Travel agents told early adopters will benefit most from GDS deregulation

Travel agents will have to change their business models when a new generation of US technology entrants hit the global market, according to Star Alliance chairman Graham Atkinson.

Atkinson, also United Airlines senior vice-president international and alliances, said three global distribution system new entrants, or ‘GNEs', have emerged in the US and threaten the historically stable environment of traditional GDS suppliers. He said G2 Switchworks, Farelogix, and ITA Software are "the low-cost carriers of the GDS world".

Set to launch by 2007, the GNEs promise web-based systems that will cut airline distribution costs by millions, he said.

Atkinson claimed agents may find revenue from GDS contracts cut or removed altogether when the GDS environment deregulates and evolves.