Worldspan unveiled two opt-in programs for
travel agencies, including one that guarantees GDS access to full
content even if participating airlines decide to unbundle products
and merchandise them in new ways.
Worldspans Super
Access Product provides agencies with all published, private and
promotional fares from program carriers American, United,
Continental, Northwest and U.S. Airways for five years. These
airlines agreed to forego charging agencies any content
fees.
In their
announcements about agency fees and content, American and United
referred to this program as Worldspan Option 1, and said they would
not assess fees for agencies in the program.
In exchange for the
content and fee protections in the Super Access Product, 
Worldspan will enter into
agency-specific financial arrangements that are materially
different than current arrangements, Worldspan Chief Commercial
Officer Ninan Chacko told TravelWeekly.com.
Those new
arrangements presumably mean stiff cuts in Worldspans inducement
payments to agencies.
In contrast to
three years ago, when Sabre and Galileo struck Web-fare agreements
with major airlines based on booking fee discounts and Worldspan
later followed the pack, Worldspan believes it is the furthest
ahead in this go-round of agreements in terms of access to new
airline merchandising features and functionality, Chacko
said.
He said specifics
about how airlines may unbundle their products will evolve over the
next six to nine months, but Worldspan Super Access Product
participants will have access to air products like one-day access
to airline clubs, pre-paid meals, upgrades and premium seat
selections.
Agencies that
decide to participate in Worldspans other two programs may not have
such access, Chacko said.
The other
options
Agencies that
choose Worldspans other opt-in product, the Subscription Access
Product, will see no change in their financial arrangements with
Worldspan, and will have access to published content from the five
program carriers.
However, these
agencies will be subject to new airline fees, and access to
private, negotiated, and opaque fares and products will be at the
discretion of the airlines, Chacko said.
Agencies that stick
with Worldspans existing General Access Product need take no action
to enroll, but they may be subject to airline fees and even
published content may not be available if airlines decide to
withhold it, Chacko said.
So, why would
airlines withhold content if they can charge agencies fees to
access that content?
Chacko said he
believes airlines want maximum flexibility to sell their products
in the manner they choose, including withholding content if that is
their wish.
Worldspans programs
begin Sept. 1 and apply to points of sale in the 50 states
only.
Unlike Sabres
Efficient Access Solution (EAS), Worldspans two new programs are
strictly opt-in.
Sabre spokesman
Michael Berman explained last week that the roughly 5,500 Sabre
agencies with Simplicity contracts are auto-enrolled for EAS
beginning Aug. 1, and would have to opt out if they choose to exit
the program.
However, EAS is an
opt-in program for the 500 or so larger premier and global Sabre
subscribers, Berman said.
With the exception
of Delta, which has a contract expiration date with Worldspan in
early December, Worldspan has signed on five major airlines for its
new programs.
Asked why
Worldspans traction with airlines at this point is deeper than
Sabres and Amadeus roster, Chacko said: Its pure and simple: Its
about the economics.
Chacko said
Worldspan believes that it is offering carriers lower booking fees
than are Sabre, Amadeus and Galileo.
Clear
intentions
Chacko said
Worldspan feels a sense of vindication because it took a lot of
flack early this year when it revealed its intent to offer optional
programs, and could only await an about-face by Sabre and Galileo,
which recently announced optional programs, too.
We were reasonably
sure thats exactly where the other two GDSs [Sabre and Galileo]
were headed, Chacko said. At least when we stepped forward, we
thought we were clear about where we were headed.
Chacko said
Worldspan felt strongly that it needed to align its economics with
the airlines in this round of agreements to the extent that they
would think of Worldspan as an extension of their own
channels.
In the last
go-round, airlines sought ways to circumvent full-content
agreements by sponsoring new-entrant distributors or by giving
certain fares directly to corporations, Chacko said.
This, Chacko said,
referring to the new optional programs, is the next generation of
long-term agreements with airlines.
Chacko said he
couldnt yet assess the financial impact of the new agreements on
Worldspan because that will depend on agency program choices and
decisions by airlines on what content they make available through
various programs.
Worldspan agencies
and corporations financial arrangements and content access related
to the hundreds of airlines outside of the new programs will be
unaffected by the new initiatives, Chacko said.
To
contact reporter Dennis Schaal, send e-mail to [email protected].