Wednesday, 19 September 2007: Sabre Holdings and Amadeus officially announced the launch of their joint venture Moneydirect, on Tuesday. Both entities have stated that Moneydirect aims to provide an industry solution for secure, automated payment processing, clearing and reconciliation for the travel and tourism industry. The company will be headquartered in Ireland, with subsidiaries in the United States and Australia and will be fronted by James Filsinger as the CEO and general manager of Moneydirect.
The new entity will focus on travel suppliers such as hotels, cruise lines, tour operators, car rental companies, ferries, railways, and travel intermediaries such as travel agencies and wholesalers. An official statement for the launch expressed that the intent of the venture is to establish an industry standard solution to improve and better meet the requirements of the travel industry with payment efficiencies, increased automation, and improved interoperability.
“In a rapidly evolving industry, travel players are continually looking for ways to streamline and improve their business,” said Philippe Chérèque, senior vice president, Corporate Strategy, Amadeus. “We believe Moneydirect can help the industry significantly increase efficiencies and reduce reliance on manual processes. All this can be achieved on the cost effective and neutral Moneydirect payment platform. Moneydirect will have the flexibility to handle any type of payment, will have a high level of security, and the ability to integrate with existing front and back office products with these features. Moneydirect will provide a comprehensive industry solution that will work in any part of the world.”
Whilst it was acknowledged by the chief marketing officer for Sabre Holdings, Greg Webb, that Amadeus and Sabre compete in many areas, both companies saw the potential and opportunity to create Moneydirect in order to create an industry standard that would be the first of its kind. Webb also added that Moneydirect’s sole purpose will be to save a significant amount of cost and complexity
“[The current unprecedented scale of companies] represents a tremendous amount of cost and complexity today due to different handling of money flows and associated data elements in each point of sale, back-office application and with each trade partner. In addition to the complexity this creates for travel industry suppliers and travel agencies, there is also very little automation for the payment processing,” said Webb.
One of the key features of the Moneydirect solution is its flexibility to meet a variety of needs and will consist of the following elements;
· Any booking channel -- GDS independent
· Any type of payment – pre-payment, deposits, settlements, collections and commissions
· Any timing of payment – before or after the delivery of services
· Any direction of funds – push or pull funds
· Any currency or country – cross currency and cross border
Both companies have received positive feedback on the venture. The Australia and New Zealand operations will also become part of the new joint venture.