16 March 2009
Companies that supply global distribution systems (GDS) are launching new products and solutions to help travel agents cut costs and manage revenue better as bookings decline, said executives.
The segment provides booking networks for the travel and tourism industry, and the major players include Amadeus, Travelport which operates the Galileo and Worldspan platforms and Sabre.
"The size of the Middle East market is 70 million bookings," said Fernando Cuesta, Executive Director, Middle East and Africa, Amadeus. "During January this year the region's bookings decreased by nine per cent compared with the same period in 2008. Having said that, we are confident in the region's recovery ability, which might lead to steady growth by the end of the year. This will allow the market to remain flat in terms of bookings compared with 2008."
Rabih Saab, Vice-President of Travelport, confirmed that bookings were down.
"There has been some impact in January and it has been more pronounced in February," he said.
Daniel Naoumovitch, CEO of Sabre Travel Network, Middle East, said: "This market is one of the most important growth regions across the globe. Our forecast for 2009 is that the Middle East will experience conservative growth in the travel industry - around two to five per cent. Accordingly Sabre is boosting investment in the region to help the industry power through economic pressures.
"In today's economic environment it's more important than ever for travel solution providers to offer customers ways to make and save money.
"Cost savings and providing enhanced customer service are key focuses for travel management companies, while corporations are faced with minimising costs and extracting more value from a similar or lower travel spend.
"We have been working with corporations to achieve this using our Total Travel Procurement solution which manages all aspects of the supply and demand for corporate travel including demand management, using dynamic messaging to determine reasons for travel and suggesting the most cost-effective options, to reporting solutions, which help corporations understand how they are travelling and how they can negotiate better supplier rates."
Meanwhile, Amadeus has launched a solution for travel agents called Agency Internet Engine, an online booking system that requires no development and reduces costs to a minimum.
And Saab said his company was aiming to become more competitive. "Travelport will roll out a wide range of GDS products and solutions throughout 2009 including ePricing - a cost-saving shopping solution for airfares - and Rapid Reprice, an automated tool to manage refunds and exchanges."
Travelport recently introduced Galileo Fee Manager, a revenue management system that will help travel agents manage their revenues in a zero-commission environment. The company has signed distributor agreements with eight companies in the Middle East.
The three major operators have recently redefined their businesses.
Cuesta said Amadeus was no longer solely a GDS service provider as from January 2009 it had become in addition an IT provider to the Middle East travel industry.
Amadeus has signed a 10-year preferred content agreement with 13 Aaco carriers, and Sabre recently established a partnership with the Emirates Group's distribution company EmQuest.
Sabre's focus is now on investing in solutions that help agents in the Middle East to expand their businesses.
And Travelport has changed its business model by establishing its own direct operations in the UAE, Saudi Arabia and Egypt and appointing distributors for the rest of the region.
Cuesta said: "The Middle East is a strategic region for Amadeus because of the demanding profile of the travel industry here and because of its growing importance and future positioning in the world."
Naoumovitch added: "The American Society of Travel Agents recently released its 2008 Global Distribution System Report, which found, among other things, that GDS remains the primary booking medium for agencies.
Companies that supply global distribution systems (GDS) are launching new products and solutions to help travel agents cut costs and manage revenue better as bookings decline, said executives.
The segment provides booking networks for the travel and tourism industry, and the major players include Amadeus, Travelport which operates the Galileo and Worldspan platforms and Sabre.
"The size of the Middle East market is 70 million bookings," said Fernando Cuesta, Executive Director, Middle East and Africa, Amadeus. "During January this year the region's bookings decreased by nine per cent compared with the same period in 2008. Having said that, we are confident in the region's recovery ability, which might lead to steady growth by the end of the year. This will allow the market to remain flat in terms of bookings compared with 2008."
Rabih Saab, Vice-President of Travelport, confirmed that bookings were down.
"There has been some impact in January and it has been more pronounced in February," he said.
Daniel Naoumovitch, CEO of Sabre Travel Network, Middle East, said: "This market is one of the most important growth regions across the globe. Our forecast for 2009 is that the Middle East will experience conservative growth in the travel industry - around two to five per cent. Accordingly Sabre is boosting investment in the region to help the industry power through economic pressures.
"In today's economic environment it's more important than ever for travel solution providers to offer customers ways to make and save money.
"Cost savings and providing enhanced customer service are key focuses for travel management companies, while corporations are faced with minimising costs and extracting more value from a similar or lower travel spend.
"We have been working with corporations to achieve this using our Total Travel Procurement solution which manages all aspects of the supply and demand for corporate travel including demand management, using dynamic messaging to determine reasons for travel and suggesting the most cost-effective options, to reporting solutions, which help corporations understand how they are travelling and how they can negotiate better supplier rates."
Meanwhile, Amadeus has launched a solution for travel agents called Agency Internet Engine, an online booking system that requires no development and reduces costs to a minimum.
And Saab said his company was aiming to become more competitive. "Travelport will roll out a wide range of GDS products and solutions throughout 2009 including ePricing - a cost-saving shopping solution for airfares - and Rapid Reprice, an automated tool to manage refunds and exchanges."
Travelport recently introduced Galileo Fee Manager, a revenue management system that will help travel agents manage their revenues in a zero-commission environment. The company has signed distributor agreements with eight companies in the Middle East.
The three major operators have recently redefined their businesses.
Cuesta said Amadeus was no longer solely a GDS service provider as from January 2009 it had become in addition an IT provider to the Middle East travel industry.
Amadeus has signed a 10-year preferred content agreement with 13 Aaco carriers, and Sabre recently established a partnership with the Emirates Group's distribution company EmQuest.
Sabre's focus is now on investing in solutions that help agents in the Middle East to expand their businesses.
And Travelport has changed its business model by establishing its own direct operations in the UAE, Saudi Arabia and Egypt and appointing distributors for the rest of the region.
Cuesta said: "The Middle East is a strategic region for Amadeus because of the demanding profile of the travel industry here and because of its growing importance and future positioning in the world."
Naoumovitch added: "The American Society of Travel Agents recently released its 2008 Global Distribution System Report, which found, among other things, that GDS remains the primary booking medium for agencies.
By Nina Varghese
© Emirates Business 24/7 2009
