easyJet to go live on Sabre next year

16 Oct 2009 at 15:04 — by Stanley Slaughter in Air Travel, Travel Management | NEWS ITEM

Trials to be held in February

easyJet's inventory is to go live on Sabre GDS next March.

Paul Simmons, the low cost carrier's regional general manager UK, said trials would be held in February before the inventory went live.

The UK's largest airline has had its fares and schedules on rival GDSs, Amadeus and Galileo, since November 2007.

Sabre and the carrier first announced their deal in February but no date was given or fee levels revealed.

However the UK Guild of Travel Management Companies (GTMC) signed an agreement with GDS in December 2008 substantially reduced GDS charges for easyJet.

These new fees were set at €4 per sector, reduced from €12 per round trip booking.

Mr Simmons made his announcement at financial forum on London organised by the UK and Ireland Institute of Travel and Meetings (ITM).

During a session on airline revenue management, Mr Simmons stressed that while easyJet wanted to attract business travellers, it would not offer corporate deals.

"We don't do corporate deals, join BSP partnerships, offer discounts, employ a sales force or do RFPs," he said.

He said the way to get the best fare on his airline was to book early.

Mr Simmons said ancillary charges were now an "important source of revenue" for the LCC and he expected this stream of revenue to expand, particularly in leisure areas, like cars and hotels.

Earlier in the session Jonathan Downes from bmi, said the aim of revenue management was to sell a seat to the right customer at the right price at the right time.

Mr Downes, bmi's revenue management manager, said revenue management for legacy carriers used to be "relatively easy".

"But now you can't do it without a complex network. Previously if we did not get it right, it was a low risk.

"If we forecast we would sell nine business class seats but it turned out we could have sold ten, it was not the end of the world.

"But we have had to adapt our approach for a number of reasons, including the rise of the internet, bookings moving way form agents to customers and 9/11," he said.

 He said bmi's response had been to move closer to the approach of LCCS and move way from complicated fare structures. It turned our world upside down."

www.easyjet.com   www.sabretravelnetwork.com   www.flybmi.com   www.itm.org.uk

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EasyJet modifies distribution channels

The internet has enabled major airlines to reduce their distribution costs.

In addition to the savings from selling directly to their customers online, they have restructured their compensation schemes with both travel agencies and GDSs.

That situation will contribute to evolve as airlines pressure travel agencies and GDSs to further reduce costs. So, for EasyJet not to offer corporate deals and discounts is a logical decision. It will join Sabre to increase distribution channels only without changing its other marketing variables.

As a result of the evolved market conditions, many GDS operators are reinventing themselves in order to stay relevant as distribution providers. In addition to expanding and diversifying their products and services, their focus is on reducing internal costs and finding ways for the costs to be borne by users, not the airlines.
Email: management@ultraconsultants.net

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