At the bi-annual meeting of ECTAA in Malta on 2-3 December 2004, the Members of ECTAA welcomed the results of the feasibility study…
At the bi-annual meeting of ECTAA in Malta on 2-3 December 2004, the Members of ECTAA welcomed the results of the feasibility study on a new accreditation and settlement system, which concluded that there is a real interest among all industry players in a more efficient and cheaper settlement system which encompasses all service providers
ECTAA and GEBTA commissioned a feasibility study with a view to assessing if it is feasible to put in place a more accessible and efficient system than the one governing distribution today. The new system would enable agents to pay all suppliers on whose behalf they sell services in a more efficient and less expensive way within a more balanced, business oriented environment. The 4 months study concluded that it is eminently feasible to challenge the status quo and deliver a new system providing a fair and balanced, yet all encompassing, accreditation and settlement solution for air and non-air transactions with significant cost savings.
The results of the fieldwork have shown that there is clear support for a new approach to accreditation, billing and settlement. The vast majority of potential users surveyed stated that they would move to a new accreditation system, either without pre-conditions or subject to appropriate service safeguards. The picture is similar for a new billing and settlement service. Even full service carriers that are long term customers of current billing and settlement services are prepared to consider alternatives if significant price reductions can be achieved and service levels maintained or improved.
As part of the survey, banks with appropriate experience were interviewed. They believe they can easily provide a pan-European, multi-currency solution to the envisaged new service. They contend that the current system is not designed to take advantage of technology solutions now available within a bank portfolio. A new approach would allow the banks to add services and deliver a ‘win-win’ solution for users.
A Global Distribution System that gave input to the survey showed keen interest in working with ECTAA/GEBTA on any further work undertaken on the project especially if they could be involved in mutual business development opportunities. They agreed that ultimately the system would need to be open to all GDS in the market.
The billing and settlement solutions provider that gave input to the study clearly demonstrated the feasibility of setting up a new system and suggested savings on current prices could be easily achieved. They were especially interested in working with ECTAA/GEBTA to develop a multi-supplier solution incorporating non-air transactions.
Low cost carriers also saw potential opportunities for them to join a new system, not unexpectedly though they were only interested if value could be added to their current business model.
The Members of ECTAA have positively welcomed the results of the feasibility study and gave green lights to go ahead with the next phase, which will consist of analysing the organizational structure of such a venture and possible funding opportunities. The Members of GEBTA are scheduled to take a decision at their Board meeting on 9 December 2004.
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