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Agents Will Be Hit in Crossfire From the AA-GDS Wars

08/19/2011| 9:46:29 PM| 中文

The “most likely outcome” of the current war between American Airlines and the GDS companies over the carrier’s direct-connect strategy will result in a hit to travel agencies, travel lawyer Mark Pestronk said.

The “most likely outcome” of the current war between American Airlines and the GDS companies over the carrier’s direct-connect strategy will result in a hit to travel agencies, travel lawyer Mark Pestronk said.

In an online Legal Symposium presented by ASTA last week, Pestronk predicted a “2006-type outcome,” in which airlines will get a break on GDS fees and will stay in the GDS systems. That break will come at the expense of agencies, which either will receive lower net incentive payments or will be charged a higher full-content fee. Either way, “it’s another hit for agencies,” he said.

Airlines deeply resent agency incentives, which they believe keep their segment fees artificially high. GDS companies aren’t fond of paying them, either, but feel compelled to continue them to maintain their shares of the agency market.

Read full story at: http://www.travelmarketreport.com/technology?articleID=6197&LP=1

TAGS: GDS | American Airlines | travel agencies
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