Sabre Travel Network and AirTran Airways today announced a new five-year agreement in which the carrier commits to providing all fares and inventory through the Sabre global distribution system and Travelocity. AirTran is the largest U.S. low-cost carrier to enter into such an agreement with a GDS provider since the U.S. Department of Transportation deregulated the GDS sector in 2004
(BTN, Aug. 1).
"As our airline evolves, the channels of distribution must also evolve," said Kevin Healy, AirTran vice president of planning. "Distributing through multiple Sabre Holdings channels lets us conveniently serve our customers--both business and leisure flyers--and maintain our low-cost structure."
Financial terms were not disclosed. Similar full-content deals negotiated in 2002 and 2003 between major carriers and GDSs--still in force--generally include GDS segment fee discount percentages in the mid-teens.
"This agreement will expand AirTran's ability to take advantage of the Sabre GDS to deliver high-yield and incremental sales," said Hugh Jones, COO of Sabre Travel Network.
Some, but not all, AirTran inventory previously was available to corporate clients and their travel management companies through the Sabre GDS, as well as GDS systems operated by other companies. AirTran at press time was not available to clarify the status of its relationships with GDS operators Amadeus, Cendant and Worldspan.
AirTran also has cultivated direct links through the likes of AgentWare, G2 SwitchWorks and Outtask.
While AirTran joins major network carriers in providing complete content to Sabre, the new agreement is a departure from distribution strategies now in place at other significant low-cost carriers. Southwest Airlines, for example, participates in Sabre at a lower level, enabling it to offer exclusive content directly through its Web site. JetBlue Airways does not participate in any GDS, after pulling out of the Sabre system on Jan. 1
(BTNonline, Dec. 10, 2004).