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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
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