11 Sep Airline Full Content Agreement
Prior to 2015, this approach, combined with a reduction in booking alternatives, generally led airlines and gds to reach an agreement to keep all their content in the GDS. Over time, low-cost carriers (LCCs), which are generally not subject to the same types of agreements, have been able to gain market share with low anticipated prices for passengers and then generate higher revenue per passenger through ancillary sales. Older airlines wanted the freedom to do the same. Legacy`s airlines invested heavily in product differentiation and wanted the ability to showcase them on third-party channels, typically through GDS. American Airlines vs Sabre. The lawsuit was initiated by American Airlines and US Airways to convince a jury that Sabre is violating U.S. antitrust law. The airlines sought compensation for financial losses related to the full content agreement, which GDS requires airlines to sign. Under the agreement, carriers were required to publish their entire inventory through GDS. The lawsuit, which lasted more than 6 years, led Sabre to pay $5 million in compensation.
The case has attracted the attention of industry representatives. The jury found the Full Content Agreement illegal, but the compensation did not even cover 1 percent of American Airline`s losses. The New Distribution Capability should allow airlines to bypass GDS. The current state of the sector clearly shows that from 2019, GDS will likely remain the oligopoly when it comes to the introduction of NDC. As airlines will continue to be able to market their additional services via NDC pipelines, they appear to have achieved their targets. But the question now is more transparency, as the question is whether NDC SDS aggregators allow carriers to reach their customers directly. For Concur Travel customers whose travelers need LHG content, SAP Concur recommends talking to their TMC to find out which GDS uses for their company`s bookings. Companies should explore the different benefits of each option so that they can understand the best fit for their program.
In both cases, business travelers can receive their relevant negotiated fares, full airline content (including Business Saver and Economy Light fares) and continuous prices. In addition, business travelers can continue to fulfill their missions under a managed travel program. To be able to sell tools to passengers and be more profitable, airlines are struggling to provide personalized content to their travelers. Since it is almost impossible to get in touch with the end user through the channels provided by global distribution systems (or GDS), a new standard has emerged to solve the problem. TMCs are the main customers of the distribution of SDS companies. The TMC wants to be able to make all relevant content available to its customers efficiently and at a lower cost. For most CMTs, these new opportunities to obtain content outside of the SCM represent costly investments and disruptions in existing workflows and processes, although it is unclear who will fund the investments and ensure consistency across airlines. TMCs generally don`t want to develop a series of single routes with any airline or even routes with other sources outside the GDS, but they desperately want access to comprehensive airline content….