After
The Beat last week reported that some airline distribution execs were talking about creating a new standards body,
Tnooz on Monday posted a similar item by Dennis Schaal. Today, he
published quite a few more details including the apparent name of the group, OpenAxis; its plans to use Farelogix XML schema to focus on merchandising; pricing for participation; and its employment of Open Travel Alliance founder and former airline and hotel distribution exec Jim Young as "agent" and potential executive director. After the story in
The Beat, we received feedback from folks concerned that such a body would fragment the standards business, including International Air Transport Association manager for ticketing and reservations standards Mike Irons.
IATA director general Giovanni Bisignani today once again took the occasion of the group's annual general meeting to lash out against global distribution systems.
Two years ago, he suggested airlines are "held hostage to GDSs."
Last June in Kuala Lumpur, he said that airlines "cannot accept" $4 per transaction fees charged by "Western" GDSs. Today in Berlin, it was clear that his language had become more colorful and combative.
It appears we're moving in the right direction as far as recovery for business and meetings travel. I was very encouraged by the International Air Transport Association (IATA) report of some positive figures on airline traffic. IATA reported a growth pace that, barring any global catastrophic event, will soon bring passenger volumes back to what they were before the recession!
The International Air transport Association announced new services to help airlines reduce costs and risks associated with credit card operations. Worthy goals, but does anyone really think credit card companies will lower their rates simply because IATA asks?
IATA previously has cried out against GDS fees, saying it "cannot accept" $4 per transaction and demanding GDSs cut fees to something closer to 50 cents. How well did that go over?
Today at IATA's Annual General Meeting in Kuala Lumpur, the group's director general Giovanni Bisignani lashed out at just about everyone. Based on his speech (posted
here), the message seemed pretty simple: the global airline industry is in a tailspin, and if you are not helping us in the way we deem most appropriate, then you are part of the problem. He attacked governments for their policies on taxation and "archaic" ownership rules that hinder access to capital. He attacked several airport operators and air traffic control entities for daring to raise user fees, calling such decisions "nonsense." And he implored "all suppliers and manufacturers" to "reshape their products to reduce their costs and ours ... Governments and partners must understand that we are struggling to survive with a new and harsh reality."
He also warned travel agents that "the clock cannot be turned back. Travel is more accessible than ever in price and purchase options. To survive in the global online market you need to reshape your services and your business models to provide greater value that travelers are willing to pay for."
Kind of vague but not wrong on its face. But what about when he turned to the global distribution systems? "We cannot accept that those in the West charge around $4 per transaction when China TravelSky does the same job for $0.50. This must change," said Bisignani. Hmmm.
For many years debate has raged concerning the correct construction and use of international airline fares. The argument is all about interpretation and clever manipulation of rules which can result in travellers and their employers enjoying major savings if their agent is smart enough to know the "loopholes." Such intelligence was, and still should be, a key differentiator between savvy and average TMCs.
