Does this signal the end of Sabre as we know it? At this point, it’s doubtful. But, it is a competitive move that we can not ignore. And, with existing DCA3 contracts nearing terms end, it is also very possible that the airlines are using this as something of a bargaining tactic for future negotiations. Clearly, the GDS', Sabre included, have their work cut out for them.
American Airlines said they were very satisfied with products from Sabre; it’s the economics that are troubling. G2 claims their fees will be as much as 80 percent below current costs. Now for this to work so the airlines can realize those savings, they are going to have to get travel agents on board to use the G2 system.
Of course, the “what’s in it for me” will kick-in and it’s likely the airlines will pass on some percentage of the savings back to the travel agents.
It’s kind of like re-introducing travel agent commissions. What goes around comes around.
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