Tag: Amadeus

Market Share has a new definition

Today’s blog is a discussion about the term “market share” when used in the travel distribution ecosystem context. Let me start by saying that prior to the advent of the Internet in the mid-90s, third party travel distribution was dominated by the Global Distribution Companies (GDS) and booking share was most easily estimated by the […]

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Travel Industry Pedigree Series: Opodo

Not nearly as dramatic as the stories of their American counterparts, today’s Pedigree Series is on Opodo, the leading European OTA. Opodo was formed in 2000, following the creation of Orbitz.  The company had a similar model and a similar structure. The founding airlines included Aer Lingus, Air France, Alitalia, Austrian Airlines, British Airways, Finnair, […]

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Travel Industry Pedigree Series: Expedia

The Online Travel Agencies (OTA) are an important part of the travel distribution story.  Today’s feature is Expedia. Expedia began as a skunk works project within Microsoft, with then 29 year old [dare I say “pup”], Rich Barton at the helm. Unlike its competitors over the years, there were NO airline investors in Expedia.  The […]

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Distribution Basics: Who has the power? (corrected version)

Following our assessment yesterday of the distribution basics for an airline, we thought it would be  interesting to look at the metrics that are used to gauge the relative power of companies in the public markets and see how they might relate to the power in the distribution game in travel. Here we use Market […]

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Distribution Basics: And what role do the GDSs play? Part 3 of 3 (otherwise known as You Get What You Pay For) CORRECTED

This is part 3 of 3 in the discussion about the distribution portfolio of American Airlines. In the previous two posts, we’ve looked at the internal CRS environment of the airline (which for AA is Sabre’s Airline Solutions) and we’ve looked at the technology necessary on the consumer front to power the website and to […]

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Ancillary Airline Fees: Give thanks for small favors, we could be in China

click to order report IdeaWorks and Amadeus have researched the financial filings made by 104 airlines all over the world to identify examples of ancillary revenue. In 2007, only 23 airlines worldwide disclosed ancillary revenue activity – – a modest result of $2.45 billion.  The world has changed dramatically in four years with 47 carriers […]

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AA/Sabre Dispute: All is quiet on the western front….

For the time being, June 1st is not the cataclysmic event that had been predicted, but the engines have not been turned off in this game of chicken, at least not just yet. This morning, Travelocity (powered by Sabre) still has AA prominently displayed and the travel management companies that we serve still seem to […]

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Distribution Fundamentals: Looking through a single lens can be hazardous

Any first year MBA student already knows that in order to see the profit picture clearly, you need to look at both revenue and cost. The sunglass graphic at the right is one that I created to make this very basic point. Most of you have played the game of covering up one eye and […]

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The Future of the GDS as privately held companies (reprinted from GLG News)

Analysis of original article from Business Week Travelport cancelled its IPO and debt tender offer this week, citing “volatile equity market conditions”. Travelport started the share sale on Feb. 1 with a marketing process to sell between 383 million and 528 million shares at a price of 210 pence to 290 pence apiece. The IPO […]

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