Page 1Advisory Committee for Aviation Consumer Protection28 June 2012, Washington, DCAviation Consumer Protection©2012 Association of Retail Travel AgentsAll Rights Reserved. Tous droits réservés. Alle Rechte vorbehalten.The Travel Agency PerspectivePresented byBruce Bishins, CTCManaging DirectorAssociation of Retail Travel AgentsWashington, DC28 June 2012“ARTA's mandate is to assure a balanced approach,leading to consumer protection which makes good sense.”Page 2Advisory Committee for Aviation Consumer Protection28 June 2012, Washington, DCDisclosureThe opinions and conceptsexpressed in this presentationare solely and exclusively thoseof ARTA and are not intendedto represent the views orpolicies of other parties.Page 3Advisory Committee for Aviation Consumer Protection28 June 2012, Washington, DCA Balanced ApproachARTA very much supportsprotecting consumers in allaviation matters and travel ingeneral. What is key tosuccessfully deploying thatsupport means practical andcommon-sense industryimplementation. As de factoagents of the airlines, andagents of consumers in ourown right, any regulatoryregime imposed on the industrymust have roots based infairness, practicality, andabove all, commercial viability.Page 4Advisory Committee for Aviation Consumer Protection28 June 2012, Washington, DCARTA ConcernsARTAmembers are concerned:that DOT will adopt minimumcustomer-service standards in relationto the sales by travel agents of airtransportation and the disclosure oftrade practices including incentives andcommissions;that travel agents will be heldaccountable by the DOT when somedata or display fault lies with GDSsbeyond the agents' control;that the DOT will regulate content andother functionality that are subject tocommercial negotiations betweenairlines and third party traveltechnology providers, including GDSs.Page 5Advisory Committee for Aviation Consumer Protection28 June 2012, Washington, DCCustomer Service StandardsThere isn’t a shred of documentedevidence to suggest that travelagents do not provide excellent aircustomer services.The methodology would be toocomplex to take into account themyriad of ways travel agent sourceair, book air, and provide air servicesto consumers.Nothing could be more sacrosanctthen disclosing the trade practices,wholesale buying, incentives,commissions, and other concessionsfrom preferred suppliers and airlines,not just in the travel industry, butin all other forms of retailcommerce.Page 6Advisory Committee for Aviation Consumer Protection28 June 2012, Washington, DCErrors Caused by GDSsThe DOT regulates certainfacilities and functions among allGDSs the portray and sell airlineservices.When it is known that a GDS hasnot followed a regulation imposedon the airline industry, the GDSshould be held accountable if itcan be demonstrated that it was atfault, not the airline.Travel agents do not have thepower to correct the GDS, alter theinformation in a GDS, orpay forthe GDSs mistakes.Page 7Advisory Committee for Aviation Consumer Protection28 June 2012, Washington, DCThe Ancillary OpportunityFor the 67% of travel suppliers surveyed who counton 2010 revenues of $1 billion or more,third-partyancillary revenues are expected to representapproximately $25 million by 2015.For today’s$560 billion global airline industry, that translates to$16.2 billion in revenues coming from the saleof third-party ancillary revenues by 2015.Source:Page 8Advisory Committee for Aviation Consumer Protection28 June 2012, Washington, DCAncillary DistributionARTA Members do not want theDOT to promulgate regulations ofwhat content and functionalityshould be in the GDSs.Airlines and GDSs (just as othertravel technology providers) shouldthemselves comes to terms a partof commercial negotiations.ARTA Members do not want anyterms mandated by the DOT whichcould impact their contractualobligations which may promptGDSs to charge increased fees tosubscribers.Let the marketplace dictate whatcontent is available for sale orfunctionality.Page 9Advisory Committee for Aviation Consumer Protection28 June 2012, Washington, DCTruths About Ancillaries in GDSsAmadeusGalileoSabreWorldspanSo-called“comparisonshopping” will not bepossiblefor most ancillariesin the GDS environment.The GDSs areunwilling toadapt for product displayand differentiation.GDS pricingisn’t flexibleenough to aggregate to totalprice paid the passenger.Years of inactiontell us thereal story.Agents want along-termsolution making the airlineand agent a win-win.24AUG-WE-1824 YYZYVR ** ** AC1YYZ ALTERNATE XLQ YBZ YHM YTZ/YVR ALTERNATE CXH XEA1 #WS 683 Y7 E7 O7 V7 R7 B7 Q7 U7 YYZYVR-1845 2043 73W 0E2*A$NZ4725 C4 D4 Z4 J4 Y7 B7 M7 H7 YYZYVR-1800 1955 * 333 0ENZ4725 INTL ONL CNX/STP TFC3*A#AC 137 J9 C9 D9 Z9 Y9 B9 M9 U9 YYZYVR-1800 1955 333 0E4*A#AC 149 J9 C9 D9 Z9 Y9 B9 M9 U9 YYZYVR-1900 2058 321 0E5 #WS 713 Y7 E7 O7 V7 R7 B7 Q7 U7 YYZYVR-1730 1928 737 0E6*A#AC 115 J9 C9 D9 Z9 Y9 B9 M9 U9 YYZYVR-1700 1858 763 0E7*A$NZ4771 C4 D4 Z4 J4 Y7 B7 M7 H7 YYZYVR-1700 1858 * 763 0ENZ4771 INTL ONL CNX/STP TFC8*A$NZ4777 C4 D4 Z4 J4 Y7 B7 M7 H7 YYZYVR-2015 2205 * 77L 0ENZ4777 INTL ONL CNX/STP TFC9*A#AC 33 J9 C9 D9 Z9 Y9 B9 M9 U9 YYZYVR-2015 2205 77L 0E** MONEYSAVER FARES ** LOADED 19FEB 20:53EST/20FEB 01:53GMTYTOYVR NLX FARES FOR TRVL 20FEB11 AND TKTG 20FEBADD TAXESLN A/L F.B.C. CAD OW RT EFF LTK AP MIN/MAX1 WS PCRO1 229.00 458.00 3JAN11 - ## - / -2 WS PCRP1 249.00 498.00 3JAN11 - ## - / -3 WS MCRO1 269.00 538.00 1FEB11 - ## - / -4 WS MCRP1 289.00 578.00 1FEB11 - ## - / -5 AC T7STPC 294.00 588.00 23APR11 16APR11 ## - / -6 AC T7ITPC 294.00 588.00 1FEB11 - ## - / -7 AC T7ITPC 294.00 588.00 6SEP11 - ## - / -8 AC T7ITPC 314.00 628.00 24JUN11 - ## - / -9 AC T7SJTPC 314.00 628.00 23APR11 16APR11 ## - / -Page 10Advisory Committee for Aviation Consumer Protection28 June 2012, Washington, DCAncillaries: Too Diverse for ComparisonGroup 1 Boarding Express SeatsSeat AssignmentPage 11Advisory Committee for Aviation Consumer Protection28 June 2012, Washington, DCOpen Allies ClaimsWhat they say it’s about:1. Transparency2. Comparative data3. Full Disclosure4. Ease of Use5. ConsumersWhat it’s really about:Giving GDSs a Free RidePage 12Advisory Committee for Aviation Consumer Protection28 June 2012, Washington, DCOpen Allies and CongressTheir case is so weak, they wantCongress to make it for them.Page 13Advisory Committee for Aviation Consumer Protection28 June 2012, Washington, DCWe Want Our Piece of the PieAncillary sales are ahuge opportunityfortravel agents;We want airlines toshare the piewith us;We can sell andupsell;... but not at a cost whichtravel agents areunprepared to pay forand until fair pricinghas been negotiatedwith the airlines.Page 14Advisory Committee for Aviation Consumer Protection28 June 2012, Washington, DCThank You!Bruce Bishins, CTCAssociation of Retail Travel AgentsARTAScottsdale, Arizonawww.arta.travelbbishins@arta.travel