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Compliment of: Travel Weekly
Dated: 11 June 2005
Abacus the leading global distribution provider in Asia/pacific,
is on the move to keep itself ahead of the GDS pack.
Its president and CEO, Don Birch works and plays like the ultimate
survivor.
He tells Travelweekly why non-air content will drive the business
for Abacus and its role as the “second fiddle” to
the travel agent.
“In Asia the Internet is minimal The role the GDS can
play in the hotel space is providing people with a range of
options, so travel agents can genuinely give customers arrange
of choices,” said Birch.
According to Abacus, its non-air bookings such as hotels, cars
and tours are its fastest growing segments. In three to five
years, Abacus estimates that its non-air business would contribute
more than 10 percent of total revenues.
Birch added, “The next step in our evolution process is
moving away from a pure focus on airlines. And as we have been
doing for a number of years, moving to a wider view of travel
distribution.”
Abacus is partly owned by Sabre, the US-based GDS. Sabre managed
to negotiate the web-fares hotels sold and distribute them through
the GDS channel.
However Birch said this may not be the case for Abacus.
“People who buy through the web are different from those
who buy though GDS. As in how they buy from different types
of shops. For example. I shop only at Bloomingdales dales and
no other.”
Abacus, as its name implies. Is also very much an Asian entity
operating in the region. The business model that emerges for
the trade is thus different.
There are about 80 airlines in Asia, and 32 low-cost carriers
with the figure steadily rising. While for travel agents and
tour operators. The figure is roughly estimated to be tens of
thousands.
“In that environment, you have to ask how to go direct
to consumer in certain markets and to manage that complexity
you need a representative.
“With our distribution reach we are providing value for
suppliers enabling them to get their product to market at a
better price given the challenges they face , ”said Birch.
The top honcho of the GDS actually began the interview with
an analogy of how the GDS will go through a “liberalization”
just as the telecommunications industry has done.
Birch said ,”The old GDS could be a dinosaur the old style
of business. It still has its issues but it around and not disappearing
any time soon.
“More importantly, the increasing number of air bookings
show that travel agencies are eve into full-service travel consultancies,”
he said
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