Agents face tough GDS negotiations
Business Travel Show London 2005: Agents won’t need multiple GDSs following deregulation of the industry, says a leading Sabre executive.
Speaking at the Business Travel Show in London, Sabre vice president, Leisure EMEA, David Brown described regulation of GDSs as “over the top”, and said GDSs would be able to expand content following deregulation.
“Travel agents will be the winners because they will be able to be more demanding of GDSs and we will start competing for the best product.”
He said a deal which took 18 months to reach with British Airways and saw the carrier’s fees frozen for three years in return for full access to BA fares, as “excruciating”, but said it was the closest Sabre had come to negotiating with an airline in 25 years.
“The fact that these rules continue to exist in Europe prevents GDSs from putting into practice negotiating content,” he said.
During presentations made by American Express director of industry affairs, Bernard Harrop and Corporate Travel Partnership senior partner, Robert Daykin, both speakers said that the participation by airlines in some GDSs but not others could mean agents and corporations require multiple GDS access to get access to the content they require.
In response Mr Brown said: “If there is a requirement for multiple GDSs, then one of those GDSs is not going to survive.”
He said that is agents did choose multiple GDSs, it would not last long. “I think the multiple GDS situation will shake itself out because GDSs have an obligation to provide content. The battleground is content,” he said.
All three speakers agreed that travel managers and agents will have a more complex job in a deregulated environment. They will have to determine the value of a GDS and pay accordingly, said Mr Daykin, which could involve tough negotiations.
Report by Ginny McGrath
Ginny McGrath
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 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025