GDS: Platform Power (1984–1995)

Ben Vinod

Chapter Chapter 3 in Mastering the Travel Intermediaries, 2024, pp 63-117 from Springer

Abstract: Abstract From 1984 to 1995, Global Distribution Systems (GDS) and their affiliated airlines experienced a remarkable period of success. Beginning in 1984, a regulatory period was initiated by the Civil Aeronautics Board (CAB) that resulted in the establishment of the Code of Federal Regulations (CFR), which aimed to prevent anti-competitive practices. This chapter delves into the various contractual agreements between airlines and GDSs, including key provisions such as full content and most favored nation clauses. Notably, American Airlines pioneered the development of a large-scale revenue management system in 1986, which sparked advancements in the connectivity between airline reservations systems and GDSs. The chapter provides a comprehensive review of EDIFACT and GDS connectivity to airlines. Additionally, it explores the traditional revenue streams for travel agents, as well as the governance, industry standards, and partnerships associated with GDSs. During this timeframe, the GDSs introduced air shopping, IATA introduced electronic tickets, and there were instances of airline divestiture from GDS ownership. In the pre-Internet era, American Airlines introduced eAAsySabre, a direct-to-consumer booking application for flights, hotels, and cars. Ultimately, this era witnessed transformative changes in the pioneer airline reservations systems, and the chapter concludes with a discussion on the influential power of the GDS platform.

Keywords: Full content agreements; Most favored nation; Connectivity; Teletype; EDIFACT; Platform power; Yield management; Booking class; Availability (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/978-3-031-51524-8_3

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