The Next Generation Airline Distribution System

Travel distribution is for many an obscure segment ofdescriptions of amenities and services. The hotel
the travel industry. When audiences hear the wordindustry, entering the automated distribution
distribution they usually think of shipping or transport. Itenvironment a bit later than the airlines, has perhaps
is quite inaccurate however to compare the role oflearned from their experience in addition to using
travel distribution companies to the role of shippingnewer technology to communicate (distribute) their
companies. Unlike product distribution, informationproduct to the consumer.
distribution is as much about packaging and labeling asThe next generation GDS should in our view offer
it is about transportation.serious tools for airline product differentiation as well as
When it comes to airline products, the information thatcustomer segmentation. Both supplier and consumer
the distribution systems (GDS) are packaging today,are much more sophisticated and should be enabled to
for either direct consumers or industry professionals, isdeliver and find appropriate products and information
reducible to three categories: schedules, availability, andwith the least amount of clicks and intermediaries.
pricing. None of the GDS show information at the pointPassengers should have access to information they
of sale about all of the other qualitative differentiators.need to customize their trips. Consider a transatlantic
The definition of onboard service is entirely left to one'sflight. One carrier might offer free drinks, full meals, free
imagination or experience.headsets, free newspapers and refreshment kits in all
In all fairness, today's GDS were originally designed tocabins, while another carrier for $50 less offers none
automate the selling of airline tickets by reservationof these. In today's GDS environment you do not have
agents and then later travel agents. All they neededaccess to any of this information. Wouldn't the
was information about seat inventory and pricing, andpassengers like to know what they are getting for $50
the ability to issue tickets and passenger receipts.less?
When it came to answering questions about the valueThe FAA maintains databases with air traffic control
proposition, the airline representative providedactual take off and landing information. By comparing
information by referring to product sheets, in-housethese to airline schedules we could inform in advance
training or fam trips, none of which was or is availablethat there is a high probability of delays on a given
through the GDS.route. Wouldn't passengers like to have this information
When this schedule and pricing information wasbefore they commit to buying a non refundable ticket?
exported to consumer sites, the impact of this lack ofWould it not be a great service to travelers to be able
supporting detail is magnified ten fold. To get a clearto measure their trip time from door to door, not just
picture of this, imagine that all the milk containers linedairport to airport.
up on a supermarket's shelf have the same color andWe are no longer in an era where "one size fits all".
that the only printed information on the face of eachWhether occasional travelers or road warriors,
carton is the industry code name of the producer, thepassengers much be empowered to choose the right
expiration date, and the price. As a consumer, oneaircraft, the right airport, and use the sales channel
would have to buy a carton and open it to find outprocess most suited to their schedules and their
whether it is organic, or homogenized, or condensed, orexpectations. That is where the GDS will prove
sweetened.themselves most useful to passengers and suppliers
As a contrast to airline distribution, consider hotelalike.
booking sites. They are content rich offering extensive