Finally recognition!
Sabre's airline solutions team has acknowledged something that we have been saying for a very long time - the basic LCC model has evolved and there is a new kid on the block the HVC - Hybrid Value Carrier.
The core premise is that many other studies in LCCs have blinded concluded that the LCC model was rapidly growing and very large. From our analysis we believe the number of "purist" LCCs is actually quite small. Southwest for example is no longer a true LCC. Neither is EasyJet nor Virgin Blue.
T2 will shortly be publishing our annual LCC study. This year will be more focused on the business model and its evolution.
If you are interested in obtaining a copy of the last year's study based on Travel Trade and the LCCs or you would like a preview of this year's - please give me a ping on email. timothyo@t2impact.com
Cheers
Timothy
08 May 2008
Sabre and LH - No Full Content Fees in DE and CH
Sabre and Lufthansa have engaged in a little - "let's play pat-a-cake" at Amadeus expense.
In inking a new full content deal - the two have thrown the entire German travel marketplace upside down. So now there are NO fees for Sabre agents booking LH segments whereas Amadeus agents will have to pay the 4.90 Euro (plus VAT) fee for each segment. Hmmm this one is going to court that's for sure.
Here is the full PR blurb
Cheers
Timothy
News Release
Sabre: No surcharge for Lufthansa and SWISS full content fares
Sabre Travel Network expands agreement with Lufthansa and SWISS
LONDON, United Kingdom, 7 May 2008 - Sabre Travel Network today announced that Sabre agents in Germany, Austria and Switzerland who choose to participate in the Lufthansa and SWISS Preferred Fares programs will be able to access and sell all fares and inventory without a fee.
“This is fantastic news for our agency customers who have told us they want to continue booking via the GDS because it's the most efficient and productive way of working,” said Martin Cowley, Senior Vice President for Sabre Travel Network in EMEA.
Commenting on the announcement, Thierry Antinori, Executive Vice President Marketing and Sales, Lufthansa Passenger Airlines said: “Sabre is an important distribution channel and an efficient marketplace for all Lufthansa fares. Thanks to the extension of our agreement, we can now offer our Preferred Fares without any additional fees to participating travel agencies using Sabre.”
Harry Hohmeister, SWISS Chief Network & Distribution Officer said: “Sabre is a key partner in our distribution structure. And for our travel agency partners, Sabre offers a highly efficient means of booking all SWISS and Lufthansa flights and fares. Our extended agreement with Sabre will sharpen SWISS's competitive edge and provide all the travel agencies that use Sabre with access to all SWISS and Lufthansa fares without additional fees.”
Today's announcement between Sabre, Lufthansa and SWISS also gives Sabre subscribers around the world continued access to all published fares and inventory.
“It's our standing philosophy to find solutions that meet the needs of everyone in the industry and today's announcement with Lufthansa and SWISS reinforces our ability to deliver this while highlighting the continued value of the GDS,” said Cowley.
“We're confident today's announcement will be well received by the industry, delivering benefits to our existing agents and new customers we hope to attract as part of our continued expansion in Europe,” he said.
In inking a new full content deal - the two have thrown the entire German travel marketplace upside down. So now there are NO fees for Sabre agents booking LH segments whereas Amadeus agents will have to pay the 4.90 Euro (plus VAT) fee for each segment. Hmmm this one is going to court that's for sure.
Here is the full PR blurb
Cheers
Timothy
News Release
Sabre: No surcharge for Lufthansa and SWISS full content fares
Sabre Travel Network expands agreement with Lufthansa and SWISS
LONDON, United Kingdom, 7 May 2008 - Sabre Travel Network today announced that Sabre agents in Germany, Austria and Switzerland who choose to participate in the Lufthansa and SWISS Preferred Fares programs will be able to access and sell all fares and inventory without a fee.
“This is fantastic news for our agency customers who have told us they want to continue booking via the GDS because it's the most efficient and productive way of working,” said Martin Cowley, Senior Vice President for Sabre Travel Network in EMEA.
Commenting on the announcement, Thierry Antinori, Executive Vice President Marketing and Sales, Lufthansa Passenger Airlines said: “Sabre is an important distribution channel and an efficient marketplace for all Lufthansa fares. Thanks to the extension of our agreement, we can now offer our Preferred Fares without any additional fees to participating travel agencies using Sabre.”
Harry Hohmeister, SWISS Chief Network & Distribution Officer said: “Sabre is a key partner in our distribution structure. And for our travel agency partners, Sabre offers a highly efficient means of booking all SWISS and Lufthansa flights and fares. Our extended agreement with Sabre will sharpen SWISS's competitive edge and provide all the travel agencies that use Sabre with access to all SWISS and Lufthansa fares without additional fees.”
Today's announcement between Sabre, Lufthansa and SWISS also gives Sabre subscribers around the world continued access to all published fares and inventory.
“It's our standing philosophy to find solutions that meet the needs of everyone in the industry and today's announcement with Lufthansa and SWISS reinforces our ability to deliver this while highlighting the continued value of the GDS,” said Cowley.
“We're confident today's announcement will be well received by the industry, delivering benefits to our existing agents and new customers we hope to attract as part of our continued expansion in Europe,” he said.
06 May 2008
eTicketing hassles - Sabre offers vMCO
Sabre has come out with a virtual MCO as a partial solution to the hassles of the eTicketing mandates.
For more details read the press release.
http://phx.corporate-ir.net/phoenix.zhtml?c=73098&p=irol-newsArticle&ID=1139643&highlight=
Will this solve the issues? No - but its a very useful solution for airlines and agencies in this somewhat iffy enforced move.
Cheers
Timothy
For more details read the press release.
http://phx.corporate-ir.net/phoenix.zhtml?c=73098&p=irol-newsArticle&ID=1139643&highlight=
Will this solve the issues? No - but its a very useful solution for airlines and agencies in this somewhat iffy enforced move.
Cheers
Timothy
eTicketing hassles - Sabre offers vMCO
Sabre has come out with a virtual MCO as a partial solution to the hassles of the eTicketing mandates.
For more details read the press release.
http://phx.corporate-ir.net/phoenix.zhtml?c=73098&p=irol-newsArticle&ID=1139643&highlight=
Will this solve the issues? No - but its a very useful solution for airlines and agencies in this somewhat iffy enforced move.
Cheers
Timothy
For more details read the press release.
http://phx.corporate-ir.net/phoenix.zhtml?c=73098&p=irol-newsArticle&ID=1139643&highlight=
Will this solve the issues? No - but its a very useful solution for airlines and agencies in this somewhat iffy enforced move.
Cheers
Timothy
EDS and Microsoft in bed together?
Here is an interesting item that deserves some attention. Air Transport World reports via its ATW Online site a 4 part agreement between EDS and MS.
Citing Jim Dullum the veteran head of the EDS Travel and Transportation unit, ATW reported four key components in the new agreement. The first is that EDS will have access to MS resources dedicated ..."to the building and design and completion of our flight ops systems." The second is that Microsoft will set up a 24/7 help desk to support EDS. The third is "a go-to-market component" under which Microsoft actively will market and sell EDS reservations and flight operations products. Finally, the companies have adopted a commercial arrangement "that gets away from standard software licensing fees. . ."so as our business improves, so does what we pay Microsoft," the EDS spokesman was cited as saying.
This signals a second run at the market. Previously MS was involved in the design and build of Navitaire's "New Skies" Reservation System. For reference from MS go here: http://download.microsoft.com/download/4/c/6/4c600ca6-a041-4aab-9ad4-e74f3089ffec/GEMS14686/Navitaire_Solution_Brief.doc
As the players involved in the Airline IT market struggle to come to terms with a shifting environment and a now very powerful Amadeus, I believe we shall see more similar announcements such as this.
In the mean time - this will perhaps breathe life into the EDS Travel unit which previously has signaled its intention to sunset the old Swissair system ATRAXIS. EDS is also looking to retain Sabre as a customer who is being notably quiet on the subject of what it will do for a next gen Res system. Will EDS try and bring all 3 of its supported systems (SHARES, ATRAXIS and SABRE) into one common set? That would be interesting.
Cheers
Timothy
Citing Jim Dullum the veteran head of the EDS Travel and Transportation unit, ATW reported four key components in the new agreement. The first is that EDS will have access to MS resources dedicated ..."to the building and design and completion of our flight ops systems." The second is that Microsoft will set up a 24/7 help desk to support EDS. The third is "a go-to-market component" under which Microsoft actively will market and sell EDS reservations and flight operations products. Finally, the companies have adopted a commercial arrangement "that gets away from standard software licensing fees. . ."so as our business improves, so does what we pay Microsoft," the EDS spokesman was cited as saying.
This signals a second run at the market. Previously MS was involved in the design and build of Navitaire's "New Skies" Reservation System. For reference from MS go here: http://download.microsoft.com/download/4/c/6/4c600ca6-a041-4aab-9ad4-e74f3089ffec/GEMS14686/Navitaire_Solution_Brief.doc
As the players involved in the Airline IT market struggle to come to terms with a shifting environment and a now very powerful Amadeus, I believe we shall see more similar announcements such as this.
In the mean time - this will perhaps breathe life into the EDS Travel unit which previously has signaled its intention to sunset the old Swissair system ATRAXIS. EDS is also looking to retain Sabre as a customer who is being notably quiet on the subject of what it will do for a next gen Res system. Will EDS try and bring all 3 of its supported systems (SHARES, ATRAXIS and SABRE) into one common set? That would be interesting.
Cheers
Timothy
05 May 2008
BAA - How to make a bad situation worse LHR new carry-on policy
If you thought BAA was just the text book example of how not to do things - think again. They have instituted a new policy at LHR which is bound to drive even more passengers away.
After the debacle at T5 and the previous collapse of the baggage system (actually on going) at T4, one thing you would not want to do is to increase the amount of bags going through the baggage system. Well guess again.
As of this week BAA has implemented a NEW policy of draconian proportions in carry-on bags.
BRAVO BAA! No this is not the UK Dept. of Transportation, No this is not the airlines, YES this IS BAA.
It doesn't matter if you are an economy or premium traveler. What works everywhere else in the world - is no longer allowed at LHR.
If you don't believe me - I do have some nice pictures.
Cheers
Timothy
After the debacle at T5 and the previous collapse of the baggage system (actually on going) at T4, one thing you would not want to do is to increase the amount of bags going through the baggage system. Well guess again.
As of this week BAA has implemented a NEW policy of draconian proportions in carry-on bags.
BRAVO BAA! No this is not the UK Dept. of Transportation, No this is not the airlines, YES this IS BAA.
It doesn't matter if you are an economy or premium traveler. What works everywhere else in the world - is no longer allowed at LHR.
If you don't believe me - I do have some nice pictures.
Cheers
Timothy
04 May 2008
Aloha - I am not dead yet. The Cargo Airline gets a reprieve
Aloha refuses to die gracefully. The original buyer of the cargo operation - Saltchuk (based in Seattle) has reached agreement to acquire the cargo assets.
I am sure this will run and run some more.
Cheers
Timothy
I am sure this will run and run some more.
Cheers
Timothy
The Professor is in Dubai
I shall be at Arabian Travel Mart this week. May 7-9th. If you want to meet - give me a ping on email. timothyo@t2impact.com
Alas this means not many posts this week.
Cheers
Timothy
Alas this means not many posts this week.
Cheers
Timothy
Who said paper tickets are dead? IATA that's who!
So the final countdown has begun. IATA has decreed May 30th will be the last day for using paper tickets. I remain a little skeptical about the whole process. The BTC group are agitating strongly against the deadline and I think with some merit.
There are a number of major problems with ET (Electronic Ticketing). It is not as simplistic as IATA and others would have us believe. Further there is still this nagging feeling that ET is – well too complex. Perhaps we need to consider pure ticketless as a better way forward.
Frankly I don’t believe the IATA statistics that 98%+ of all the BSPs are already issuing all ET. I have this vision of some very unhappy accountants at Travel Agencies (and airlines revenue management departments) in some countries who are desperately figuring out how to get those last people to use ET. And then there will be all those users out there.
Frankly I think it is all a sinister plot. If you are a conspiracy theorist – this is just another form of ancillary revenue. The number of tickets returned under ET is significantly less than was the case under paper tickets. I saw a statistic from 2000 where the number (in the USA) was 2% of all paper tickets were never used but 5% of all electronic tickets were not used and not returned for some value. 3% gross revenue boost is a better number than most airlines make in yields. All for doing nothing!
Still ET is better than paper.
Cheers
There are a number of major problems with ET (Electronic Ticketing). It is not as simplistic as IATA and others would have us believe. Further there is still this nagging feeling that ET is – well too complex. Perhaps we need to consider pure ticketless as a better way forward.
Frankly I don’t believe the IATA statistics that 98%+ of all the BSPs are already issuing all ET. I have this vision of some very unhappy accountants at Travel Agencies (and airlines revenue management departments) in some countries who are desperately figuring out how to get those last people to use ET. And then there will be all those users out there.
Frankly I think it is all a sinister plot. If you are a conspiracy theorist – this is just another form of ancillary revenue. The number of tickets returned under ET is significantly less than was the case under paper tickets. I saw a statistic from 2000 where the number (in the USA) was 2% of all paper tickets were never used but 5% of all electronic tickets were not used and not returned for some value. 3% gross revenue boost is a better number than most airlines make in yields. All for doing nothing!
Still ET is better than paper.
Cheers
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