A warm welcome to easyJet!
By Janchrister EgneforsWith modest 8-9 departures from Copenhagen, easyJet is not exactly a large player in Scandinavia. For that reason, some people do not find it particularly interesting that easyJet has gone over to distribution via Amadeus GDS. I do not share that view.
What has happened is that one of the world’s largest low cost carriers, with 40 million passengers a year, has made the strategic decision to distribute its offering via the travel agent channel and has also come to the conclusion that the best way to do so is through the Amadeus GDS. Despite easyJet’s website still being the company’s direct window to its customers, the change illustrates an historical shift now taking place in the travel sector. I can see how everything leads up to this. The pendulum has swung and developments within the airline industry now benefit diversity.
You probably know the story but I will tell it one more time in brief. Around ten years ago the low cost carriers made their entry and shook the foundations of the whole sector, not only because they were cheap but also, and probably more importantly, because they chose their websites as the only window to the travellers. For the first time, both GDS and travel agents were challenged. The sales channels short-circuited. Low cost carriers were not alone in utilising the internet to turn directly to customers. One famous example is computer giant Dell, who dispensed with the retailer channels and only offered direct sales via their website.
Another phenomenon during this period was players who called themselves New Generation GDS and claimed to be better equipped to provide airlines with the right connections to travel agents. A few years passed, the new players gradually calmed down and then claimed to be a “complement” to traditional GDS. Since then I have not heard any more about the new generation GDS. It was an historical parenthesis, as opposed to low cost airlines, which are still expanding strongly. All players and business concepts did not survive the 1990s, but all contributed to challenging us and the value of GDS.
But now the pendulum has swung full swing. We have not only survived the changes, we have also become stronger. Internet and IT are not just weapons in the hands of those who wish to sidestep the retailer channels; they are just as much of a tool for retailers looking to improve their offering. Travel agents can, better than anybody else, meet the customer’s need of choice with hundreds of airlines on the same screen. For the customer it is simply easier to find the best trip on a neutral marketplace instead of spending days and hours jumping between different websites. Of this I am convinced.
And what happened to Dell, the US computer giant who only sold via its website? They now have partnerships with several large retailers.
Janchrister Egnefors, CEO Amadeus Scandinavia
