Worldspan signs major distribution deal with Continental and American
Continental Airlines and American Airlines both signed a five-year distribution deal with Worldspan this week, giving the global distribution system access to practically both carriers’ full fare content. This includes fares sold through the airlines’ Web site, third-party sites and other distribution channels. American will also include private fares, where applicable.
While terms of the agreements were not disclosed, it is assumed the airlines’ received reductions from the typical $11-$14 per ticket GDS fees from Worldspan in exchange for the access to their full fares.
At the Business Travel News annual Corporate Travel World conference, Continental also reviled its proposed plan to change the fee model between travel management companies, airlines and GDSs. CO is suggesting that the TMCs pay GDSs for content and airlines kick back fees to agencies.
Many airlines are renegotiating their GDS contracts, which expire this year. Most are trading assess to their full airfare content for reduced GDS distribution costs.
David
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