GREY:SCSZF - Post by User
Comment by
idleSpeculatoron Apr 12, 2004 12:58pm
108 Views
Post# 7343294
RE: Question
RE: QuestionIFF (if and only if) they are on collision course, this might affect Openfares much more than us. It is only a small part of TT/SB. Might even push Openfares into upgrading their clients (and their businesses) to TT/SB and something bigger than consolidator fares.
With advent of the web, the virtual 'perfect market' or at reasonabley close to this, it is difficult to see why airlines would want to continue 'paying middle man, (the consolidator) a margin to sell off surplus stock at discount price. In fact with the metoric rise of the direct sales low cost airlines (cutting out GDS's, Consolidators and travel agents), it is difficult to see how traditional airlines are going to be able to compete if they don't cut the margin paid to the distribution channel. I suspect eliminating commisions to Travel agents was possibley the first step. Consolidators will only survvive if the continue to be a cost effective and efficient means of distribution.
This whole are of the market must undergo dramatic rationalisation in the current, those compnaies that don't risk being swallowed by their competitiors.
Intra European air travel will soo be dominated by low cost airlines, national carriers will continue to go bankrupt if they don't adapt, and as there transcontinental landing slots become available, it is only a matter of time before they break into this market. When this happens, even GDS's will be fighting for survival,
jmo
Idle