GDS rivals in airline content deal

Friday, 08 Mar, 2006 0

Amadeus and Sabre have signed a surprise deal to provide each other with airline inventory should a carrier pull out of one of the systems.

It will enable Sabre agents, via Amadeus, to continue to book an airline that withdraws from the Sabre system and vice versa – in effect protecting each other’s back.

The move comes as GDSs prepare to renegotiate their airline deals.

A Sabre spokesman said: “If a major carrier completely pulls out of Amadeus they’ll have the option to access that carrier’s content through Sabre within 24 hours. It also works the other way.

“We are getting to a point where we believe it’s important to adopt reasonably protective measures over the reliability of the distribution channel.”

He stressed there have been no discussions about extending the agreement to other content.

“This is not a broad day-to-day content sharing agreement,” he said. “This is simply an arrangement where we can access content if absolutely necessary.

“It gives us the option to at least continue to offer the content for a withdrawing airline for as long as we feel it’s necessary to do so for our travel agency customers.”

The deal will surprise many in the industry, particularly as the GDSs are usually seen at each other’s throats rather than shaking hands on a deal

Denying that each of the GDSs were throwing away a potential future advantage over its rival, Sabre said both companies had taken a “wider view.”

“Each of us believe there is more to gain through this than we have to lose,” the spokesman said.

Asked if both both playing safe, he said: “Yes, absolutely. But let’s make no mistake. The level of competition between Sabre and Amadeus has never been greater and that will continue. It’s a question of finding ways where it makes sense to work together.”

Amadeus stuck to the same message, insisting there was a “joint realisation” that access to airline content for travel agents and travellers was “absolutely critical.”

“Let’s be honest, airlines are still the biggest chunk of travel agency bookings,” he said. “If an airline pulls out it becomes critical. If a hotel pulls out there are alternatives.

“On this point it is more important than Sabre and Amadeus being in competition.”

He added: “This is really about protecting against something that we don’t expect to happen. It’s a very unlikley event indeed but if it did happen it would have a significant impact and is something we need to take seriously.

“We continue to be rivals and compete vigorously in every other area.”

Sources said the unlikley partnership comes as airlines are becoming “more canny” in their negotiating.

Because a GDS can now offer alternative distribution through online travel agencies – Amadeus owns Opodo and Sabre owns Travelocity and lastminute.com – carriers are re-thinking their distribution strategies.

Report by Steve Jones