UFTAA

1
UFTAA
Air Matter Casablanca Congress
2
Travel Industry Emerging Scenario

• Internet brings information into the public
  domain
• E-tickets coupled with internet enables the
  airline to transact directly with the passenger
• Emergence of a new breed of low cost airlines
• Offer no frills
• Look to bypass the agent
• Open up a new breed of travellers

3
Travel Industry Emerging Scenario

• BSP GDS do not support new age carriers
• Emergence of OTAs
• More more airlines want to own the customer
• Commission is dead
• Even in markets where commissions exist
• Consolidation of airlines
• Mergers Cross holding
• Alliances

4
IATA Billing Settlement Plan

• Agent at the whims and fancy of airlines
• Can be prevented by airlines from issuing tickets
• Airlines can raise debit memos on agents and
  force agents to pay
• BSP Draconian rules imposed by converting a
  competitive environment into a monopoly

5
IATA Billing Settlement Plan

• Penalties for minor defaults very sever
• IATA is new age Imperialism
• A few airlines dominate IATA
• Dictate their writ on smaller carriers
• Not developed a single pro agent feature in 2
  decades
• Passing all costs to agents BSP Link

6
New Generation Carriers

• No credit no commission to travel agent
• Access through public domain websites
• Need to access several websites to find lowest
  fare
• Payment either through deposit or credit
• Credit card has limitations on line of credit
• Credit card is not legal to use
• Deposits lock capital
• Separate deposits with each airline

7
New Generation Carriers

• Market share of LCC is growing everyday.
• Traditional airlines evolving strategy to counter
• Pay for service
• Launching LCCs
• Aggressive frequent flyer programs
• Strong incentives to encourage direct bookings

8
Travel Agent State of Affairs

• Loss of USP
• Gross margins shrinking
• Operating cost soaring low productivity
• Facing credibility and transparency issues
• Low level of technology adoption
• No CRM tools
• Not meeting customers changing demands
• Comfort Convenience
• Customers are aging

9
Online Travel in Europe
Source TravelBiz Monitor
10
Trends in US
Source Travel Weekly
11
WAY FORWARD
???