03 November 2008

HRG debates opening up their Super Platform

All of the big agencies corporate or leisure/OTA have developed their own technology platform. Of that there is no debate. The question is will they ever do anything with these technology bases.

For a long time I have argued that once you had a multi-GDS environment then you were a little bit pregnant.

HRG as the number 4 global TMC player is no different to the big 3. It needs to keep moving forward. As we approach a perfect storm - this can only spell curtains for the GDS model as it exists today.

David Radcliffe in an interview during the ACTE conference in Rome made a number of interesting remarks:

"We recognize we've got this technology; we also recognize there is a place for industry standards. The industry is crying out for standards, and we need to evaluate the downside and upside of whether we release this. Certainly the smaller TMCs--in fact, anyone who hasn't invested in it by now--has left it too late. And that means they're going to have to get it from somewhere. We are arguing about it right now. "

I will disagree with him that anyone who has not done so is too late. No there are still ways to get into the game. However anyone who depends purely on GDS technology for supplier access is absolutely smoking something if they think they are at all independent. The same applies to any supplier who exclusively depends on GDS for neutral distribution.

Thus we have the makings of a perfect storm when distribution revolution will occur. I think we are there. Well almost. There are a number of elements still missing but the barriers to entry for a smart player to provide distribution technology which meets the needs of both the suppliers and the distributors are now pretty low. All that is needed now is a model that is more efficient and cheaper than the current GDS based one. The airlines have a number in mind. And its not a secret.

If you are interested - contact me directly


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