GDS new boys take another pounding
WTM Special Report: New entrants in the distribution industry have taken another pounding from traditional GDSs as they were dismissed as posing no genuine threat to the status quo.
Echoing remarks made during an earlier seminar at World Travel Market, all four systems said the scale and reach of the GNEs – branded Limited Distribution Platforms – do not compare to established GDSs.
The only concession was that “they need to be kept an eye on.”
According to Amadeus multinational customer service group vice president Gillian Gibson, one launch customer with a new entrant had 10 bookings in six months.
“We take 23 bookings per second,” she said. “The difference in scale and content is unbelievable. It’s almost unbelievable that we are talking about them so much. They are under-powered. The role they play is making sure we look at our value, our business model and what we need to do better.”
Gibson said Amadeus had invested one billion euros over three years, much of it building new technology. A low cost airline solution and new hotel distribution platform were among the current projects, she said.
Worldspan vice president and general manager EMEA worldwide travel distribution Graham Nichols added: “They will develop but they don’t present a viable alternative. We will continue to watch them.”
Sabre said it “took GNEs seriously” although they currently “don’t possess any significant capability to penetrate the market place.”
Cendant chief operating officer Chris Vukelich said GNEs were “intellectually interesting” but weren’t yet posing a threat.
“We won’t take them for granted,” he added.
Report by Steve Jones
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