A solution to the ongoing debate over reform of European Union rules governing computerised reservations systems (CRSs) has been suggested by the Coalition for Fair Access to Reservations in Europe under a ‘sunset clause’ that…
A solution to the ongoing debate over reform of European Union rules governing computerised reservations systems (CRSs) has been suggested by the Coalition for Fair Access to Reservations in Europe under a ‘sunset clause’ that would result in full deregulation when the market conditions are right.
“We fully support the European Commission in its drive for ‘better regulation’ and the elimination of red tape,” Brandon Mitchener, executive director of C-FARE, said. “We think a ‘sunset clause’ under which the European rules governing computerised reservation systems would be scrapped when the conditions are right is the best solution to the current regulatory impasse.”
The European Commission is preparing to hold a public consultation this spring in advance of a proposal for reform of the European Code of Conduct for Computerised Reservations Systems later this year. Initial plans to scrap the Code entirely have fallen victim to massive opposition from airlines, travel agencies, corporate travel managers and consumer groups concerned that a premature deregulation would lead to reduced competition and higher prices for European travellers.
The notion of a sunset clause was aired by Bruce Charendoff, senior vice president for government affairs with Sabre Holdings, at a travel distribution panel at the Business Travel Show in London. Sabre is a founding member of C-FARE, whose 9 members also count Galileo, European travel agencies, travel services companies and corporate travel managers.
“The only impediment to full deregulation of the CRS industry in Europe is airline ownership, which creates the financial incentives for distortion of competition that are the reason the rules exist to begin with,” Mr. Charendoff told the Business Travel Coalition-Association of Corporate Travel Executives distribution panel in London. “C-FARE’s members support full deregulation—as soon as the ownership issue is resolved.”
Even in the absence of full divestiture of CRSs by airlines, C-FARE’s members support a “reasonable reform” that could scrap all but four of the 50-some individual rules in the CRS Code of Conduct, said C-FARE.
“What matters is that we have a level playing field,” said Peter Sijbers, corporate travel manager for Philips Electronics in the Netherlands.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
