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Travel content distribution: Is the current model broken?

Travel buyers’ needs are becoming more sophisticated.

But with existing distribution systems dating back to the 1970s and 1980s, is the current model broken?

The situation as it stands

• David Moran, Executive Vice President for Global Marketing & Enterprise Strategy at Carlson Wagonlit Travel, believes the GDS is still an effective aggregator for content, but adds “The technology needs to improve and be flexible enough to solve the increasing complexity of today’s challenges.”
  
• Existing global distribution systems – or GDSs – were designed with airlines in mind. However, customers increasingly want access to non-air content through them; such as hotel rooms and rail tickets.
  
• Ancillary fees and unbundled fares are increasingly being introduced by airlines. These are difficult for travel buyers and bookers to manage in GDSs, as many do not have the functionality to display ancillaries.
  
• Travellers or bookers may have to go direct to an airline’s website to book an ancillary, resulting in the costs not being captured via the GDS. Travellers may also not have the correct fare reserved due to the booker not knowing whether they would like a meal ordered, or if they are taking a bag for the hold.

Proposals for change

• IATA has put forward resolution 787, otherwise known as the New Distribution Capability or NDC. In its objectives for the NDC project, IATA says “This model recognises that airlines and their customers need more real time dynamic interaction between all parties...so they can offer an intelligent response for all products based on who is asking.”
  
• Stumbling blocks regarding NDC include airlines using individual travel data to merchandise. For instance, if airlines see that passengers have purchased premium seating in the past, they will use that data to promote the upgrade again. Some are concerned the information may be used to predict clients’ willingness to pay.
  
• To avoid this situation, many members of the travel industry are pushing to ensure clients maintain a level of control in what is offered through full transparency in regards to offers and prices.
  

Putting the traveller in the frame

In recent years, there has been a shift towards empowering the traveller and putting better tools in their hands. This is why the CWT To Go ^TM mobile itinerary and information app has proven so popular.

Travellers are expecting corporate tools to mimic their buying experiences that they have with everyday purchases on the internet. “A great example of a supplier who is doing this right is KDS, which has a door-to-door booking platform called Neo,” adds Moran.

To sum up...

“Our position as a TMC is that we support improvements in technology,” says Moran. “We believe that the solution to the distribution problem needs to involve all the key parties, including TMCs, GDSs and airlines, and the rules need to be transparent and articulated.”

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