DrTrobridgeMSP
Topic Author
Posts: 7
Joined: Thu Nov 08, 2007 5:58 pm

GDS Consolidation Eminent or Logical?

Thu Nov 08, 2007 9:22 pm

In the mind-boggling world of GDS systems, it appears to me that consolidation is both eminent and logical. I believe that Travelport's acquisition of Worldspan is only the latest in a recent push towards possible GDS consolidation.

Without enraging those folks who firmly believe that Apollo, Sabre, Worldspan, (insert your fave GDS here...) is the greatest thing since sliced bread, who do you guys think should win out in the (seemingly) logical move towards standardization and consolidation in this industry?

Also, if the world were to move to, let's say, only two GDS systems competing against each other, what stakeholders would stand to win/lose the most? Think airlines, travel agents, airports or PAX, etc...not the GDS system companies themselves.

I figured I would not find a better forum to pose this question. I apologize in advance if this subject has been breached before.
 
acvitale
Posts: 1911
Joined: Sat Aug 18, 2001 8:25 am

RE: GDS Consolidation Eminent Or Logical?

Fri Nov 09, 2007 4:32 am

Merge Galileo into Worldspan (Worldspan Survives)

1S, 1V/1A, 1P survive
 
BigOrange
Posts: 2291
Joined: Tue Apr 13, 2004 2:20 am

RE: GDS Consolidation Eminent Or Logical?

Fri Nov 09, 2007 3:51 pm

Quoting ACVitale (Reply 1):
Merge Galileo into Worldspan

Already a done deal in the opposite direction.

I doubt there will be further consolidation in the industry segment as the other players are all too strong in their respective markets.

The trade is just waiting for a mid/back office system that can pull all the info. needed to create the necessary reports from an internet website. At that point GDS's will be history.
 
jmbweeboy
Posts: 146
Joined: Fri Feb 03, 2006 1:38 am

RE: GDS Consolidation Eminent Or Logical?

Fri Nov 09, 2007 3:53 pm

Quoting DrTrobridgeMSP (Thread starter):

You make no mention of Amadeus, smallest U.S. market share, largest GDS worldwide.

JMBWEEBOY
 
DrTrobridgeMSP
Topic Author
Posts: 7
Joined: Thu Nov 08, 2007 5:58 pm

RE: GDS Consolidation Eminent Or Logical?

Fri Nov 09, 2007 5:39 pm

Quoting JMBWEEBOY (Reply 3):
You make no mention of Amadeus, smallest U.S. market share, largest GDS worldwide.

True, but I did say "Insert your fave GDS here."

It just seems to me that there is no point in having all of these systems and that there is a TON of money to be made by consolidating them worldwide. Maybe I'm wrong.
 
BestWestern
Posts: 7192
Joined: Fri Sep 08, 2000 8:46 pm

RE: GDS Consolidation Eminent Or Logical?

Fri Nov 09, 2007 8:34 pm

Quoting DrTrobridgeMSP (Reply 4):
there is a TON of money to be made by consolidating them worldwide. Maybe I'm wrong.

Theres a ton of money to be saved... Overall revenues for the GDS's are static, or in decline...

Quoting BigOrange (Reply 2):
Quoting ACVitale (Reply 1):
Merge Galileo into Worldspan

Already a done deal in the opposite direction.

IMHO - Worldspan has better software to Galileo, but Amadeus is leagues ahead in Europe.
You are 100 times more likely to catch a cold on a flight than an average person!
 
BigOrange
Posts: 2291
Joined: Tue Apr 13, 2004 2:20 am

RE: GDS Consolidation Eminent Or Logical?

Fri Nov 09, 2007 8:50 pm

If it does end up being just two GDS's then I predict Amadeus will be the largest one in Europe with Sabre being the dominant one in the US.

Quoting BestWestern (Reply 5):
IMHO - Worldspan has better software to Galileo, but Amadeus is leagues ahead in Europe.

Worldspan has better software for some parts of the system i.e fares and ticketing but the overall system is the pits. I didn't think I would find anything worse than Amadeus to work with, but I found it with Worldspan.
 
777den
Posts: 50
Joined: Sun Dec 24, 2006 10:52 am

RE: GDS Consolidation Eminent Or Logical?

Fri Nov 09, 2007 10:42 pm

I suspect it may end up with one GDS per airline alliance group, so 3 GDS's in the end.
 
JGPH1A
Posts: 15080
Joined: Thu Aug 14, 2003 4:36 pm

RE: GDS Consolidation Eminent Or Logical?

Sat Nov 10, 2007 12:14 am

Quoting BigOrange (Reply 6):
didn't think I would find anything worse than Amadeus to work with, but I found it with Worldspan.

Finally !  Smile

Quoting 777DEN (Reply 7):

I suspect it may end up with one GDS per airline alliance group, so 3 GDS's in the end.

Unlikely. In the Alliance stakes, Amadeus is already winning hands down with all 3. 1A already host as Res or Full IT carriers (or has signed contracts to host)

Oneworld: BA, QF, IB, LA, MA, CX

Star Alliance: LH, SA)">UA, SA, SK, JK, KF, JP, OU, LO, OS, MS, BD, TG

Skyteam: AF, KL, RO, KQ, ME

Re consolidation, 1G and 1P will remain as Travelport's two cores, and 1V will be decomissioned when SA)">UA demigrate to 1A. 1S is still the biggest GDS in the US market, but hasn't been the biggest in the world for at least 5 years. 1A has been growing agency and airline market share steadily in all markets, even the US, and the imminent departure of 1V may leave a gap to fill.

It is unlikely that the competition authorities in the US or in Europe will countenance any further consolidation among the big 4, as it would inevitably lead to the combined entity having a massively dominant market share in either Europe or the US (or both).
Young and beautiful and thin and gorgeous AND BANNED ! Cya at airspaceonline.com, losers
 
RDUDDJI
Posts: 1717
Joined: Fri Jun 04, 2004 4:42 am

RE: GDS Consolidation Eminent Or Logical?

Sat Nov 10, 2007 12:20 am

Stupid question...what do all the 1A, 1V, etc. stand for?

UA's move to Am, keeps getting delayed due to all the specialized apps UA has in Apo.
Sometimes we don't realize the good times when we're in them
 
JGPH1A
Posts: 15080
Joined: Thu Aug 14, 2003 4:36 pm

RE: GDS Consolidation Eminent Or Logical?

Sat Nov 10, 2007 12:31 am

Quoting RDUDDJI (Reply 9):
UA's move to Am, keeps getting delayed due to all the specialized apps UA has in Apo.

It doesn't "keep getting delayed", as such. The planning is extremely complex and has to be done to minimize the impact on UA's business, as well as on the existing customer base on Amadeus. This will be the biggest migration so far onto Amadeus, it has to be done right. We don't want (God forbid) to have a USEast funtime spectacular on our hands.

Quoting RDUDDJI (Reply 9):
Stupid question...what do all the 1A, 1V, etc. stand for?

1A = Amadeus
1S = Sabre
1G = Galileo
1V = Apollo
1P = Worldspan
1B = Abacus
1J = Axess
1F = Infini
1X = GETS

GDS's have IATA codes to enable inter-system messaging to/from airlines and each other.
Young and beautiful and thin and gorgeous AND BANNED ! Cya at airspaceonline.com, losers
 
RDUDDJI
Posts: 1717
Joined: Fri Jun 04, 2004 4:42 am

RE: GDS Consolidation Eminent Or Logical?

Tue Nov 13, 2007 3:50 am



Quoting JGPH1A (Reply 10):

It doesn't "keep getting delayed", as such. The planning is extremely complex and has to be done to minimize the impact on UA's business, as well as on the existing customer base on Amadeus. This will be the biggest migration so far onto Amadeus, it has to be done right. We don't want (God forbid) to have a USEast funtime spectacular on our hands.

Don't get me wrong, I'm not blaming Amadeus...the whole thing on our end has at least 2 other names attached to it (Newton, Horizon). UA has dozens of apps that I haven't seen used anywhere else. I think the migration will be fun to watch whenever it occurs.

I currently work as a business analyst for UA (on Airport Ops Apollo projects), but I'll be leaving soon to start a career as an IT Sales Engineer (like yourself) in a totally different industry (systems data management/integration for assembly lines). I've loved the airline industry, but alas I think it's time to move on for me.

Quoting JGPH1A (Reply 10):

1A = Amadeus
1S = Sabre
1G = Galileo
1V = Apollo
1P = Worldspan
1B = Abacus
1J = Axess
1F = Infini
1X = GETS

So where's Navitaire on that list...haha.
Sometimes we don't realize the good times when we're in them
 
JGPH1A
Posts: 15080
Joined: Thu Aug 14, 2003 4:36 pm

RE: GDS Consolidation Eminent Or Logical?

Tue Nov 13, 2007 7:59 am



Quoting RDUDDJI (Reply 11):
So where's Navitaire on that list...haha.

Navitaire does have its own code (1N) but it's not a GDS in that it doesn't have travel agent users - only airlines.

Quoting RDUDDJI (Reply 11):
I currently work as a business analyst for UA (on Airport Ops Apollo projects),

Cool - that's an area I don't have experience in, I've worked more on Res, Cargo and DCS systems - I wish we had a Flight Operations solution in our product line - instead we have all the fun of integrating other peoples'.
Young and beautiful and thin and gorgeous AND BANNED ! Cya at airspaceonline.com, losers

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