Travelport admits it must "bring value"
Travelport has admitted it needs to demonstrate the value it can provide airlines as the technology firm attempts to move negotiations away from just the cost of distribution.
Head of global supplier strategy, Ian Heywood, pictured, said it is the responsibility of GDSs to bring value to the aviation industry through its product, efficiencies and the market it can reach.
But more importantly GDSs need to demonstrate the revenue they can bring to airlines.
Airlines and GDSs have historically had a tense relationship with airlines constantly seeking to bring down their distribution costs and adopting direct sell strategies.
Speaking during a panel discussion at the CAPA aviation conference in Sydney yesterday, Heywood, a former British Airways executive, said the conversation with carriers is beginning to move away from a debate simply about price.
“It’s the responsibility of GDSs to bring value and that’s what we’ve got to do,” Heywood said. “I would much rather sit down with airlines, as we are starting to do, and talk to them about how we can help with their business model, rather than just a cost.
“How can we help you sell the 10% of ancillaries. How can we bring you better value. How can we market and distribute your product in the way that you want it to be done.
“Of course there’s a discussion about cost and there will always be a discussion about cost. But it’s more about how can we bring them value and how can we help them achieve what the airlines want to achieve.”
Heywood said Travelport would make an announcement towards the end of the year that would see travel agent screens “move from a black and white TV to a colour TV", with rich content.
“It will enable the airlines to sell their products in the way they want to sell it, in the brand they use,” he told delegates. “Airlines invest multi millions of dollars in their brands, they are very proud of their brands so we want to be able to take all of that content through to the agents and enable them to sell it.”
Ensuring there is brand consistency through all booking channels was “really important”, Heywood added.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
airlines gds ian heywood technology travelportLatest News
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