The evolution of travel inventory distribution and payment from systems originally owned by the airlines: "Today, the GDSs and the settlement process are, for the most part,
By BTE
The evolution of travel inventory distribution and payment from systems originally owned by the airlines: "Today, the GDSs and the settlement process are, for the most part, independent business entities [and they] must now compete with similar providers that have evolved in other industries ... direct electronic buyers like Expedia, Orbitz, Opedo, etc. as well as the independent settlement companies like VISA, MasterCard, PayPal, Pegasus, WTC, and virtually all banks with ATM or interbank electronic processing.
"An airline operating its own web site with various direct payment models has significantly lower distribution and settlement costs than can be achieved through the legacy GDS structures. Thus, the economics of digital buying will necessarily move the industry away from those processes where the airlines must pay ... Buyers, initially bulk purchaser, can buy more efficiently at lower cost by dealing directly with the 'manufacturer' (i.e. the airline). The distribution and settlement 'middlemen' will be forced to change their business processes to package other types of 'value-add' for their distribution service; things like integrated travel product packaging, bulk buying/control of inventory for small agency integrators, information management, supplementary financial services, etc." — Richard Eastman President & CEO The Eastman Group
Speaking at the Phoenix Aviation Symposium: "This industry does not "whine" — we confront our challenges and ask that we be allowed to conduct our business within the current reality of this "semi-regulated" industry. We need to be able to invest in people, planes and product, and we need to find a way to earn our cost of capital... . To establish a modern air transportation system that will be a step change and enable economic growth and a return to leadership for the United States — will require partnerships. We are asking that the Administration take the lead, working with Congress, the DOT and the FAA and partner with us to develop what our country truly requires — a comprehensive plan for the aviation sector that will deliver a long-term step change solution to enable efficient and effective aviation. Providing the infrastructure and energy policy needed to support 21st century aviation will allow the US to compete in the global market place — and support our objectives regarding safety, security and reduced emissions." — Glenn Tilton President & CEO United Airlines