Galileo

Aug 25, 2006
365
230
retirement
Ok, I thought that I've been in the business long enough and had a handle on most issues. The announcement of WN signing with Galileo last week is stumping me.

70% of sales is via soutwest.com. The remainder is a mix of travel agents, corporate sales and airport sales. The SAAS version that the CSA's use is the simplest of reservations systems out there.

From what I've gathered so far, Galileo was opened to boost sales from Travel Agents. Why not upgrade the SAAS version. Does Galileo offer something that will enable WN to help in expanding further Interline Sales, aka ATA?

Thoughts, comments???
 
Ok, I thought that I've been in the business long enough and had a handle on most issues. The announcement of WN signing with Galileo last week is stumping me.

70% of sales is via soutwest.com. The remainder is a mix of travel agents, corporate sales and airport sales. The SAAS version that the CSA's use is the simplest of reservations systems out there.

From what I've gathered so far, Galileo was opened to boost sales from Travel Agents. Why not upgrade the SAAS version. Does Galileo offer something that will enable WN to help in expanding further Interline Sales, aka ATA?

Thoughts, comments???
well I have heard rumors about WN buying out ATA I guess this galileo should keep these rumors afloat...
 
Galileo, (former United Airlines Apollo system) Sabre (American Airlines system) PARS/System One (IIRC Easterns contribution) and World Span (TWA's contribution) are so ingrained into the travel agents world, I don't think any upgrade could compete considering the millions, if not billions of dollars of hardware giveaways those founding airlines gave to the travel agents to sell there product.

I don't think it has anything to do with system upgrade, I think is it all about distribution. Why leave any money on the table? At this point, while odd, I see perfect logic in Southwest capitulating and going with a global distribution system. As the domestic market reaches satuaration, the only way to grow revenues is to find new streams of revenue and if that means joining the evil empire to do so, oh well.

If Southwest wanted to put their own system out there to distribute tickets with Travel Agents I'm sure they could, but why waste the investment when you can just join the party thirty plus years late. When you think about the prospect of travel agents being able to sell Southwest tickets from the GDS, and not having to go to a third party that is the best of all worlds, and given the choice between Frontier and Southwest from Denver to Las Vegas, if you have Frontier on GDS but you have to go someplace else to book Southwest, why bother? Book Frontier, but if Southwest is on the same system, now you book Southwest. So, it is a win/win/win situation for Southwest. (Win #1)They don't have to spend there money/time/energy/effort in development/distribution/training of a system that has been around 30+years, brought to you by industry leaders at the time. They get to coat tail ride the product at the end of its life cycle. (Win #2)They will obtain incremental revenue, and as revenue stagnates in the United States domestic circle, any revenue is good revenue when you are making money already! (Win #3)If Southwest does in fact purchase ATA, then they will already be able to market the flights domestically and the International expansion will be that much easier. Or could it be that ATA is demanding this step because they can't enjoy the full benefits of the codeshare with out Southwest being in a GDS agreement, and did Southwest do some research and find that the value added far exceeds the cost to join the party?

By the way, when was the last time you purchased anything from a travel agent?
 
I don't understand what your complaint is.

Wouldn't it be scarier if you DID understand?? :D

WNrforlife must complain, carp, and generally cause trouble, to inflame fellow posters, causing other, true Servant Leaders to post, distancing ourselves from "Bitter Betty".

Thank you for the opportunity to, once again, remind everyone that WNr is Southwest's Magsau. <_<

this message was sponsored by Morton Salt Company
 

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