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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
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