| Journal: TWUK | Section: |
| Title: | Issue Date: 29/05/00 |
| Author: | Page Number: 29 |
| Copyright: Other |
Internet to replace GDSs as companies go on-line
THE DAYS of global distribution systems are numbered as more travel companies will offer their products on combined sites on the Internet, said Trexx president Stephane Deschenes.He referred to the on-line travel agency site created by 10 competing national carriers, including KLM and British Airways, which launched at the end of the year.
Deschenes, who owns a Canadian on-line travel insurance company, said: “Airlines have done it so why not travel insurers?
“The Internet offers excellent opportunities to sell direct or through travel agents. The GDSs will not survive this.”
There are no figures to show how much travel insurance is sold on the Internet but Deschenes said the potential is huge – Expedia alone claims nearly 70% of its sales in the US last year were for leisure travel, although he suspected the number of policies sold is small.
This is partly because people are not looking to buy travel insurance – it is sold, not bought, he said – but also because few companies offer clients the chance to purchase on-line.
“Most travel sites, including Expedia, are not offering travel insurance, yet it is an ideal product for the Internet,” he said.
“Clients can read as much of the policy as they want, there is no cost to ship it over the Internet and people can be covered instantly, making it ideal for those requiring last-minute holiday purchases.”