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Sabre shifts terms: GDS reduces agency incentives in return for access to full airline content.

Article Excerpt
Redefining relationships with U.S.-based travel management companies, Sabre Travel Network this month introduced an optional fee-based program that gives its global distribution subscribers access to full airfare content and immunity from airline service charges. So far, the other GDSs have not announced specific plans for how they will handle travel management company relationships in light of newly forged airline deals, but sources said Sabre's move is the bellwether of new dynamics between GDSs and corporate travel agencies and likely would lead to additional expenses for corporate travel buyers.

The GDS said it plans to launch the new model on Aug. 1. Agency sources said that to opt in they would sacrifice about 80 cents in incentives per segment. One TMC executive said, "Someone's going to lose 80 cents, or someone's going to pay 80 cents more." The new agency terms offset recent deals through which the GDSs gave up several dollars per segment to airlines.

Although Sabre would not disclose the new agency payment terms--Sabre CEO Sam Gilliland said they would be "opaque," as they have been with the airlines--Sabre Travel Network senior vice president of North America Chris Kroeger told BTN that travel management companies in effect will pay Sabre to leverage full content, but still receive incentives, albeit shrinking ones, from the GDS. "Sabre-connected agencies that elect not to participate will not have assurance of access to full content," Kroeger said.

"It does not put an end to incentives," Kroeger said. "We've been very open as we've...

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