The travel distribution debate continues to provide much to ponder for all concerned, and it’s entertaining to boot — see thebeat article below. While there is no doubt that the GDS model is in need of radical re-invention, it is also clear that the direct connect model and its variations, requires significant analysis and design.
That said, it does all a disservice to paint the GDS as the Voldermort of the travel marketplace. The market is extremely complex, though crying out for simplification; the marketplace is still mostly a legacy of 1960s technologies and business models, though crying out for innovation. Yet, if it were driven solely by a handful of powerful suppliers and disenfranchised customers (travelers, not travel agents), we would have seen much more change over the last 20 years. GDSs such as Sabre and Travelport have earned a position in the industry that is now threatened from all sides. Its their business to lose, but in the meantime who can blame them for continuing to milk existing revenue sources while looking for new or additional business models. Daggers at dawn, gentlemen?
Oops! That’s been done already. I meant to use this title:
Sabre vs Direct Connect – The Absurdity And The Irony
“The Absurdity” Scene I: Sabre seems to have clearly drawn a line in the sand concerning who its customer is: the travel agency. In a number of recent media statements, Sabre clearly stated that the customer base it intends to “protect from direct connect” is defined as its travel agency subscribers. I use the term subscribers, since that is what most global distribution systems officially call the travel agencies that use their respective systems. Yet as subscribers, (or customers), these agency businesses do not actually pay for the GDS services.
Yes, those same GDS services being touted by pundits far and wide as one of the most valuable services provided to the travel industry are not even being paid for by consumers of those services, the travel agency subscribers.
Now I am a “subscriber” to the Wall Street Journal and to Netflix. Today I actually pay both of these companies to use their services…silly me. I have recently written to both of these companies to inform them that I will no longer be paying for their services and that if they expect me to continue to use their services they need to begin paying me.
Oh, The Absurdity!
“The Absurdity” Scene II: I recently read an OpEd in The Beat by the former CEO of Air Canada, Montie Brewer, where he stated, “I get a kick each time I hear any of the GDSs say they are looking out for their customer, the travel agents. Where I come from, the customer is the one who pays you for your services. In this case the airlines are paying for the service, not the travel agents.” I suppose Montie also thinks those people that choose to pay Air Canada money to ride on their planes are customers too.
Oh, The Absurdity!