Several agencies recently shared an update they had received about a new Sabre and United Airlines distribution agreement. And it’s a significant development. After years of airlines exploiting content gaps to encourage direct bookings, the agency communication indicates that United has reaffirmed its commitment to providing full content through Sabre in the US, matching what is available through United’s direct channels. The agreement should bring greater stability to airline distribution by reducing uncertainty over content availability and the need for additional connections.
The agencies we’ve spoken to see this as a major step towards restoring buyer and traveler confidence and trust in the agency and GDS environment. For years, competing distribution strategies have created confusion, additional costs and complexity for corporate travel programs. This type of United commitment gives agencies a stronger basis for reassuring customers that they can access competitive fares and content through their established booking channels.
Peter Vlitas of Internova Travel Group said: “This move brings both NDC and Edifact content into Sabre, and with functionality similar to the United direct connect API. This addresses agent, client and traveler concerns, and as we test, we’ll be sure to help Sabre and United make sure there are no gaps. There will be no reason to book outside the agency channel, and it will help us address cost issues and perceived content gaps.”
In recent years, a few airlines have worked hard to break the traditional distribution model. NDC arrived with big promises of richer content, better amenities and a modern buying experience, and the GDS was cast as the outdated villain holding everyone back. Agencies, buyers and travelers were left to deal with the consequences. So where are the better offers and the savings that were meant to follow? Looking back, much of it looks like a shell game designed by some airlines to cut distribution costs and drive bookings direct.
Listen to any airline earnings call from the last several quarters, and you’ll hear the same two priorities: more corporate volume and more premium revenue. Guess what? Agencies and GDSs remain critically important to both, and the airlines know it. American Airlines learned this the hard way when its book-direct push backfired, and it has since reversed much of its aggressive distribution strategy and restored access to content through traditional agency channels. Now United, the latest promoter of direct bookings, has signed a new long-term deal with Sabre. The agreement reinforces the commercial importance of agency distribution as airlines compete for corporate business and premium travelers.
The agreement deserves attention from every agency, corporate buyer and traveler. The communication shared with us by agencies highlights three commitments:
- Full United content in the US, including branded and dynamically priced fares, corporate discounts and ancillaries, matching what United sells through its own channels
- The same technical access and NDC capabilities as other third-party channels, with no need for a separate direct connection
- The ability to book United in the same workflow as every other carrier
United’s agreement with Sabre follows a similar announcement involving Travelport, which we welcomed in January. Both developments reinforce the continuing importance of GDS distribution to airlines, agencies and corporate customers. What is old is new again. Funny how quickly the industry is now promising to close the content and functionality gaps that have caused so much disruption. Of course, the real test comes after the booking, and buyers who have heard plenty of retailing promises over the years will want to see exchanges, refunds and disruption handling work as well through Sabre as they do direct. Let’s hope United doesn’t start moving the shells again by reserving new content or functionality for its direct channels.
The future looks promising. United is reaffirming its commitment to full content parity through Sabre in the US, American has renewed its commitment to traditional agency distribution, and Delta has continued supporting the GDS channel. Kudos to Sabre for securing the agreement and standing up for its agency and corporate customers, and to United for recognizing the value of working with its distribution partners to grow corporate business.
The shell game looks to be ending. Corporate and premium travelers are commercially valuable to airlines, and agencies remain an important channel for reaching them. Frenemies beat enemies every time. Meanwhile, the industry has spent years and a ton of money managing distribution complexity that customers never wanted. The GDS continues to offer broad access to competing airline content, aggregated shopping and integrated servicing, helping agencies and corporate travel programs manage bookings efficiently. Which leaves one uncomfortable question for the airlines: if full content and equal functionality can be delivered through the GDS, what exactly was all that disruption for?
