Corporate Travel World: Continental's Smisek Details Worldspan Pact, Distribution's Future
Continental Airlines and Worldspan yesterday signed a five-year distribution pact, giving the global distribution system access to the carrier’s published fares, including those sold through Continental’s Web site, third-party sites and other distribution channels. Continental expects the agreement to take hold this summer.
Continental president Jeff Smisek this morning would not disclose the terms of the deal, but said the carrier, like many majors, is trying to get distribution costs down from the $11-to-$14 per-ticket range typically paid to GDSs. Smisek said the carrier continues to work with other distribution providers to forge new contract terms. “We are optimistic that the market is becoming more competitive,” he told Business Travel News. “We want to be in every GDS and there is momentum building for a more rational model of GDS fees.”
This morning, during a keynote address to buyers and suppliers assembled in New York for BTN’s 22nd annual Corporate Travel World conference, Smisek said Continental also is working with its alliance partners to create a new distribution channel and booking portal for corporate travel managers, which should be available by the third quarter of this year. Smisek also proposed a change to the relationship model between travel management companies, airlines and GDSs, suggesting that TMCs pay GDSs for content and airlines kick back fees to agencies.
As some carriers have forged new contracts with the GDSs, and many others work toward renegotiating contracts that expire this year, Trip Davis, president and CEO of TRX, during a Corporate Travel World panel on distribution this morning said, “You will likely see all the major carriers have a relationship with all the GDSs, but there will be some different flavors out there.”
Ken Esterow, president and CEO of travel industry services for Cendant Travel Distribution Services agreed. “It won’t be a one-size-fits-all, but we feel good about where we are.”