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AA Posts GDS Plan

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Published at: www.solutionz.com

Christopher DanePresidentHRG-Executive Travel Associates

Flaws with the AA (Sabre) GDS Plan

July 31, 2006

American's failure to reach an agreement with Sabre (and Amadeus) is short sighted indeed. They are trying to act like the play ground bullies and force Sabre to play by their rules and thus force the other GDSs to follow.  In this, I will explain why their thought process is flawed and why probably nothing will happen until after 9/1.

http://www.thebeat.travel/news.php?adate=jul_06%25cid=aaplan

Chicke FitzgeraldChief Executive OfficerSOLUTIONZ HOLDINGS

American Airlines lowers the bomb on Travel Agencies and GDSs

July 13, 2006

NOTE:  Article is not available to non-subscribers

Today American Airlines announced that travel agencies that book through "non-preferred" distribution channels will pay a $3.50 per segment fee to AA.

This follows on the heels of the renegotiation of airline contracts with GDS companies (Sabre, Worldspan, Galileo and Amadeus) and the introduction of a new concept known as "OPT-IN". 

Bottom line is that airlines are rejecting the notion that travel agencies using a GDS should continue to receive all their content (fares and availability) without someone paying them for that content.

So the one at the bottom of the food chain - foots the bill.  This could mean that consumers (including corporations for their corporate travelers), pay more if they use an agent.

Now the GDSs have to decide how they will react to AA's move.