20 November 2008

Amex: "no alternative to the GDS for air bookings"

Thanks to Professor Tim for letting slide this off his twitter feed.

Charles Petrucelli probably one of the largest traditional players left as head of American Express Travel must have his head somewhere with very little sunshine.

Despite his having had deals with several of the GNEs and direct offers from many airlines to direct connect AND despite having their own desktop initiative... still says this?

I find that the statement must be self serving since Amex cannot seem to execute their independence. So I think we have to take this either as a die hard defense of the GDS model (and its attendant revenue stream to Amex) or a head in the sand, Luddite-style statement that just beggars belief. Its the same logic that GDSs use to promote their channel as delivering higher yield traffic to Hotels and Airlines. Sure they deliver it - but why? And can you therefore make the leap that this is where you should focus your distribution efforts.

So Amex - you had better hope that not too many airlines are listening to your pronouncement, because if they really want to optimize their distribution - then your value is not as strong as it once was and definitely not as invulnerable as you may suppose.

I also guess they really are not interested in the millions of passengers - business folks and vacationers - who book and fly on LCCs daily worldwide.

Cheers

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