Archive for August 15th, 2007

Amadeus – Sabre joint venture

Again an interesting news from ATW Online just a day after my article on the subject:

Amadeus and Sabre plan to create a joint venture that would provide secure, automated payment processing, clearing and reconciliation solutions for non-air travel sales. The two companies filed with the European Commission for antitrust approval to create the new entity. European Union law requires such a filing. Regulatory approval in the U.S. is not required.

In a statement, the companies said that “the intent of the joint venture is to establish an industry standard solution to improve and better meet the requirements of the travel industry with payment efficiencies, increased automation, and improved interoperability.”

“There’s no industry standard now for payments not covered by the Airlines Reporting Corp. or BSPs,” a Sabre spokeswoman said.

A BSP, or billing and settlement plan, operates under the auspices of IATA to provide a central point through which travel agents submit sales reports and payments for airline ticket transactions in countries outside the U.S. ARC performs that function in the U.S. But no such system exists for the processing of hotel, car rental, tour operator or other non-air transactions. “This will result in improved efficiency” for all parties involved, the spokeswoman said, including hotels, tour operators, wholesalers and travel agencies.

An Amadeus spokesman said a decision by the EC was expected in the third quarter of this year.

See full article here.

This joint venture is about non-air segments. I guess air segments will be the next step. In this case it is the strategy I recommended yesterday. I guess they did not need my help, but anyway, it is good to see that others have come to the same theory. Anyway, well done Amadeus and Sabre!

By Szafi

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August 2007