Galileo International today matched Sabre
(BTNOnline, Oct. 21) by participating in US Airways' concept for lowering GDS fees and providing nearly all content in the GDS. The deal means US Airways will pay Galileo, as it does Sabre, roughly 10 percent lower GDS segment fees in return for listing in the GDS all but "opaque" fares for which the carrier name is not identified. The airline also commits to offering these GDSs parity with other distributors on a number of additional sales and marketing programs.
Meanwhile, Amadeus and Worldspan--as well as American and Northwest airlines--indicated they have no interest at the moment in such a model. Mega travel agencies American Express, Carlson Wagonlit Travel, Rosenbluth International and WorldTravel BTI each issued statements supporting the model--as did the National Business Travel Association and the American Society of Travel Agents.
"This option addresses airlines' interest in lowering costs and increasing volume, and our interest in restoring valuable inventory to travel agencies to provide consumers greater, unrestricted choice," said Sam Galeotos, president and CEO of Galileo International and head of Cendant's travel distribution services division.
"I expect additional, more supplier-friendly models to emerge," said Al Lenza, Northwest vice president of distribution planning, citing Northwest's new direct connection with Orbitz that saves the carrier $1 per segment.