Ex-Worldspan bosses set up GDS consultancy
Tuesday, 23 Apr, 2009
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Two former Worldspan directors have formed a firm designed to help travel companies get the best out of their global distribution systems.
Steve Barrett, former EMEA director for Worldspan, and David Taylor, who was Worldspan’s director for UK and Ireland and for distributor markets globally, are behind GDS Deals.
Both left Worldspan last year after working on the merger with Travelport.
GDS Deals offers a range of advisory services varying from off-the-shelf request-for-proposal (RFP) documents to bespoke consultancy.
According to the pair, ‘customers don’t always treat GDS’s as critical suppliers and hence invest too little time when signing up with a new GDS or agreeing a recontract’.
This may mean they choose the wrong GDS for their business needs, pay too much for a service, or are unaware of other products, services and benefits that may be available.
Barrett said: “Problems often arise at an early stage but can be avoided.
“On the one hand, customers don’t always recognise the importance of GDSs to their business, or understand what GDSs can offer in terms of products, services, support and incentives.
“On the other hand, GDSs don’t always tailor their offering to each customer’s requirements and can be unimaginative in their response.”
Taylor added: “By providing our expert knowledge and unique insight, we can help our clients identify the best solution for their GDS needs.
“By helping clients, we can also help the GDSs better understand each customer’s specific requirements and reduce the potential for misunderstandings.”
Services available include:
· Determining and documenting GDS functional requirements, operational support needs and commercial requirements
· Preparing bespoke requests for proposal (RFPs) and presenting them to potential GDS suppliers
· Managing the full RFP process, evaluating and scoring responses
· Helping customers build a shortlist of preferred vendors, supporting commercial negotiations, and consulting on contractual issues and legal support as required.
· Determining and documenting GDS functional requirements, operational support needs and commercial requirements
· Preparing bespoke requests for proposal (RFPs) and presenting them to potential GDS suppliers
· Managing the full RFP process, evaluating and scoring responses
· Helping customers build a shortlist of preferred vendors, supporting commercial negotiations, and consulting on contractual issues and legal support as required.
GDS Deals has also constructed added value service packages which include ‘substantial’ discounts.
These comprise: an Economy Class Package, where Barrett and Taylor prepare a bespoke RFP to be sent to GDSs after a business needs review.
A Business Class Package adds an evaluation of GDS responses, shortlisting, and aiding negotiations, while with GDS Deals’ premium offer.
The First Class Package sees the team manages the whole process, and advises on contractual issues.
Potential issues can be avoided at the RFP and contract stages that may otherwise blight the resulting relationship for years to follow, the company claims.
Taylor said some classic mistakes are negotiating only on the financial elements of the deal, not checking if the GDS has the best technical and product fit with the business, not reviewing the service level offered, and accepting a GDS contract without understanding the full implication of contractual clauses and terms and conditions.
Some best practice tips:
· Don’t over-commit and be realistic about future segment performance
· Analyse contractual clauses and their implications
· Discuss and agree support levels before confirming contracts
· Focus on the overall commercial value of the deal over the contract term, rather than simply looking at the headline segment incentive
· Properly leverage competing GDS bids
· Consider the whole content offering, don’t just focus on air
· Analyse contractual clauses and their implications
· Discuss and agree support levels before confirming contracts
· Focus on the overall commercial value of the deal over the contract term, rather than simply looking at the headline segment incentive
· Properly leverage competing GDS bids
· Consider the whole content offering, don’t just focus on air
by Phil Davies
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