2006 will be ‘rocky’ for global distribution giants
Senior executives from the global distribution giants have predicted a ‘rocky road’ for the sector this year.
Speaking at a Travel Technology Show seminar on ‘Reinventing the Role of the GDS’, Worldspan vice president and general manager for EMEA Graham Nicholls said GDSs had faced many challenges and were growing again.
But he warned that negotiations with airlines would be tough as three-year deals to include all air fares in the GDSs are now coming to an end.
“Airlines are going to flex their muscles because they are desperate to reduce costs,” he said. “We are going to push back but I expect tough long-winded negotiations. We do need each other but we just have to come together and find the right price point.”
One agent at the session called on the distribution giants to show a “collective flexing of muscles and bring the fight back to airlines”.
“We could not do that because we would be colluding and we would all be in jail,” said Nicholls.
Jason Clarke, regional managing director UK & Ireland for Cendant-owned Galileo, predicted that if GDSs lose significant air content they would not have jobs in a year.
Sabre vice president for the northern region and global accounts Reet Wiseman maintained GDSs were still the most cost-effective distribution channel for airlines.
Report by Linda Fox
Linda Fox
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025
U.S.A. and Israel attacks on Iran impact air movements in the Gulf (Update 1.00pm CET)
Global tourism exceeds 1.5 billion travelers announces UN-Tourism