Back to being serious.
In the ongoing saga of the legacy lackeys vs the suppliers - I have pleasure in presenting more of the former's PR output.
I realize that the Professor by now has been labeled as a bad hack - I still need to assure you that I am not. I am firmly in favour of the truly independent and also truly low cost intermediary model. Itself quite a rarity these days. But on either side when I see untruths being spouted - it just annoys the heck out of me. This latest missive from BTC is full of a large number of well ... read on and you will get my point.
NOTE - the words in caps/bold are mine. The text and italics (which I put in) are right from Radnor PA (Population 31000 nearest airport PHL and largely a Republican stronghold).
TEXT BEGINS HERE:
Future of Low Cost Travel Distribution SO LET'S JUST IGNORE THE FACT THAT THE LEGACY GDSs HAVE BEEN RAISING RATES AND IMPOSING HIGHLY RESTRICTIVE CONTRACTS WITH EXCLUSIVITY CLAUSES ON BOTH SUPPLIERS AND USERS - INDEED WHY NOT HAVE THE LEGACY GDSs PUBLISH THEIR RATE SCHEDULES AND CONTRACTS IN THE OPEN SO WE CAN SEE HOW LOW COST THEY REALLY ARE - THEN LETS HAVE A LOOK AT THE INCENTIVE ARRANGEMENTS BEING PAID ON AVERAGE TO THE USERS TO KEEP THEM LOCKED IN - JUST A THOUGHT.... At Stake
Travel distribution system, customers in alignment THAT WILL BE A FIRST THEN!
January 5, 2011, RADNOR, PA - Business Travel Coalition (BTC) today commented on the latest development in the battle for the future of low-cost, consumer-centered travel distribution as global distribution system services provider Sabre took steps to protect the interests of an independent I GUESS 50% MARKET SHARE COULD STILL COUNT FOR INDEPENDENT BUT I THINK THAT IS NOT QUITE THE DEFINITION travel distribution system from American Airlines’ (AA) attempt to impose a new model that heaps huge new costs SO FAR NO ONE HAS COME OUT AND DEMONSTRATED THE PROOF OF THIS. IN FACT THE OPPOSITE IS LIKELY TO BE MORE TRUTHFUL - IE THAT THE LEGACY GDSs HAVE BEEN IMPOSING A TAX ON THE COST OF TRAVEL UNNECESSARILY. SO I SAY AT THIS POINT - SHOW ME (WHERE THIS EXTRA) MONEY (COST IS) ! on the travel industry and diminishes comparison shopping THIS ASSUMES THAT COMPARISON SHOPPING WITHOUT SOUTHWEST THE LARGEST DOMESTIC CARRIER WAS ALREADY A GOOD COMPARISON for consumers. According to its press statement, Sabre has downgraded AA’s offerings in most of its displays, eliminated booking fee discounts THE ELIMINATION OF A DISCOUNT WOULD BE LIKE RAISING PRICES RIGHT? and delivered notice of termination of its agreement with AA.
This development puts to rest that this battle, HUH? THIS IS JUST ANOTHER ESCALATION - THE BATTLE IS NOT EVEN GETTING WARMED UP AND IT'S OVER? HARDLY ME THINKS AND DOESN'T SCAN WITH THE FINAL SENTENCE IN THIS PARAGRAPH which began with AA’s unprovoked assault HARDLY UNPROVOKED BUT SINCE WE DON'T KNOW THE DETAILS OTHER THAN THE JUDGE SIDED WITH AA ON THIS ISSUE LETS AT LEAST AGREE THERE WAS A REAL ISSUE BETWEEN THE PLAYERS on Orbitz late last year, is not a skirmish between AA and online travel agencies, but rather an all out war for the future of both airline and all travel distribution in the U.S. and around the world. WELL THIS IS ACCURATE IT IS INDEED A WAR - IT SEEMS THAT TRAVELPORT AND SABRE WERE THE PARTIES WHO ESCALATED THIS INTO WAR WHICH STARTED OUT BETWEEN TWO PARTIES. REMEMBER THAT BOTH TRAVELPORT AND SABRE HAVE GREATER MARKET SHARE THAN AMERICAN INDIVIDUALLY.
At risk are important benefits generated by the current distribution system including:
(1) robust comparison shopping among airlines’ offerings for consumers as well as corporate travelers using online booking tools; SHHHH DONT TELL ITA THAT THE LEGACY GDSs ARE THE ONES DOING THE ONLINE COMPARISON SHOPPING ENGINE BIT. SMALL $700 MILLION DETAIL THAT GOOGLE DIDN'T OVERLOOK.
(2) efficiencies inherent in one integrated workflow process of shopping, purchasing, capturing data, assuring travel policy compliance and auditing for products and services from more that 100,000 airline, hotel, rental car, ferry and rail companies OK THIS IS HOGWASH - THIS IS AN AIRLINE BATTLE NOT ONE FOR THE OTHER COMPANIES SO LETS CUT THAT NUMBER DOWN JUST A TAD SHALL WE? as well as other suppliers; and
(3) transparency and pricing discipline that tens of thousands of independent online and offline travel agents bring to all offerings on suppliers’ own websites and other distribution channels. OK YOU GOT ME HERE THIS IS COMPLETE GOBBLEDY GOOK - I DON'T KNOW HOW THAT WORKS... SOMEONE CARE TO EXPLAIN?
“The stakes in this conflict are clear: either an improved SO I AM CONFUSED - YOU JUST FINISHED TELLING US HOW WONDERFUL IT IS NOW - AND THEN YOU INTRODUCE THE WORD "IMPROVED" airline industry and distribution marketplace centered around the consumer, or one that subordinates consumer interests to the self-serving motivations of individual airlines HMMM AGAIN THIS CHARACTERIZES THE BATTLE AS BETWEEN AIRLINES PLURAL. LAST TIME WE CHECKED THIS WAS BY OTAs AND LEGACY GDSs BOTH PLURAL AND A SINGLE AIRLINE - AMERICAN - OK SO THE FULL TITLE OF THE COMPANY IS AMERICAN AIRLINES - NICE PLAY ON WORDS THERE endeavoring to shift costs and impose their wills on consumers and the other participants in the travel industry,” stated BTC Chairman Kevin Mitchell. “Single-supplier direct connect proposals, like the one advanced by American Airlines, can YUP IF THAT WAS THE PROPOSITION THEN THAT COULD BE THE CASE - BUT ITS NOT significantly increase costs for all distribution participants AGAIN MORE FUD. THE ONLY PEOPLE INCREASING COSTS HERE ARE TRAVELPORT AND SABRE and cause massive fragmentation THIS ALREADY HAPPENED YEARS AGO. INDEED PREVIOUSLY BTC WAS VERY LOUD IN ITS SUPPORT OF THE RIGHT OF AIRLINES TO CHARGE FEES of airfares and ancillary fees depriving consumers of the ability to compare the total cost of air travel options across all airlines.” OK SO WHAT IS SOUTHWEST AIRLINES - CHOPPED LIVER - HARDLY - THEY ARE THE LARGEST SINGLE BRAND MAINLINE CARRIER IN THE USA.
Interim results from a currently open BTC survey of corporate travel managers point to an overwhelming rejection of AA’s attempts to change the distribution system model to its unique advantage while driving corporate travel departments’ costs up and undermining their ability to adequately service their travelers.
• 94% of surveyed travel managers indicate access to all airfare and ancillary fee information is either indispensably important or very important for their corporate managed travel programs. IN THE IMMORTAL WORDS (MISQUOTED HERE) OF MANDY RHYS-DAVIES - THEY WOULD SAY THAT NOW WOULDN'T THEY!
• 87% believe that in advocating its Direct Connect strategy AA is endeavoring to secure higher fares-paid by undermining the independent travel distribution system and corporate managed travel programs and by driving more consumers to aa.com where comparison-shopping, expert advice and corporate travel policies are non-existent.
• 88% of travel managers who oppose AA Direct Connect believe that the program will result in fragmentation of airfares and fees and that without access to all air travel options travelers will pay higher prices.
• 98% do not support American Airlines’ Direct Connect strategy.
“Since the U.S. global distribution system industry segment was deregulated in late 2003, the strategic interests among GDSs, travel agencies, travel management companies, corporate travel managers and consumers have evolved into near-perfect IF ITS NEAR PERFECT - WHY HAVE UNNATURAL ACTS LIKE PAYING YOUR CUSTOMERS? alignment,” said Mitchell. “Because the airline industry is one where competitors often follow one another, it is of paramount importance that corporate travel managers, individual supply chain participants, including the associations that represent them, stand up and very clearly communicate to the airlines what their distribution system requirements are.”
IT MIGHT BE INTERESTING TO ACTUALLY SEE THE SURVEY MONKEY QUESTIONS IN DETAIL BEFORE QUOTING THE RESULTS NOT EXACTLY IN COMPLETE CONTEXT.
END TEXT
So there you have it. The text can be found on some PR website because its not on the BTC website.
I think its worth just calling things for what they are. Fortunately on the web no one is going to notice the little old Professor here and his comments.
Have a nice day everyone. Time for me to go and smoke my pipe by the fire.
Cheers
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