Global Distribution Systems (GDS); Travel technology companies
All things being equal, the GDS and/or travel technology companies remain an expensive distribution option. The most cost-effective sales channel for an airline is usually their own website, but sometimes the cost of this channel is underestimated thereby creating the illusion that direct sales are significantly cheaper than indirect sales. Ultimately, the GDS has a far better global reach than the direct channels of an airline and their “tried and tested” technology has delivered minimum downtime throughout the years
A plethora of options are available to reduce distribution cost across all sales channels such as Global Distribution Systems (GDS); Global Sales Agents (GSA); Preferred Sales Agents (PSA); E-Commerce etc.
The success of any strategy is to remain laser focused on optimising supplier contracts across all sales channels to ensure delivery of cost containment and revenue enhancement.
For most airlines their largest distribution cost would be GDS which naturally suggest that these contracts should be revised over time. However, these contracts are also the most challenging to negotiate. We have 25 years’ experience of the airline industry and more than 10 years of negotiating positive distribution contracts that delivered exceptional monetary value for the business entity. Depending on the risk profile of an airline, we have multiple contractual cost saving options available that could be negotiated and implemented within a relative short time-frame.
A huge risk-free benefit to our customers is that they will incur no cost if no deal is reached with the targeted tech company.
Please contact us to have your airline distribution strategy and needs assessed with no upfront or hidden cost from us.
With existing distribution suppliers expanding their product range and numerous new technology companies entering or planning to enter the travel arena, the right selection of products and services for an airline are more important than ever. The GDS and/or travel technology companies have embraced new technology standards such as IATA’s New Distribution Capability (NDC) that is supported by the travel industry. Some airlines are making good progress in applying these new standards, but for most airlines it will be a long
journey to evolve to such intricate levels of distribution and merchandising. The status quo will continue to be the focus for short-term gains with further sales channel development using API's squarely in the pipeline. Most airlines have a firm grip on products and services that they manage on their direct sales channels, but to a lesser degree on their indirect channels. We have 25 years experience in the airline industry and more than 10 years of negotiating positive distribution contracts for our partners that deliver significant customer value and ultimately leads to incremental sales revenue for the airline. Depending on sales strategies and the risk profile of an airline, there are numerous products and services including NDC and API available from distribution suppliers that could be negotiated at fair prices and implemented within a relative short time-frame.