GDS goes head-to-head with Cendant to increase its foothold in the kingdom

By Jeremy Colson

AMADEUS Asia has begun talks with the Tourism Authority of Thailand with a view to making an agreement that will at best outperform the deal its competitor, Cendant Corp, signed with the NTO last July, and at worst get it back into the frame.

While details of the talks are sketchy, Amadeus seems confident it can bring something to the table in order to become Thailand’s main partner in the worldwide marketing of the destination.

Amadeus Asia director of corporate marketing, Mr Paul Martin, would only reveal that Amadeus knew it had to come up with some high-value propositions in order to become meaningful to TAT.

"The things we are talking about with them are very clear, very specific ways in which we can make a difference," he told TTG Asia.

Cendant has, in the past year, morphed from being not only owner of Avis and Budget, but also owner of most of the world’s major online travel businesses including Orbitz.com, CheapTickets.com, ebookers, Lodging.com, HotelClub.com and RatesToGo.com, and not to mention its latest acquisition, Gullivers Travel Associates.

In addition, it owns one of the world’s leading GDSs, Galileo, which for many years, along with Abacus and Worldspan, had enjoyed access of sorts to Thai Airways International’s (THAI) domestic ticketing system.

But on November 1 last year, all three suddenly found themselves outside the loop when THAI went over to e-ticketing and started to operate what was portrayed as an exclusive arrangement with Thai Amadeus that enabled only its agents to book and issue THAI domestic tickets.

The situation did not change until February 14 when THAI signed an agreement giving back to Galileo the right to book and issue THAI domestic tickets.

The agreement requires the parties to interface their systems and cut over by the middle of May, and Galileo’s managing director in Bangkok, Mr Steve Skilbeck, told TTG Asia that implementation was slightly ahead of schedule.

Where does this leave Amadeus, whose decision to set up shop in Bangkok was largely linked to THAI’s commitment to supporting its joint venture, Thai Amadeus?

Mr Martin said Amadeus was seeking an early meeting with THAI’s new chairman to validate Amadeus’s view of the events that led to THAI bringing Galileo back into the picture.

"We continue to hold the view that our previous position is accurate and compelling," Mr Martin said, adding it was important for THAI to understand the situation post-Galileo.

But Amadeus also wants to look forward on several fronts.

"From the distribution perspective, we will remain a key partner. We will continue to be a significant provider and we wish to explore new opportunities to work with THAI in Thailand and elsewhere," he said.

Meanwhile THAI president, Mr Kanok Abhiradee, told TTG Asia: "We have a deal with Cendant’s Galileo, and we are talking with Abacus. The policy is to introduce an open platform which will enable us to make savings and provide more choice for travel agents," he said, adding talks with other travel distribution system providers could be anticipated.

He added he was not only looking to achieve savings on domestic distribution but also on European outbound segment booking fees. Mr Abhiradee also said he was about to introduce a new network planning system. He did not confirm the name of the supplier at press time.