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PPT : Travel Market Changing

Growth of Low Cost Carrier Concept
* Ever growing list of Low-Cost Carriers in Europe
* Full-service airlines adopting the LC model
* All carriers trying to sell more and more directly to the consumer
* Direct connect considered to be more cost effective, (true or false?)

Impact on the Travel Agent –Dramatic!
* Commission reductions (7% -5%-1%- Zero?)
* Service fees as a replacement revenue stream
* How many travel agents will survive?
* Those who do must embrace technology in order to be more productive
* Using Customer Relationship Management
* Finding niche markets

Impact on the GDS –Dramatic!
* Shrinking market due to channel shift
* New role of travel solution provider
* Forcing a change in the GDS/Travel Agent/Airline relationship
* Reducing revenues and lower margins
* FA arrangements not sustainable in the future

GDS Market Shrinking
* Holland down 18%
* UK down 12%
* Germany down 10%
* Italy up 6%
* Spain up 17%

Where does the consumer stand and what are his/her needs in a so called Book Direct Market?
* Widest choice possible
* Price guarantee
* Ease of booking
* Dynamic packaging
* Servicing and sales support
* Can this be provided through a single supplier website?

Content – What we provide
* 35m fares
* Private Fares now 50%+
* 6220 formulae
* 47.000 travel agency locations
* 493 Airlines
* 52.000 hotel properties
* 292m bookings LY
Technology – Direct Connects

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