Fragmentation Is The New Distribution Norm

Airlines are undergoing significant change in response to a critical turning point in an industry with a long and turbulent history, writes Marc Rosenberg, retired Air Canada VP Sales & Distribution & founder, Strataconnex & Senior Advisor Strategy and Negotiations, Oystin Partners, in the latest issue of Canadian Travel Press.

Rosenberg observes that: “Among the many commercial challenges, we see substantial changes in the dynamics between carriers and their distribution partners, especially Travelport, Sabre, and Amadeus.”

And he continues: “With the singular impact of COVID-19 on industry volumes, airlines are reassessing all priorities, including their distribution strategies. Some have decided to put distribution initiatives on hold, while others are now accelerating their efforts to continue their prior path.’

Says Rosenberg: “Lower volumes have had the side effect of reducing the revenue risks often associated with intense airline/GDS negotiations. Carriers like Emirates and Finnair have not shied away from going ‘dark’ on their journey to new GDS agreements. Others, including Delta and Qatar, have completed new GDS contracts with less visible tension and a priority not to inconvenience the trade.”

For the full story, check out the latest issue of CANADIAN TRAVEL PRESS.