadeus E-Travel Management software to process bookings and fares.

1 July 2010:

  • Senior executive appointments at Sabre Airlines Solutions. Ex-McKinsey consultant Sanjay Nanda joins as senior vice president of consulting and solutions delivery; Sabre veteran Mark Silagy moves to SAS team to become senior vice president of customer care and support; Peter Morowski (ex-Borland, Dell and Novell) becomes senior vice president of airline products development.

30 June 2010:

  • Sabre inks technology deal with Avior Airlines. The airline will be the first airline to use the Electronic Miscellaneous Document element of the wider Sabre merchandising platform  [full story]

25 June 2010:

  • Travelport IPO resurrection gaining momentum, New York replaces London [full story]
  • Web agency accidently posts Travelport agency project screenshots on Facebook [full story]

22 June 2010:

21 June 2010:

  • Zonder and Travelport ink GDS distribution deal for vacation rentals. The deal will see the Worldspan GDS take real-time availability and booking for the Zonder portfolio of properties to agent desktops.

17 June 2010:

  • Amadeus creates two vice president positions for EMEA. Angel Gallego and Holger Taubmann will be VPs for Western Europe, Middle East and Africa and Northern, Central and Eastern Europe respectively.

10 June 2010:

  • Marriott and Travelport sign long-term agreement. The five-year deal sees the hotel chain implement a direct-connect to the Worldpsan and Galileo GDSs, allowing booking for all Travelport connected agents to 3,400 properties around the world.

9 June 2010:

  • Webjet builds new e-pricing product in conjunction with Travelport. The system, created with Travelport Galileo, is designed to give Webjet’s Australian customers the ability to book cheaper international flights where they do not mind an extra stopover.

8 June 2010:

  • LAN Airlines signs distribution agreement with Travelport. The deal, which begins immediately, will see all LAN content streamed through the Worldspan and Galileo GDS to connected agents.

5 June 2010:

  • Travelport introduces FlexiShopper tool for Taiwan and Hong Kong agents. The FlexiShopper system plugs into the existing Galileo desktop and is meant to improve the process for how agents search for flights.

3 June 2010:

  • Amadeus tech survey of Irish travel agents: 80% of business agents spend majority of the day modifying bookings and processing sales; 90% of leisure agents spend “some time” or “too much time” researching new bookings.
  • Rearden Commerce and Travelport sign technology agreement for the US and Canada. The partnership will see the Rearden platform added to the suite of corporate bookings tools, including Traversa.

31 May 2010:

  • Travelport shuffles GDS executive line-up in Japan and Korea. Ex-Worldspan business development manager in the Pacific, Hiroshi Shimizu becomes commercial head in Japan, South Korea and Guam. He will also oversee airline, hotel, rail and car hire relationships for Travelport GDS in the same countries and Fiji.

26 May 2010:

  • Travelport and Statesman Travel sign technology and distribution agreement. The London-based travel management company (sales of $1.3 billion a year) will continue to use the Galileo GDS and also plans to implement the Travelport Universal Desktop later this year.

20 May 2010:

  • Touchdown Holidays and Sabre Holdings seal long-term technology pact. The UK-based travel provider for industry employees will primarily use Sabre’s Web Services technology to improve its online proposition.

19 May 2010:

  • Sabre Holdings signs agreement with Travellers Choice. The Australia-based company will partner with the Pacific division of Sabre on a long term agreement to supply content across its network of agents.

18 May 2010:

  • Travelport plots intriguing move, buys travel search engine Sprice (full story)

13 May 2010:

14 May 2010:

  • Public company Amadeus, with Opodo in hand, is back reporting quarterly results [full story]
  • Amadeus Q1 2010 results – bitesize summary [full story]

12 May 2010:

7 May 2010:

  • Amadeus appoints new commercial director. Based in Crawley, UK, Scott Davies joins from British Airways where he has spent the last ten years in a number of positions across agency and corporate divisions.
  • Sabre and Carlson Hotels sign booking technology agreement. The hotel chain will be a “beta customer” for the Sabre Hospitality Solutions‘ Direct Comment XML platform, plugging into 55,000 travel agent locations worldwide.

6 May 2010:

  • Middle East airline Emirates and Travelport sign distribution deal. The content agreement covers Galileo, Worldspan and Apollo and runs for five years.

5 May 2010:

  • Travelport announces the promotion of Kurt Ekert to chief commercial officer. Ekert, who takes over on June 1, is currently chief operating officer for GTA by Travelport and succeeds Armin Meier who is leaving after two years to pursue “a new business venture outside the travel industry”.

4 May 2010:

  • Amadeus claims record figures for its Altea Suite system. In 2009 the data centre processed 238 million passengers, a jump of 23% y/y.
  • Travelport’s GTA division signs distribution deal with Marriott International. The partnership covers the Marriott, Renaissance, Courtyard, Residence Inn, Fairfield Inn, TownePlaces and Springhill brands and will be available to all GTA agent and operator customers.

28 April 2010:

  • Travelport announces Michael Buhr as chief executive for Consumer and New Ventures. Buhr was most recently entrepreneur-in-residence at venture capital firm Shasta Ventures, adivising companies in the areas of consumer internet, online discovery and mobile.
  • Amadeus sets IPO price at Euro 11 per share, gears up for The Big Day [full story]

27 April 2010:

  • Hotel H2o signs software deal with Amadeus. The new luxury hotel in the Philippine capital of Manila, part of the WorldHotels collection, will use the property management IT system from Amadeus.

26 April 2010:

  • Sabre and Aeroflot extend existing reservation handling agreement. The airline will also use the SabreSonic Web system to handle online bookings.

20 April 2010:

  • Sabre pushes Traveller Security and Data Suite into Asia Pacific region. The move coincides with recent events in Europe as travel firms tracked and reptriated customers following the European ash cloud crisis.

19 April 2010:

  • Travelport releases upgraded version of CrossCheck Travel Enterprise (CCTE). The system is used by travel agents in Australia and New Zealand and provides mid/back office tools from accounting and financial reporting through to itineraries, bookings and customer relationship management (CRM).

15 April 2010:

  • Travelport signs distribution deals for Azerbaijan and Georgia. The Galileo and Worldspan platforms will be available through an agreement with Galileo Caucasus.

14 April 2010:

13 April 2010:

  • Travelport travel review service launches in the Middle East. The roll-out of Travelport Opinions, a system for travel agents and tour operators to share holiday and property reviews and developed by Vinivi, follows launches first in France and then the UK & Ireland.

9 April 2010:

  • TransHotel and Amadeus unite to create Hotel Store for Indian travel agencies. The portal will reside in the existing Amadeus Selling Platform and give agents access to the Transhotel portfolio. Data will be automatically included in CheckMyTrip.

8 April 2010:

  • Amadeus claims increase in market share in Asia-Pacific to 33% of air bookings. 2009 report also says the company achieved 45% share in Africa and the Middle East.

7 April 2010:

6 April 2010:

3 April 2010:

1 April 2010:

  • Travelport and ATPI sign extension to content distribution agreement. The travel management company serves customers in 13 countries in Europe and the US and the deal will include technology to recent ATPI acquisition marine travel specialist Instone International.

31 March 2010:

  • Travelport and Copa Airlines sign new global content distribution deal. The Latin American airline will push all fares and availability through the Worldspan and Galileo systems to connected agents.

3o March 2010:

  • Sabre Holdings agrees to buy Icelandic revenue management firm Calidris. The company will become part of the Sabre Airline Solutions division and be made available immediately to 300 airlines on the Sabre system.
  • Travelport signs partnership with Global Travel Services to distribute GDS services to travel agencies in Uzbekistan. The agreement is an extension of an existing deal to run GDS services through GTS in Pakistan and Afghanistan.

29 March 2010:

  • Travelport launches new Galileo desktop for Hong Kong agents. The Desktop 2.0 Enhanced Customer Service tool is bi-lingual (Chinese and English) uses a drop-box system to collate data before sending to a central customer unit. The service will be rolled out across Asia later.

25 March 2010:

24 March 2010:

  • WestJet to sell seat assignments through Travelport [full story]
  • Amadeus launches online booking engine for Myanmar Airways. The system uses the Amadeus e-Retail, Web e-Ticketing and Payment Gateway product and is aimed at opening up the airline’s domestic and international routes to a wider audience.

23 March 2010:

  • Travelport and the first low-cost carrier outside of South Africa, Fly540, sign content distribution deal. Fares and schedules will be available on both the Worldspan and Galileo platforms.
  • Amadeus announces 2009 full-year results [top-line summary]
  • Air India partners with Sabre to integrate airline optimisation technology. The carrier will be equipped with Sabre AirVision and Sabre AirCentre suites allowing it to move towards a fully integrated flight control system.

19 March 2010:

  • Trailfinders and Travelport agree multi-year deal for the Galileo system. The agreement is an extension of its existing relationship.
  • Amadeus and TellMeMore sign agreement to handle the company’s Corporate Social Responsibility programme. The agreement, which aims to promote joint projects to contribute to the economic and social development of disadvantaged areas and social segments, is aimed in particular at enhancing capabilities and competitiveness in tourism in Latin America, Africa and Asia-Pacific.

18 March 2010:

  • CCRA Travel Solutions selected by Amadeus to power hotel content on the Amadeus Vacation Link brand. Vacation Link is a booking portal for leisure travel agents in the US and Canada to book vacation travel products.

17 March 2010:

16 March 2010:

  • Amadeus hires Scott Alvis as new senior vice president for its airline division in the Americas. Alvis previously ran his own airline distribution consultancy business and had worked for Sabre including heading the company’s SynXis programme.
  • Ness Technologies and Amadeus complete first year of partnership with news of 150 people joining the programme. Software support firm Ness works with the R&D wing of Amadeus on ecommerce projects such as its CheckMyTrip tool.

15 March 2010:

  • Middle East airline Etihad and Travelport sign full content agreement. The five-year deal gives Worldspan and Galileo-connected agents access to all of the airline’s published inventory of flights and fares.

14 March 2010:

  • Travel agents in United Arab Emirates handed SMS capability through Amadeus. Travel agents able to alert travellers with details about itineraries, e-tickets and flight information.

12 March 2010:

  • Shearings Holidays and Amadeus sign GDS content distribution package. The three-year agreement will give Shearings worldwide access to fares, schedules and inventories across the Amadeus system.

10 March 2010:

  • Amadeus launches LinkHotel, a distribution service for small to medium size hotels and groups. LinkHotel also provides reservation tools, marketing services, and commission handling.
  • Amadeus division Traveltainment acquires online marketing company Pixell. The Bonn, Germany-based company handles advertising for clients through SEO, SEM, display marketing, direct marketing and affiliate marketing as well as Twitter, social networks or mobile devices.
  • Travelport unveils Opinions review system in the UK and Ireland. The service, which had a successful launch in France in mid-2009, allows agents to review hotel properties and ask questions of other experts on the system.

9 March 2010:

  • Net Trans and Travelport ink deal to provide hotel commission recovery to Travelport agents around the world. The Net Trans system allows agents to see how much commission has been paid or owed by a supplier as well as managing processes between the two.

8 March 2010:

  • Best Western International signs enhanced contract with GTA by Travelport to boost distribution of the chain’s property descriptions
  • LOT Polish Airlines and Amadeus agree extension to technology partnership to extend to the Star Alliance Common IT platform inventory system. The new agreement will complete in in the second half of 2010 and also see an upgrade to its customer management system and use of the wider Star Alliance platform.
  • Sabre reveals programme with data management firm iWay Software. The Airline Solutions division of Sabre has worked with iWay to audit and analyse the Airport Data Intelligence programme, a system which tracks capacity and other details of every flight in the world.

6 March 2010:

  • Bangkok Airways and Amadeus unite for travel agency promotion. Agents booking tickets on the airline through the Amadeus GDS are also entered in a prize draw. Both organisations claim an immediate increase in bookings following the launch – the promotion runs until 31 May 2010.

5 March 2010:

  • Agencia Abreu seals multi-year deal with Travelport to use the Galileo GDS system. The Portuguese travel agency, one of the largest in the country and in existence since 1840, has 120 offices around the country and also a sizeable presence in the US and Brazil.

4 March 2010:

  • Amadeus signs agreement to evaluate use of the Altea Customer Management System with Asiana Airlines. The Memo of Understanding will explore for future use of the Altea system for reservation, inventory and departure control processes across the Asiana network.

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Travelport points finger at airlines over ancillary development

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Travelport points finger at airlines over ancillary development


The debate over ancillary services and who is responsible for developing relevant technology for it appears to have taken another twist this week.

luggage

In a somewhat novel move by a legacy GDS, Shelley Beasley, Travelport’s point person in the Asia-Pacific region, has gone out on a limb and attacked the low cost carriers for not wanting to pay for the custom development necessary to support ancillary services.

Indeed she is suggesting that the LCCs just don’t want to pay for the cost of the development at all.

At this week’s TravelTech conference, hosted by Martin Kelly in Sydney, Australia, Beasley (managing director for Pacific and head of solutions support in Asia-Pacific) went on the offensive.

Following negative comments on GDSs capability to handle advanced services and to keep up with the demands of LCCs by Jetstar and Air Asia in recent weeks in the region, Beasley countered in a spirited defense of the traditional GDS service model.

Describing the adverse statements as “a smokescreen” she says LCCs are reluctant to spend money on developing a system that handles their complex way of selling.

“The industry has not worked to a standard,” she says, adding a common solution “has to happen.”

Presumably this implies that the LCCs should be paying the GDSs for custom development despite having the capability functioning well on their own sites and in their own infrastructure – in many cases on systems owned and managed by GDS companies.

This seems to be a common cry from the GDSs to the point where it would seem they are reading from the same script.

Perhaps this is somewhat of a jaded argument. It would appear that the GDSs have not invested enough into the infrastructure to support a form of product that has been in the market for more than a few years.

This argument also does not hold up in the light of history. In previous major changes to the infrastructure of airline distribution such as ATB – the GDSs did not charge the airlines for this development.

In the end the agents had to pay for the expensive ATB2 printers either directly or via incentive payments from the airlines.

Depending on your view, it could become a chicken vs egg discussion.

The low cost carriers generally eschewed the use of GDS distribution. Indeed the most successful of them all in terms of profitability is Ryanair and it still steadfastly refuses to use intermediaries to sell its products.

It argues that if the product is to be sold that way then the consumer will be disadvantaged.

Other low cost carriers either charge for content distribution, such as Norwegian, or limit the product that is available for distribution by the more expensive channel – for example GOL.

Thus should the GDSs be providing solutions that support ancillary revenues at their cost or do they sit this one out and wait for a standard?

The airlines appear unwilling to wait to support a GDS sponsored standard but instead are coalescing around a standard of their own – the OpenAxis standard.

But the argument does not just affect LCCs. Full service network carriers such as American Airlines and Air Canada have also adopted the same position.

Clearly for the majority of carriers, adopting ancillary revenue product sales is a profit winning solution.

Most estimates for all of 2010 put ancillary revenues in the $5 billion plus range.

Total profits for the whole industry are (per IATA estimates) only $2.5 billion. In contrast, 2010 GDS fees are likely to be in the range of $10 billion to $12 billion range for the whole industry.

Who will be the winners in this battle? There is clearly a lot at stake.

But it would seem that the GDSs are deploying solutions. Amadeus has announced adoption already.

Even Travelport itself has slated release of enhancements in the September timeframe. Therefore it would seem the protests are ringing a little hollow.

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Google-ITA Software deal: Major European headache surfaces

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Google-ITA Software deal: Major European headache surfaces


Google could be facing a series of awkward regulatory hurdles in Europe even if its acquisition of ITA Software is approved by US antitrust officials.

ITA software-google

Noises emerging this week from Brussels, home to the European Commission, suggest the search giant could be facing scrutiny from members as to whether a beefing up of its position in travel after acquiring ITA Software needs to trigger a shake up of wider regulatory powers.

The problem Google could potentially face is not around the subject of competition, as its acquisition of ITA and the travel tech company’s client base is predominantly a North American issue.

Investigators at the Commission are beginning to be concerned that Google’s dominance of the search market in Europe, coupled with how it decides to use the ITA technology, could seriously impact on consumers and their ability to compare air fares.

There are now increasing calls for the Commission to undertake a study as to whether Google should be seen in the same light as other air data firms, namely the global distribution systems.

A source who wished to remain unnamed but is well-placed in the regulatory world of Brussels, says:

“In a GDS environment, the display neutrality concept enshrined in the GDS Code of Conduct addresses this issue. If Google is going to provide services that are similar to those of GDSs, then probably safeguards similar to those in the GDS Code of Conduct should be imposed on Google.”

Such a move would be a enormous leap for those that administer the GDS Code of Conduct and how regulation of the distribution of airfare data across the continent is handled.

Placing Google alongside the GDSs (as it has done so itself with the travel technology ecosystem chart) within a regulatory framework also has the opportunity to trigger other major permutations.

The push to include Google in such a framework is considered by a number of those close to the situation to be primarily a GDS-led drive.

But Google could argue that if it is subject to such oversight by regulators then other travel search providers (B2C and B2B) should be included – a prospect likely to keep lobbyists in Brussels tied up for years.

For its part, Google remains focused on the competition element of the deal and will not address the Code of Conduct issue, saying:

“The [ITA] transaction is subject to normal pre-merger notification procedures in the United States only. ITA Software’s European revenues aren’t large enough to warrant European regulatory review.

“We think this combination will benefit travelers as well as those seeking their business, but closer scrutiny has been one consequence of our success, and on that basis we wouldn’t be surprised if there were regulatory review before the deal closes.”

An alternative and radical position could be that if commissioners decide Google is not to be included in the regulatory framework then the same powers should be relaxed for the GDSs as well.

A Travelport official says:

“Given that there are so many factors in relation to the potential Google/ITA acquisition that remain to be resolved and/or announced, it would be inappropriate for Travelport to speculate on these specific questions.”

Sabre declined to comment and Amadeus is discussing internally with its legal team how to respond.

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Amadeus H1 2010 results – bitesize summary

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Amadeus H1 2010 results – bitesize summary


Amadeus released its H1 2010 results this morning. A summary is as follows:

  • Net revenue – Euro 1,379.3 million (up 11.9% from Euro 1,232.6 million y/y).
  • EBITDA – Euro 556.7 million (up 19.9% from Euro 464.2 million y/y).
  • Adjusted profit – Euro 246.8 million (up 38% from Euro 178.8 million y/y).

Divisions:

  • GDS revenue – Euro 1,037.0 million (up 9.8% from Euro 944.9 million y/y).
  • IT revenue – Euro 299.9 million (up 20.9% from Euro 248.0 million y/y).
  • Opodo revenue – Euro 53.7 million (up 5.8% from Euro 50.8 million y/y).

David Jones, president and CEO of Amadeus, says:

“These results are underpinned by an encouraging growth in distribution bookings compared with the same period last year, coupled with the continuing evolution of our IT business.

“Our transaction-based model is both robust and profitable, and has shown that it can quickly benefit from a recovery in travel worldwide. We look forward to the remainder of the year with confidence.”

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Amadeus signs Croatia Airline for Affinity Shopper

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Amadeus signs Croatia Airline for Affinity Shopper


Amadeus picked up a new customers, Croatia Airlines,  for its Affinity Shopper flight-search solution.

And, two additional customers, one in Europe and the other in Asia, will pilot an online travel agency version of the search solution by the end of the year, Amadeus says.

Amadeus was the subject of a lot of buzz in late 2009 when Affinity Shopper, which enables travelers to begin their air search without necessarily having a clear idea of destination, dates or budget, took top honors at PhoCusWright’s Travel Innovation Summit.

Lufthansa was the launch partner for Affinity Shopper.

Rudy Daniello, director of product management and distribution for Amadeus globally, says Croatia Airlines has had Affinity Shopper in production for a few months and Finnair is occasionally testing it.

Here’s the start page for Affinity Shopper on the Croatia Airlines website:

croatia

Lufthansa introduced Affinity Shopper on its websites in Germany, the U.K. and the U.S. in late 2009, and Daniello says it’s “doing well,” but “still in takeoff mode.”

It remains to be seen just how much traction this nontraditional way of searching for flights gets with travelers.

Daniello says Affinity Shopper is the airline version of Amadeus Extreme Search and an online travel agency version — with the brand name still to be determined — will be rolled out before the end of 2010, with one European OTA and one Asian OTA agreeing to pilot it.

Benoit Janin, Amadeus worldwide vice president of development, pricing and shopping, says introducing an OTA version of Amadeus Extreme Search is “a bigger challenge” for Amadeus because of the more complex computation involved with multiple airlines.

And, a metasarch version of Amadeus Extreme Search is being readied for a 2011 rollout, Daniello says.

“We are following a logical sequence,” Daniello adds.

Amadeus considers Extreme Search as an inspirational “pre-shopping stage,” and integrates it with “shopping,” where precise criteria is known, through its Master Pricer low-fare search and merchandising tool.

By the end of September, Amadeus plans to add to Master Pricer an Amadeus Ancillary Services engine, which would enable airline websites to display ancillary services such as executive lounge access and extra-legroom seats within the shopping flow.

For each flight and fare family, travelers would be able to choose and book desired ancillary services and see a corresponding price display.

Daniello says the ancillary services engine is being introduced as many European airlines are in the process of filing their ancillary services with ATPCO, which is believed to be in the final stages of establishing a standard.

The adoption of the standard by North America airlines is less robust, Daniello says, with some airlines in North America seeking to file their ancillary services with ATPCO and others opting to retain them for their own internal channels.

As the airline industry is  bent on developing new merchandising capabilities. Amadeus believes that Master Pricer and its new ancillary services functionality combine “a fully scalable shopping platform” and with “a new massive computation platform,” highligfhting how Amadeus has been innovative in adapting to “the fast-evolving demands of the travel industry.”

But, as Master Pricer competes with air-shopping and pricing solutions from Everbread, Vayant, ITA Software and Travelport’s e-Pricing,  Amadeus has plenty of critics, as well.

Says one: “We have already noted a high percentage of failures on Master Pricer and we believe that there will continue to be a higher scale of errors no matter who is generating the result. We have seen that Amadeus internally often retains a cache of an airline’s availability and then builds on that cache, its other cache of Master Pricer results. This, in turn, means there will be a cache of cache data.”

UPDATE: It turns out the Finnair is not a signed customer for Affinity Shopper, as the original version of this story said, but has occasionally tested the product.

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Merger of LAN Airlines and TAM could shake the market

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Merger of LAN Airlines and TAM could shake the market


The proposed merger of Chile-based LAN Airlines and Brazil’s TAM could have an impact on GDS and airline-alliance relationships.

TAM migrated to the Amadeus reservations system in 2009, and although the LAN res system is currently an Amadeus-Resiber hybrid, LAN revealed in early 2010 that it had signed a mulityear agreement to transition to Sabre as its reservations system provider.

lantam

Although it might seemingly make sense for the merged airlines to remain on the Amadeus system, presumably there would be signficant penalties if LAN were to attempt to back out of its Sabre contract.

Of the LAN-TAM merger announcement, Sabre spokeswoman Nancy St. Pierre says: “We don’t expect the merger to impact LAN’s migration to SabreSonic Customer Sales and Service.”

The migration had been slated for a 2011 implementation.

Asked if there had been any delay in development work, St. Pierre says: “Everything is going according to plan.”

Another wrinkle in the merger is that LAN is a member of oneworld while TAM belongs to the rival Star Alliance.

The merged airline would make for a huge carrier in Latin America and the tug of war between the alliances and the GDS fallout, if any, should be interesting.

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The amazing lack of consumer information on airline fees

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The amazing lack of consumer information on airline fees


I have been looking at who is doing a good job in providing consumer information on fees and ancillaries charges.

Given the industry and consumer advocacy focus on this – I really wanted to see who does a good job.

So, I went to some of the top online travel agency sites, GDSs and the search/metasearch sites who can provide data and then this table is the results.

Global Distribution Systems

CompanyFee calculator
AmadeusNothing at present
Sabre64 airlines split into domestic and international - basic 4 columns and a counter to compare (*1)
WorldspanNothing at present
GalileoNothing at present

Search/metasearch engines

SiteFee calculator
Bing TravelNothing at present
Farecomparea good comprehensive chart for 16 airlines available in USA (*2)
Kayak27 airlines with more detail (*3)
MobissimoNothing at present
SkyscannerNothing at present

Online travel agencies

SiteFee calculator
Cleartripnothing at present
eDreamsnothing at present
Expedianothing at present (adding tools to Egencia)
Opodonothing at present
Pricelinenothing at present
Travelocitynothing at present (adding tools to Travelocity Business)
Travelstartnothing at present
Wotif/Wotflightsnothing at present
Zujinothing at present

Notes:

Frankly, I am surprised – I would have thought that by now consumer advocacy would have driven sites to do a better job.

So either the sites are lazy or they are fatalistic about doing the job.

It has been a long while since I did an overview of consumer support – but I am actually surprised at how little there is out there to help users.

In almost all cases – it was hard to find the information on each site.

So I could actually have missed if the individual site does have the information. In that case I will apologize for not finding it but then chastise the site for not making it intuitive and easier.

If there is a lesson here – it is that if you are consumer facing you should have an easy way to simplify the way airline information is presented. It will also help to build trust in the mind of the consumer.

That has to be a good thing – so why aren’t you doing it?

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EasyJet to launch flexible fares product via GDS

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EasyJet to launch flexible fares product via GDS


Easyjet continues its march to becoming a full service carrier and seems to be following the JetBlue model for LCC-to-hybrid-to-full service.

easyjet aircraft

At the present time the only things missing from its arsenal are a frequent flyer program, unique GDS content and interlining. Everything else is already there.

A few weeks ago, Easyjet told to the trade via a note through the Galileo system that it would offer a new Flexible Fares Product bundle.

This bundle will include speedy boarding and one checked bag. Not too dissimilar to that other ex-low cost champion, Southwest Airlines.

Indeed Southwest has two business level fares and the top of the line is its Business Select product, which is what many business users are already adopting and has given Southwest a kick in yield.

According to the note from Galileo the full announcement has yet to be made, although the system will be available from 7 September 2010.

And Galileo appears to be the only GDS where such enchancements are being touted at the moment. However, we can expect that they will continue to roll this out to other channels.

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Tnooz and Sabre enter into content agreement for AgentStream

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Tnooz and Sabre enter into content agreement for AgentStream


Tnooz and Sabre Travel Network have agreed to a content partnership where Tnooz articles will appear in AgentStream, Sabre’s online community for travel agents.

agentstream

Under the agreement, Sabre will promote Tnooz editorial content on the AgentStream homepage, and the stories will appear within a Tnooz Group on AgentStream, where agent members can read and discuss them.

Tnooz also will contribute a monthly feature for AgentStream.

The partnership gives Tnooz the opportunity to expand its reach within the travel agency community, and enables Sabre to better inform AgentStream users about trends in online travel and technology.

“Tnooz covers travel tech for all points of view in the travel industry,” says Gene Quinn, Tnooz CEO. “We are pleased to join AgentStream and Sabre in delivering news and analysis to travel agents, who are the trusted human interface between travelers and their destinations.”

“With so much going on in the travel industry, and so many different channels to get information, it can be hard for agencies to stay on top of relevant industry news,” adds Chris Kroeger, senior vice president of marketing, Sabre Travel Network.

“Our new agreement with Tnooz provides our AgentStream community members with nearly real-time updates on the latest travel industry news and is part of our ongoing commitment to provide our agency customers with the tools they need to be effective and efficient in their jobs, and enhance the service they provide customers.”

Organized around agents’ profiles in the system, AgentStream features a question and answer center for agent collaboration, gives members the ability to form groups around subjects they are interested in, and also provides the ability for AgentStream members to message one another.

Launched in 2008, AgentStream is open to all travel agents, regardless of GDS affiliation or non-affiliation. Some 70% of its 3,100 active members are Sabre subscribers.

With a presence in the US, the UK and the Middle East, AgentStream plans in the fourth quarter to launch beta websites in Latin America, and Australia-New Zealand.

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