I have been busy studying a paper released by PhoCusWright Inc.on September 2010. The paper is entitled ''technology and Independent Distribution in the European Travel Industry''. I have been amazed by the amount of information put into it. If you are in the Tourism and Hospitality industry, I strongly recommend you reading it.
This work aims to assess the role and impact of independent travel distribution services and technology across Europe. It defines major distribution channels, explains their role and exhibits the interrelationships between key players in the travel industry.
According to the paper, There are two types of distribution: direct and intermediated. Direct distribution is when suppliers, or owners of the product (airlines, hotels, etc.), sell their products directly to consumers, whether on the phone, in person, or over the Internet. Intermediated distribution involves a third party, such as a travel agency, tour operator, travel management company, or OTA, which sells the travel product to the consumer on behalf of the supplier.
Travel agencies, OTAs, and other intermediaries often (although not always) access that supplier content via one of the GDSs.
The study focalizes on GDSs and their role as a central component of the travel distribution system. Actually, GDSs are the key technology infrastructure connecting suppliers, tour operators, and retailers. Just as travel intermediaries play a key role in travel distribution, GDSs play an important role for intermediaries. The GDSs aggregate the billions of possible airfares, schedules, hotel and car rental rates, availability information, and other content, and present these options in a real-time shopping and booking environment for travel intermediaries. GDSs processed more than 1.1 billion transactions 5 in 2008. That equates to just over 2,100 transactions per minute.
This work aims to assess the role and impact of independent travel distribution services and technology across Europe. It defines major distribution channels, explains their role and exhibits the interrelationships between key players in the travel industry.
According to the paper, There are two types of distribution: direct and intermediated. Direct distribution is when suppliers, or owners of the product (airlines, hotels, etc.), sell their products directly to consumers, whether on the phone, in person, or over the Internet. Intermediated distribution involves a third party, such as a travel agency, tour operator, travel management company, or OTA, which sells the travel product to the consumer on behalf of the supplier.
Travel agencies, OTAs, and other intermediaries often (although not always) access that supplier content via one of the GDSs.
The study focalizes on GDSs and their role as a central component of the travel distribution system. Actually, GDSs are the key technology infrastructure connecting suppliers, tour operators, and retailers. Just as travel intermediaries play a key role in travel distribution, GDSs play an important role for intermediaries. The GDSs aggregate the billions of possible airfares, schedules, hotel and car rental rates, availability information, and other content, and present these options in a real-time shopping and booking environment for travel intermediaries. GDSs processed more than 1.1 billion transactions 5 in 2008. That equates to just over 2,100 transactions per minute.
The three major GDS companies (Amadeus, Travelport, Galelio) together power the critical reservations and technology infrastructure of more than 163,000 travel agency locations and enable bookings by nearly half a million travel agents 7 around the globe.
OTAs play a considerable role in the industry and according to the paper they continue to gain market share; it will double by 11% by 2011.
get the full paper at http://www.phocuswright.com
SeaBreezeTravels:No one realizes how beautiful it is to travel until he comes home and rests his head on his old, familiar pillow.
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