Q: In return for an 80-cent fee,
Worldspan is promising to provide us with the Super Content of the
largest legacy airlines. What does this term really mean? Does it
mean access to all the airlines fares without restriction, as a
Worldspan sales rep has told me? Whats the difference between Super
Content and the content I could access before Sept. 1? Is Super
Content somehow worth more than what non-Worldspan agencies are
getting?
A:
Super Content means nothing more than what you were previously
getting. So I could see how you would feel flimflammed by
Worldspan, which has made you agree to give up most of a large
revenue stream for nothing new in return.
The trouble was
that the airlines had been able to withdraw or withhold that
content at any time after their agreements with Worldspan ran out,
and they could also have imposed fees on agencies. They threatened
to do both unless they got a discount on GDS vendors booking fees.
Now, the airlines have gotten big discounts, and the vendors are
making agencies absorb the revenue loss.
For the past
several years, agencies have had access to full content under
stopgap agreements designed to last until this year. Although the
exact terms of these agreements were never disclosed, everyone
thought that they were very broad.
Now, you will be
assured of the same content for the next five years under Super
Content, as long as the underlying 1991 Participating Carrier
Agreement remains in effect that long. However, Super Content might
be less content than you think, and it may not last as long as you
think.
For example, under
the new agreement between Worldspan and American, American may continue its existing practice of
offering special access to inventory through Americans Web sites or
its internal reservations personnel to select individuals based on
an their value to American. American is not obligated to provide
such access generally to Worldspan agencies, so long as American
does not provide such access generally to subscribers of another
GDS in the territory.
The basic thrust of
the new Worldspan-American agreement is not really full content. It
is content parity, which means that American commits to putting in
Worldspan whatever it puts in any other GDS. However, this may not
mean much at all.
As of this writing,
American has no content agreement with Sabre or Amadeus, and
Americans commitment to Galileo is for access to your negotiated
non-public fares on program-participating airlines in a manner
equal to or better than any other GDS provider.
So American must
give Worldspan whatever non-public content it gives Galileo and
vice-versa, but American can get away with giving it to
neither.
Finally, one clause
in the new agreement appears to give American the right to
terminate the Participating Carrier Agreement (and possibly drop
out of Worldspan altogether) on 30 days notice under certain,
undisclosed conditions.
Considering that
Worldspan is not giving agencies the right to drop out of the
program even if American drops out, Worldspan clearly owes fuller
disclosure than the hype and happy talk we have heard so
far.
Mark Pestronk
is a Washington-based attorney specializing in travel
law.