Sabre follows Galileo in BA full content deal

Sabre has become the second GDS after Galileo to sign a new three-year deal with British Airways.

Sabre becomes the last GDS in the UK to adopt an ‘opt in’ arrangement, giving agents full access to BA fares in return for an undisclosed ‘financial adjustment’. Agents will be required to join the new opt-in scheme to access BA’s fares via the GDS.

Details of the opt-in will be made available shortly by Sabre to its agency customers in the UK and Ireland, Sabre said.

BA has guaranteed access to a complete range of published fares sold through its website, third-party websites and its reservations centre.

Amadeus and Worldspan are now expected to follow suit. 

The Business Travel Coalition, which led lobbying with 117 BA client companies for a resolution of the GDS distribution issue, said: “Apparently, BA was able to secure somewhat better economics in return for guarantees made to the GDSs for full BA air fare content.

“While some unwelcome cost-shifting appears to be ahead, a different and far more troubling outcome was looming that included not only the wholesale shift of BA’s distribution costs to travel management companies and their corporate customers, but also the systematic withholding of critical airfare content from our preferred distribution channels.

“Both TMCs and their customers will have to address a new cost-sharing model in light of new opt-in programs; however, full content was the necessary prerequisite for a successful deal from a stakeholder point of view, and the excellent news is that at least with the conclusion of the first two deals, full content has been preserved.

“In the end, BA listened to us – the corporations that are the airline’s best customers.”

The Business Travel Coalition added: “What the GDS/BA showdown demonstrated was that when empowered and determined customers unite in the face of a threat to their interests, they can make a huge difference.

“Some corporate travel buyers were of the opinion that the GDS/BA contract issue was between the airline and the GDSs – and sat on the sidelines. It benefited all stakeholders that 117 major corporations from around the world perceived the debate differently and successfully engaged the issue to safeguard their companies’ interests.”

But the coalition warned that a further battle lie ahead over the European Commission’s industry consultation about reforming the CRS Code of Conduct that governs the rules of the European global distribution system industry.

“The outcome of these proceedings will determine whether the distribution and airline markets will be competitive in Europe while the continent’s largest CRS remains airline owned,” the coalition said. 

“This is an issue of the highest strategic importance to distribution system stakeholders including European corporations and those companies around the world with business travel activities there. The Commission has invited comments; corporations should weigh in by the April 27 deadline.

“To that end, BTC will be preparing comments and will invite your input and endorsement.”

Sabre Travel Network EMEA senior vice-president Richard Adams, responding to the the deal with BA, said: “Our travel agency customers have repeatedly told us that their priority requirements from us are full content, access to the lowest basic fares, and long term airline deals that guarantee stability in terms of preserving the efficiency of the GDS.

“We are very pleased to have reached an agreement that ensures these priorities are addressed and that provides continued access to British Airways’ full content.”

BA head of mareting and distribution Tiffany Hall described the Sabre GDS as “an important part of our overall marketing strategy”.

by Phil Davies