Airline ticket management urgently needs technical innovation. AVINOC creates these.
Since the 1960's, the organization of air travel with airlines has been steered by the same technology, even to this day. This system is generally known as the Global Distribution System (GDS). In this system transactions are made between the airlines and travel agencies that offer passengers air travel. This market is dominated by three players worldwide. Other than the GDS, a huge amount of price comparison and booking portals have sprung to existence, which separates airlines from customers and therefore, creating non-transparency. Technical innovation is urgently needed to break this artificial overpriced system and to strengthen the airline market from the inside again.
Booking portals are intermediaries between travelers and airlines. They raise, unbeknownst to us, the complexity, non-transparency, and prices of flight tickets for customers. Fees for paying with a credit card, unwanted additional insurances, high cancellation prices, high fees for any changes, extra fees for seat reservation or luggage, non-transparent booking classes, missing booking confirmations, and complicated search masks are the largest cause for customer dissatisfaction. Additionally, programs (bots) manipulate the prices and book automatically, to change the workload for the benefit of these portals.
GDS & Travel Agencies
Between airlines and their customers is on one hand the GDS and on the other hand the travel agencies. The airlines pay booking fees to the GDS and commissions to the travel agencies. Travel agencies are then compelled by the GDS, to also use the system. The traveler, in the end, has also paid a service fee to these agencies. Airlines cannot opt out of the GDS, because there are no practical economical alternatives. In the end, airlines have had a decrease in margins, although there is an increase in travelers and for travelers there is still an increase in ticket prices.
AVINOC for Airlines
AVINOC can solve this problem and its complexity through its permissionless base data layer. AVINOC enables airlines to take back the direct contact to the customer starting from the marketing, as well as the direct price comparison and lastly direct bookings. At the same time, a high transparency for offers and prices, in line with the market-conform, is made for all market participants. Intermediaries, in the form of booking and price comparison platforms, will not be needed anymore.