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Tech talk


Buying Business Travel’s regular look at the news, innovations and people in the industry’s technology sector


GDSs v AIRLINES DISTRIBUTION


NO-FRILLS BOOST TO GDS BOOKINGS


US AIRWAYS/SABRE SPAT ROLLS ON


TECHNOLOGY FIRM SABRE has accused US Airways of colluding with other airlines to “boycott” the GDSs and fix the prices of fares. It has filed an “anti-competitive” claim against US Airways in the latest battle between GDSs and US-based airlines. The Dallas-based firm’s move was a “counter claim” in response


to the lawsuit launched by US Airways against Sabre in April 2011, in which the airline alleged the GDS owner was acting in an “anti-competitive” manner. Sabre now claims that US Airways has been colluding with other airlines to “boycott Sabre and other GDSs by numerous means” over the last few years. “Most prominently, they have agreed to withhold content from, or to


provide it only on certain terms to, Sabre and other GDSs,” said Sabre in its counter-claim made in January to a Federal Court in New York. “They have entered into agreements on the technological means by which they will deal with Sabre and other GDSs, including abandoning the current system of public, non-discriminatory fare filings in favour of discriminatory fares available only to certain travellers. “They have agreed on the price terms that they will pursue from the GDSs and have co-ordinated their negotiation strategies. These horizontal conspiracies and boycotts violate the [US] anti-trust laws.” Sabre said US Airways and “its co-conspirators organised and


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implemented the conspiracy through regular communications, including emails, telephone calls, and meetings held under the guise of a variety of alliances, advisory committees, consortiums, and trade associations”. US Airways originally alleged that Sabre had used its “dominant” position as a distributor of airline fares to create “higher distribution costs for US Airways and, as a result, higher costs for consumers”. The airline also claimed that Sabre was “reducing innovation” and “limiting choices for travel agencies to access US Airways content”. Sabre has formally denied these claims in a recent court filing. US Airways launched its original lawsuit against Sabre just two months after agreeing a new distribution agreement with the tech firm in February 2011. “It is very disappointing to learn that US Airways did not negotiate with us in good faith in 2011, and instead intended all along to sue us as soon as they signed the agreement,” said Sabre in a statement. “Given its strategy, it appears that US Airways never had any intention of living up to its agreement.”


GDSs WILL MAKE MORE bookings over the next few years as more no-frills airlines decide to distribute through this channel. Hamish Broom, Sabre’s commercial director, airline distribution, EMEA, said that an increasing number of no-frills carriers were now distributing through the GDSs. “Traditional low-cost airlines want to reach higher revenue-earning passengers – such as business travellers – and the GDS does this,” said Broom. “But Ryanair is not one of these carriers, as they are sticking to their low-cost model.” Conversely, Broom added that traditional legacy airlines were now introducing elements of the no-frills business model through the sale of ancillary products. “A lot of established airlines want to do more merchandising to offer things such as seat selection and lounge access,” he said. “We are here to facilitate all of this and the new technology will enable this to happen.” Broom also stressed the importance of “transparency” of air fares to allow effective comparison shopping: “Enabling fare transparency gives people the choice of fares


IN BRIEF


■ Singapore Airlines’ no-frills brand Scoot has signed an agreement with Travelport. The airline’s fares have now been integrated on to the Travelport GDS. Scoot flies from Singapore to eight cities in China, Australia, Japan, Taiwan and Thailand.


and [the ability] to see what’s included. Safeguarding that ability to shop and choose in a neutral environment keeps costs down for everybody.” Some trade organisations fear that IATA’s New Distribution Capability (NDC), which aims to ‘tailor-make’ air fares for individual customers, could make it harder to compare prices between carriers. Broom said Sabre “welcomed innovation” and wanted to work with trade bodies, including IATA.


“I’m very confident about the future of the GDSs, and 100 per cent confident that in five years there will be more transactions going through the GDSs,” he said. “The technology is now touching more consumers, and there are more options for suppliers of travel. What we are seeing today is an electronic marketplace – an Ebay or Amazon for travel. Buyers want to be able to shop more effectively and have the ability to search on price, brand or convenience. “This means that it is essential to have comparison shopping for flights. Access is crucial so that it can be done anywhere, at any time and on any device.” • See NDC feature, p94


MARCH/APRIL 2013


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