GetThere, E-Travel Push Bypass

<B>GetThere, E-Travel Push Bypass</B>

By Jay Campbell

Two major booking systems, GetThere and E-Travel, last month expanded on their efforts to bypass the global distribution systems by building direct connections between corporations and travel suppliers.

While questioning the value of those links to buyers, Sabre alluded to plans for cutting suppliers' global distribution systems costs.

GetThere.com signed 13 suppliers to be part of a new GetThere Supplier Network that will begin phasing in direct connections for its corporate customers in late summer. Supplier participants, which a spokesman said had signed in "a couple of weeks," include: Accor Hotels, Avis Rent a Car, British Airways, Budget Rent a Car, Candlewood Hotels, The Hertz Corp., Marriott International, Micros Fidelio & Hotel Bank, Northwest Airlines, Radisson Hotels and Resorts, Starwood Hotels and Resorts, TWA and United Airlines.

GetThere chief financial and operating officer Ken Pelowski said these suppliers represent just under half of GetThere's existing transactions, and "We're talking to virtually everyone else. We'll go first into production at the end of the summer, and every quarter we'll do two to four direct connections."

He said GetThere's revenues per transaction will increase 30 percent because the company will charge suppliers $3 per direct booking. Since $3 is less than what suppliers typically pay GDSs, airlines and other suppliers would negotiate with buyers to share in the savings.

"If the average cost is $15 with a GDS, that goes away and we charge a transaction fee of $3 and there's $12 a ticket left," said Pelowski. "How much of that $12 is given to the supplier and to the customer will be dictated by market pricing."

GetThere said it would leverage open standards, such as XML, to link directly made bookings with those made in a GDS as part of a "SuperPNR," a name GetThere trademarked. The company reported "a successful implementation" of the SuperPNR for the America West Airlines Web site.

The development "unlocks potential capabilities never before available for corporate travel procurement, including special pricing and inventory capabilities, automated RFP/RFQ, direct billing and settlement and community services for corporate travel buyers," GetThere said.

An E-Travel spokesman claimed GetThere's offering will not produce integrated, direct links until the end of the year, while E-Travel "has had direct links in operation for nearly 12 months in which a traveler can seamlessly review all options, including GDS and direct link supplier options, all in one screen, and also book all segments of the trip into a single passenger name record."

E-Travel announced on May 15 that Delta Air Lines would participate in its direct links program, with operations beginning no later than the fall of this year.

Sabre BTS vice president and general manager Scott Smith said that while, "Our affiliation with Sabre does not create any constraints" in terms of direct connections, "I challenge observers of this topic to query corporations and find some that are saying, 'Yes, we're seeing how this will lead to economic benefit to us.' Suppliers are the ones I see as having all the benefit of the SuperPNR."

Further, he said, "If you put yourself in the position of GDSs and they're still being used for fare shopping and profiles, etc., but not getting the booking fee, they'll just change their pricing," he said. Still, Sabre is "looking at a structure that will allow suppliers and buyers to unbundle the transaction."

Sabre is considering ways to allow buyers to use the GDS only "to drive the ticket," or for suppliers to "make inventory available for sale and it will be extremely cost-effective." Sabre also is talking to major airlines about a cheaper "lesser participation" level.