MTBA/OVBTA October 13, 2006 Travel Distribution Fragmentation Robert Langsfeld The Corporate...
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Transcript of MTBA/OVBTA October 13, 2006 Travel Distribution Fragmentation Robert Langsfeld The Corporate...
MTBA/OVBTA October 13, 2006
Travel Distribution Fragmentation
Robert LangsfeldThe Corporate Solutions Group®
Incline Village, Nevada
775-832-5151
www.thecsg.com
MTBA/OVBTA October 13, 2006
Reality Strikes !!
• The bills are starting to arrive• 80 C /transaction costs• ?? Participation• $2.00/ticket cost by agency• HRG is negotiating individually, but the fee
continues to be $1.98, $1.99, etc.• CTD’s hit hard
– Getting more in to the details– “Been living off of the benefits”
• Sharing the impact
MTBA/OVBTA October 13, 2006
What Are The Issues?
• New GDS Contracts
• Pricing
• Participation Variations
• Opting In/Out
• Distribution (aka Content)
• Fragmentation
MTBA/OVBTA October 13, 2006
Travel Procurement Department
OnlineAgencies
GDS Deregulation
Low Cost Carriers
AlternateGDS
Direct Connects
SouthwestTMC Consolidation
“Super” PNRCentral Collection Location
Distribution Revisited
MTBA/OVBTA October 13, 2006
Shopping(New Pricing Engines)
Selling
“Super” PNRCentral Collection Location
Direct pipeline to airlines
Traditional GDS
Agent DesktopTraveler
Self Booking ToolFinancial Management
Reporting
Non Participants (stand-alone websites or limited res. system participation)
DirecNetSkyConnect (LCC’s)
________________________________
United Airlines________________
US Majors (DirecNet)
New TM Process Options (Air)
MTBA/OVBTA October 13, 2006
The Move to Lower Cost Distribution
MTBA/OVBTA October 13, 2006
Economic Comparison
5
4
413
GDS charge
Inducement GDS margin
GDS costs
MTBA/OVBTA October 13, 2006
New GDS Contracts
• Most of the GDS’s have come to agreement with the Airlines– Participating Airlines– American, Continental, Delta, Northwest,
United and US Airways
• $3.50 per segment• “opt-in” agreements• Access to content
MTBA/OVBTA October 13, 2006
Pricing“Access through participation in the Super Access program incurs an 80 cents per-segment reduction in incentive income for users. The program and costs are comparable to the "full content" programs introduced by Galileo and Sabre.”
• $3.50, then what do you get in return?• Are there any other fees?• Are there any offsetting revenues?• What about “simple” tickets? • What about complex tickets?• What about international trips?• If you don’t pay, what do you get?• What do you pay if the airline is not participating?
MTBA/OVBTA October 13, 2006
Participation Variations
• The major, primary airlines are participating– What do you get?
• Is the information the same for each of the Airlines, GDS’s?
• What is promotional, private content?• What about the non-participating airlines?• “TMC proprietary technologies as a means
to shield clients from GDS program fees”
MTBA/OVBTA October 13, 2006
Opting In/Out• If you opt -in you get full access
– But do you?– Promotional, Private, Special Fares?– What else?
• If you opt-out, what do you know you are getting vs. not?
• Again, non-participating• Plus, these are in reference to the
agreements between some of the airlines and the TMC’s– How about you?
MTBA/OVBTA October 13, 2006
Distribution (aka Content)
• To get Legacy Airlines schedules, you new to”play”– But is your TMC playing?
• “Warner said such CWT-provided technologies as a self-booking tool are "component parts of a holistic, integrated solution.”
• If the airline is non-participating, then what do you do?
• Even of more concern, who is watching?– Auditing
MTBA/OVBTA October 13, 2006
Fragmentation
• Now we get in to a real issue• If information comes from varied sources, then
we are subject to “interpretations”• We are just staring out on our journey• The TMC’s are offering to “not charge” if you use
“this or that”– Now, if you are a current client-no– If you are a new client-yes
• Ex.- Merchant Model
MTBA/OVBTA October 13, 2006
The Future• “Things are a-changing”• Essentially a cost increase from the airlines to
the TMC’s– Make well formulas
• What is the next step? Steps??• Increased fragmentation• Bias• Hotels• Who is watching who, and why?• Ask to see the whole, not just the part they
are showing you
MTBA/OVBTA October 13, 2006
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