GDSs not a threat in leisure market, says Cogan

Global Travel Group Conference Special: Major travel companies will continue to invest millions of pounds in technology – and will continue to get it wrong, IT consultant Equinus has predicted. Mike Cogan, a partner at the Stevenage-based company, described the systems of vertically integrated groups as “crazy” which wasted vast amounts of money. “They will invest but will probably get it wrong. They’ll spend lots of money but heads will roll,” he told delegates at the Global Travel conference in the Cypriot resort of Paphos. They waste 30% of their “massive” cost of sale through “crazy, lousy systems”, he said. Mr Cogan, who is working closely with Global as it continues to improve its technology, added that multiples have restricted or no access to internet or even email. He said Global too could make more cost savings and urged it to become a little more ambitious. “Don’t worry about squeezing 2% more commission from operators but think about squeezing 15% out of your business and put that in your pocket. You can use the buying power of the group to drive down costs,” he said. Mr Cogan also dismissed any threat from the GDSs which are moving into the leisure market. “They have capital but lack an understanding of the leisure market,” he said. “You know your customers and your market. Build on that knowledge.” Meanwhile, state-of-the-art technology will keep Global at the forefront of the independent sector and even ahead of the vertically integrated groups, its IT director Paul Clayton claimed. The technology, regarded as one of the most sophisticated in the market, is also now offering Global Travel Web, which will enable every member to have a white label web presence. “It is a major step forward,” he said. Earlier, Comtec chief executive Simon Powell, whose company works closely with Global, said the writing was on the wall for viewdata as companies realise they need more sophisticated systems. Report by Steve Jones