T2RL is one of the leading analysts of the market for airline IT services. Documents in this section represent our insight into the underlying trends and expectations behind the data. They are available for subscribers to download but remain proprietary to T2RL. You may not publish or circulate any part of these documents without express written permission from T2RL.
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Since Elliot's share purchase there has been considerable speculation on the future of Travelport. The most likely outcome was a move back to private ownership so this is no surprise. The reality is Travelport needed to go private to execute any strategy other than the current strategy. With long-term market share loss and challenging infrastructure Travelport needed to return to private ownership for the breathing space and investment to reset their long-term game plan. This deal comes at a time when Amadeus and Sabre are the only GDSs in the EU investigation and further fuels speculation that Travelport has cleverly found a way to stay out of the EU cross hairs. T2RL believe this is just the beginning of the story and not the end. Watch this space for news on Travelport.
10 December 2018
The EU Competition Commissioner Margrethe Vestager has announced an investigation into whether the practices at Amadeus and Sabre have resulted in harm to consumers through increased fares. This investigation was not unexpected. The investigation will focus on the GDS agreements with airlines and agents. It appears to specifically target any restrictions the contracts have with respect to new technologies and new methods of distribution and that this in turn drives up the price of the tickets. T2RL believes this will be a very challenging investigation for the EU. Sabre's timing for the purchase of Farelogix seems to be timed almost perfectly as no doubt Farelogix had been one of the specialist firms offering new technology for airline distribution. Ultimately airline distribution is complex and much more about absolute values of revenue less distribution cost than averages. T2RL will follow this case closely in our research and analysis. Stay tuned to www.t2rl.net.
23 November 2018
Sabre have agreed to purchase Farelogix for $360M. The rumours have been swirling in the market on the future of Farelogix for some time and now we know the outcome. T2RL believe there would have been a very competitive bidding process managed expertly by Evercore and the Farelogix board. T2RL see the timing of this purchase as good for Sabre. Whilst there is no doubt the valuation will be the subject of scrutiny, Sabre get some excellent client contracts and services to compete aggressively in the airline retail merchandising space. Whilst the Farelogix solution is PSS-agnostic the purchase, if approved will help Sabre build a compelling stack of services focussed on revenue generation “offer management”. Sabre will be able to inject their revenue management expertise for optimising the offers and be able to provide an industry compliant order management infrastructure. It is also T2RL's view that Jim Davidson and his team were ‘just a DCS away’ from building the core capabilities necessary for a competitive PSS offer so T2RL consider this as both an offensive move into NDC and merchandising and a defensive move in terms of revenue retention from existing customers. The bottom line is that there will be no reason or far fewer reasons for airlines to move away from Sabre’s PSS given the stack of capabilities on offer. This may just be the reason the Sabre management and board agreed to pay such a multiple of earnings for the asset.
14 November 2018
S7, Russia's second largest airline with over 14 million pbs per year including franchise carriers Globus and Charlie Airlines, migrated to Amadeus Altea on 11th November 2018. The migration from SITA took under five months to complete and includes their Reservation and Inventory systems.
13 November 2018
SAS have selected Datalex after a detailed evaluation of the alternatives for the provision of their multi-channel shopping engine. The Datalex agreement will also deliver NDC for those agents willing and able to connect directly to SAS. This is a big win for Datalex against a competitive market for digital transformation.
25 October 2018
Travelport has won a competitive tender for the distribution of domestic inventory in the Travelport GDS. Combined with Indigo content Travelport subscribers will be able to book more domestic content than any other GDS. At first glance this makes Travelport hugely relevant in India for travel agents and a massive coup for the firm. India and China are the largest markets for GDS services in Asia Pacific by some margin and India remains one of the highlights in terms of booking performance for Travelport. T2RL estimate that all GDS points of sale in India generated over 55 million bookings in 2017. T2RL believe this will also drive cross border booking and ticketing for domestic itineraries as Air India phase this in from November 2018 to the end of 2019. It is T2RL's view that significant differences in booking fees with higher incentives in one territory incentivise agents to move bookings and ticketing activities to the point of sale that pays the most. This in turn will require more functionality and capability in terms of inventory control for point of sale from the airline PSS and or improved revenue integrity solutions. Time will tell if this was the right strategy for Air India. Content fragmentation will be a challenge for the market place and this is a sign of the market pressure on Travelport to remain relevant.
13 October 2018
Pakistan's national carrier Pakistan International Airlines (PIA) has migrated from Sabre to Hitit on 12th September 2018. This agreement with Hitit was signed in April 2018 and the migration took just under 5 months. PIA will now use Hitit's Crane solutions for PSS, IBE, revenue accounting, flight operations, scheduling and crew management functions.
17 September 2018
Sky Angkor Airlines from Cambodia has migrated from AeroCRS to TravelSky's new QUICK (PRS) Passenger Retailing System. Sky Angkor Airlines is the first airline to migrate onto TravelSky's new QUICK platform which was launched at the end of 2017. QUICK PRS was developed over a period of 2 years, and supports the initiative of increasing TravelSky's global presence.
06 September 2018
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IATA continues to promote its new standard for communications between Order Management Systems, delivery and accounting systems. There have been some limited proof of concept projects and a number of airlines have committed publicly to the new standard. In this First View, T2RL look at what is needed to make this standard a success and what it might mean for the industry in the long term.
07 January 2019
Airlines, like many other enterprises, are currently subject to extensive marketing on behalf of blockchain technology providers. In this First View, T2RL looks into this new technology and where it could possibly be used by an airline.
04 January 2019
On 14th November 2018 Sabre Corporation announced that it had agreed to acquire Farelogix for $360 million in cash. The acquisition is subject to regulatory approval and is expected to close around the turn of the year. In this First View, T2RL assess the impact that the acquisition will have on customers on both sides and the industry as a whole.
07 December 2018
The most recent annual AGIFORS Symposium took place in Tokyo on 8th-12th October 2018. The conference attracted some of the top minds in aviation operations research, discussing innovative topics which have the potential to create value for airlines in the future. Given the topics of discussion and through T2RLs own experience, over the next few years T2RL expect that Revenue Management will continue to be the most productive area, in terms of both revenue gains for airlines and increased R&D investment by system vendors.
09 November 2018
On 1 February 2018 the Airline Tariff Publishing Company (ATPCO) announced the acquisition of Routehappy, an aggregator of so-called “rich content” relating to airline services. In this First View, T2RL assess the implications of this acquisition and its effectiveness in creating the conditions for long-term success.
12 March 2018
This report examines the comings and goings in the industry in 2017. The most significant losses were in Europe where Air Berlin and Monarch both operated their last services. Almost by definition it is not possible to say which will be the most significant of the start-ups until they have been in operation for a few years but it is likely that they will include at least a few major carriers of the future.
Across the world In 2017 52 new airlines were launched and 48 stopped flying. Of the 48, 17 suspended operations with the hope of restarting in the near future.
07 February 2018
British Airways system outage has caused chaos for some 75,000 passengers. T2RL believe BA can not risk their business and brand by designing and specifying the build of their own systems by third-parties, unless they can obtain the same performance or better as those such as market leaders Amadeus or Sabre.
29 May 2017
On November 3, 2016, Amadeus and Optym jointly issued a press release announcing that the two firms have formed a partnership for the purpose of creating a new generation of airline network planning and flight scheduling tools. The two firms will jointly offer a suite of five schedule planning tools covering (1) schedule optimisation, (2) schedule reliability, (3) market forecasting, (4) schedule management, and (5) route frequency optimisation. Product branding will include both companies’ names.
08 November 2016
Full reports are available for subscribers to download. Feel free to download the extracts which give an introduction and contents table of the full report.
T2RL and partners Travel in Motion (TiM) have produced a report on the current status of IATA's new distribution capability (NDC) and ONE Order including details of projects, vendors, sellers and solutions. The report will be updated on a quarterly basis with the next update planned in January 2019.
16 November 2018
Sabre's new leadership team have reinvigorated the corporation with a clear vision on the integration of airline IT and distribution services. T2RL's latest research provides a perspective on Sabre.
02 October 2018
The 2018 version of the T2RL annual report into the state of the market for Airline Passenger Services Systems. It covers all of the main activity in 2017 and the majority of 2018.
21 September 2018
T2RL’s annual research into global passenger volumes highlights 4.2 billion passengers boarded in the year 2017. The purpose of this report is to provide an industry standard on current, historical and forecast global air passenger volumes.
10 September 2018
T2RL and partners Travel in Motion (TiM) have produced a report on the current status of IATA's new distribution capability (NDC) including details of pilot projects, vendors and solutions. The report will be updated on a quarterly basis with the next update planned in October 2018.
30 July 2018
This report is the second of T2RL's annual reports with analysis on the market for airline operations systems. We continue to look into the capabilities that exist, the new capabilities airlines are demanding, and what the service providers are developing as part of their roadmaps and plans. Airlines should use the report to understand vendor capabilities.
06 May 2018
T2RL and partners Travel in Motion (TiM) have produced a report on the current status of IATA's new distribution capability (NDC) including details of pilot projects, vendors and solutions. The report will be updated on a quarterly basis with the next update planned in July 2018.
29 April 2018
T2RL and partners Travel in Motion (TiM) have produced a report on the current status of IATA's new distribution capability (NDC) including details of pilot projects, vendors and solutions. The report will be updated on a quarterly basis with the next update planned in April 2018.
15 February 2018