Thursday, August 09, 2007

Sabre and Amadeus joint venture - then there were two?

Hot on the heals of the imminent approval of the Galileo and Worldspan merger is news of a Sabre and Amadeus joint venture. But don't get too excited this does not mean we are down to two GDS companies as the JV is for non-air product only according to Travelmole. Unclear to me how that will technically work but given the quantity of non-GDS ways for consumers and travel agents to book non-air would be surprised in the competition authorities rejected the deal.


Anonymous said...

Tip of the iceberg as GDS companies open up internal inventory (Travelocity hotels, etc) to the much vaunted "supplier side gateways" and start to cross-distribute content through agency networks. Be on the lookout for LCC and attractions, not to mention Amadeus's neat little boutique hotel/lastminute extranet app. Roll on the roll ups!

Anonymous said...

2 important points: 1) It's not that big a deal. 2) It's not about content distribution... yet.

Anonymous said...

Hi Tim,

just to offer the official view, yesterday's announcement is not about content distribution, it's about payment processing, clearing and reconciliation.

Happy to share more information when we've heard back from the EC.

Best regards,


Tim Hughes said...

Look forward to hearing more. Details are limited but I have not expectations of this reducing the travel agent air booking battle between Amadeus and Sabre

Anonymous said...

The interesting thing is that the level of detail being made public is poor. Why is that if it is "no big deal". Even the EU when I approached it just refered me to pretty much the same level of info in the press release. They basically would/could not release the submission.

What I can gleam is that the project name is Magellen and the new company, which looks like being called Moneydirect will be incorporated in Ireland

Personally despite understanding the issue Iam against any two dominant players working together on an industry solution that would ultimately benefit them in developing their non-air business.

If any body else agrees and wants to comment follow the EU instruction below

The Commission invites interested third parties to submit their possible observations on the proposed operation to the Commission by 25 August 2007. Observations

must can be sent to the Commission by fax (fax no. +32/2/296 43 01 or 296 72 44) or by post, under reference number COMP/M.4760 Amadeus/Sabre/JV to the

following address:

European Commission
Directorate-General for Competition,
Merger Registry
B-1049 Bruxelles/Brussel

Tim Hughes said...

Trevor - thanks for passing on your research and insight