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Example research essay topic: Travel Agency Distribution Channels - 2,171 words

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Sabre is a complex company that is difficult to fit into a specific industry. Although they were once a division of American Airlines, and remain closely tied to the airline industry, they are not direct competitors of other airline companies. Sabre has several business lines, therefore determining true competitors change with each business unit. Because the core competency is its computer reservation system, the competitive focus will be on other computer reservation system's companies. Currently Sabre is the market leader. Amadeus Global Travel Distribution, Galileo International, and Worldspan GDS are the other leaders in the CRS industry.

Amadeus is a GDS and technology provider base out of Spain, and traded on Madrid Stock Exchange. They serve the marketing, sales, and distribution needs of the international travel and tourism industries. The data network and database is comprehensive and is the largest in Europe. The Amadeus system provides access to hotels, rental cars, airlines, ferry, rail, insurance and tour operators through 50, 000 travel agency location and 8, 2000 airline sales office. A key development at Amadeus is the agreement with priceline. com and acquisition of vacation.

com. Amadeus Global Travel Distribution System will be connected to NameYourOwnPrice Services of Priceline. com. Acquiring vacation. com gives the strong European company a foothold in the highly sought after U. S.

market. Vacation. com is North American's leading vacation selling network. One third of U. S. leisure travel are vacation.

com products. Through this strategy Amadeus gains the agency only extranet that provides members news, preferred supplier information, and marketing material. The dot. com strategies fives the company an opportunity to develop an on-line strategy to compete with Sabre's highly successful on-line website Travelocity.

com. Amadeus has introduced an interface that maps Amadeus products into an Internet presentation. This technology allows interfacing with the GDS to be supported through a variety of communication types. Although Amadeus is determining the role of the Internet on its business, they are not moving away from their commitment to the travel agency model. They are quick to point out that a relatively small percentage of travel is booked over the Internet. With only 3 % of all travel transaction booked on-line, Amadeus believes that the future of travel remains with travel agencies.

Galileo holds 10 % of the market share of GDS. Galileo data center gives travel agencies, corporate travel managers, and Internet users the ability to book travel by accessing schedule, availability, and pricing information from its state-of-the-art data center, housed in Rosemont, Illinois. Trip. com is Galileo's Internet initiative that allows mobile business professionals to access their premier one-stop technology solutions in addition to travel services. They also provide advances telecommunication services for customers in the travel industry as well as a variety of other non-travel related industries. Currently Galileo is considering what direction to take the company.

On October 30, 2000, they announced they are looking at strategic options including the possibility of a sale to a strategic buyer of leveraged buyout. In recent months Galileo's stock performance has been poor because of concerns of the role of the Internet on its business. Their Internet strategy was hurt when one of its key clients, preview. com was purchased by travelocity. com, a Sabre company, over a year ago. Travel Galileo.

com was presented to the travel agency community to overwhelming interest at the American Society of Travel Agents Congress. They have now registered over 400 new agencies on its sites, with more expected. Galileo has traditional used the travel agency channel and understands that the Internet is the channel with the greatest opportunity for growth. Through trip. com and travel galileo. com, Galileo believes they will be able to improve their position in the Internet channel.

Worldspan is the youngest of Sabre's competitors. Worldspan was founded in February 1990 through an agreement between Delta Airlines, Northwest Airlines, and Trans World Airline to combine and integrate three different internal reservation systems. In 1993 Worldspan entered the airline technology services business. Its global data center is headquartered in Atlanta, Georgia. They have three lines of business: travel supplier services, e-commerce, and travel distribution for the travel industry. Worldspan processes more than 50 % of all online travel agency bookings through the 20, 800 travel agencies that uses its reservation system to access hundreds of the world's travel service suppliers.

Worldspan has a presence in 70 countries or territories worldwide. Worldspan recognizes the influence of the Internet and have forged a partnership with travel store. com. Worldspan will become the exclusive supplier of global distribution system technology and services for travel store. com and its online travel planning and reservations site. In addition they travel store.

com will receive Worldspan's transaction processing and technology services, along with a comprehensive package of customized e-commerce solutions and professional consulting services. This is a key strategy for Worldspan to enter into the European business-to-business corporate travel market. Travel store. com offers online business travel planning and management services throughout Europe. Specializing on the unique needs of small to medium-sized enterprises. Through its Internet strategies, Worldspan is not planning to leave its dedicated travel agency network, but instead to use the Internet to enhance its offerings to agents.

This allows agents to better serve the end customer. Through Worldspan Go, they are able to offer travel agents direct access to their CRS with complete travel planning and booking capabilities, In addition to a browser-based access to a broad selection of Internet-based travel products that also has fax and e-mail capabilities. This is all accessed from a single desktop. The newly designed Worldspan Go! Home Page makes everything easy to find and to use, with graphical interfaces that quickly guide users to the solutions they need, whether system-based or Web-based. Worldspan Go!

is the Company's browser-based reservations and e-commerce platform that will provide many benefits through its range of integrated products and enhanced solutions. Their Internet strategy also offers Web-based solutions that are designed to help the travel agent build sales and market services more effectively. Worldspan has started a new Web site, mytripandmore. com, where travel agents can offer travelers instant Internet access to their travel itineraries as well as providing complete online information on car, cruise, hotel, airline, and tour reservations.

Mytripandmore. com has the ability to be accessed through Internet-ready mobile phones and personal digital assistants (PDA). Worldspan is using the growth of the Internet to leverage its travel agency business model. Its on-line strategy is to provide agents the resources and capabilities that allow them to work more effectively and efficiently. As other competitors are contemplating how to reach the end-customer, Worldspan is providing technologically advanced solutions to better serve their clients. Sabre has been in the forefront of eBusiness for decades.

The company uses latest tools and technologies to remain the leader in the travel industry. Sabre is already strongly positioned in the travel market by combining "brick and mortar" with online Web sites. Recent Sabre's endeavors in the eBusiness arena hitting the press are: Sabre launched a comprehensive suite of Web hosting services in April, offering services with flexible tiered packaging and pricing, targeting high-volume, transaction oriented e-commerce sites. The services include secure data center facilities, high-bandwidth Internet connectivity, systems monitoring and professional services. Sabre's tiered Web hosting solution enables not only the company's traditional travel and transportation industry customers to quickly establish transactional-based Web sites, but companies in a variety of other vertical markets as well. Sabre Web Hosting delivers a total solution - data center facilities, network infrastructure, systems monitoring and ISP connectivity.

Sabre already hosts approximately 700 sites. The different levels of hosting services include: Managed Shared Hosting - a managed environment with shared server architecture. This provides cost efficiencies for customers willing to share Sabre system resources. Managed Dedicated Hosting - a managed environment with a dedicated server complex, gives customer flexibility, including non-Sabre applications, and maximum service and support.

Co-location Hosting - customer-provided hardware and applications are housed in Sabre's hosting facility; provides customer with control, flexibility, lower costs and speed-to-market. Web hosting provides Sabre the opportunity to increase revenue streams through its traditional travel and transportation segment and to expand into other transaction-oriented businesses, such as financial and brokerage firms. The entire Web hosting market is expected to generate $ 14 billion in revenue in the United States by 2003. Sabre announced Sabre eva in March. Sabre eva travel agency technology offers an entire suite of travel agency tools including eServices, eCommerce, e Care and e Management.

Sabre eva technology is a new way to look at entire travel agency product suite offered by Sabre. Travel agents can now access services and support via eServices Web site. eServices can help Sabre realize cost savings from streamlined operational processes as well as help position Sabre as a travel agency partner offering enhanced customer service and support. eServices offers the following features and functions: Live Online Training and Chat: scheduled online user classroom training facilitated by an online instructor; cost savings from less travel to training class locations; convenience and flexibility of taking other select training courses online at any time Equipment Ordering/Tracking: equipment orders for moves, adds, and deletes; ability to check status of order online; automatic online confirmation Online Diagnostics: hardware troubleshooting instructions, diagnostics, and diagrams Agency Dispatch: automatic dispatch of mice, keyboards, & monitors as well as LMR status views; online technician dispatch for select onsite needs Booking Reports: ability to access current and historical reports as well as graph booking trends Quest Direct is targeted to airlines or other travel related suppliers seeking to develop an e-commerce site to enable alternate distribution channels. Quest Direct is a complete architecture, methodology and technology solution that enables high-availability, high-traffic, large-scale direct sale transactions via the Internet and other e-commerce distribution channels. More importantly, Quest Direct is completely customizable to meet customers's pacific needs.

Swissair is a current Quest Direct client. E-Commerce Reservation Tool (ECRT) is an online booking tool targeted to Sabre-hosted airline customers and smaller non-hosted airline customers. ECRT is engineered to support high-volume Internet sites receiving thousands of hits per day, with the performance and reliability to service customers quickly and efficiently. Sabre provides an all inclusive application development, connectivity to the reservations host and ongoing hosting services. This tool is an attractive and cost effective option for multi-host airlines to expand in the arena of online booking. Current ECRT clients include American Trans Air, Legend Airlines and Midwest Express.

Quest Direct and ECRT benefit clients in numerous way by enhancing profits, and reducing distribution costs and call center expenses due to direct sale transactions over the Internet. Internet, e-commerce distribution channel affords the opportunity of increasing market presence and revenues. Sabre and Ariba, Inc. announced an agreement to create Sabre e-Marketplace, the first Internet-enabled B 2 B marketplace designed for the travel and transportation industry. Powered by the global Ariba B 2 B eCommerce platform, Sabre e-Marketplace is expected to drive cost savings and new revenues for industry participants through global economies of scale and streamlined buying and selling.

Sabre e-Marketplace will maximize the purchasing power of companies with similar procurement needs, such as airlines, airports, travel agencies, railroads, cruise lines, car rental companies and hotel properties. Sabre announced a new Sabre Business Travel Solutions I 2 Interactive Information product, a Web-based management reporting and data analysis tool. I 2 was created in response to customers' request for a comprehensive, Web browser-based product to access corporate travel data and easily distribute reports via a Web page, email or as a converted spreadsheet. Sabre has joined forces with flight serv. com to enable Sabre Connected business travelers to purchase individual seats on chartered private jets as an affordable alternative to fully refundable commercial airline travel. The partnership will provide access to flight serv.

com's proprietary Private Seats & trade; product through Sabre BTS. Fusion One and Sabre have formed a partnership to integrate fusion One's free Internet synchronization service with Sabre's travel Web sites. Synchronized access will be made available to more than 350 corporations using Sabre BTS as well as Sabre Connected travel agencies through the Sabre Virtually There Web site. Sabre, SCA Telecard Promotions and West TeleServices Corporation launched a tele service promotional program offering free long distance service to travelers through the Sabre Virtually There Web site. Once a trip is booked, travelers can access their trip itineraries through the Web site and receive free long distance in increments of 10, 20 or 30 minutes. Sabre formed a strategic alliance with Oracle Mobile.

com, a new subsidiary of Oracle Corp. , to provide wireless users of Sabre BTS, Travelocity. com and Sabre Connected travel agencies the ability to book travel via Web-enabled handheld devices. In Aug Sabre announced the acquisition of Gradient Solutions Limited, a Dublin, Ireland-based technology company that provides e-commerce solutions to the global travel marketplace. Gradient Solutions enhances Sabre's existing leading-edge Web development expertise and technology, as well as online distribution solutions, by bringing an international and highly customizable online booking engine. Hosting capabilities...


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Research essay sample on Travel Agency Distribution Channels

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