THE long-awaited acquisition of Galileo by Travelport has been welcomed by the travel trade, who hope to reap the benefits of a more focused GDS in the long term.
Travelport recently announced the conclusion of the agreement with South African Airways to acquire Galileo Southern Africa, the GDS distribution arm the airline had been operating in the region for the past 20 years. The new combined entity will be known as Travelport Southern Africa.
“We now feel the time is right to extend our Travelport operations in the region and provide Galileo-connected travel agents in Southern Africa with the same direct distribution relationship that we provide to our Worldspan subscribers,” said Mark Meehan, md of Travelport Africa.
Two years ago, Travelport set up a direct Worldspan operation for travel agents in South Africa and the acquisition of the Galileo GDS business marks the continuation of its investment in the region and plans to extend the products and services provided to local travel agents.
The sale of Galileo to Travelport was first announced by Khaya Ngqula, then ceo of SAA, in June 2007 – almost five years ago.
“It is true, we have been committed to closing this deal for some time and have put a lot of energy into it,” says Bruce Hanna, Travelport’s vp commercial in Southern Africa. “It is not unusual, however, for complex negotiations such as these to take time. The good news is, the deal is now concluded and we are delighted to now be launching our operations in the region and establishing Johannesburg as a key hub in the Travelport Africa network.”
One of the major reasons Travelport is investing in the region, Bruce says, is to get closer to customers and provide solutions they need.
“We have completed an extensive network upgrade throughout Southern Africa, improving speeds and reliability and ensuring better productivity and increased profitability. Upgrading the network allows us to deploy world-class, innovative products such as Travelport’s Smartpoint App plus Rooms and More. We will also offer a 24-hour, seven-days-a-week helpdesk service as part of our customer enhancement programme,” he says.
A new five-year full-content agreement has also been signed and will provide all Travelport-connected travel agents with full access to SAA’s published fares and inventory as well as guaranteeing functionality parity with all other distribution channels.
Meanwhile, SAA has reaffirmed its commitment to working with the travel trade. “As we focus on our airline operations, we will continue to work closely with Travelport as a valued partner to distribute our airfares to the global travel industry. SAA will also continue to maintain very close relations with the travel trade in Southern Africa,” said Theunis Potgieter, gm of commercial at SAA.
See more in TNW May 9,2012
