So I have been trying to decide if this really is a credible story from the first time I heard it 3 weeks ago. I prefer not to address rumours although I LOVE to speculate as you may have gathered.
So let me address this is 2 parts.
Firstly is the idea of a merger of GDSs a good idea?
I have opined often that I believe the GDS current model is flawed and in need of either a revolution or something more dramatic. I think we are long past the stage of evolution of the GDS model - but there again I tend to be more radical in this regard. So is a merger the right answer to a broken model? I liken this solution to the idea of merging bankrupt airlines.
Secondly is it viable if a merger should take place - with either of the 3 possible combinations. So can we eliminate any of them?
Actually no all bets are ON. that includes Amadeus and Sabre, Amadeus and Travelport and Travelport and Sabre. Frankly none of these is appealing. Travelport is from reading the Beat the weakest of the players. So which option looks best?
Actually I am going to say there is another option. Carve up Travelport.
This option is the more obvious if you consider the market footprint alone
A carve up.
Slice up Travelport. Put the USA assets over to Amadeus and take the International Assets over to Sabre.
Game over - best value.
Any questions?
1 comment:
Sage Professor,
Like mergers of bankrupt airlines, consolidation of GDS does not create synergies or efficiencies. More importantly, they do not provide any sort of catalyst for the 'GDS' revolution you have so insightfully promoted on these pages. The attributes of the 'big' three are no substitute for a more radical, somehow new approach.
To avoid the true dilemma - a choice among distasteful alternatives - perhaps market forces can eclipse them all and invest and promote the birth of a new, revolutionary entrant.
There has to be something out there. After all, there is still hope left in this world. There are new frontiers left to test and discover and of course, money to be made.
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