Travel intermediaries are playing a growing role in the low cost phenomenon, as former antagonisms over commissions start to subside.
In a panel discussion at the Web in Travel conference in Singapore, Abacus vice president marketing Martin Symes told delegates the global distribution platform (GDS) had seen sales of low cost tickets rise by 86% over the last year, despite the lack of a commission structure.
“Intermediaries are playing an increasing role in the whole low cost phenomenon,” he told delegates. “It’s not a small business.”
The corporate sector is playing a key role in driving that trend, he explained.
“There is clearly demand for low cost seats increasingly among the corporate travellers and companies definitely want those to be booked through the GDS so they can follow the same practices and processes which are so important to them.”
Scoot chief executive, Campbell Wilson, agreed that the Singapore-based carrier is also seeing the trend and is placing growing emphasis on the trade in relevant markets. That cooperation marks a significant shift in the historic relationship between LCCs and the travel trade, he commented.
“When low cost airlines first came to this part of the world, there was a real antagonism between agencies and airlines,” he said.
“But over the last 10 years, there has been a bit of a d√©tente and an acceptance on both sides that they need each other. I think we’re reaching the point of a genuine partnership, it’s just how we structure that.”
For AirAsia X, 8% of overall bookings come via third parties with the rest direct, chief executive Azran Osman-Rani revealed.
“There is definitely a role for aggregators and people that can put together interesting packages,” he said. “We only offer one part of the travel solution.”
