Galileo to target other low-cost carriers after EasyJet deal

Galileo to target other low-cost carriers after EasyJet deal

Galileo is hoping its deal to distribute EasyJet fares to the corporate travel market will pave the way for similar partnerships with other low-cost airlines.

Speaking after details of the agreement were released this week, Travelport GDS EMEA managing director Bryan Conway said the deal was beneficial to Galileo because of the size and scope of easyJet as well as the likelihood of others doing the same.

“People tend to follow EasyJet. Many of those carriers that have discounted GDS participation now have an opportunity to reconsider.”

Conway said that although 36% of European traffic goes through low-cost airlines only about 1% is distributed through a GDS.

Both Galileo and Amadeus have signed agreements with easyJet to distribute the airline’s fares to the business travel community. The low-cost airline’s fares will be displayed alongside other carriers on the GDS screen enabling agents to compare prices.

Customers will be charged an administration fee of 7.50 euros per sector or 5 euros for multiple sectors. Galileo, which claims to have more than 50% of the corporate market in the UK, plans to introduce the technology in this country in December. Amadeus, meanwhile, said it was still piloting the technology and hoped to release it in November in the UK.

Amadeus vice president multinational customer group Gillian Gibson said the technology would also improve the process for low-cost airlines already using a GDS.

“It will allow us to integrate them even better because we are mirroring the low-cost carrier process rather than trying to fit them into the existing technology.”

EasyJet’s chief executive Andy Harrison reiterated that there were no plans to open up inventory to the leisure sector.

“We see this as an distribution channel and it’s not a rethink of our model. We make a good proportion of revenue through ancillary sales on the website and we would lose the opportunity to do that if we open it up to other channels.”

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