The recently announced partnership between Hotel Reservation Systems (HRS) and Concur is supposed to not only provide mutual clients with rich hotel content but at the same time lower travel costs.
This cooperation means that any of Concur’s corporate customers can now access HRS’s hotel content directly from their online corporate booking tool. Providing direct access to more than 250.000 hotels in 180 countries that are both chain and independent hotels make HRS the largest non-GDS source of online hotel content available today.
This method shows that there are various different distribution economics existing besides the traditional GDS-based distribution. Airlines’ ongoing efforts to reduce costs have been moving the distribution chain. However, the issue of content distribution remains the same. Travel agents are caught in the middle. Thence they struggle to make themselves relevant to consumers while keeping one step ahead of suppliers.
Nowadays airlines begin to renegotiate their Global Distribution System contracts. We all know that they intent on cutting costs and wherever possible pushing those costs onto travel agents and consumers after all. American Airlines for example moved large travel management companies to its direct connect product and thereby changed the current financial model.
Industry experts predict a couple of future events and developments: Airlines need continuing competition and bargaining power, GDS incentives to travel management companies will eventually be reduced to zero, travel management companies still provide high margin customers, airlines need the corporate traveler to maintain yields and profitability, relationships between agency and airline are beginning to come full circle.
Besides, many companies look to more tightly manage their T&E budgets. They demand access to travel content outside of the traditional avenues of distribution. Partnerships such as the one between Concure and HRS are one way to provide a wider variety of content and pricing thus satisfying these customers’ rising demands.
The More Convenient Way of Accessing Travel Content
“But there is an even more convenient alternative to connect with HRS’s rich hotel content while at the same time enjoying Multi-GDS access as well as non-GDS channels,” explains Michael Strauss. Access to inventory and various sources is what PASS Consulting’s XML based XX/1 Server offers. This product is not only providing its customers with HRS’s entire content but also with several alternative ways to book air. These alternative distribution systems include TUIfly, Booking.com, Partners and Elsy Arres.
Due to its multi-GDS capability it is the ideal product for automated quality assurance of large booking volumes. PASS XX/1 supplies the single point of entry to all global distribution systems (GDSs). It simultaneously allows access to direct providers, low-cost airlines, back- office systems and proprietary product databases such as hotel programs. During this process, PASS XX/1 compiles information from each source and puts it into the easy-to-use XML data exchange format. Companies handling fulfillment and invoicing will also be able to use the advantages of XX/1. It allows them to view the PNRs of their customers and to invoice them correspondingly. XX/1 is of course also able to supply systems for follow-up processes with the necessary data.
Especially its high performance and level of reliability is a major advantage that sets the XX/1 apart from other less convenient solutions. If you’re interested in all of the partners that PASS works with to help drive down costs for our corporate clients, you can find more info here.
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