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Article Excerpt
The blurring of lines between corporate travel distributors is well underway, with all three U.S. global distribution system providers in varying stages of offering what traditionally would be a travel agency service, and the largest agencies continuing to develop technology independent of the GDSs.
Talk of this channel clash has been sparse given the delicacies of these vendors' relationships with one another, characterized by a large degree of mutual dependence amid a recognition that as supplier revenue dries up, both need to serve buyers. The silence, however, is coming to an end as GDS companies begin elaborating on their fulfillment options and agencies further market the benefits of their independent technology platforms.
A new corporate travel fulfillment offering, including the mid-office tools to enable it, is a significant component of a realignment at Galileo International, to be announced today, which positions its Highwire self-booking subsidiary within a broader company known as Travelport. "The complexity of travel has grown so much that buyers are asking us to keep it simple," said Highwire Corporate Services president Marka Jenkins. "So, delivering all the needs with one source is key."
Jenkins acknowledged the influence of Expedia and Orbitz in driving the convergence of varying distribution services at a lower overall price from a single vendor. Despite "channel conflict," Jenkins said Travelport continues to support the hybrid model in which it partners with an agency to serve a client.
"A strong agency partnered with a tech company will provide the best service, and anything we offer to corporate customers, we will offer to preferred Galileo agency partners," she said. "Yet, we're seeing...
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