A new generation of agency bosses becomes more sophisticated.

Amadeus Sees Signs of Change
by Justin Wastnage, Travel Weekly

Amadeus says rebates to travel agencies associated with use of a particular global distribution system (GDS) are becoming less important than the technological offer, as a new generation of agency bosses become more sophisticated.

Speaking to Travel Today yesterday, Amadeus Australia managing director Tim Russell said GDS rebates, incentives given to agency chains to offset transactional charges, were slowly becoming less of a deciding factor than the functionality of the systems. “This vision of the importance of technology is only just creeping into the minds of the powers that be. The mindset has changed from financial incentives to overall productivity gains,” he said.

As a result, Russell said he was confident Amadeus would edge its way out of current third place in terms of travel agency market penetration. Amadeus currently has 16 per cent of the market, or 20 per cent if Qantas Business Travel is included, Russell said.

The single largest GDS contract is between Flight Centre and Galileo by Travelport, but Russel said signs in the market were that Flight Centre boss Graham Turner wanted to deploy a multi-GDS strategy in coming years, evidenced by signing only an 18-month renewal with Galileo rather than standard three or five year deals. Also, Flight Centre has ditched GDS-specific front-end, using software from Irish travel technology house Datalex in its shops at point of sale, meaning GDS became a mere content source, he said.

10 October 2008