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« The Top Things You Need to Know about the United/Continental Integration | Main | Happy Valentine's Day! »
Tuesday
Feb212012

The Direct Connect Dilemma: A Recap of Last Week's RMBTA Event

Last week I had the pleasure of attending the Rocky Mountain BTA's lunch featuring Will Tate, Sr. VP of Management Alternatives. Will tackled the ever controversial topic, “The Direct Connect Dilemma”.

With over 70 attendees representing Corporate Buyers, TMCs, the GDS, Hoteliers, Car Rental companies and Airlines, everyone has a stake in this topic. Will's presentation was very interesting and thought provoking. According to Will, it boils down to cost and control for each of these sectors of the travel industry:   

  • Buyers want control, full content at the lowest price, data security, comparison shopping, and traveler confidence in their program.
  • TMCs want happy customers, to be able to aggregate content in the current systems, retain GDS income and maintain productivity.
  • Airlines, Hotels and Car Rental Companies want to sell their services as they see fit to influence the buyers decision and generate revenue and to minimize their distribution costs. 
  • GDSs want high level participation and the biggest sales point.

There are implications to each of us that are both positive and negative.  Who will win and who will lose? 

Thanks for challenging us, Will.

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