As a part of its cost-cutting and turnaround plan, Jet Airways has changed its ticket distribution strategy. The debt-laden airline has ended partnership with one of the largest global air ticket reservation data provider and Global Distribution System (GDS) company, Amadeus.
Now the airline’s tickets will be only available via Sabre and Travelport. The move will be effective from April 1, 2019. However, travel agents said the move will impact passengers, travel agents and the airlines as well.
Amadeus, Sabre and Travelport are among the largest GDS network providers in the world. Full-service airlines like Jet Airways, Vistara and Air India distribute their content and ticket inventory via GDS provider. Travel agents subscribe to these network providers to search and raise their tickets. These companies charge the airline a fee for their service, which is a fixed cost that every airline has to bare since an airline cannot practically reach every travel agent across the globe.
In response to BusinessLine’s query, Jet Airways said that this move was a part of their turnaround plan. “Jet Airways will be implementing the Rich Content and Branding and Branded Fares products from Travelport and Sabre respectively, which will enable the airline’s Travel partners to visualize and sell Jet Airways’ products, services, as well as ancillaries, seamlessly to our guests.”
An industry expert said that this move could mean that the airline can lose business from travel agents that subscribe to only Amedues. He added, “ If the airline was to lose 10 per cent of their bookings but it reduces your cost by 15 per cent, they can still save 5 per cent.”
03/02/19 Forum Gandhi/Business Line
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Now the airline’s tickets will be only available via Sabre and Travelport. The move will be effective from April 1, 2019. However, travel agents said the move will impact passengers, travel agents and the airlines as well.
Amadeus, Sabre and Travelport are among the largest GDS network providers in the world. Full-service airlines like Jet Airways, Vistara and Air India distribute their content and ticket inventory via GDS provider. Travel agents subscribe to these network providers to search and raise their tickets. These companies charge the airline a fee for their service, which is a fixed cost that every airline has to bare since an airline cannot practically reach every travel agent across the globe.
In response to BusinessLine’s query, Jet Airways said that this move was a part of their turnaround plan. “Jet Airways will be implementing the Rich Content and Branding and Branded Fares products from Travelport and Sabre respectively, which will enable the airline’s Travel partners to visualize and sell Jet Airways’ products, services, as well as ancillaries, seamlessly to our guests.”
An industry expert said that this move could mean that the airline can lose business from travel agents that subscribe to only Amedues. He added, “ If the airline was to lose 10 per cent of their bookings but it reduces your cost by 15 per cent, they can still save 5 per cent.”
03/02/19 Forum Gandhi/Business Line
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