AirTran Airways and travel technology supplier AgentWare today announced the low-fare carrier soon would provide fares directly to the latter's travel agency clients. This is the second direct-connect announcement this month for AirTran, following news of its partnership with Outtask
(BTN, Aug. 16).
AgentWare said the agreement would provide access to AirTran's fares, including corporate fares, "that may not be available via traditional distribution channels." It also would enable AgentWare's agency clients to reserve AirTran tickets without having to immediately input credit card information.
AgentWare said the direct connect within a few weeks would be up and running for such "high-volume" data services clients as GetThere and BTI Canada. It is expected to take a few additional weeks to "work out the bugs" for small and midsize agencies relying on the AgentWare user interface through the Trip Console and WebPoint low-fare search tools, according to director of product marketing Tim Porter.
"The direct connection is a much more stable connection that allows for more functionality," said AgentWare president and CEO Ivan Bekkers, speaking yesterday with
Business Travel News. He noted, for example, that some Internet booking sites do not accommodate refunds and exchanges. Bekkers also said direct connections help airlines save bandwidth while providing agencies a potential source of revenue.
"Many airlines are paying commissions to book in the direct channel," Bekkers explained. "If an agent is given a choice of booking commissionable segments in that manner or noncommissionable segments in the GDS, the equation seems to work in our favor." AirTran, for example, currently pays a 5 percent commission to agents who complete bookings through airtran.com.
AgentWare previously constructed a direct connection with Canadian low-fare carrier CanJet and is eyeing additional partnerships. "Any airline currently not endeavoring into new distribution channels is not maximizing the opportunity," Bekkers said.
Porter added that the agreement with AirTran, dating to late last year, has been a collaborative effort. "They have had to do development on their side as well," he said. "With a direct connect, you cannot just hand an airline something and expect it to work."
"Direct connects are the way to go," said AirTran director of sales Bill Howard. "We have not signed any [discount-for-content agreements] with any GDS and continue to put better content on the Web. We have to drive down the cost out of distribution, and if you can have more volume through a lower-cost channel, it is a no-brainer."
Howard said AirTran passes savings generated by avoiding GDS segment fees onto corporate clients by way of lower fares. AirTran currently participates in all four primary GDSs. Howard would not comment on potential changes to those relationships.