GDS decision to get tougher for agents
Agents will have to enter tough negotiations with more than one GDS following deregulation according to industry experts.
Speaking on the issue, chairman of the GBTA technology working party, Adam White said GBTA members will be using multiple systems to get the best coverage for customers once GDS deregulation goes ahead in 2006.
Galileo is currently used by 49% of the 35 Guild members as a primary GDS and by a further 14% as a secondary system. Sabre is used by 34% as a primary GDS, Worldspan by 11% and Amadeus by 6%.
The current rulings mean that GDSs cannot bias the display of airline fares and must charge all airlines equally, but under deregulation, GDSs could give preferential treatment to airlines that pay more and greater content to agents that pay for it.
According to Mr White deregulation looks set for summer 2006, and with all but four Guild members’ GDS contracts coming up for renewal in the next three years, it is likely that they will start negotiating with more than one GDS.
“…the computer companies salespeople can expect a big increase in their workload”, said Mr Smith.
Commenting on the issue, Sabre Travel Network vice president for the UK and Ireland, Reet Wiseman told TravelMole: “Travel agents are going to have to be far more strategic than ever before in their choice of GDS.
“The questions they will have to ask include ‘does my GDS have a significant bargaining position to negotiate full content from travel suppliers’, ‘does my GDS operator bring more to the supplier relationship than just the distribution function’ and ‘what is my GDS operator’s stated position on charging for content’.
“Will the percentage of GBTA members needing access to two or more GDSs rise? Probably. Will every member need two or more GDSs? No – only those who don’t ask the questions.”
She added though that in order for agents to get full air content, including no-frills airlines, which require screen-scraping technology, agents may have to pay extra.
GBTA changes its name to the Guild of Travel Management Companies from next month.
Report by Ginny McGrath
Ginny McGrath
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