TRAVELPORT will not be getting a GDS renewal contract from Flight Centre for its Australia and New Zealand operations when the agreement expires June 30, 2017, according to a report by Travel Trends.
Flight Centre is estimated to generate more than US$100 million in revenue annually and both Amadeus and Sabre are sure to be vying for the account.
Travelport’s Australian and New Zealand business has revolved around Flight Centre for more than 25 years and the report states that this will likely lead to a long-term restructuring of their businesses in that region.
This is not the first time Flight Centre has decided to switch from Travelport. Amadeus took over the European business last year while Flight Centre currently uses Sabre in Canada, Mexico and the US.
Travel Trends estimates Travelport to be processing around US$15 million in its airfare segment at the moment, which will plunge when the Flight Centre account is lost next year.
Travelport did not make any official statements but staff were recently informed of the decision by the company.
Both Flight Centre and Travelport declined to give any comments due to confidential nature of the agreement.