Industry perspective: 188bet online casino games surcharges and the evolution of the aviation distribution landscape

Big Traffic Author of 188bet online casino games article: RajendranVellapalath 2018-02-06
Travelport、Systems operated by the three 188bet online casino games giants Amadeus and Saber,Generated billions of dollars in global travel sales。For travel suppliers,The three major 188bet online casino games are huge revenue sources。

As reported by Tnooz,Air France-KLM becomes latest airline to introduce 188bet online casino games surcharge for travel agents。Previously,Lufthansa implemented 188bet online casino games surcharge in 2015,British Airways started charging this fee in 2016。

Someone might say,188bet online casino games is a fair system。After all,188bet online casino games enables travel agents and their clients to access travel information、Compare prices、Get special rates and book your trip。Also,It is undeniable,Travelport、Systems operated by the three 188bet online casino games giants Amadeus and Saber,Generated billions of dollars in global travel sales。For travel suppliers,The three major 188bet online casino games are huge revenue sources。

Some industry analysts believe,188bet online casino games may change and take on more of a direct-to-enterprise type tool role。The truth is,The current 188bet online casino games system is old,It has existed since the 1960s,Until now。Old host method used by 188bet online casino games system,Serious flaw。Not long ago,Research shows that the PNR (Passenger Reservation Record) used by 188bet online casino games has security vulnerabilities,This means they can be easily hacked。

Also,188bet online casino games agencies can favor their partners in presentations,This means that 188bet online casino games agent bookings are affected by airlines with which they have priority agreements。If the 188bet online casino games agent reaches a certain amount every year,Airlines will give them additional incentives in accordance with the agreement。This would be detrimental to the best interests of passengers。

In fact,The three major 188bet online casino games players still dominate the global travel distribution system。Amadeus is the largest player in the travel agency airline booking market,According to data published by Amadeus itself,Its market share in the first quarter of 2017 was 43.5%,Followed by Sabre’s 36.3%,There are also Travelport, etc.。Most of the revenue of these three GDSs comes from flight sales,They charge licensing fees for ticket bookings and network usage、High profits are made from service fees and transaction fees。

Figure: Aviation market share of major GDSs in the first quarter of 2017

Now comes the problem,Each 188bet online casino games is charged per transaction。Booking fee is usually 2-4% of the ticket price,If it is a hotel reservation,This ratio is about 20%。Therefore,By paying a certain percentage of the booking price,Only airlines can reach the global travel seller network composed of travel agents and OTAs。Airlines also pay additional fees for 188bet online casino games system usage rights and consulting services。

If you consider that more than 1 billion flights are booked every year,The amount of fees involved are huge。First quarter of 2017,Travelport revenue reaches 6.US.8 billion,It paid 3..4 billion in commissions。Compared to 2016,These numbers are up 7% and 10% year-on-year respectively。

188bet online casino games begin to fight back

In recent years,Disputes have begun to arise between some airlines and 188bet online casino games。Based on information disclosed in a lawsuit involving US Airways,Some airlines will do so according to their contracts with 188bet online casino games,Pay different transaction fees。Some airlines pay up to per transaction。

Last year,Ryanair has not renewed its agreement with Amadeus,Because apparently like many other airlines,Ruian found that 188bet online casino games fees took away a big piece of its profit pie。As airlines unbundle fares and treat them as luggage、Additional services such as meals and drinks are provided to passengers,Make more profit from it,Tension between airlines and 188bet online casino games further intensifies。

In exploring patterns beyond 188bet online casino games,European airlines may be the most proactive。In order to attract ticket bookings to other channels,Lufthansa charges a surcharge of approximately for 188bet online casino games transactions made by travel agents。

We can see,The current system is changing。Travel distribution giant struggles with airline merchandising and hotel content,Small companies are investing in areas that have undergone changes in recent years。There are new companies that enable faster aggregation of content in simple ways。In fact,It is new technology that will guide and transform the travel distribution system in the future。Little players have more opportunities to create innovative ones、Solutions that do not involve the three major 188bet online casino games providers。

We also need to consider social networks and search companies: TripAdvisor、Google and Facebook。They have direct contact with consumers,And is focusing on the field of 188bet online casino games product sales。What if Facebook opened its billion-plus user base to 188bet online casino games companies,It is conceivable,Many companies will cooperate with Facebook。

Changes in airline strategies

Competition among airlines is fierce,And the aviation industry is under great financial pressure。Airlines have been turning to a merchandising strategy for some time now,This resulted in an increase in profits,They are also changing from service providers to retailers。This transition is not easy,Because its success depends on the support of players such as IATA and 188bet online casino games。But,Airlines want to grow and attract more sales,They need to go this way。

Although some full-service 188bet online casino games are trying to find lower-cost ways to meet customer needs,But other 188bet online casino games are constantly changing,And in the process of looking for other sources of income (such as high-end passengers),Gradually moving away from the traditional low-cost airline model。

In fact,To successfully implement these changes,Can’t let them be financially burdened、Obsolete systems and limitations of legacy technology。As airline business models continue to evolve,At the same time, passengers’ demand for 188bet online casino games continues to increase,Need to continue to develop new platforms and systems to provide support。

*188bet online casino games文来Source: Civil Aviation Resources Network,Author: Rajendran Vellapalath, compiled by Louis, original title: "Industry perspective: 188bet online casino games surcharges and the evolution of the aviation distribution landscape》.

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