GDSs “holding back” airlines – IATA
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Global distribution systems (GDSs) are “too clunky” and are limiting airlines’ ability to maximise profits, according to IATA.
Speaking at the SITA Air Transport IT Summit in Belgium this week, IATA’s Director-General & CEO Tony Tyler said that GDS distribution of airline products has not kept up with the pace of development in the industry.
“While the computer reservation systems of the 1970s put aviation decades ahead of other consumer-facing industries, the Global Distribution System model is now holding us back,” Tyler said. “New models, more retail-based, are facilitating customer-friendly interactions in almost every other consumer online activity. But the GDS model is too clunky to adapt easily to the emergence of trends such as fare unbundling and merchandising.”
Speaking to Travel Daily however, Ho Hoong Mau, division head of airline distribution at Abacus International argued that GDSs are constantly evolving to meet industry trends. “Abacus for example was the first GDS to launch bundled fares and fare families products with MH (Malaysia Airlines) several years ago. While technology has brought with it a shift in the platforms used to connect with customers, it has also made the industry much more vibrant and exciting with even more opportunities to explore.
“No airlines can really claim that technology limits their ability to differentiate services. Technology is only an enabler and the real service differentiation comes from a well thought out service strategy,” he added.
At its recent AGM in Beijing, IATA unveiled plans to introduce a standard for new GDS products entering the market. This will include offering a greater level product differentiation than is currently available through GDSs. The new standards are expected to be finalised during October’s World Passenger Symposium in Abu Dhabi.
