GLG News by Airline Global Distribution System Experts

Chicke FitzgeraldChief Executive OfficerSOLUTIONZ HOLDINGS

Is the reported "airline recovery" just the upside of the jetfuel roller coaster?

November 4, 2008

Analysis of:US airlines pull out of a tailspin | us.ft.com

Airlines are enjoying much lower fuel costs than they did in the summer of 2008.  Perhaps the use of the word "enjoy" and the notion that recovery is around the corner is a bit like a weatherman in the middle of a hurricane talking about tomorrow's sunshine.  At least that was the observation of a writer in Airline Weekly this week.  When the prices were high, the airlines kicked into high gear, cutting costs, trimming schedules, parking aircraft in the desert and finding ways to charge passengers for various services, previously offered gratis.  Now that the prices are low (remembering that everything is relative), will they hand off a slice of those profits to consumer?  Not likely! And what will be the impact on the other sectors of the industry?  The GDS companies depend on airline ticket sales for 90% of their revenues.  And the hospitality industry also caters to the air traveler as their primary market.  What will become of them?

Chicke FitzgeraldChief Executive OfficerSOLUTIONZ HOLDINGS

Is the reported "recovery" just the upside of the jetfuel roller coaster?

November 4, 2008

Analysis of:US airlines pull out of a tailspin | us.ft.com

Airlines are enjoying much lower fuel costs than they did in the summer of 2008.  Perhaps the use of the word "enjoy" and the notion that recovery is around the corner is a bit like a weatherman in the middle of a hurricane talking about tomorrow's sunshine.  At least that was the observation of a writer in Airline Weekly this week.  When the prices were high, the airlines kicked into high gear, cutting costs, trimming schedules, parking aircraft in the desert and finding ways to charge passengers for various services, previously offered gratis.  Now that the prices are low (remembering that everything is relative), will they hand off a slice of those profits to consumer?  Not likely! And what will be the impact on the other sectors of the industry?  The GDS companies depend on airline ticket sales for 90% of their revenues.  And the hospitality industry also caters to the air traveler as their primary market.  What will become of them?

Al PappasOwner & Executive ConsultantThe Canea Group

Gmail vs. Exchange

September 23, 2008

Analysis of:Google's Office Intrigue | www.forbes.com

I agree with Paul's analysis and associated conclusions.  I would also add that when Google reaches the level of reliability attained by other SaaS like suppliers (SalesForce.com, etc.) then their gmail offering will become acceptable to the enterprise businesses. 

Al PappasOwner & Executive ConsultantThe Canea Group

Microsoft catching up?

September 18, 2008

Analysis of:Microsoft Virtualization Products Due In Thirty Days | www.informationweek.com

Microsoft's recent announcements in the virtualization arena prove that they are serious about their role in competing with VMware & Citrix: 1) Their new management tool for migrating Virtual Apps from one physical device to another (like VMware's VMotion) show that they continue to make progress but that they are still a long way from catching VMware in the technology arena. 2) Microsoft's strategy remains focused upon offering just enough virtualization services at a much lower cost for those that believe they don't require the functionality that's available from both the VMware and Ctirix's Xen products.

Chicke FitzgeraldChief Executive OfficerSOLUTIONZ HOLDINGS

Totally myopic view of the travel industry will not stimulate growth

September 9, 2008

Analysis of:Sector Snap: US online travel stocks mostly fall | biz.yahoo.com

Orbitz stock fell 7.2% on Thursday, largely attributed to the fact that 87% of its bookings are US domestic and 74% of their product sold is comprised of air tickets. Priceline also fell, but not as substantially.  Only Expedia reported a rise in value. The following facts substantiate this observation about the online industry being myopic in its approach to the travel marketplace. •  Just 15% of US overnight travel is by air •  85% is by car, motorcycle, RV or other •  Just 8% of all travel in the US is for pure vacation travel to top 100 destinations •  Just 26% is business travel • That leaves 66% that do day trips, weekend jaunts close to home, visit friends and family and "life event" travel (weddings, funerals, sports tournaments, graduations, family reunions, etc.) to the other 86,900 cities, towns and villages in the US. The online players (and their offline counterparts alike) virtually ignore all but the vacationing and business travelers.

Chicke FitzgeraldChief Executive OfficerSOLUTIONZ HOLDINGS

Until we get to "intent-based, situationally relevant" search, there is no vision

August 25, 2008

Analysis of:Is Microsoft's Vision of Search Enough to Catch Google? | www.businessweek.com

We are still in the world of Search 1.0 at best.  As long as search engines don't care what my intent is or what my current circumstances are, then I will still get 563,000 results when I enter Travel Tampa in a search bar.  Is there anyone out there that really thinks that this is effective search?

Al PappasOwner & Executive ConsultantThe Canea Group

Cisco with EMC may have merit

August 5, 2008

Analysis of:Cisco Won't Buy EMC, Will It? | www.informationweek.com

I believe that both Cisco and EMC are expanding their base technologies to translate Data into meaningful Information.  They both have capabilities to analyze and direct Data into predetermined and structured storage and processing domains. The translation of Data into meaningful Information for businesses are key value propositions.

Chicke FitzgeraldChief Executive OfficerSOLUTIONZ HOLDINGS

Who will win - the device manufacturers, the carriers or the applications providers?

June 16, 2008

Analysis of:T-Mobile invests $6m in deCarta's location based platform | www.thestandard.com

Following Nokia's recent investment in Navteq and Apple's announcements last week about having full GPS on the iPhone, T-Mobile announced an investment in DeCarta, a leading provider of mapping tools and location based services. In the article, DeCarta CEO Kim Fennell states that he believes that Nokia and Apple will introduce their own set of location based services, but that they will be tied to a particular device.  Since T-Mobile is device agnostic as a carrier, it will be interesting to see what they have planned to leverage the investment in DeCarta.     

Chicke FitzgeraldChief Executive OfficerSOLUTIONZ HOLDINGS

Impact of Airline Capacity Cuts on the Hospitality Industry

June 6, 2008

Analysis of:Hotel CEOs Lament Softening Demand, Foresee Some Discounting | www.btnmag.com

All key metrics are still up (occupancy, demand, supply, average daily room rate), but what impact  will the economic downturn and reduction in airline supply have on the hospitality industry? Air travel represents less than 12% of all travel in the US today by Americans, yet all tools in the industry are air-traveler centric. Hospitality executives cite reduction in weekend demand and softening of business travel midweek.  They do not look at tools (other than online itself) at playing a role in driving traffic to their brands.

Christopher DanePresidentHRG-Executive Travel Associates

International Travel to Canada is down for the same reason International Travel to the US is up YOY.

May 27, 2008

Analysis of:Travel to Canada hits 5th straight record low | www.thestar.com

Paraphrasing President Bill Clinton's campaign strategist, James Carville... It is the Loonie stupid!  It is also the economy, price of gas. The reverse phenomenon is occurring in the US...where it is the dollar stupid!

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