Executives at global distribution systems lose years of sleep worrying whether they will sign airlines to full-content deals in the next round of negotiations, but, in a new video, Farelogix argues that these agreements actually are bad for travel agencies.
Here's the video, entry #4 in Farelogix's Ask the Question series:
Of course, when American Airlines threatened to withdraw from the Sabre GDS several years ago, some major travel management companies signed on with Farelogix, which distributes airline content, to access American and other carriers as a sort of GDS insurance in the event that major carriers opt to quit a GDS or two.
Perhaps Farelogix should be asked some questions, as well.
What would it do to your value proposition if American Airlines or Air Canada decided to give you only a portion of their content? Would that be good for Farelogix and its TMC clients?
And does Farelogix, which is set up to distribute American Airlines' ancillary services, which aren't in the GDSs, benefit if airlines decline to deliver full content to GDSs?
I think the answer would have to be yes.
Still, does Farelogix make any valid points in the video?
Do full-content deals hurt travel agencies economically, thwart airline innovation and force travel agencies to compete on price?
After all, the GDSs will be negotiating full-content agreements with major U.S. airlines in 2011, although the term "full-content" is a misnomer since so much inventory these days is offered exclusively on Twitter, Facebook or airline websites.
But, what do you think about Farelogix's main points?