07 March 2007

Bye Bye Site 59 Hello LastMinute.com

So finally Sabre is getting wiser about its brand rationalization. With over 20 different brands across its market, Sabre is finally realizing that the cost and value of each brand is not such a simple thing.

When the internet was young (remember when!) we all thought that the Real Estate of the web was infinite and open to all. Anyone with an idea could get online. IBM was as important as Aunt Edna’s website. IE the whole universe was open to small companies and large. Sadly no more. Perhaps one of the ultimate prices to be paid for the stellar performance at Google is that the days of Homesteading are over. Now we need to pay the toll. The gatekeeper of the first decade of the millennium is without a doubt Google. And the price is pretty hefty!

But we should examine Sabre’s other brand confusions. How long can Abacus and Zuji remain as separate entities? And if we think about it in addition to Sabre, there are many others who issues – lets pass a brief and critical eye over the TravelPort family of brands. The list spans pages

So commercial realism and standard marketing strategies will be the form of the future. The trends start now. I shall for one be a little sad that the little brands will have such a hard time to make headway against the goliaths and their big marketing spends.

Cheers

Timothy

04 March 2007

Sabre no more? - Vote Day March 23rd

The formal motion has been mailed to stockholders of record on Feb 20th 2007.


01 . PROPOSAL TO ADOPT THE AGREEMENT AND PLAN OF MERGER, DATED AS OF DECEMBER 12, 2006, AMONG SABRE HOLDINGS CORPORATION, SOVEREIGN HOLDINGS, INC. AND SOVEREIGN MERGER SUB, INC. AND APPROVE THE MERGER.
Directors Recommend: FOR

So this is it... the last independent GDS falls to a VC.

The migration will be complete once Worldspan gives up the ghost and becomes part of TravelPort.

Jacques Barrot - Wily politicial EU Commissioner for Transport

I would like to applaud Commissioner Barrot (http://en.wikipedia.org/wiki/Jacques_Barrot) for his efforts in getting at least some semblance of a deal together between Europe and the USA. This has indeed been a tough point as there are so many political aims that conflict.

Conside the huge mountains that have to be crossed to get 27 countries on the EU side to give up bilaterlism as well as the USA to overcome the conflicted Executive and Legilative arms of Government. So while the deal itself seems small it represents a structural shift that is without doubt one of the biggest changes made in Air Transportation regulation since the setting up of ICAO and IATA. And it comes not a moment too soon.

The deal is not out of the woods and I expect this will take at least a year to enact fully probably longer in the case of the US and UK. It may not come soon enough for Virgin America whose future is languishing while deliveries of its A320s rack up - straight to the parking garage. The Transatlantic is one of the most heavily travelled set of air routes in the world. Long term government protectionism is a concept whose time has come - and gone. As the airways and airports become an increasingly scarce commodity opening up to the free market the ownership and control of the Air Space users is the right thing to do.

Jacques Barrot has been written off several times in his career. However he is one of the most skilled politicians I have observed in many years. His negotiating skills are unparalled and he deserves a lot of personal credit for this success. I can only hope that he is able to continue in his job long enough for to see this become a lasting legacy to his position at the EU and for the benefits to trickle down to the market.

For further discussion and opinion please contact T2impact directly. timothyo@t2impact.com