Cutting GDS costs

After months of wrangling, SAS has finally presuaded Amadeus to lower its distribution costs in exchange for full access to all SAS fares. The Scandinavian carrier has been a vehement critic of the Global Distribution System (GDS) model whereby travel agents receive several dollars per ticket in kickbacks to book with a particular GDS.

The carrier calls the scheme agreed with Amadeus a “step in the right direction”, and is in talks with the other GDSs about similar deals.

This might only be one deal, and involve only one carrier, but could signal the beginning of the end for what airlines describe as the “broken” GDS model.

2 Responses to Cutting GDS costs

  1. John Smith 21 December, 2008 at 4:28 am #

    Please tell me which GDS is better? Amadeus, Sebra, and Galelio. My friend who work at use Worldspan

    I am looking for GDs for my travel agency in Edmonton

  2. Mark Pilling 22 December, 2008 at 7:15 pm #

    Hello John, thank you for your comment. I can’t answer your question as I don’t have this kind of knowledge about the Canadian market.
    Each GDS has strengths and weaknesses in different regions. Perhaps talk to each of them and see what they say and what deals they offer. Also talk to other agents – I am sure they will give you a steer of sorts as well.
    The three main GDSs are:
    Sabre, and
    Travelport (ex-Galileo and it also acquired Worldspan).

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