September 29, 2005 | E-mail article link | m-Travel.com
Mike Nelson, senior vice president, supplier services, Cendant Travel
An organisation like Cendant TDS, which has strong GDS and online
presence and has representation in over 115 countries, says it is
assessing the capabilities of LTDs (Limited Travel Distributors).
Says Mike Nelson, senior vice president, supplier services, Cendant
Travel Distribution Services, "We are still waiting to see what these
new entrants, currently known as LTDs (Limited Travel Distributors), can
do. We understand they are limited in geographic scope, are intending to
working with only a handful of airlines and agents, and are limited in
the types of transactions they are capable of handling. Galileo's robust
functionality and content is far superior to any LTD, and, coupled with
Supplier Link, gives TDS the most flexible distribution platform in the
marketplace today, both technically and commercially."
Nelson shared his viewpoint on how relationship with airlines is
evolving, reduction of costs for clients etc in an interview with
Eyefortravel.com's Ritesh Gupta.
Excerpts:
How do you assess the progress made by your company recently?
Through our recent investments and acquisitions, Cendant TDS is now
represented in every key part of today's travel distribution model. With
our strong GDS and online presence, TDS is a leader in the travel arena.
With TDS representation in over 115 countries, a large percentage of our
revenue is generated outside the US. Additionally, we are working
towards integrating the Orbitz platform into all of our online brands.
How do you assess the entrance of the direct connect alternatives in the
marketplace?
We are still waiting to see what these new entrants, currently known as
LTDs (Limited Travel Distributors), can do. We understand they are
limited in geographic scope, are intending to working with only a
handful of airlines and agents, and are limited in the types of
transactions they are capable of handling. Galileo's robust
functionality and content is far superior to any LTD, and, coupled with
Supplier Link, gives TDS the most flexible distribution platform in the
marketplace today, both technically and commercially.
How is the relationship with airlines evolving?
TDS is the best positioned intermediary in the market today to help
airlines move the needle down on GDS costs, and simultaneously help them
focus on the real issue at hand, which is improvement of their yield and
top line. We will continue our focus on sourcing a compelling suite of
global content, and presenting and integrating this content efficiently
and seamlessly to our customers. Like any business, we have to provide
our customers value for the fees we charge. We continue to create custom
solutions for our supplier partners. No longer does one size fit all.
With TDS, we have the broadest set of assets with which to drive value
for our airline partners.
How are you working on reduction of costs for your clients?
Cendant TDS is more than a GDS. We offer tremendous value to suppliers,
agencies, and corporations. We are creating innovative solutions to help
our partners reduce cost. For our airline partners, Cendant TDS offers
Supplier Link a proven and scalable technology that establishes a
"direct link" to an airline's internal reservation system in order to
store passenger records, manage information and book tickets. On the
hotel side, we offer our partners connectivity solutions at reduced
costs.
How do you think your company differs in its offerings? How is Galileo
in a position to leverage the backing of Cendant in today's environment?
At TDS, we are focused on bringing new products to the market in the
areas that are either underserved or where we see the potential for
growth. Cendant is unique in the travel space since there is no element
of the travel product itself, the technology to support it and the
distribution outlets to get it to consumers that we're not involved in.
Cendant TDS offers an unparalleled portfolio of assets and with our
geographical footprint in over 115 countries and our scale, it is a
logical choice for suppliers to select Cendant TDS.
Analysts are recommending not signing long-term contracts with GDS
partner with changes on the anvil. How do you counter this?
This is a value driven decision. As long as there are travel agents and
suppliers who need to sell travel efficiently, there will be the GDS.
GDS systems use the fastest, most reliable enterprise architecture
available and are proven as fast, efficient, reliable, secure,
comprehensive - and global. With the current state of the industry,
airlines will not sign a contract that doesn't offer value. And with our
portfolio of travel distribution businesses, our brands and the
solutions we present, TDS provides a unique opportunity to add value to
our airline partners.
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