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Sunday, 8 February 2015

GDS providers vie for Indian low cost airline business

Mumbai: With the rise in share of low cost carrier capacity in India, global distribution companies have renewed the efforts to bring budget airlines' ticket distribution on their platforms.

Global distribution systems or GDS refers to travel reservation tools which are used by travel agents around the world to make bookings. These are popular amongst full service airlines and both Air India and Jet Airways use it. However Indian low cost carriers (LCCs) do not use the systems.


Globally the prevailing norm was that low cost airlines did not subscribe to the GDS for travel distribution because of higher costs but the trend is now changing with AirAsia, EasyJet, Ryan Air and Tiger signing up with GDS providers.

GDS providers including Amadeus and Travelport are making a pitch to Indian LCCs to sell their tickets on their platforms to increase their revenue and boost ancillary sales.

SpiceJet had tied up with Amadeus for the latter's corporate booking tool in 2012 but sources said there was negligible business from that platform.

"In India the competition amongst the airlines is intense and low cost airlines can look to indirect distribution channels which can help increase the yield per passenger through more corporate and travel agency bookings,'' said Damien Hickey, vice president (Asia Pacific) of Travelport.
07/02/15 Aneesh Phadnis/Business Standard

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