‘Our Focus Is Also The Non-IATA Agent’

A business-to-business service provider, Galaxy Travel Distribution System (Galaxy TDS) that supplies travel agents with bookable rates for hotels from around the world and provides options for ground transfers, excursion packages and tours has launched its India operations. In an exclusive with Jyoti Koul, regional director of sales for Asia, Middle East, Africa and the CIS, Paul Blahuta reveals his plans for India

Can you give us details about the company in brief?

Incorporated in Hong Kong in 1993, the company has its marketing and training operations in Bangkok and its product development centre in Cyberjaya, Kuala Lumpur. Galaxy’s solutions are marketed globally through a network of 34 local offices.

What initiated your entry into the Indian territory and what has been the response from the Indian travel industry?

There are a number of reasons for entering into the Indian market. Firstly, Galaxy TDS is more than the standard GDS. There are approximately 78,000 IATA agents in the world. These 78,000 IATA agents are sharing four GDS with the greatest market share being towards Sabre and Galileo. In addition to these 78,000 IATA agents there are approximately 240,000 non-IATA agents. These non-IATA agents cannot use the traditional GDS, as they are not IATA registered. They can use Galaxy by downloading for no cost Galaxy TDS, if settling by credit card or pay US$130 to be able to receive a weekly credit facility that will be refunded if the retail travel agent produces 100 bookings annually.

Secondly, the opportunity is enormous in the Indian market for retail travel agents as well as inbound operators that wish to provide their inventory to the world of retail travel agents rather than only select buyers. Also, the domestic market for Indian retail travel is a very large market and Galaxy is ideal for cheap distribution. Retail travel agents do not have to sign up for long periods using Galaxy. If they wish to use the application, they can and there are no minimum boundaries required as there are with some of the major GDS. Galaxy offers the BSP payment scheme which is exclusive to Galaxy Distribution. Finally, Galaxy is specialising in ground services (non-air) and is focused on specialising in this field in an effort to drive down distribution costs, allow retail travel agents the flexibility to mark up the commissions at their discretion. Galaxy also allows the travel agents to generate instant revenue but only needing to pay the net value of the bookings generated and alleviate traditional commission chasing processes with the providers.

You are focusing on the retail segment where majority of the agents do not have an IATA code. Is IATA accreditation posing any problem in reaching the vast retail community?

No not at all. We are focusing on both IATA and non-IATA agents. The reason IATA agents are important is simply because of their established trading presence in their markets and their potential volumes of bookings they can generate. Also the fact that the IATA agents can utilise Galaxy for ground services only and continue their air component segments via their current contracted GDS supplier.

The reason we are focusing on the non IATA agent’s market is simply because it is massive and Galaxy TDS is an ideal tool to grow these non IATA businesses with such minimal cost in relation to set up or downloading the application through Navigator Travel Services, the Indian NMC (National Marketing Company) as well as the ability to run the application in most cases without hardware outlay.

What is your strategy to tap the retail segment and what kind of business targets have you set for India market?

Our strategy is to focus on quality content provided by inbound operators from India and around the world at reasonable prices and enable any retail travel agent in India or around the globe to be able to access this inventory 24 X 7 for their needs. The first stage is to get enough wholesale content in areas required by the buyers and provide this to small to medium operator IATA and non IATA businesses. The second phase of the business is to provide the ability for consortia or Networking Agents to access this inventory who are generally focused on the corporate sector. The final stages are focused towards a comprehensive ground service distribution system that assists all retail agents and wholesalers with the ability to trade on a global basis within an IT trading platform at minimal costs.

What is your impression about the Indian market with respect to the availability of the new solutions/products like ground services system/Galaxy BSP and what market specifications are you emphasising on?

I am not completely aware of all the up and coming applications in India but I am aware that Galaxy is not a fly by night application and was founded in 1993 and developed extensively based on a sound business model to bring the travel industry buyers and suppliers together. No other application offers all the elements that Galaxy provides, with particular reference to Galaxy BSP. In addition to this point is the daunting challenge of bringing good content to any database that is not piped onto the backbone of any or many other systems resulting in regurgitating inventory available on any B2C platform or web site. We are a B2B IT trading platform and we are focusing in the medium to long term on ownership of content through our own approach to the market.

Apart from Delhi, Chennai and Mumbai in which other cities are you planning to launch your products ?

It really depends on who actually gets to hear about Galaxy no matter where they are located or whether or not they are IATA or non IATA agents, big or small, with a large client base or small. The concept is simple and is designed for the travel industry for both suppliers and buyers alike. All they need to do is get in touch with Navigator Travel Services, our NMC for India and Nepal.

How are you planning to drive global TDS sales from India?

By providing ground services for the Indian and global buyers in markets they require with the flexibility to mark up at their discretion and contain instant commission as well as providing particular focus to the local domestic needs as well, which is an enormous market.