| Supplier Connectivity | | | | standards to access availability and price data and |
| Travel Suppliers have the most perishable | | | | integrate the same into the business applications they |
| commodities on sale. In the Distribution System of | | | | build. The main advantages of using XML based |
| Travel Inventory, timely and standardized access often | | | | supplier connectivity are the following: |
| defines a profitable business. As the Suppliers | | | | Automating time consuming tasks to increase |
| graduated from making their inventory available on a | | | | productivity. |
| single platform such as GDS and new Suppliers | | | | Adding custom features into transactions. |
| emerged who used non-GDS channels, we now have | | | | Adding flexibility of display with customized |
| a multitude of mechanisms for Supplier Connectivity. | | | | marketing. |
| This whitepaper reviews the challenges of staying well | | | | Over the years, a wide variety of XML message |
| connected with Travel Suppliers and the business and | | | | formats proliferated causing problems in |
| technology landscape for Solutions in the Travel | | | | interconnectivity. Open Travel Alliance (OTA) provided |
| domain. | | | | a community where companies in the electronic |
| | | | distribution supply chain work together to create an |
| Getting the products out to consumers in the most | | | | accepted structure for electronic messages, enabling |
| effective and economic manner has been a key goal | | | | suppliers and distributors to speak the same |
| in any vertical and travel is not an exception. The | | | | interoperability language, trading partner to trading |
| emergence of various supplier options is a | | | | partner. This resulted in introduction of reusable, |
| phenomenon that the travel distribution business is | | | | standard messages so that the System Architects |
| dealing with today. A key challenge to be addressed is | | | | and Software developers don't have to start from the |
| to have the right ingredients to take advantage of | | | | beginning when a new distribution partner is brought in. |
| various supplier inventory sources and the connectivity | | | | Possibilities with Supplier Connectivity Enhancements: |
| challenges they present. | | | | XML/Web Services based Supplier Connectivity links |
| From the traditional model which had ticketing agents | | | | can be added very quickly to enable Travel Distribution |
| at its centre, the Travel industry has seen the evolution | | | | businesses to stay focused on servicing their |
| of a number of channels in both the brick and mortar | | | | customers instead of being bogged down with |
| space and the Internet space. This phenomenon has | | | | Systems development. |
| taken place alongside the emergence of other | | | | Travel suppliers often aggregate the most price |
| developments in the travel industry such as the | | | | competitive rates and fares and make them available |
| low-cost carrier and budget hotel boom, increasing | | | | to the Distribution Channel using Standardized |
| corporate travel spend and the increasing demand for | | | | Connectivity tools. This is done using a mechanism |
| tourism in the developing nations of the world. The | | | | called net rates. Net rates (also called private rates) |
| evolution of travel supplier connectivity and onward | | | | are so called because they are not published in the |
| distribution worldwide has been dictated by the above | | | | GDS/CRS systems. They are generally 25% lower |
| trends. | | | | than published rates. These rates will allow Suppliers |
| Traditionally, GDS systems have played the role of | | | | and intermediaries to effectively compete against |
| Supply sources for availability of travel inventory. The | | | | renowned On-line travel agencies such as Expedia |
| role of the GDS over the years progressed quickly | | | | and Travelocity. Such Connectivity choices are very |
| from checking seat/room availability to checking fares | | | | useful for providing business-specific features such as |
| rates and then booking. Electronic Data Interchange | | | | individual markup capabilities (by percentage, by a flat |
| (EDI) within a supply chain was the first commercial | | | | amount, by supplier, by booking class, etc.) |
| real-time application. As the supply sources proliferated, | | | | Universal Adapters for Supplier Connectivity: |
| the distribution channel sought to access them in | | | | In the universe of diverse connectors between |
| alternate ways; on the other hand, these alternate | | | | Suppliers and the Distribution space, the concept of |
| suppliers wanted to go through the GDS Systems to | | | | universal adapters addresses the need of simplifying |
| reach out to the distribution network. Either ways, the | | | | the landscape. Application interfaces can be written to |
| challenges of supplier connectivity for the distribution | | | | standard adapters and bringing in additional partners is |
| channel quickly multiplied. | | | | just a matter of adding a few more pieces in the |
| Supplier Universe: | | | | software architecture. This cuts down the expensive |
| The Supplier Universe tends to be very large and | | | | and time-consuming cycle times involved in creating |
| diverse. Starting with Airlines and Hotel Chains, there | | | | connectivity software for each specific situation. |
| are varied Inventory and package content providers in | | | | Such Adapters mirror the functionality of Supplier |
| business today, offering everything from plain-vanilla | | | | Systems via Internet connectivity, allowing clients the |
| business/leisure travel to luxury vacations and | | | | flexibility to build fully customized applications that |
| Adventure Sports and Specialty Events. With the | | | | better support and integrate their businesses with the |
| demand for travel and related services ever | | | | Suppliers. |
| expanding, Suppliers are continuously innovating to | | | | These universal adapters act as a library of bundled |
| meet the growing needs of customers. In addition to | | | | commands designed to cut development and |
| the GDSs (Amadeus, Galileo, Sabre and Worldspan) | | | | maintenance costs. |
| and the alternate GDSs (ITA, G2) there are numerous | | | | Technology Advantage |
| other Suppliers such as Tourico, TravelGuard, Viator, | | | | What was once the tedious and complex process of |
| etc. | | | | accessing the supplier inventory via database |
| Changed Scenario | | | | integration has moved to EDI to API to Web services, |
| The Distribution channel has changed from a linear to a | | | | XML and SOA. Though all these mechanisms exist to |
| highly non-linear one. With inventory available from | | | | cohesively manage the travel inventory in the supplier |
| multiple sources, it is critical for the various players in | | | | ecosystem, the seller can pick the choice of supplier |
| the distribution channel such as Travel Agents and | | | | connectivity option to the best advantage of the |
| online travel booking systems to have a latest list of | | | | business situation and as per their business growth |
| the cheapest inventory available for every travel | | | | plan. The variety of supplier inventory exposure has |
| product to offer to their customers. The travel | | | | helped the seller to leverage the best technology tools |
| suppliers have built ecommerce transaction driven web | | | | and framework; thus implementing the travel |
| applications, implemented partner links to market their | | | | applications to provide better service and optimize the |
| inventory alongside distributing to wholesalers and | | | | choices for their customers. |
| Travel Agents. Suppliers have the challenge of | | | | Conclusion |
| achieving distribution of 100% of their inventory at the | | | | Opportunities exist today to build varied Supplier |
| lowest costs. Whereas the Travel inventory sellers | | | | Connectivity to your Operational Systems to promote |
| have the challenge of reaching out to every possible | | | | and sell your offerings in the most flexible manner. With |
| source of inventory to consolidate, compare and offer | | | | open standards and a unified approach to bridging the |
| the best price to the customer. | | | | supplier universe, there are choices today in how one |
| Supplier Connectivity Situation today: | | | | can enhance supplier connectivity in the Travel |
| XML message based connectivity to supplier inventory | | | | Distribution business rather than being tied down to one |
| sources has proliferated widely. Booking Technology | | | | product/ licensing scheme or the other. |
| providers have access to a wide variety of message | | | | |