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RyanairOne of the most recent news, which was on the buzz on social media, was the agreement between Ryanair and Amadeus for the low-cost airline to distribute its content through the market-leading GDS.

Much has been written on the subject, some things quite right, and others not so much.

Leisure flights are slowing down after a summer with fascinating volumes, leaving our industry to skim or even exceed, in some cases, the volumes of 2019 in those specific months.

Ryanair is not known for waiting for the future to happen and is already acting on the circumstances and (re)opening a vital distribution channel.

We all know that traditionally low-cost airlines prefer to distribute their content via direct channels, i.e., direct bookings on their websites. But it is important to remember that this is not the first time Ryanair has used this distribution channel, as it distributed its content between 2014 and 2017. In other words, innovation is zero.

There were even those who linked this news to NDC, which couldn’t be further from reality…

I am pleased, however, to point out that this is a breath of fresh air for the GDSs (even if it’s just Amadeus for now), which have been under constant attack in recent years, with new aggregators saying that the GDSs are obsolete, and traditional airlines pushing their direct distribution programs, aka NDC…

This move by Ryanair, yes, be amazed, it was Ryanair that approached Amadeus, it is a very accurate attempt to obtain more reservations in the corporate segment, which is traditionally dominated by travel agencies that focus their distribution on the tools available by the GDSs. In other words, it seems that it has become a tradition that Ryanair occasionally establishes partnerships with GDSs to penetrate the markets they dominate!

It is also quite interesting to note that at a time when traditional airlines are pushing customers towards their direct distribution channels, with initiatives such as removing certain fares from the GDS or charging additional fees to those who book via GDS, Ryanair is doing the exact opposite, and giving the GDS back the importance it has always had in the distribution of content.

Only time will tell who is right, one or the other, or even both, but those times are interesting and full of uncertainty, that is certain. And therein lies the magic of business…to take risks and decide, succeed or fail, act or react, lead or copy…there is not always a right and a wrong…

In this case, congratulations to Ryanair and Amadeus, and I hope Travelport is next in Ryanair’s strategy!

 

Opinion piece: Written by: João Taborda

 

 

 

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