Natalia Thomson reports from Travelport’s North American head office in Atlanta…
TRAVELPORT is assessing the “nuances” of South Africa before it announces how it will be pricing its Agility package in this market.
Ceo, Gordon Wilson, told TNW in Atlanta this week that he believed in a future model where travel agents helped pay for technological investments that benefited them.
“We cannot afford to make investments that are vital for agencies and keep paying the level of agent incentives we have been paying in the past.”
According to Gordon, the fastest-rising cost for Travelport is the incentive fees that are being paid to agents. “We have seen double-digit growth in agent incentives, while our GDS fees to airlines in real terms have not really increased. The rate of agent incentive increases simply has to plateau or decrease.”
By introducing a fee for the Agility package, he says, Travelport is trying to introduce the concept of the value of technology.
The prospect of paying for services that agents had had access to free in the past has, however, caused a furore in agent circles.
Agency groupings alleged that the technology provider was shifting to a mandatory agent-pay model and bemoaned the rapid implementation of the new fee structure.
Travelport responded swiftly making “limited changes” to its package for agencies in the Americas but each country’s solution will now be evaluated based on the nuances of that market, says Gordon.
The package, announced at the end of last year for launch on January 1, would have cost about US$35 (R280) per workstation and included key existing GDS features as well as new functionality, including Travelport’s new Smartpoint App or Worldspan GO! Translator App, Travelport Rooms and More, and Travelport e-Pricing.
The Agility programme, a step towards the launch of Travelport’s new Universal Desktop, will be rolled out across Africa early this year, including South Africa, confirms Travelport. “A nominal fee for using Agility will still apply.”
TRAVELPORT is assessing the “nuances” of South Africa before it announces how it will be pricing its Agility package in this market.
Ceo, Gordon Wilson, told TNW in Atlanta this week that he believed in a future model where travel agents helped pay for technological investments that benefited them.
“We cannot afford to make investments that are vital for agencies and keep paying the level of agent incentives we have been paying in the past.”
According to Gordon, the fastest-rising cost for Travelport is the incentive fees that are being paid to agents. “We have seen double-digit growth in agent incentives, while our GDS fees to airlines in real terms have not really increased. The rate of agent incentive increases simply has to plateau or decrease.”
By introducing a fee for the Agility package, he says, Travelport is trying to introduce the concept of the value of technology.
The prospect of paying for services that agents had had access to free in the past has, however, caused a furore in agent circles.
Agency groupings alleged that the technology provider was shifting to a mandatory agent-pay model and bemoaned the rapid implementation of the new fee structure.
Travelport responded swiftly making “limited changes” to its package for agencies in the Americas but each country’s solution will now be evaluated based on the nuances of that market, says Gordon.
The package, announced at the end of last year for launch on January 1, would have cost about US$35 (R280) per workstation and included key existing GDS features as well as new functionality, including Travelport’s new Smartpoint App or Worldspan GO! Translator App, Travelport Rooms and More, and Travelport e-Pricing.
The Agility programme, a step towards the launch of Travelport’s new Universal Desktop, will be rolled out across Africa early this year, including South Africa, confirms Travelport. “A nominal fee for using Agility will still apply.”
