People all over the world have been watching the issues that have surfaced in the press about American Airlines, TravelPort, Sabre, Orbitz and Expedia (are there others?). It has been interesting for many of us in the industry, and I am sure confusing to so many travelers out there. Mention on the street in the world many of the players names in this dispute and you may just get a blank stare. Mention American Airlines, my guess is their brand recognition is strong.
So as I thought about this issue for many weeks, reading just about anything I could get my hands on, I have elected not to take a stand on the issue, but have decided to evaluate for my own thought process, the idea of who is the customer in all this. During my early professional days at Xerox corporation we thought long and hard about the customer and who they were. They were always the key to our existance and our company. We knew that even if we did not know who the external customer was that purchased a copier, we had an internal customer that was just as important. That was because anything done internally always had to go back to the customer.
Look at the role as a travel manager. When I was on the travel team at Xerox, we had no real direct impact on the customer. Most of our repair technicians would reach a client via vehicle. Most sales people would do the same. However, everytime someone took a trip at Xerox, that cost made it into the cost of that copier. So while our customers were all the travelers of the company, the goal was always to get them the lowest price we could so the end customer did not pay more than they had to for that copier. We knew we had an impact on that customer that purchased the copier and that gave me a sense of accomplishment.
So fast forward to today. Let's look at it all generically, so I do not upset anyone.
Airlines: Their customer is the traveler. They are the ones flying and buying the ticket. But wait. Buying the ticket. Corporations all over the world purchase tickets for business travelers. So I would argue that the combination of travelers and corporations that purchase airline tickets are the customers.
Global Distribution Systems: This is an interesting one. They are an intermediary. They are in the middle. But, they do have customers. Who buys their product? hmmmm, yes the travel agencies, but the airlines too? Who is their suppliers? Airlines, Hotels, Ground Transportation, etc. But is it clearly defined on who their customers are?
Travel Agencies: Since I worked for a TMC in the past, I would suggest there was a conflict here (kind of like the GDS's above). But that is going away. In the past the airlines and other travel suppliers were their customers because that is how the travel agencies were compensated - but those travelers sure were important too. But now, I think the two most important customers are the travelers - both leisure and corporate. However, let's not lose sight of the GDS environment is very competitive - and thus there is money flow from the GDS companies to the travel agencies. A little incentive. But do not lose sight of the fact that the majority of air tickets are still sold via the GDS systems via a travel agency (online or traditional!)
So now what? Does this help create a better picture for you? Me neither.
But it reminds me of a couple of things:
a) What is in the best interest of the company? American Airlines has pegged their future on a different means of distributing their product. Is there anything wrong with that? Nope. They are doing what they deem to be appropriate.
b) What is in the best interest of the customer? This is where is gets a little cloudy. Customers are hard to understand at times. What does a traveler want? Do they all want the lowest airfare? Do they all want perks and benefits? Hard to define.
c) What about the Corporate Customer? I think I would be safe in saying the corporations that purchase tickets simply want to have their choice of all travel options at their finger tips. That is where the GDS comes in. But are they willing to pay for that added option?
The world is changing - and many of us are sitting back and watching what will happen. We offer our viewpoints and defend our turf, but it is an interesting time to be in the corporate travel business. I would love to hear your thoughts - and opinions.
