CRS Companies Keen To Build On Market Share

Neeti Chopra - New Delhi

Ankur Bhatia

To gain on 60 to 65 per cent of the market share in the next two to three years, we need to customise our value propositions

The three major players - Amadeus, Galileo India and Abacus are aggressively working towards consolidating their market presence in the country. All three GDSs have been actively pursuing to increase their market share, which is currently divided as Amadeus - 52 per cent, Galileo - 38 per cent and Abacus - 13 per cent. Taking things head-on, Amadeus is targeting an increase in its current share to 55 per cent this year by following a three-fold strategy that is - focusing on distribution, e-travel platform and airlines outsourcing.

Raja Natesan

We are looking at horizontal consolidation in the travel vertical, so that, we can control the content and distribute it through the cheapest distribution model

"To gain on 60 to 65 per cent of the market share in the next two to three years, we need to customise our value propositions," said Ankur Bhatia, managing director, Amadeus, Indian Subcontinent. The company has recently been signed on by Uniglobe Travel South Asia as their preferred CRS. Besides, Kingfisher Air will use Amadeus' AIRS platform to book tickets. Globally, talks are on for Amadeus to be sold to two British Equity fund companies for $5.67 billion. "This move will not affect the Indian market. This is with respect to our plan to restructure the company," Bhatia pointed out.

Galileo's parent company, Cendant has acquired several travel tech companies like e-bookers, Orbitz and Gulliver Travels and is looking at many more in India. The company is looking at providing consultative technological solutions in the near future. "We have to provide end-to-end solutions to our suppliers as well as agents. We are thus looking at horizontal consolidation in the travel vertical so that we can control the content and distribute it through the cheapest distribution model," said Raja Natesan, president and CEO, Galileo India.

Stuart Crighton

Our tie-up with Indian Airlines would help optimise the company’s operational efficiencies and enhance their competitiveness in the market

As regards Abacus International, the company's agreement with Indian Airlines has given the GDS access to all Indian Airlines domestic fares. According to Stuart Crighton, outgoing head South and West Asia, Abacus International, this step would help optimise the company's operational efficiencies and enhance their competitiveness in the market.

Foreseeing changing trends and requirements of the Indian travel industry, GDS companies are identifying how best they can utilise their product in order to garner optimum benefit. "GDS is the backbone for travel industry because technology has become an inherent part. Technology can be replicated instantly. But it is not just about advantages or benefits, but how customised your product is to suit the need of a particular agent," said Natesan.

Abacus' mainline product is AbacusWhiz, which is a PC-based system allows an agent to access the Abacus Central Reservation System and offer a host of features like WhizMask, WhizMode, and WhizCoder among others. Abacus has made significant investment in infrastructure and technology to enable around 60 per cent of tickets issued through its system to be e-ticketable by the end of 2005. Amadeus is also looking at investing more on developing new technology in travel. "About 46 per cent of international airlines touching India use Amadeus platform. We are trying to extend the same technology to domestic carriers as well," mentioned Bhatia.

Software development is an ongoing process with all GDS providers. In the long run, it will be the product - that is, the technology that can be harnessed by anyone - that will determine loyalty.