analysis

Smaller Travel Agencies In Europe Most At Risk In CRS Reform Proposal

The U.S. based publication, The Beat, recently published an interview with Amex Global Distribution VP Bruno Peynichou (10/24/07), in which he claims that the resolution of the “Parent Carrier” issue will “not really change the landscape overall in Europe.” It’s exceedingly likely that thousands of other small and mid-sized travel agencies in Europe would disagree. Amex, as the world’s largest travel agency, has full bargaining clout in its relationships with CRSs and airlines.  Amex is further known to have contracts with multiple CRS vendors, a situation which is uncommon for the vast majority of travel agencies in Europe.  

While Amex may thus feel warmly insulated from the outcome of the current CRS Code of Conduct debate, and may indeed find a competitive advantage in an outcome that removes Parent Carrier status from Air France, Lufthansa and Iberia, smaller agencies can expect to feel the full bitter sting of being left out in the cold and unprotected along with their customers who would be denied full access to all available airfare offerings in the marketplace.     

The European Commission appears poised to “interpret” its newly formulated CRS rules in a way that would ensure that they apply to no airline operating in Europe today. And yet, with Amadeus and its three airline owners controlling the airline and distribution markets in France, Germany and Spain, and with a well-known history of airlines engaging in abusive activities when they are allowed to own systems without clear regulatory safeguards, great competitive harm to travel agents and consumers would swiftly and inevitably follow.  

The European Parliament should not allow this to happen on its watch.