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New entrants ‘could serve their purpose’
WTM 2005 Special Report: GDSs have disregarded new entrants as “limited”, but admit they could bring about change for the better.
The GDS new entrants, or so-called GNEs, such as G2 Switchworks claim to offer GDS services at significantly reduced fees, but GDSs say they are flawed, calling them Limited Distribution Platforms or LDPs.
Amadeus vice president multinational customer group, Gillian Gibson said: “LDPs have forced us to look at our pricing and value chain, however they are very underpowered solutions and cannot support the industry.”
Sabre Travel Network vice president northern region and global accounts EMEA, Reet Wiseman also criticised GNEs. “Despite the noise surrounding LDPs we don’t see them as a long term threat.
“They are not global and offer a limited subset of transactions from limited carriers. Agents still need GDSs for comprehensive access to content, and airlines still need us for scale and international distribution,” she said.
She said that although GNEs, or LDPs, had lower fees, they don’t save money because airlines and agents would still need GDSs to get comprehensive content and carry out more complex bookings.
“We know airlines want lower costs like those offered by GNEs, and we are committed to working with airlines to find a solution.”
Also speaking at the EyeforTravel conference at World Travel Market was chief executive of PASS Consulting Corporation, Michael Strauss. He said: “GNEs can’t do the complex bookings but they are low cost and GDSs need to reduce their fees on simple bookings like London to Frankfurt, which are very little work.”
Wiseman accepted that GNEs are cheaper for point to point bookings but said it’s unrealistic for agents to use multiple systems to book flights, which is why they’ll stick with GDSs.
When asked by debate moderator, Paul Richer, whether they worked with the GNEs or planned to, there was a long pause before both Wiseman and Gibson denied that either of their GDSs worked with GNEs.
Although rounding off the debate, Gibson conceded: “If we address the differences between value and pricing, they [GNEs] will have served their purpose.”
Report by Ginny McGrath
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