industry note


August 27, 2007

On August 15, Air Canada (AC) and Galileo (GAL) issued a Press Release regarding a new graphical display tool for TMCs to use to access AC inventory. You can read the announcement at http://businssstravelcoalition.com/advocacy/campaigns/97.html. The AC/GAL communication raised more questions than it answered. BTC published a preliminary analysis on August 16 at http://businesstravelcoalition.com/advocacy/statements/101.html, and sought additional input from GAL, AC, TMCs and corporate travel managers regarding this development. BTC subsequently provided GAL with a set of questions that industry participants said they wanted answers to. The questions and GAL's response can be found below.

 

FULL CONTENT & FULL FUNCTIONALITY

  1. Q:  Where will these bookings – including Flight Pass transactions -- reside, in Galileo or on AC’s website?   

A: The new Galileo tool is capable of aggregating content from the core GDS as well as Air Canada’s API. One storefront provides access to both traditional GDS content and full Air Canada content within a single PNR.

  1. Q: If the latter, will all fares be guaranteed, particularly those that do not reside in Galileo?

A: Yes, the fares are guaranteed.

  1. Q: If the later, will the inventory involved be limited to Tango, Tango Plus, Latitude, Latitude Plus and Executive as well as Flight Pass products? Or, will the new program include all AC inventory? (Threshold Question)

A: All of AC's inventory for domestic, transborder and international markets will be available.

  1. Q: Will these bookings be available through corporate booking tools?  If so, which ones?

A:  Yes, Air Canada content will be integrated with Galileo Traversa.

  1. Q: Will internal accounting and billing processes likely need to be changed for corporations that bill clients for travel should fees be associated with this new scheme?

A: The product is being built to incorporate the majority of existing operational processes.

  1. Q: How are itinerary changes, cancellations, and upgrades handled?  

A: Change and cancel will be included in Release 2 of the product, which is scheduled for early 2008. Until that time, AC will accept calls directly form subscribers.  

  1. Q: How are interline itineraries sold?

A: Currently, the new Galileo application will function in the same manner as the new Air Canada website.  A future release will incorporate interline functionality.

  1. Q: How does the passenger get a complete itinerary including negotiated hotel reservations and car/limo reservations without entering a passive segment?

A: The application creates a booking in Apollo so the subscriber can add hotel and car content as required, in the same PNR and manage using existing processes.

  1. Q: How are airline schedule changes (not passenger changes) handled and who is notified?

A: Initially, agencies and passengers (end consumers) will be notified by email.

  1. Q: What about 24/7 service for these bookings? Is there a phone fee?

A: There is no change to current arrangements

  1. Q: Does this new system pull second level profile information into the booking?

A: Profile info can be pulled into the desktop booking. 

  1. Q: How secure is this new process? (Threshold Question)

A: The entire booking process is secure.

  1. Q: How can travel managers track the whereabouts of their employees during emergencies? (Threshold Question)

A: No process changes required.

  1. Q: How do travel managers apply their travel policies to these bookings?

A: TMCs will continue to manage policy as they do today with the added benefit of access to Flight Pass, Tango and Air Canada’s full range of merchandized product.

  1. Q: Will these bookings be integrated seamlessly into the back office and reporting tools?

A: All information regarding services sold will be integrated into the PNR.

  1. Q: Are these bookings made in real time or are they dependent on synchronization with AC’s website? (Threshold Question)

A: Bookings are made in real time. 

 

ECONOMICS

Galileo Comment: Regarding the economics, there will be charge for the use of the application as it provides added value and unique content. Specific terms are not yet finalized.

  1. Q: Does this model introduce inefficiencies in the form of higher costs to TMCs and corporations?

A: It actually improves efficiency since TMCs can book travel in one place without having to search multiple sites.

  1. Q: What happens to the end-to-end economics of distribution?

A: (Galileo did not answer this question.)

  1. Q: Is this an incentive-less model?  (Threshold Question)

A:  Any incentives Air Canada offers on their website will apply.      

  1. Q: What about passive bookings in Galileo – are charges for them passed on to subscribers?

A:  Currently, Galileo does not make a charge to subscribers for passive bookings, but may choose to do so in future.

  1. Q: Does this new model change the core economic relationships among industry participants?  (Threshold Question)

A: (Galileo did not answer this question.)

  1. Q: Who is going to pay for this new distribution model? (Threshold Question)

A: (Galileo did not answer this question.)

  1. Q: And whatever they are, how long are these economic relationships guaranteed? 

A: We have a multi year agreement in place with Air Canada. Specific terms will remain confidential.