The merger of the two companies will effectively reduce competition in the CRS market in Europe where 4 players will become 3. The European Travel Agents` and Tour Operators` Associations (ECTAA) reacted…
The merger of the two companies will effectively reduce competition in the CRS market in Europe where 4 players will become 3. The European Travel Agents` and Tour Operators` Associations (ECTAA) reacted with caution to the the merger between Galileo’s owner and Worldspan. Travel agents rely heavily on computerised reservation systems (CRS)1 to offer their customers the best alternatives of routes and prices of travel services. The merger of 2 of the 4 CRSs operating in Europe will undoubtedly have an impact on the services offered to their subscribers.
In light of these developments, ECTAA considers it of paramount importance to have a specific European legislation regulating the CRS services in the Community in order to prevent unfair practices in a highly concentrated market. Rules should prevail to ensure that agents’ customers have access to the widest range of travel services at fair conditions.
ECTAA`s President Jan Van Steen stressed, “Priority for European travellers is access to optimal levels of content in reservation systems at affordable prices. In a deregulated and highly concentrated market for CRS services, there is a high risk that travel agents’ customers will be deprived from a neutral, impartial service and complete information that travel agents can currently provide them by means of the CRSs”.
(1) Computer reservations systems, or CRSs (sometimes also called Global Distribution Systems or GDSs) maintain large databases that connect travel agents to airlines, hoteliers, and car rental companies for travel reservations.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
