Posted January 20, 2011

Sabre vs Direct Connect – The Iliad And The Odyssey

Oops! That's been done already. I meant to use this title:

Sabre vs Direct Connect - The Absurdity And The Irony

"The Absurdity" Scene I: Sabre seems to have clearly drawn a line in the sand concerning who its customer is: the travel agency. In a number of recent media statements, Sabre clearly stated that the customer base it intends to "protect from direct connect" is defined as its travel agency subscribers. I use the term subscribers, since that is what most global distribution systems officially call the travel agencies that use their respective systems. Yet as subscribers, (or customers), these agency businesses do not actually pay for the GDS services.

Yes, those same GDS services being touted by pundits far and wide as one of the most valuable services provided to the travel industry are not even being paid for by consumers of those services, the travel agency subscribers.

Now I am a "subscriber" to the Wall Street Journal and to Netflix. Today I actually pay both of these companies to use their services...silly me. I have recently written to both of these companies to inform them that I will no longer be paying for their services and that if they expect me to continue to use their services they need to begin paying me.

Oh, The Absurdity!

 

"The Absurdity" Scene II: I recently read an OpEd in The Beat by the former CEO of Air Canada, Montie Brewer, where he stated, "I get a kick each time I hear any of the GDSs say they are looking out for their customer, the travel agents. Where I come from, the customer is the one who pays you for your services. In this case the airlines are paying for the service, not the travel agents." I suppose Montie also thinks those people that choose to pay Air Canada money to ride on their planes are customers too.

Oh, The Absurdity!

"The Absurdity" Scene III: (Pay close attention to this scene because it is hard to follow and actually may give you a headache.):

Sabre recently announced that it implemented a "display bias" on all American Airlines flights in the Sabre system, making it much more difficult for Sabre's travel agency customers to service travel buyers that want to utilize American Airlines. In other words, Sabre made life much more difficult for travel agencies to meet the needs of their end-customers, i.e. the corporations or individual travelers who pay for travel services delivered by the agency. Sabre's justification for this action was outlined in a letter to Sabre agency subscribers that started out by stating "This is to notify you that Sabre has taken a set of actions to protect what you have told us is important to you." The letter went on to say, "We understand that some customers may have concerns regarding the potential impact of these actions on their operations. I want to assure you we decided to take these actions only after very careful consideration of the negative impacts AA's plans would have on your business and ours..."

To recap: Sabre, in its attempt to punish its paying customer, American Airlines, elected to, by its own admission, make it more difficult for its subscriber customers that Sabre says it is fighting for (the travel agency), to do their day to day business and make money from the actual people buying travel - the corporations and travelers.

Oh, The Absurdity!

INTERMISSION (You have earned it if you made it this far.)

"The Irony" Final Scene: American Airlines filed a lawsuit and won a TRO (Temporary Restraining Order) against Sabre for implementing the American Airlines "display bias," which if you remember from Scene III, made it harder for Sabre's identified customer, the travel agency, to do its business and make money. The court-issued order compelled Sabre to return its display of American Airlines to its normal "pre-biased" display. This action was applauded by many of Sabre's identified subscribers (the travel agencies), because it allowed them to better serve their customers and make more money.

So, as the curtain closes, we find ourselves in the very awkward position of coming to the conclusion that it is actually American Airlines, rather than Sabre, that has the best interest of the travel agency customer in mind, and it is American Airlines, in fact, that has taken extreme and costly measures to ensure that Sabre travel agency customers are best served.

Wow, The Irony!

Posted by: Jim Davidson | More by Jim Davidson

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