British Airways has insisted it has no plans to follow US partner American Airlines in attempting to bypass global distribution systems (GDSs).
American is locked in a battle with GDS-owner Travelport and online retailers Expedia and Orbitz as it seeks to drive bookings through its own web-based system Direct Connect. BA and American begin their transatlantic joint business next month, allowing them to coordinate schedules and fares.
But BA head of UK sales Richard Tams told Travel Weekly: “Our distribution strategy is not part of our joint business with American. We are not in conversation with American about its distribution strategy. We do not share the same distribution strategy.”
Tams said American had told BA in advance that it would withdraw threats to issue agency debit memos (ADMs) against retailers, but said this was the extent of their discussion on the issue. He insisted BA has no plans to emulate American’s Direct Connect system.
American director of distribution strategies Cory Garner has said: “Ultimately, we will see all travel agency volume going through Direct Connect.” But Tams said he did not believe American’s actions threatened the entire GDS system.
“American’s Direct Connect will not break the GDS model, but it does provide competition where there is not enough at the moment,” he said.
Tams said BA shared American’s concerns about the costs of GDS display. “The cost of distribution through GDSs is too high,” he said. “The GDSs make the highest margins in travel and we would like to get the costs down.”
However, he insisted BA remains committed to the GDS model, saying: “GDSs are the most obvious form of distribution.” BA will begin negotiations next year on renewing its agreements with GDSs that are due to run out in March 2013.