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THE FOCAL POINT OF ONLINE TRAVEL TRANSACTIONS, GLOBAL DISTRIBUTION SYSTEMS (GDS)

HAVE PROVEN INVALUABLE FOR INDUSTRY STAKEHOLDERS. WITH AN EVER-GROWING MARKET AND EVER-CHANGING TRENDS, TECHNOLOGY PROVIDERS ARE CONTINUOUSLY EVOLVING TO NOT ONLY MEET, BUT EXCEED ALL EXPECTATIONS.

Keeping with demand, GDS have shifted from a traditional single-line distribution system of airfares to a network of endless multifaceted capabilities, including air upgrades, ancillaries and merchandising solutions for hotels, car rental companies, and more.

According to a Phocuswright’s study, Middle East Online Travel Overview, Second Edition, co-sponsored by Travelport, the region’s travel market is worth an estimated USD72 billion and is poised for more growth. Online travel bookings, which currently represent 25 percent of all bookings, are forecast to reach 36 percent by the end of 2017 when online revenue is expected to touch USD35 billion.

Despite wide-spread speculations that the era of GDS hegemony is in decline, the performance displayed by GDS reflects the predicted growth of the overall industry.

Such is the case with Sabre, which registered total revenue of USD785 million in the third quarter of 2015.

The company has been on an upward path in part due to its strategic acquisition of Abacus International, its continuous investment in latest technologies and its close engagement with clients to understand their needs.

“We continue to [provide] customers with innovative solutions and a comprehensive end-to-end experience not to meet, but to also exceed their expectations,” stressed Daniel Naoumovitch, CEO, Sabre Travel Network Middle East.

Throughout 2015, the firm entered into a number of partnerships and among others, it signed an agreement with Air Seychelles which saw the airline move to an integrated platform for a broad range of critical operations including the SabreSonic Customer Sales & Service solution.

Roy Kinnear, CEO, Air Seychelles, commented, “Air Seychelles believes Sabre is the perfect technology vehicle to enhance the airline’s guest experience throughout the travel lifecycle [...].”

Not lagging behind, Travelport – which has been making waves with its theme of redefining, referring to its transformation from traditional GDS to a fully-fledged travel commerce platform – also cemented its presence in the regional industry with a multitude of collaborative agreements, most notably within its air commerce segment.

“On the air commerce front, our main achievement for 2015 would be the successful rollout and adoption of our Rich Content and Branding solution,” pinpointed Rabih Saab, president, Europe, Africa, Middle East and South Asia, Travelport, who enthused that over 100 airlines have implemented the solution which enables carriers to differentiate their products with extensive content creating a transparent shopping experience.

Concerning their endorsement, Wanjiku Mugo, corporate communications manager, Kenya Airways, stated, “By adopting this new technology [it will] further our ability to differentiate Kenya Airways’ unique products and services.”
A third contender, Amadeus prominently joined forces with World Tourism Organization (UNWTO) to advance the use of technology in tourism.

“Innovative technological solutions are fundamental for the tourism sector’s competitiveness and ability to create jobs and inclusive development worldwide,” posited Taleb Rifai, secretary general, UNWTO.

RISING TRENDS

“Travelport has invested some USD760 million in the last four years in various aspects of our travel commerce platform to address the trends, inefficiencies and unmet needs of all components of the travel value chain,” noted Saab, who highlighted distribution and merchandising solutions for hotels and car rentals, among others as areas of interest.

Among the most talked-about rising trends with a strong potential for a breakthrough in the Middle East is mobile commerce.

Travelport’s recent acquisition of Mobile Travel Technologies (MTT) underlines the company’s belief of consumers’ growing mobile services appetite, allowing both entities to capitalise on new travel opportunities.

As Fergal Kelly, chief commercial officer, MTT, explained, the company brings mobile innovation to airlines and travel intermediaries to better serve the end-traveller with personalised services.

Elaborating on Sabre’s offering on this front, Naoumovitch shed light on TripCase, the free application used by global travellers to manage itineraries. With 40 airlines already integrated and over 30 million trips managed per year, the tool is connected to powerful technology and travel companies to deliver the right information at the right time.

Another noteworthy trend shaping the way GDS operate is safe monetary transactions, with Travelport increasingly enlarging its investment in eNett International, the business-to-business payment provider.

Anthony Hynes, CEO, eNett International, highlighted that the company’s aim is to address inefficiencies and costs associated with traditional payment. Integrated into all Travelport points of sale, eNett virtual account numbers simplify and automate payment processing.

“The era of GDS is certainly not in decline. If anything, I see a GDS renaissance in the making,” concluded Saab