Orbitz Archives | Nicholas Kralev

Airlines, want better GDS model? Unite!

One by one, airlines are waking up to the sobering reality of the modern Global Distribution System (GDS) model, which they created decades ago. Two carriers have now taken legal action, and this is only the beginning. If more airlines want to see changes and lower costs, they should join forces instead of watching from the sidelines.

Judge Miriam Goldman Cedarbaum of the United States District Court for the Southern District of New York is about to become an expert on airline data distribution — in the 82nd year of her life. You can see her name stamped on a complaint (pictured above) filed last week by US Airways against Sabre, the largest GDS in the United States…

American wins first battle in data war

The new airline data distribution model I predicted in February has just become a reality. Expedia, the most popular online travel agency, agreed this week to carry American Airlines data hosted by the carrier’s “Direct Connect” channel. Expedia’s consolation prize is that it will use Global Distribution System (GDS) aggregation technology.

Since Dec. 31, when its contract with American expired and it decided not to renew it, Expedia had been resisting the airline’s attempts to move to a direct channel. Why? Because it wanted to continue to receive sizable kickbacks from Sabre, the GDS it uses to display and book flights. American insists on “Direct Connect” for two reasons…

GDS travel-booking model faces change

Don’t be afraid — this is the message I have for travelers who may be concerned about losing the ability for comparison-shopping because of the war between American Airlines and online travel agencies. The longtime Global Distribution Systems (GDS) model is about to change, and many people stand to lose lots of money. That’s why they are trying to scare you.

For decades, the GDS model has been the norm for distributing airline data and booking flights, which has given the three main GDS companies in the world — Sabre, Amadeus and Travelport — enormous power. You might have heard that American was on Sabre and United on Apollo, which is now part of Traveport…

The risks of third-party airline bookings

Long before the current American Airlines campaign to shake up the data distribution system, airline agents often refused to change tickets issued by travel agencies and third-party websites, such as Expedia and Orbitz. Dealing with those companies’ agents can be frustrating, and many fliers call the airlines for help directly, only to be sent back to the “original booking source.” Why?

Because once the airline takes control of the ticket, it effectively releases the original booking source from its responsibilities as the issuing agent — and when the booking source loses control of the ticket, it will no longer keep track of your reservation. So if there is a schedule change, that source won’t alert you, because it won’t know itself that a change has affected you…

Get refund if airfare drops

Are you angry at yourself for buying a plane ticket for the holidays too early and the price is now lower? Do you even know whether the fare has dropped? Either way, you may be able to get some of your money back.

For years, travelers were warned against procrastinating when it comes to holiday trips, since conventional wisdom held that air fares usually get higher the longer you wait. But this year, wild swings in the price of oil and a global financial meltdown have shattered stereotypes about air travel. Although many U.S. carriers have resisted lifting the fuel surcharges they imposed when oil was much more expensive, fares have been cautiously coming down of late…