Archive for the 'Apollo' Category

Worldspan Joins Galileo and Apollo at Travelport

Worldspan by Travelport Logo

According to the news today, Travelport, the parent company of Galileo and Apollo GDS platforms has completed its $1.4 billion (!) acquisition of Worldspan yesterday after the deal was given regulatory clearance by the European Commission, which concluded that the reduction of GDSs operating in the European Economic Area from four to three would be “unlikely to result in coordinated behavior” between the remaining GDSs. “The Commission has therefore concluded that the proposed transaction would not significantly impede effective competition within the EEA or a significant part of it,” it said. Galileo and Worldspan are the second- and fourth-largest GDSs respectively operating in the EU.

This move makes Travelport a dominant player in the field, by controlling three major GDS platforms. While Travelport has talked of potential synergies between Galileo and Worldspan, it also has indicated that it won’t merge the platforms. Galileo said that even if it thought forced migration was a good idea, “attempts to do this in the past by some of our competitor GDSs have shown that such a strategy would be likely to fail.” According to ATW News, that is likely a reference to Amadeus, which experienced some rocky moments 10 years ago when it acquired System One and forced to migrate its users to the Amadeus system. We will have to sit back and wait for a few months/years to see if this will really be the case. It would be also a possible solution for bigger cost-cutting that the three Travelport controlled GDSs do actually merge in the background, but will keep three UI’s and brand-names to keep the travel agencies and suppliers happy and not to force a migration. Galileo and Apollo are strong with travel agencies, while Worldspan has the extra value of having airline customers and products, and very good online tools. Worldspan also cooperates with SITA on electronic ticketing and ET hub solution for airlines for example. In the world of always improving airline websites and booking engines, a GDS needs to keep up a good online presence (which allows travel agencies to become online travel agencies), which Worldspan has been very good in. In Hungary there has been a major travel agency that only made the move from Galileo to Worldspan to enable itself to enter the online travel market.

Galileo will be enhanced by Worldspan’s online distribution technology platform, while Worldspan will benefit from Galileo’s expanded supplier base and expansive content,” Travelport GDS President and CEO Gordon Wilson said. “The complementary strengths of both companies will bring improved offerings for our agency and supplier customers, and we are particularly excited about the technology innovations and breadth of services we will be able to bring our suppliers and subscribers in the future.

Galileo and Worldspan produced more than 379 million combined air bookings in 2006 while operating in 145 countries and processing as many as 15,000 transactions per sec., according to Travelport. The combined company will serve 750 travel suppliers and 63,000 travel agencies.

by balint01

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