The current spate of litigation between a number of airlines and global distribution systems (GDSs) will force vital change, according to several industry figures.
Titus Johnson, Air Berlin’s country manager UK and Ireland, said the pressure of legal action “will help” the distribution model to develop.
Speaking at the Business Travel Market in London's Excel, during a session on whether the
GDS model is broken and what an alternative might be, he said the cost of sale is “too high” on the GDSs.
“The cost of the GDS is unbalanced,” he said, given how far air fares have gone down in price, and how much taxes have increased.
Johnson added that the GDSs value in an airline’s home market had been “eroded”, as the possibilities of upselling through its own website were greater.
For airlines selling tickets outside of their home markets, however, GDSs were “unrivalled” in the reach they offered, conceded Johnson.
Matt Beck, Rearden Commerce’s regional director UK, agreed that the law suits between airlines such as American Airlines and US Airways and GDSs including Sabre and Travelport is helping move the distribution model forward faster.
Litigation is “speeding things up,” said Beck. “Without litigation we would never have the conversations we’re having.”
Tim Russell, Amadeus’ managing director, said however that he believes more progress would be made if all sides sat down and talked to each other.
“Some airlines are rushing to go it alone,” said Russell, “but in the long term we have to work together.
“GDSs have been developed over many years to give the most widespread and efficient distribution of air fares.”
Russell added that he believes the GDS model is not broken, rather it is “evolving”, with significant investment in new technology already under way.
Paul Simmons, Easyjet’s commercial director, spoke of the perhaps unusual situation where the low cost carrier is trying to increase the amount of tickets booked via the GDSs.
“The GDS channel can deliver higher revenues on some sectors,” said Simmons.
“GDSs are clearly adapting… but the day-to-day bread and butter has to be cheaper. The market will demand it.”
Simmons also questioned the value of travel management companies in the distribution model, in particular why airlines were “still paying for TMCs”.