Page 1

A MAGAZINE FOR AIRLINE EXECUTIVES

Ta k i n g

y o u r

a i r l i n e

OCTOBER 2003

t o

n e w

h e i g h t s

EXTREME AIRLINE MANAGEMENT

A conversation with …

David Siegel, CEO, US Airways INSIDE

Traditional carriers launch low-fare subsidiaries

How airlines weathered "the perfect storm"

Cathay Pacific Airways’ crisis management process

© 2009 Sabre Inc. All rights reserved.

wearelistening@sabre.com


industry

New Distribution Paradigms:

Controlling Costs in the Internet Age The growth of the Internet offers airlines more channels to distribute their product. As airlines increase use of these channels, they can take specific steps to control costs and maximize the benefits of online distribution. By Stan Boyer | Ascend Contributor

T

he advent of the Internet provides airlines with the opportunity to make

substantial changes to the way they

has also had a severe impact on revenue. The consequences of consumer-direct distribution include:

inventory agencies such as Hotwire. The most recent statistics indicate that the top six online agencies in North

distribute their product. Not surprisingly,

Passengers use the increased price

America now account for about 25 percent

some airlines have recently placed more

visibility of the direct distribution

of all travel agency bookings in the region.

focus on direct distribution, interacting

channel to find lower fares, reducing

What does this mean for airlines?

directly with travelers and bypassing

ticket yields,

If they plan to conduct business in the

intermediaries, such as global distribution

Travel agencies react to airline direct-

North American market, they should

systems and travel agents. Although air-

sell competition, obtaining lower fares

include these agencies. For carriers

lines have always possessed this capability

for their passengers in order to maintain

based outside of North America, these

in their reservations centers, Internet-

viability, again reducing ticket yields,

agencies provide an opportunity to

based distribution has taken the call

Airlines incur increased costs to main-

distribute their product much more

center concept further by allowing more

tain Web sites and other direct-distri-

widely and with less effort than setting

customers to interact with their schedules

bution channel centers, often displacing

up sales teams in individual cities.

and fares than previously possible.

any savings gained by decreased travel agency commissions.

Airline Consumer Direct Web-based distribution has taken

The bottom line — Web-based,

The advantages of online agencies include their widespread use for instant purchase, resulting in quick inventory

consumer-direct models often result

turnover, and the breadth of products

several forms, and different models con-

in both product dilution and increased

made available to the consumer, such

tinue to emerge depending on where the

distribution unit costs.

as vacation packages and fly/drive deals.

Online Agencies

this distribution channel is that, like other

airline operates. In North America and Europe, airlines tend to favor consumer-

However, the downside to using

direct models for both published fares

Another distribution model that has

and distressed or “opaque” inventory.

emerged is the online travel agency. The

ber of hits without resulting in actual

Some have attempted to engage travel

online agencies have taken mainly two

bookings. Depending on an airline’s

agents with their Web sites as well. While

forms: published and net-fare retailers

connectivity to the Web site or its spon-

this model has lowered distribution costs, it

such as Travelocity and distressed

soring GDS, this could have a profound

consumer-direct sites, they draw a num-

october 2003

5


industry

New Distribution Paradigms:

Controlling Costs in the Internet Age The growth of the Internet offers airlines more channels to distribute their product. As airlines increase use of these channels, they can take specific steps to control costs and maximize the benefits of online distribution. By Stan Boyer | Ascend Contributor

T

he advent of the Internet provides airlines with the opportunity to make

substantial changes to the way they

has also had a severe impact on revenue. The consequences of consumer-direct distribution include:

inventory agencies such as Hotwire. The most recent statistics indicate that the top six online agencies in North

distribute their product. Not surprisingly,

Passengers use the increased price

America now account for about 25 percent

some airlines have recently placed more

visibility of the direct distribution

of all travel agency bookings in the region.

focus on direct distribution, interacting

channel to find lower fares, reducing

What does this mean for airlines?

directly with travelers and bypassing

ticket yields,

If they plan to conduct business in the

intermediaries, such as global distribution

Travel agencies react to airline direct-

North American market, they should

systems and travel agents. Although air-

sell competition, obtaining lower fares

include these agencies. For carriers

lines have always possessed this capability

for their passengers in order to maintain

based outside of North America, these

in their reservations centers, Internet-

viability, again reducing ticket yields,

agencies provide an opportunity to

based distribution has taken the call

Airlines incur increased costs to main-

distribute their product much more

center concept further by allowing more

tain Web sites and other direct-distri-

widely and with less effort than setting

customers to interact with their schedules

bution channel centers, often displacing

up sales teams in individual cities.

and fares than previously possible.

any savings gained by decreased travel agency commissions.

Airline Consumer Direct Web-based distribution has taken

The bottom line — Web-based,

The advantages of online agencies include their widespread use for instant purchase, resulting in quick inventory

consumer-direct models often result

turnover, and the breadth of products

several forms, and different models con-

in both product dilution and increased

made available to the consumer, such

tinue to emerge depending on where the

distribution unit costs.

as vacation packages and fly/drive deals.

Online Agencies

this distribution channel is that, like other

airline operates. In North America and Europe, airlines tend to favor consumer-

However, the downside to using

direct models for both published fares

Another distribution model that has

and distressed or “opaque” inventory.

emerged is the online travel agency. The

ber of hits without resulting in actual

Some have attempted to engage travel

online agencies have taken mainly two

bookings. Depending on an airline’s

agents with their Web sites as well. While

forms: published and net-fare retailers

connectivity to the Web site or its spon-

this model has lowered distribution costs, it

such as Travelocity and distressed

soring GDS, this could have a profound

consumer-direct sites, they draw a num-

october 2003

5


industry impact on its host reservations system.

If the currency devalues to 4 to 1

Most of the larger online agencies

against the Euro — as was the case

are attempting to minimize the impact

in late 2002 — the impact is dramatic.

by reducing the number of hits to the

Because much of the airline’s costs are

airline’s host system.

in the local currency, the airline leaves

Internet to Agency

The travel agency commission remains

the round trip cost at R$600 or € 150. For many areas of the world, Internet

the same at 7 percent, dropping to

penetration remains moderately low, and

€ 10.25. The GDS fee remains constant

thus consumer-direct models are not as

in Euros, and now the € 8 fee is equal

effective. In these markets, some airlines

to 5.3 percent of the fare.

are creating new models that use the

The benefit is magnified with con-

Internet to connect travel agencies directly

firmed, passive, waitlisted or duplicate

to an airline-sponsored Web site. Why

bookings for which a GDS often charges

would an airline choose this route?

a fee. If a traveler has to waitlist for an

The answer to this question lies in

The development of the Internet has created more opportunities for airlines to distribute their product more widely and with less effort. However, new channels can result in product dilution and increased distribution costs. Despite the potential pitfalls, there are ways for airlines to control distribution costs and maximize the benefits of these new channels.

earlier flight in the desired fare class,

understanding what airlines perceive to

but is unable to get the fare, and the

be their largest costs of distribution. In

travel agency does not cancel the wait-

Brazil, for example, the Real is nearly 3

listed segments in the GDS, then the

to 1 against the Euro. If the fare between

GDS costs will now be about € 16 or

some airlines do not exclude travel

based distribution, require special care

they use, their business relationships

São Paulo and Rio de Janeiro is R$600

10.6 percent of the new fare.

agencies but encourage them to book

in order to avoid fraud. For this reason,

and overall marketing strategies.

How to Control Distribution Costs Host Record Maintenance An airline should make use of data mining

In this case, the electronic cost of

directly on the airline’s Web site, leaving

it is often in the best interest of the

commission is about 7 percent, or € 14,

distribution could be more costly than

the commission intact. In addition, credit

airline to continue to have the travel

channels by focusing on:

and the GDS fee is € 8, or 4 percent.

the travel agent commission. Therefore,

card transactions, the mainstay of Web-

agency handle the transaction, thus

Corporate incentives,

records, such as unticketed bookings,

relieving the airline of the liability.

Call center and sales office efficiency,

duplicate bookings and waitlists that the

or about € 200 round trip, the agency

vıew

H I G H

L E V E L

Waitlist control,

airline knows will not be cleared. Many

Waivers and favors control,

airlines only focus on critical flights, those

Internet speeds and links throughout

Group management.

at least 85 percent full, but any flight

Who Cathay Pacific Airways

What Renewed its “smartsourcing” con-

the country, and cost and availability

News Briefs from Around the Globe

of security features.

For indirect channels, areas for cost containment include:

these records. These records should be cancelled far enough in advance in order

is the norm are experimenting with spe-

and overrides,

to ensure only accurate records on the

cial bank accounts for individuals and

Waivers and favors control,

day of departure, saving unnecessary GDS fees.

corporate clients that will allow the airline

Fraudulent booking and ticketing

ware and expertise in a range of areas

to deduct funds from the account for

practices,

Cathay Pacific access to new product

including planning and flight schedul-

the purchase of a Web-based ticket.

GDS costs,

releases and participation in Sabre

ing, pricing and revenue management,

Airline Solutions’ extensive solutions

flight operations and crew scheduling,

user groups. Through the agreement,

and automated check-in.

The smartsourcing contract provides

could contain a substantial number of

Travel agency commissions

Airlines located where cash payment

Why

tools or robotics to eliminate unproductive

depends on a host of factors such as

Whether this model will work

T H E

Airlines can control costs in direct

Communication costs —

Controlling Distribution Costs Regardless of Channel Regardless of the channel, airlines

Inventory Control Airlines’ desire for flexible product

SITA, Arinc,

distribution led to the implementation

Online agency costs.

of advanced, robust systems to control

tract with Sabre Airline Solutions. The

first signed in 1997, Cathay Pacific has

three-year, multi-million dollar contract

accessed and implemented 19 Sabre

also assures we have significant

must control distribution costs, which

of indirect distribution, most notably

responsibility on the part of the

provides Cathay Pacific the full range of

Airline Solutions software applications.

input in further product portfolio

can range from 2 percent to in excess

electronic distribution via GDSs.

airline to make the most of each

development and enhancement from

of 30 percent depending on several

However, if an airline’s reservations

system through which it distributes

with Sabre Airline Solutions will help

Sabre Airline Solutions, ensuring

factors, including markets where they

and inventory control are “hosted”

its product.

us keep ahead of the competition,"

products that meet our objectives

operate, how they manage currency

by a service provider, then many of

said Anthony Yeung, general manager

and technology that helps us remain

exchange rates, whether they treat

the same techniques used to control

work, airlines can control distribution

information management for Cathay.

at the forefront of the industry,”

incentives as diminution of revenue or

GDS costs can be applied in the

costs by conducting a monthly review

“This partnership includes both soft-

he added.

as a cost, which distribution channels

hosted environment.

of the GDS invoice detail, known as

Sabre Airline Solutions' integrated portfolio, including consulting services.

“The strategic alliance developed

“The smartsourcing contract

Many airlines focus on the costs

inventory. With this flexibility comes

Within the GDS distribution frame-

October 2003

7


industry impact on its host reservations system.

If the currency devalues to 4 to 1

Most of the larger online agencies

against the Euro — as was the case

are attempting to minimize the impact

in late 2002 — the impact is dramatic.

by reducing the number of hits to the

Because much of the airline’s costs are

airline’s host system.

in the local currency, the airline leaves

Internet to Agency

The travel agency commission remains

the round trip cost at R$600 or € 150. For many areas of the world, Internet

the same at 7 percent, dropping to

penetration remains moderately low, and

€ 10.25. The GDS fee remains constant

thus consumer-direct models are not as

in Euros, and now the € 8 fee is equal

effective. In these markets, some airlines

to 5.3 percent of the fare.

are creating new models that use the

The benefit is magnified with con-

Internet to connect travel agencies directly

firmed, passive, waitlisted or duplicate

to an airline-sponsored Web site. Why

bookings for which a GDS often charges

would an airline choose this route?

a fee. If a traveler has to waitlist for an

The answer to this question lies in

The development of the Internet has created more opportunities for airlines to distribute their product more widely and with less effort. However, new channels can result in product dilution and increased distribution costs. Despite the potential pitfalls, there are ways for airlines to control distribution costs and maximize the benefits of these new channels.

earlier flight in the desired fare class,

understanding what airlines perceive to

but is unable to get the fare, and the

be their largest costs of distribution. In

travel agency does not cancel the wait-

Brazil, for example, the Real is nearly 3

listed segments in the GDS, then the

to 1 against the Euro. If the fare between

GDS costs will now be about € 16 or

some airlines do not exclude travel

based distribution, require special care

they use, their business relationships

São Paulo and Rio de Janeiro is R$600

10.6 percent of the new fare.

agencies but encourage them to book

in order to avoid fraud. For this reason,

and overall marketing strategies.

How to Control Distribution Costs Host Record Maintenance An airline should make use of data mining

In this case, the electronic cost of

directly on the airline’s Web site, leaving

it is often in the best interest of the

commission is about 7 percent, or € 14,

distribution could be more costly than

the commission intact. In addition, credit

airline to continue to have the travel

channels by focusing on:

and the GDS fee is € 8, or 4 percent.

the travel agent commission. Therefore,

card transactions, the mainstay of Web-

agency handle the transaction, thus

Corporate incentives,

records, such as unticketed bookings,

relieving the airline of the liability.

Call center and sales office efficiency,

duplicate bookings and waitlists that the

or about € 200 round trip, the agency

vıew

H I G H

L E V E L

Waitlist control,

airline knows will not be cleared. Many

Waivers and favors control,

airlines only focus on critical flights, those

Internet speeds and links throughout

Group management.

at least 85 percent full, but any flight

Who Cathay Pacific Airways

What Renewed its “smartsourcing” con-

the country, and cost and availability

News Briefs from Around the Globe

of security features.

For indirect channels, areas for cost containment include:

these records. These records should be cancelled far enough in advance in order

is the norm are experimenting with spe-

and overrides,

to ensure only accurate records on the

cial bank accounts for individuals and

Waivers and favors control,

day of departure, saving unnecessary GDS fees.

corporate clients that will allow the airline

Fraudulent booking and ticketing

ware and expertise in a range of areas

to deduct funds from the account for

practices,

Cathay Pacific access to new product

including planning and flight schedul-

the purchase of a Web-based ticket.

GDS costs,

releases and participation in Sabre

ing, pricing and revenue management,

Airline Solutions’ extensive solutions

flight operations and crew scheduling,

user groups. Through the agreement,

and automated check-in.

The smartsourcing contract provides

could contain a substantial number of

Travel agency commissions

Airlines located where cash payment

Why

tools or robotics to eliminate unproductive

depends on a host of factors such as

Whether this model will work

T H E

Airlines can control costs in direct

Communication costs —

Controlling Distribution Costs Regardless of Channel Regardless of the channel, airlines

Inventory Control Airlines’ desire for flexible product

SITA, Arinc,

distribution led to the implementation

Online agency costs.

of advanced, robust systems to control

tract with Sabre Airline Solutions. The

first signed in 1997, Cathay Pacific has

three-year, multi-million dollar contract

accessed and implemented 19 Sabre

also assures we have significant

must control distribution costs, which

of indirect distribution, most notably

responsibility on the part of the

provides Cathay Pacific the full range of

Airline Solutions software applications.

input in further product portfolio

can range from 2 percent to in excess

electronic distribution via GDSs.

airline to make the most of each

development and enhancement from

of 30 percent depending on several

However, if an airline’s reservations

system through which it distributes

with Sabre Airline Solutions will help

Sabre Airline Solutions, ensuring

factors, including markets where they

and inventory control are “hosted”

its product.

us keep ahead of the competition,"

products that meet our objectives

operate, how they manage currency

by a service provider, then many of

said Anthony Yeung, general manager

and technology that helps us remain

exchange rates, whether they treat

the same techniques used to control

work, airlines can control distribution

information management for Cathay.

at the forefront of the industry,”

incentives as diminution of revenue or

GDS costs can be applied in the

costs by conducting a monthly review

“This partnership includes both soft-

he added.

as a cost, which distribution channels

hosted environment.

of the GDS invoice detail, known as

Sabre Airline Solutions' integrated portfolio, including consulting services.

“The strategic alliance developed

“The smartsourcing contract

Many airlines focus on the costs

inventory. With this flexibility comes

Within the GDS distribution frame-

October 2003

7


industry by either SITA or Arinc, for which the

the airline should consider options such

agency. Where ticketless or electronic

airline is charged a per-message fee. In

as caching availability for the most

ticketing is common, this practice can

an attempt to achieve “last seat avail-

requested city pairs or limiting the

be eliminated. Where paper tickets are

ability,” airlines often set their inventory

number and types of transactions that

widely used, the practice can lead to

open/close thresholds too low and send

can be performed from the site. These

higher distribution costs as the agency

large volumes of messages without

options must be implemented with care

may have to make a “passive booking”

realizing the potential costs involved.

in order to avoid the perception that the

in order to ticket the airline-originated

airline is not providing the best options

booking. GDSs offer remedies for this

to its customers.

with tools that allow the agency to

Of course, for many airlines that participate at the highest levels of availability in the GDSs, AVS messaging is as a back-up mechanism. Unfortunately,

Online agencies continue to emerge as a more prominent distribution channel. In North America, the top six online agencies represent about 25 percent of all travel agency bookings in the region, and they are also gaining influence in Europe and Asia/Pacific.

billing information data tapes. Using

Many of these same principles apply in a hosted environment. An airline

status messages, or AVS messages. These

data, airlines can focus on “unproduc-

may be charged for either message

messages are transmitted to the GDSs

tive bookings” such as:

Carriers with a presence in the

from the carrier’s host system. Using this technology, the airline avoids the

airlines often forget to change their

United States have mostly eliminated

agreements when they move to higher,

travel agency commissions, resulting

more reliable levels of participation in

in lower overall distribution costs via

emerge, it is paramount that an airline

the GDSs. One U.S.-based carrier recently

this channel. However, in lieu of com-

understands the costs and revenue

modified all of its AVS agreements, yield-

missions, some carriers pay volume- or

ramifications associated with them.

ing millions of dollars worth of savings.

revenue-based incentives to agencies.

Only by understanding these issues

The structure of the incentive program

can an airline successfully control its

must be tightly controlled and inte-

distribution costs. Through the Sabre ®

grated across all segments of the

Global Distribution System, Travelocity

reduce distribution costs is availability

tools that are available to analyze this

“claim” the airline-originated booking

Commissions and Incentives

largely unnecessary and is only used

Web Transactions Studies have demonstrated that Web

cost of the passive booking. As new channels of distribution

traffic, reservations made or passengers

and other airline host systems to indicate

site traffic creates substantially escalated

airline’s indirect suppliers, such as

and GetThere, a corporate online booking

Bookings that have not been cancelled

boarded. In the case of reservations

whether a particular booking class of

numbers of transactions to the airline

consolidators, tour operators and

tool, Sabre Holdings provides an inte-

by a travel agency even after the airline

made, an airline should cancel as many

service is open or closed. An airline must

host system. Although Web-based travel

corporate accounts.

grated offering for distributing through

has sent a message for the agency to

unproductive bookings as possible prior

establish an agreement with each system

agencies are working to rectify this issue,

do so,

to a flight. The 24-hour rule does not

to which it wants to send AVS messages.

an airline should speak with the agency

Bookings that are used for ticketing

usually apply here, as is the case with

Several types of agreements are available

to adjust the volume of hits, based on

GDS bookings.

to avoid sending unnecessary messages.

technology available to the online agency.

Unless the airline has direct connections

For the airline’s own Web site, which

to another system, the messages usually

more than likely links directly to its host,

purposes only and do not affect airline inventory but still result in paying a fee to the GDS, Waitlist bookings that have not been

Availability Status Messages Another area where airlines can

every channel and can assist airlines

Sales Office and Call Center Efficiency

with managing the costs of distributing their product.

To serve customers better, airlines allow callers to book with its call center and receive their tickets via a travel

Stan Boyer is a director with Sabre Airline Solutions Consulting.

pass through a “clearing house” hosted

cancelled by the airline or the travel agency. These bookings must be cancelled by the travel agency at least 24 hours

T H E

prior to the flight to avoid charges. Each

vıew

H I G H

GDS has procedures to work with participating airlines to remedy situations where agencies make fraudulent or

Who

improper use of the system. Two recent

L E V E L

News Briefs from Around the Globe

Why

US Airways

turned off waitlist functionality, resulting in more than US$1 million annual savings

What

each. Such action is justified because booking curves are very short, and if the revenue management teams are performing their responsibilities, the need for waitlists is greatly diminished.

In North America today, 40 percent of all bookings are made directly with airlines. Of the remaining 60 percent of trips booked through travel agents, a fourth are made through online agencies.

Selected Travelocity to be the

Hotel inventory provided by

to a mutually beneficial relationship

Travelocity to usairways.com will

with this industry veteran moving for-

feature the entire complement of

ward,” said Steven Tracas, US Airways

Travelocity's offerings, including

vice president of sales and marketing.

guaranteed low-priced "Good Buy"

“I'm confident our passengers will

exclusive distributor of hotels, car

rates. The same is true for car

notice the added savings and conven-

rentals and last-minute deals on its

rentals and last-minute deals.

ience of booking their entire trip on

Web site, www.usairways.com.

8 ascend

reputation as being very supplier friendly, and we are looking forward

Sabre Airline Solutions clients actually

“Travelocity has forged a

usairways.com immediately.”


industry by either SITA or Arinc, for which the

the airline should consider options such

agency. Where ticketless or electronic

airline is charged a per-message fee. In

as caching availability for the most

ticketing is common, this practice can

an attempt to achieve “last seat avail-

requested city pairs or limiting the

be eliminated. Where paper tickets are

ability,” airlines often set their inventory

number and types of transactions that

widely used, the practice can lead to

open/close thresholds too low and send

can be performed from the site. These

higher distribution costs as the agency

large volumes of messages without

options must be implemented with care

may have to make a “passive booking”

realizing the potential costs involved.

in order to avoid the perception that the

in order to ticket the airline-originated

airline is not providing the best options

booking. GDSs offer remedies for this

to its customers.

with tools that allow the agency to

Of course, for many airlines that participate at the highest levels of availability in the GDSs, AVS messaging is as a back-up mechanism. Unfortunately,

Online agencies continue to emerge as a more prominent distribution channel. In North America, the top six online agencies represent about 25 percent of all travel agency bookings in the region, and they are also gaining influence in Europe and Asia/Pacific.

billing information data tapes. Using

Many of these same principles apply in a hosted environment. An airline

status messages, or AVS messages. These

data, airlines can focus on “unproduc-

may be charged for either message

messages are transmitted to the GDSs

tive bookings” such as:

Carriers with a presence in the

from the carrier’s host system. Using this technology, the airline avoids the

airlines often forget to change their

United States have mostly eliminated

agreements when they move to higher,

travel agency commissions, resulting

more reliable levels of participation in

in lower overall distribution costs via

emerge, it is paramount that an airline

the GDSs. One U.S.-based carrier recently

this channel. However, in lieu of com-

understands the costs and revenue

modified all of its AVS agreements, yield-

missions, some carriers pay volume- or

ramifications associated with them.

ing millions of dollars worth of savings.

revenue-based incentives to agencies.

Only by understanding these issues

The structure of the incentive program

can an airline successfully control its

must be tightly controlled and inte-

distribution costs. Through the Sabre ®

grated across all segments of the

Global Distribution System, Travelocity

reduce distribution costs is availability

tools that are available to analyze this

“claim” the airline-originated booking

Commissions and Incentives

largely unnecessary and is only used

Web Transactions Studies have demonstrated that Web

cost of the passive booking. As new channels of distribution

traffic, reservations made or passengers

and other airline host systems to indicate

site traffic creates substantially escalated

airline’s indirect suppliers, such as

and GetThere, a corporate online booking

Bookings that have not been cancelled

boarded. In the case of reservations

whether a particular booking class of

numbers of transactions to the airline

consolidators, tour operators and

tool, Sabre Holdings provides an inte-

by a travel agency even after the airline

made, an airline should cancel as many

service is open or closed. An airline must

host system. Although Web-based travel

corporate accounts.

grated offering for distributing through

has sent a message for the agency to

unproductive bookings as possible prior

establish an agreement with each system

agencies are working to rectify this issue,

do so,

to a flight. The 24-hour rule does not

to which it wants to send AVS messages.

an airline should speak with the agency

Bookings that are used for ticketing

usually apply here, as is the case with

Several types of agreements are available

to adjust the volume of hits, based on

GDS bookings.

to avoid sending unnecessary messages.

technology available to the online agency.

Unless the airline has direct connections

For the airline’s own Web site, which

to another system, the messages usually

more than likely links directly to its host,

purposes only and do not affect airline inventory but still result in paying a fee to the GDS, Waitlist bookings that have not been

Availability Status Messages Another area where airlines can

every channel and can assist airlines

Sales Office and Call Center Efficiency

with managing the costs of distributing their product.

To serve customers better, airlines allow callers to book with its call center and receive their tickets via a travel

Stan Boyer is a director with Sabre Airline Solutions Consulting.

pass through a “clearing house” hosted

cancelled by the airline or the travel agency. These bookings must be cancelled by the travel agency at least 24 hours

T H E

prior to the flight to avoid charges. Each

vıew

H I G H

GDS has procedures to work with participating airlines to remedy situations where agencies make fraudulent or

Who

improper use of the system. Two recent

L E V E L

News Briefs from Around the Globe

Why

US Airways

turned off waitlist functionality, resulting in more than US$1 million annual savings

What

each. Such action is justified because booking curves are very short, and if the revenue management teams are performing their responsibilities, the need for waitlists is greatly diminished.

In North America today, 40 percent of all bookings are made directly with airlines. Of the remaining 60 percent of trips booked through travel agents, a fourth are made through online agencies.

Selected Travelocity to be the

Hotel inventory provided by

to a mutually beneficial relationship

Travelocity to usairways.com will

with this industry veteran moving for-

feature the entire complement of

ward,” said Steven Tracas, US Airways

Travelocity's offerings, including

vice president of sales and marketing.

guaranteed low-priced "Good Buy"

“I'm confident our passengers will

exclusive distributor of hotels, car

rates. The same is true for car

notice the added savings and conven-

rentals and last-minute deals on its

rentals and last-minute deals.

ience of booking their entire trip on

Web site, www.usairways.com.

8 ascend

reputation as being very supplier friendly, and we are looking forward

Sabre Airline Solutions clients actually

“Travelocity has forged a

usairways.com immediately.”

/ControllingCostsInTheInternetAge_OCT_2003  

http://www.sabreairlinesolutions.com/pdfs/ControllingCostsInTheInternetAge_OCT_2003.pdf

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