Do technology standards make sense for airlines’ attempts to differentiate?
Do technology standards make sense for airlines’ attempts to differentiate?
GDS executives are calling for the development of technical standards for the booking and processing of airlines’ unbundled fares, ancillary revenue and other sales innovations.
Sabre chief Sam Gilliland raised the issue at November’s PhoCusWright conference.
But other industry players are saying, “Not so fast.”
“Standards are good, but let’s all keep in mind that this is about differentiation,” Suzanne Rubin, American Airlines’ managing director of merchandising and distribution strategy and president of AAVacations, said. “We don’t want something that puts us right back into the same box of commodity product.”
Gilliland has warned that the merchandising trend could become “e-ticketing 2.0.”
Electronic tickets made their debut in 1995. Many passengers resisted using them because if a flight was canceled, they had to stand in line to have a paper ticket issued and endorsed to another carrier.
The airlines quickly realized that e-ticket adoption would increase if that hurdle were removed, yet the first interline e-ticket agreement was not signed until 2002. It covered two airlines.
Early adoption of standards would have eased the transition to universal electronic ticketing, but some industry participants say merchandising is a different animal.
Timothy O’Neil-Dunne, managing partner of T2Impact, a business accelerator for travel distribution, said, “Airlines are saying that this is not a standardized service and should not be covered by standard rules that somebody mandates.”
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