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GDSs must prove their worth
GTMC Conference Special: Global Distribution Systems have been told to put “words into action” in order to justify the spiraling charges they impose on airlines, the Guild of Travel Management Companies heard.
Virgin Atlantic general manager sales and account management Paul Wait told delegates that when prices are hiked, GDS’s must prove they bring value to carriers.
Speaking at the GTMC annual conference in Oman, Wait revealed the cost of GDS’s is driving airlines to rapidly build their online business.
“I get a letter from the GDS’s informing me of an arbitrary increase without any justification,” he said.
“Why am I paying this? The challenge they face is proving the true value.
They need to do a far better job of communicating this.”
He said the stance of the GDS’s was forcing carriers to go direct and increase their online sales.
“We want to understand and work with you and solve these problems but it’s time you put words into action.
“They also talk about efficiency and tell airlines and Travel Management Companies to take costs out of our business but they should do the same.”
Galileo UK country manager Jason Clarke admitted there would be greater focus on justifying the charges.
“If we are unable to do that then we are failing in our duty to the customer,” he told Travelmole.
He stressed the company offer Virgin, and other airlines, a comprehensive global geographical spread and detailed data on all bookings – something the airlines own websites are unable to do.
“We can narrow down to the company or individual who booked which is incredibly powerful,” said Clarke.
Amadeus vice president multinational customer group Gillian Gibson added it too would justify its charges by stressing the functionality of its system and high yield of GDS sales.
Report by Steve Jones
Ginny McGrath
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