Business Travel News
Business Travel News
  • SECTIONSOpen Menu
    • Transportation
    • Lodging
    • Payment & Expense
    • Technology
    • Distribution
    • Meetings
    • Global
    • Management
    • Travel Procurement
    • New! Sustainability
    • Recent Issues
  • VOICESOpen Menu
    • Expert Q&A
    • OpEds
    • Sponsored Content
    • Podcasts
    • What to Watch 2023
  • RESEARCHOpen Menu
    • BTN's 2022 Essential OBT Guide
    • Corporate Travel 100
    • Corporate Travel Index
    • Expense Manager Report
    • Small & Midsize Enterprise
    • Salary Survey
    • Strategic Meetings Report
    • VIEW ALL
  • WEBINARSOpen Menu
    • View All Webinars
  • EVENTSOpen Menu
    • Webinars
    • Business Travel Hall of Fame
    • Business Travel Intelligence Summit
    • Business Travel Lodging Summit
    • Business Travel Show
    • Business Travel Tech Talk
    • Business Travel Trends Forecasts
    • DEI Symposium Series
    • Entertainment Travel Summit
    • Global Travel Risk Summit
    • Government Travel Summit
    • Innovate
    • Strategic Meetings Summit
    • Sustainable Business Travel Summit
    • VIEW ALL EVENTS
  • RESOURCESOpen Menu
    • Business Travel Buyer's Handbook
    • Business Travel Buyer's Techbook
    • Corporate Travel Index Calculator
    • Data Sources: The Reference Guide
    • White Papers & Case Studies
    • Influencers
    • Webinars
    • Hotel Search
  • SECTIONSOpen Menu
    • Transportation
    • Lodging
    • Payment & Expense
    • Technology
    • Distribution
    • Meetings
    • Global
    • Management
    • Travel Procurement
    • New! Sustainability
    • Recent Issues
  • VOICESOpen Menu
    • Expert Q&A
    • OpEds
    • Sponsored Content
    • Podcasts
    • What to Watch 2023
  • RESEARCHOpen Menu
    • BTN's 2022 Essential OBT Guide
    • Corporate Travel 100
    • Corporate Travel Index
    • Expense Manager Report
    • Small & Midsize Enterprise
    • Salary Survey
    • Strategic Meetings Report
    • VIEW ALL
  • WEBINARSOpen Menu
    • View All Webinars
  • EVENTSOpen Menu
    • Webinars
    • Business Travel Hall of Fame
    • Business Travel Intelligence Summit
    • Business Travel Lodging Summit
    • Business Travel Show
    • Business Travel Tech Talk
    • Business Travel Trends Forecasts
    • DEI Symposium Series
    • Entertainment Travel Summit
    • Global Travel Risk Summit
    • Government Travel Summit
    • Innovate
    • Strategic Meetings Summit
    • Sustainable Business Travel Summit
    • VIEW ALL EVENTS
  • RESOURCESOpen Menu
    • Business Travel Buyer's Handbook
    • Business Travel Buyer's Techbook
    • Corporate Travel Index Calculator
    • Data Sources: The Reference Guide
    • White Papers & Case Studies
    • Influencers
    • Webinars
    • Hotel Search
Business Travel News
  • Business Travel News on Twitter
  • Business Travel News on LinkedIn
  • Business Travel News on Facebook
  • SECTIONS
    • Transportation
    • Lodging
    • Payment & Expense
    • Technology
    • Distribution
    • Meetings
    • Global
    • Management
    • Travel Procurement
    • New! Sustainability
    • Recent Issues
    Subscribe to NewslettersNew! BTN SustainabilityBTN DailyBTN GlobalBTN Travel ManagementTravel Procurement
    Subscribe to Print IssuesBusiness Travel NewsTravel Procurement
  • VOICES
    • Expert Q&A
    • OpEds
    • Sponsored Content
    • Podcasts
    • What to Watch 2023
    Extend Focuses on Data Insights Following Quick GrowthExtend Focuses on Data Insights Following Quick Growth
    Choice Targets Corp. Travel, Delves Further into Extended StayChoice Targets Corp. Travel, Delves Further into Extended Stay
    Larry CuculicBest Western CEO Looks to Corp. Travel to Buttress Growth
  • RESEARCH
    • BTN's 2022 Essential OBT Guide
    • Corporate Travel 100
    • Corporate Travel Index
    • Expense Manager Report
    • Small & Midsize Enterprise
    • Salary Survey
    • Strategic Meetings Report
    • VIEW ALL
    Annual Supplier Ratings• Car Rental Survey & Report• Hotel Survey & Report• Airline Survey & Report
    Special Reports• The Future of Meetings• The Mechanics of Sustainble Business Travel
  • WEBINARS
    • View All Webinars
    TMC Reboot

    Fri., April 14 at 1 PM ET / 10 AM PT
    Sponsored in part by: CWT

    Analytics, Sustainability and Traveler Safety: Shaping the Future of Corporate Travel

    Thurs., Dec. 8 at 1pm ET / 10am PT
    Sponsored By: Emburse

    The Future of Meetings

    Fri., Dec. 2 at 2 PM ET / 11 AM PT
    Sponsored by: American Express Meetings & Events, Cvent, Group360

  • EVENTS
    • Webinars
    • Business Travel Hall of Fame
    • Business Travel Intelligence Summit
    • Business Travel Lodging Summit
    • Business Travel Show
    • Business Travel Tech Talk
    • Business Travel Trends Forecasts
    • DEI Symposium Series
    • Entertainment Travel Summit
    • Global Travel Risk Summit
    • Government Travel Summit
    • Innovate
    • Strategic Meetings Summit
    • Sustainable Business Travel Summit
    • VIEW ALL EVENTS
    3rd Annual Travel Procurement Virtual Workshop Series

    Virtual Event Series - March/April 2022

    Business Travel Show Americas

    Virtual Event - April 20, 2023

    13th Annual Business Travel Tech Talk Chicago

    Loews O'Hare Hotel - May 1, 2023

    3rd Annual Business Travel Sustainability Summit Americas

    Convene One Liberty Plaza, NYC - May 8, 2023

  • RESOURCES
    • Business Travel Buyer's Handbook
    • Business Travel Buyer's Techbook
    • Corporate Travel Index Calculator
    • Data Sources: The Reference Guide
    • White Papers & Case Studies
    • Influencers
    • Webinars
    • Hotel Search
    BTN CTI Calculator

    Filter in or out as many as 200 cities, as well as hotel and car rental class and meals of the day and watch as the per-diem calculator automatically adjusts per diems to your program. Drill down into cost breakdowns and export the results.

  • Business Travel News Supplier DirectorySUPPLIER DIRECTORY

Airfare Disparities Remain In GDSs

By Jay Boehmer / September 21, 2008 / Contact Reporter
Share
Two years after the major global distribution system providers struck new deals with U.S.-based legacy airlines to deliver their "full content" to travel buyers, questions still swirl over whether content has been adequately defined and consistently delivered.

Audits conducted by Topaz International show wide fare disparity in content pulled from the four major global distribution systems. The audits in some cases show differentials between the lowest fares available on the same citypairs among various GDSs in excess of $200 on domestic fares and $1,000 on international fares.

The most recent audit, conducted earlier this year, examined 250 "typical business" citypairs with seven-day, 14-day and 21-day advance purchase options. Topaz CEO Brad Seitz said the firm strived for apples-to-apples comparisons—inputting the same citypair, booked at the same time with the same number of connections for the same schedule.

The prices, however, were not the same. Seitz said Sabre returned the lowest fare 74 percent of the time, with Worldspan at 71 percent, Amadeus at 62 percent and Galileo at 34 percent.

Seitz said all GDSs at one time or another have commissioned the firm to conduct audits, setting the criteria in some cases to demonstrate their shopping strengths, but data shared with BTN came from a Topaz-initiated audit of the four GDSs—independent and unfunded.

"Full content" gained prominence in the corporate travel lexicon in 2006 when the GDSs renegotiated content deals with airlines. The major legacy carriers promised full content to GDSs in return for a reduction in per-segment charges. GDSs made up the loss in revenue through opt-in programs that charged travel management companies—and therefore corporate customers—new booking fees.

"I ask the customers out there what they think full content means," Seitz said. "It's fairly simple, they say: It means everything is in there. On the other side of the fence, they're not really willing to put up a definition. That's what drove this whole thing. What bugs me, on behalf of travel managers, is when you're asked to pay for something, you hope you're getting what you're paying for. The GDSs put a cost on the agencies and the agencies basically passed the cost to the corporations and they're not necessarily getting what they want."

Several GDS and TMC executives said fare disparity among the major GDSs indicate variance in technological capabilities, rather than commercial agreements or varying definitions of "full content."

Sabre CEO Sam Gilliland said "there are some pricing and shopping systems that are better than others." He noted, "this is a complex business with fares that are changed on a daily basis. You are going to see differences in the capabilities of the systems and the algorithms they use to find the lowest fares. There may be occasions where fares that should be in a system aren't in all the systems."

President and CEO of Amadeus North America Kay Urban agreed that the fare disparity in competing GDSs "doesn't have anything to do with the agreements," rather "it has to do with the processing, how the technology is functioning, etc."

Executive vice president of technology at HRG North America Ted Brooks also said the disparity hinges more on capabilities than definitions or commercial agreements. "Most GDSs are getting feeds from the same sources. So most of the time it comes down to capability and what you are looking at in how many results it's returning and how it's constructed," Brooks said. "Typically, I don't see that this GDS has this fare and the other GDS has this one. It's more of a capability issue as to the fare construction or an issue around how they built the connection."

Still, a definition of "full content" has been elusive.

Sabre's Gilliland said "there is a lot of definition in the contracts that we have with the airlines as to what full content means." He said that includes "very specific terms that govern which types of fares that should be in the system." GDS executives would not get into the terms of the contracts or specify the language around full content. Major travel management companies also supplement fares with proprietary content and private fares negotiated with airlines. That means what Topaz sees in the public display may not be the same content corporate travel buyers gain through their TMC.

Andrew Winterton, senior vice president of global supplier relations for American Express Business Travel, said the GDSs have supplied more content than before the redrawn agreements in 2006. "It is very safe to say we have through the GDSs more content available to American Express now than previously," he said. He noted, however, American Express through its TravelBahn system chose to "have more control over our destiny by having our own distribution system model, which allows us to be complementary in adding content to our systems globally."

Carlson Wagonlit Travel executive vice president of global supplier management Mike Koetting said, "In our experience on the major carriers, we believe there is essentially full content. In a marketplace as broad and diverse as the travel industry, it's an unrealistic expectation to be able to put 100 percent of all content for all suppliers in one system. What we can expect and what we should strive for is to provide logical content for the business purpose of the travel consumer."

Several travel buyers during a Corporate Travel 100 benchmarking summit in New York this month said they feel comfortable with the level of content displayed through their channels. "It feels like we're getting full content. Sure, some of it doesn't get there, but it's negligible," one corporate travel buyer said.

Several TMCs agreed, noting that more important than "full content" is "relevant content." CWT's Koetting said, "The travel industry has more transparency in terms of price, content, availability and choice than any other industry on the planet. That it's not 100 percent complete doesn't make it less relevant or useful."

"The issue right now," HRG's Brooks said, "is if there is fragmentation or they commoditize the service that they offer, are we able to get the content that we need from the GDSs?"
—Seth Harris contributed to this report
More

Sponsored Content

VIEW ALL
Amazon Business: Working to Transform Hotel Procurement
Amazon Business: Working to Transform Hotel ProcurementBy Tanya Bennett, Commercial Sales Leader, Food Service & Hospitality, Amazon Business

Future hospitality industry trends are overwhelmingly positive, and while companies are reinvesting in construction and renovations to ensure their product remains competitive, they must simultaneously focus on transforming procurement. This is where technology—and technology partners like Amazon Business—become critical. KEEP READING

Delta’s Accelerated Sustainability Flight Plan
Delta’s Accelerated Sustainability Flight PlanBy Pam Fletcher, Chief Sustainability Officer – Delta Air Lines

At Delta, we see travel as a noble force for good – and the miracle of flight is helping us to better understand the far-reaching impacts of climate change.  KEEP READING

Subscribe to Our

Free Newsletters

pixel2

Click Here for our Terms and Conditions and Privacy Policy.

  • Most Read
  • Most Shared
  1. How ChatGPT will Transform Travel Management
  2. U.S. Carriers Detail Shifting Q1 Demand Trends
  3. Survey: Most Buyers Project Full Travel Recovery By Year-End
  4. BCD Decries 'Forcing Solutions' as AA Deadline Looms
  5. Southwest Chooses Sabre's Prism for Corporate Data Mgmt.
  1. How ChatGPT will Transform Travel Management
  2. Survey: Most Buyers Project Full Travel Recovery By Year-End
  3. Choice Targets Corp. Travel, Delves Further into Extended Stay
  4. American to Increase Transatlantic Summer Service
  5. Travelport Introduces New Retailing Interface for Agents
Business Travel NewsBusiness Travel News
  • About Us
  • Contact Us
  • Advertise
  • Editorial Calendar
  • Business Travel News on Twitter
  • Business Travel News on LinkedIn
  • Business Travel News on Facebook
BUSINESS TRAVEL NEWS
NORTHSTAR TRAVEL GROUP
Business Travel News
  • About Us
  • Contact Us
  • Advertise
  • Upload Print Ad Material
  • Purchase Reprints
  • Editorial Guidelines
  • Subscribe to BTN
  • Subscribe to Travel Procurement
  • Subscribe to Newsletters
  • BTN Europe
  • Privacy Policy
  • Terms & Conditions
Business Travel News
Business Travel News Travel Procurement The Beat
Northstar Travel Group
  • Retail Travel
  • Travel Weekly
  • Travel Weekly Asia
  • Travel Weekly China
  • TravelAge West
  • TravelPulse
  • TravelPulse Canada
  • TravelPulse Quebec

  • Hotel Investment
  • Burba Hotel Network

  • Travel Technology
  • Inntopia
  • Phocuswire
  • Phocuswright
  • Web In Travel
  • Meetings & Incentives
  • Northstar Meetings Group
  • Meetings & Conventions
  • Meetings & Conventions China
  • Meetings & Conventions Asia
  • Meeting News
  • Successful Meetings
  • Incentive
  • SportsTravel

  • Data Products
  • Agent Studio
  • AXUS Travel App
  • Intelliguide
  • travel42
Northstar Travel Group
Copyright ©2023 Northstar Travel Media LLC. All Rights Reserved. 301 Rte. 17N, Suite 1150, Rutherford, NJ 07070 USA | Telephone: (201) 902-2000
RRManagement rrtestprocurement