Sita-Oracle, GDSs And CRSs

Regarding Oracle helping Sita remake its res system, today I must be in total senility! Why on Earth do we need what sounds to me like another global distribution system, except that Sita's airline members/owners will be able to adopt it for all traveler processing? Orbitz was an online agency put together by airlines in order to reduce their exposure to diversion of revenue and patronage to independent online agencies. I guess that airlines are no longer controlling Orbitz or influencing its operations. That suggests a likely failure of this concept. [more]

All processes in this crazy business are really much simpler than anyone lets them be. If you have a profile and a credit card, make a reservation, then slide that credit card through a reader at departure gate, you should be able to board.and take your assigned seat. If you have any luggage to check, same thing, just slide that handy old plastic.  If you decide not to go, you can claim a refund--if one is possible--by advising your agent or airline online.

Relating reports to profiles and/or card account numbers is a standard that needs improvement in report generation. I am under the impression that Sita is no longer a major player in reservations communications but I may be wrong. They do have a great data bank from which to provide research and international data summaries.

GDSs can sell other services to their subscribers, but those services will always be data-based and of value mainly to suppliers, agencies and/or customers. Interfaces are not really needed to perform airline or other supplier functions. I should think that many off-the-shelf products are already available to new airlines.

GDS suppliers seem to think they are entitled to a piece of the revenue because they are part of airline distribution, and therefore crucial marketing tools for airlines. Their original role as CRSs was to process airline communications between their own reservations agents and inventory, then between reservations and dynamic manifests for segments booked. Airlines--principally AA and UA--got into CRS wars in order to gain and preserve travel agent market share through biased displays, but the Civil Aviation Board took that game away. 

Airlines made a mistake, in my opinion, by charging agencies segment fees. This attracted investment because CRS/GDS entities were making lots of money on much data traffic that they didn’t control nor even induce. Airline owners raked it all in, then, again in my opinion, foolishly spun their businesses off. Now, Amadeus and Sabre are far more profitable than their previous airline owners. For other than those two companies, who have expanded their data management roles to provide valuable services to their customers, I suspect prospects may be a bit bleak.