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GDS: The Internet, New Channels and Transparency (1996–2011)

In: Mastering the Travel Intermediaries

Author

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  • Ben Vinod

Abstract

The arrival of the Internet brought about significant changes in the distribution landscape, leading to the emergence of two new online channels: the supplier direct and indirect channels. The GDS was deregulated in 2004, and its impacts on suppliers, GDSs, and consumers are examined. During this period, there were several unsuccessful attempts to break into the GDS oligopoly. These attempts included the GDS new entrants (GNEs) as well as various direct programs initiated by airlines, TMCs, and OTAs. The preferred channel model and the surcharge model are also examined in this context. In 2006, full-service carriers introduced branded fare families. Unbundling followed with the sale of à la carte ancillary products and services, which led to the first signs of strain in the full content agreements between airlines and GDSs since ancillaries were not part of the agreement. The role of regional GDSs is reviewed. The chapter concludes by discussing the IATA Board of Governors’ initiative to establish the foundation for the new distribution capability (NDC).

Suggested Citation

  • Ben Vinod, 2024. "GDS: The Internet, New Channels and Transparency (1996–2011)," Management for Professionals, in: Mastering the Travel Intermediaries, chapter 0, pages 119-149, Springer.
    • Handle: RePEc:spr:mgmchp:978-3-031-51524-8_4
    DOI: 10.1007/978-3-031-51524-8_4
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