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New GDS contracts with seven airlines
G2 SwitchWorks Corp. says it has signed letters of intent with seven airlines to develop a new travel distribution network that it claims will “lower industry distribution costs while enabling agencies to streamline their workflows and reap significant cost savings.”
Said Alex Zoghlin, founder and CEO:
“G2 brings long overdue competition to the travel distribution marketplace, introducing a solution that is both lower in price and more robust in agency features than existing global distribution systems.”
Mr Zoghlin is the former chief technology officer of Orbitz.
He said the new network, called TRUEconnect, has letters of intent with these airlines: Alaska Air Group Inc., Continental Airlines Inc., Delta Air Lines Inc., Northwest Airlines Inc., UAL Corporation and US Airways Inc. A seventh has yet to be publicly announced.
These airlines represent about 80% of the total 3rd party or agency sales volume, he said.
TRUEconnect will allow participating airlines to distribute content to key travel sellers at a price that is a fraction of the cost to distribute via the existing GDS, according to G2 officials.
They said TRUEconnect’s technology provides agencies with a full suite of air reservation and servicing capabilities that far exceed current levels through different GDS systems.
The system will be offered free to travel agencies. Airlines will be charged booking fees.
“Rather than simply shifting existing distribution costs between the airline and the agency, G2’s TRUEconnect is a new technology that removes costs from the distribution process,” said John Slater, managing director, Distribution & E-commerce, Continental Airlines.
Other airline officials also praised G2 for functionality and lower costs.
“The TRUEconnect network frees travel sellers and suppliers to take control and individualize their relationships,” said Mr Zoghlin. “G2 is a complement to a supplier’s direct distribution strategy that also reflects the importance and unique needs of leading travel sellers.”
He said G2 has the singular focus of building efficient and reliable connections between travel suppliers and sellers. It is a privately funded company that does not compete with agency customers by operating an online or offline agency.
Report by David Wilkening
David
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