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ArgInMIA
Topic Author
Posts: 475
Joined: Fri Nov 09, 2001 4:07 pm

Amadeus/Sabre Cost To Airlines?

Fri Jul 23, 2004 11:23 am

How much does Amadeus or Sabre charge airlines? is it a per ticket fare? or a fixed number? What about smaller airlines.. what systems do they use?
Alto.. Mucho mas alto.. hasta la cumbre
 
DAYGS
Posts: 60
Joined: Sat Apr 03, 2004 8:37 am

RE: Amadeus/Sabre Cost To Airlines?

Fri Jul 23, 2004 11:41 am

I think airlines are charged a fee based on the segment...somebody correct me if I'm wrong. There are several companies that provide computer hosting services to the airline industry. A few I can think of: SABRE/SHARES/SITA Gabriel/Open Skies, etc. I'm sure there's others.
 
freshlove1
Posts: 1245
Joined: Thu Jan 15, 2004 1:38 pm

RE: Amadeus/Sabre Cost To Airlines?

Fri Jul 23, 2004 11:51 am

From what we were told it is a lease deal, kind of like a car lease to a point, at the station that uses it. I know that when the repair guy comes out to fix the computer or ticket printer we are not billed. The bill is sent to some other company in Texas or somewhere out there. And if something needs to be replaced (tv monitor, printer, keyboard) there is also no bill that we get, the old one is removed and a new one is put in. Im sure that coporate pays the computer fees and then it is divided up somehow, but as far as I know we have never paid 1 cent toward a bill that was issued to our station for a repair or replacement.
 
ArgInMIA
Topic Author
Posts: 475
Joined: Fri Nov 09, 2001 4:07 pm

RE: Amadeus/Sabre Cost To Airlines?

Fri Jul 23, 2004 11:54 am

But i mean.. how much do they charge the Airline.. I heard that it can be more than 1 dollar per sold ticket.. is this correct?
Alto.. Mucho mas alto.. hasta la cumbre
 
LRGT
Posts: 689
Joined: Thu Jul 22, 2004 12:29 pm

RE: Amadeus/Sabre Cost To Airlines?

Fri Jul 23, 2004 12:21 pm

I know that all the GDS systems also offer reservations systems (Sabre, WorldSpan, Amadeus, and Galileo), but they charge about $100,000 just to open an account with them plus all the computer fees, plus a charge per ticket, plus a training charge etc. The airline gets billed for $everything$! All the legacy carriers plus Southwest throw away gords of money on these systems. YES, the fee can be several dollars per segment depending on the type of ticketing (paper ticket $$$$, e-ticket $$, direct sale guaranteed ticketless $).

There is also OpenSkies by Navitire which costs nearly the same to get setup but less per segment fees and it gives the airline a lot of useful tools and a good yeild management fare robot program and web booking engine; it is great for a ***LARGE*** low fare airline since they have a per ticket charge and MINIMUM monthly aggregate total of $27,000/month (if your per ticket charges are under that $27K for the month, they become $27K). This is what JetBlue, Airtran, and Ryanair use.

From there we have Radixx which is used by USA 3000 and Pacific Wings among others. Their pricing is flexible but startup is from $15K-$40K and then per segment.

There is Intelisys Aviation systems which does a bunch of regional airlines in Canada; they are the least expensive leased system with about a $5K setup fee. They charge the airline per PNR, not per segment so they come out to about 25% of the other companies. However interface is not via internet it is by Citrix which is slow and requires an expensive license for every user.

Finally there is Tasar a brand new sysem developed for SpiritAir for just $200,000 ONE TIME FEE by a Swiss software company. From what I hear it is a good system and it is obviously a bargain! The company that developed the program will sell it to another airline if they want it (maybe just $50,000 or something since it has already been built for Spirit). All interfaces are internet based on Tasar.
Don't bring up the NW DC9's unless you have to!
 
Leskova
Posts: 5547
Joined: Wed Oct 08, 2003 3:39 pm

RE: Amadeus/Sabre Cost To Airlines?

Fri Jul 23, 2004 3:27 pm

As far as I know (from having read that somewhere), the usual price range is between $5 and $8 per segment... but that may have changed since...
Smile - it confuses people!
 
LRGT
Posts: 689
Joined: Thu Jul 22, 2004 12:29 pm

RE: Amadeus/Sabre Cost To Airlines?

Fri Jul 23, 2004 3:34 pm

Beleive it or not, that *IS* the cost for the old systems run by the GDS companies (Sabre, WorldSpand, Amadeus, Galileao) that are dinasour systems from the 70's. The sad part is this is what most Airlines use!

By comparison, Intelisys charges 40 cents per PNR for their NEW system while Sabre charges $4-5 per *PASSENGER SEGMENT*!

...they must be giving kickbacks to management!
Don't bring up the NW DC9's unless you have to!
 
JGPH1A
Posts: 15079
Joined: Thu Aug 14, 2003 4:36 pm

RE: Amadeus/Sabre Cost To Airlines?

Fri Jul 23, 2004 5:49 pm

There is a difference between Hosting Systems and GDS's. GDS's distribute airlines that are not necessarily hosted by the GDS, and charge the airline a segment fee. Part of the segment fee is paid as an incentive to the travel agent, its all very complicated. The main GDS's are Amadeus, Sabre, Galileo and Worldspan. The segment fee varies by market but is not usually more than a few Euros. Most GDS's are based on airline inventory systems, but with greatly expanded functionality for cars, hotels etc etc.

Hosting systems host the inventory of an airline - this is where sales made in GDS's are communicated to, and where information is stored and passed to the Departure Control and other Res Control systems. The main Hosting systems are Sabre (AA, AS, WN and loads of others), Worldspan (DL, NW), SHARES (CO, VS, AQ), SITA Gabriel (hundreds of smaller carriers), OpenSkies (LCC's - very limited connectivity to GDS's though), plus a lot of in-house legacy systems. The big hosting systems (Sabre, Worldspan) are the clunky dinosaurs from the 70's. The newer ones are pretty limited, things like GDS connectivity are not as good as the big systems. Everyone and his dog seems to be developing hosting systems, but between you and me they're not very good.

Amadeus has a slightly different hosting setup - 1A 'hosts' about 140 airlines (known as Altea Sell carriers), but for distribution purposes only. GDS and external systems booking these airlines communicate the bookings to Amadeus, and Amadeus travel agents book space as well, and 1A forwards all the bookings to the real inventory systems of those 140 airlines - spread between AF (Alpha3), LH (Lufthansa Systems), AY (FINNRES), BA (RTZ), QF (QUBE), RG (IRIS), IB (RESIBER), and SITA Gabriel. Altea Sell carriers are charged either a segment fee or a revenue-passenger-boarded fee.

QF and their 20 hosted airlines are at the moment moving their Inventory functions from QUBE to the Amadeus Altea Plan platform, which is a new Inventory hosting platform within Amadeus - BA, AY and several others will be moving over shortly as well.
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