A new tool in our toolbox: the private channel

December 18, 2017

Last updated: July 3, 2018

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Decius Valmorbida

President, Travel - Amadeus

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Recently, Amadeus has been looking at the issue of content fragmentation. How can we help travellers get the best deal, no matter where they’re shopping? The private channel is just one of the many models we’ve been exploring in order to give access to greater airline content to travel agencies and in turn, to travellers.

Where do you look when shopping for a gift for your loved ones? A market, your favourite shop or do you prefer the mall or an online store, where you can compare different brands and different offers? In a world where consumers are flooded with options at every street corner, and at the click of a mouse, the best bet for retailers trying to get your attention is to be everywhere you are, be that online or offline.

Following ourrecognition from Business Travel News for our work in the private channel, I wanted to share our vision for distribution.

So what is the private channel? The private channel is a commercial agreement between a travel agency and an airline who decide what terms and what content will be provided, and this agreement is enabled by the GDS.

This is a workable option for specific contexts. It gives travel agencies, online travel agencies and Travel Management Companies access to a full range of airline content and servicing capabilities, while also giving airlines the ability to sell their content in a way that meets their strategic business objectives.

But although the private channel provides a pragmatic solution to an immediate issue, this is just one tool in our toolbox, and it is just a part of a much bigger picture.

Our goal is to resolve the issue of content fragmentation across the industry so that travel agencies can continue to access a full range of travel offers on one platform, without the need for more expensive and less scalable alternatives.

At the same time, we want to develop the best vehicle for airlines to distribute their products however they wish. Like all digital retailers, airlines need to create customised retail experiences that inspire customers across all touchpoints; that’s what we aim to enable.

With 95% of the world’s scheduled network seats bookable on Amadeus, and new distribution agreements being signed or renewed each year, Amadeus believes that indirect distribution plays a key role in the travel industry to keep loyal and happy customers.

However, like all industries, the travel industry is evolving, and Amadeus will continue to grow and evolve to meet our customer’s changing business needs. We are committed to collaborating with all our industry partners to develop a distribution model that enables all players to thrive.

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