G2 SwitchWorks Corp., a Chicago-based travel technology firm, today announced it has signed letters of intent with a handful of airlines to build a new, low-cost distribution network. The company's proposed model, dubbed TrueConnect, would allow airlines to distribute content to travel agencies and other sellers at "a fraction of the cost" associated with current global distribution systems. Existing GDS costs prompted Northwest Airlines yesterday to apply new ticketing fees, triggering a battle with The Sabre Travel Network
(BTNonline, Aug. 25), which operates the largest GDS in the domestic market.
Northwest, along with Alaska, Continental, Delta, United and US Airways, signed the letters of intent. American Airlines is the largest carrier not identified as an initial participant. G2 vice president of business development Ellen Lee told
BTN that one additional participating carrier requested anonymity.
G2 CEO Alex Zoghlin, an original architect of Orbitz, said the new solution "is both lower in price and more robust in agency features than existing global distribution systems." The company added that its new technologies "slash agency customer servicing and support costs by dramatically increasing their productivity on all transactions, regardless of source."
Among those technologies are a transaction switching service and "super PNR" functionality, enabling agencies to control content and properly direct transactions into the most suitable fulfillment process.
Zoghlin said G2 "is a complement to a supplier's direct distribution strategy" and fosters customized relationships between suppliers and distributors.
Specifically, G2 claimed TrueConnect when launched would offer "unbiased shopping capabilities for over 450 airlines" by using ITA Software technology, extensive private faring capabilities, airline reservations services, interline electronic ticketing and complete integration with travel agency mid-office and back-office systems. The company said "high-volume" agency partners would benefit from "no-cost integration."
The privately owned company said it does not operate a travel agency and therefore will not compete with agency customers, a thinly veiled knock on those GDS companies that also offer travel agency services. It also touted that all data is kept private, as opposed to GDS data that is sold in the form of marketing information data transfer products.
"Testing will begin shortly," said Lee this morning, adding that G2 will not disclose the launch timeframe. "The timing of today's announcement has no correlation to Northwest's announcement yesterday."
Lee said the company plans to have "active discussions" with potential travel agency clients, but would not comment as to whether any agencies already are involved in development.
John Slater, Continental managing director of distribution and e-commerce, in a statement said TrueConnect removes distribution costs, "rather than simply shifting existing distribution costs between the airline and the agency," which is the strategy Northwest announced yesterday.
"The cost of existing distribution avenues is hard to justify in a low-fare marketplace," added Steve Jarvis, Alaska Airlines vice president of e-commerce and distribution. "G2 can provide Alaska a way to continue participation in all segments of our business but in a cost-effective way."
Travel managers have been watching distribution developments following the recent expiration of federal regulations governing GDSs. Some said they are seeking new models that more efficiently aggregate supplier content relevant to their companies' managed travel programs
(BTN, Aug. 16).