As the youngest of the four GDS companies, Amadeus has done remarkably well
during its short tenure. Yet, in many ways, the company remains an anomaly. Amadeus has
the greatest number of travel agency locations with the highest productivity per terminal in
the world, yet its booking share is Number 3, and its revenues are dwarfed by Sabre and, to
a lesser degree, by Galileo. While the company is Number 1 in locations worldwide, serving
the greatest number of countries, it provides the fewest U.S. destinations of the top four
GDSs.
As with its competitors, the future for Amadeus will continue to be linked to the
technological and structural changes that are revolutionizing the travel industry. Amadeus
appears to be adapting well (albeit cautiously) to the shift of business to the Internet.
Having acquired e-Travel, Inc. from Oracle Corporation in July of 2001,
Amadeus now has
a new business unit dedicated to delivering solutions to e-commerce players worldwide.
The e-Travel solutions integrate all components of a managed travel program into a single
Internet-based service that enables travellers to book air, car, hotel, and rail services, all
within corporate guidelines. With its strong company infrastructure worldwide, impressive
product set, and growing customer base, Amadeus is one of the most significant players in
shaping the future of the GDS (Amadeus 2009).
69
Amadeus – Homepage
Competitive Strength
Amadeus has an advantage over the other systems because of having access to the
most travel agency sites.
Also the Amadeus system has the most productive system platform
in the world. In July 2001 Amadeus has purchased e-Travel, Inc. At the same time the
company has made the business unit and this unit is working through e-Travel to give more
business to corporate clients (Amadeus 2009).
CASE 2: Galileo
Overview of GALILEO
Galileo began in 1993, when British Airways, KLM (a Dutch airline) and United
joined forces to create a computer reservation system. The Apollo system that United had
developed during the ‘70s became the basis for the new consortium.It was founded 11
major North American and European airlines: Aer Lingus, Air Canada, Alitalia, Austrian
Airlines, British Airways, KLM Royal Dutch Airlines, Olympic Airlines, Swissair, TAP
Air Portugal, United Airlines, and US Airways. It is a major player in the GDS business
throughout the world: North America, Europe, the Middle East, Africa, and the Asia/
Pacific region. Galileo International is a diversified, global technology leader. Its core
business is providing electronic global distribution services for the travel industry through
70
its computerized reservation systems, leading-edge products and innovative Internet-based
solutions. Galileo is a value-added distributor of travel inventory dedicated to supporting
its travel agency and corporate customers and, through them, expanding traveller choice.
Corporate Preview
Galileo is owned by Travel port, an international company headquartered in New
York. Travel port specializes in travel-based services and has a gross annual income of more
than 2 billion dollars. In 1997, Galileo International became a publicly traded company,
listed on the New York and Chicago Stock Exchanges. In October of 2001, Cendant
Corporation acquired Galileo International for approximately $1.8 billion in common stock
and cash. Currently, the company is represented in 116 countries, and serves travel agencies
at approximately 45,000 locations. Other travel suppliers include 500 airlines, 227 hotel
companies, 33 car rental companies, and 368 tour operators.
Products &Services
Galileo provides global distribution system (GDS) services for the travel industry through.
Galileo Desktop
2.0
Galileo Desktop is a sophisticated global reservation, business
management and productivity system.
Galileo e-Tracker A simple to use, web-based tool that enables agents to check all
electronic tickets issued via Galileo.
Travel port Smart
point
The latest version of Travel port’s point and click technology.
It evolves the Galileo Desktop with dynamic and interactive
technology that improves travel agents productivity and customer
service.
Travel port View
Trip
A comprehensive online travel resource providing agencies and
their customers with direct access to their own personal travel
itinerary, electronic ticket records and electronic expense receipts,
including the ability to retrieve, review, print and e-mail data from
any internet-enabled location.
Galileo
Integrated Data
Source
is a structured data stream which collects core PNR data from the
Apollo and Galileo host systems to enable customers to manage
pre and post trip reporting to effectively control travel budgets and
business operations.
71
Travel port
e-Pricing
Technology has revolutionized the worldwide travel shopping
experience. It is built upon the first multi-server based shopping
technology in the global distribution system (GDS) industry. It
allows travel agencies, corporate travel buyers and online shoppers
to shop, price and book low fares faster and more accurately than
ever before.
Travel port Rapid
RE price
Automates the complex itinerary re-pricing function allowing
agents to efficiently re-price a ticket in a matter of seconds. The
whole process of locating original ticket data, interpreting and
applying fare rules correctly, building new fares and exchanging
the tickets is automated.
Automated
Exchanges and
Refunds (ARNE)
Fully automates ticket exchanges and refund calculations. Validates
change penalties and change fees.
E-Learning
Designed for busy professionals with comprehensive information
about Ticketing solutions Focal point Shopping, hotel bookings,
car rental or any other related services. Equip you with everything
you need to know about ticketing solutions,
Galileo Custom
Check
A proven quality control solution that comes into play at the point
of sale, ensuring that your bookings adhere to corporate or agency
policies – prior to ending a transaction and ticketing. Custom
Check is available to subscribers of the Galileo and Apollo global
distribution systems (GDS).
Galileo Web
Services (GWS)
An application program interface (API) that enables customers to
build an interface such as a website, connected to the Galileo GDS.
Through GWS, travel companies can easily integrate Galileo travel
content with their own systems to create their own website and
grow their business.
Competitive Strength
Galileo’s competitive strengths include market share, well-balanced and global
presence, relationships with diverse groups of travel vendors, technologically advanced
information systems, highly skilled personnel, and a stable product line. Compared to other
GDS companies, Galileo is a cautious follower when it comes to technology. However, in
response to the growing demand of web-based travel, the company has established successful
72
relationships with entities such as Go, UK’s best low-cost airline; subsidiaries such as High
wire, Inc., providing Internet-based tools and services to the corporate travel market; and
Sheperd Systems, an industry leader in the provision of sales and marketing intelligence
systems and services within the travel industry. Additionally, Galileo has sponsored
membership to the THOR Worldwide Negotiated Hotel Rates Program, and has a state-ofthe-art development centre supplying information and systems support to travel agencies
operating more than 178,000 computer terminals, all of which are linked to the Galileo’s
Data Centre. Singular focus on the distribution side of the business is also its perceived
strength. Based on its competitive strengths, Galileo is pursuing a strategy that includes
expanding its global distribution, strengthening customer loyalty, leveraging technology,
and capitalizing on opportunities created by increasing Internet use. Galileo sees the GDS
industry as having the ability and potential to provide electronic distribution and many
components of e-commerce to other industries, and is utilizing its strengths to provide
expanding services to its growing customer base.
