central reservation systems
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hospitalityTRANSCRIPT
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FROM COMPUTER RESERVATION SYSTEMS TOGLOBAL DISTRIBUTION SYSTEMS
- Lesson 3 -
Angelina Njeguš, PhD Associate Professor at Singidunum University
Belgrade - Serbia, 2013
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Prof. dr Angelina Njeguš
Table of Contents
Introduction to Computer Reservation Systems
Typical CRS Functions
Evolution of CRS
Global Distribution Systems GDS Organisations
Challenges for CRS/GDS
Big Data
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Prof. dr Angelina Njeguš
What is CRS?
Computer Reservation System (CRS) is an information systemthat promotes sales and provides fast and accurate
information about availability, price and bookings of tourism
products and services
Originally CRSs were developed to facilitate business transactions andbookings related to air travel
Later, CRSs were extended for the use of travel agencies, hotels, and
other tourism and hospitality businesses to manage their inventory
and allow direct access through terminals to check for availability,
make reservations and issue tickets Today, CRSs are of high importance for travel and tourism industry
with the main focus on direct reservations (e.g. directly in the hotel)
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CRS History
CRS is the first information system that was used in tourismindustry
Primarily was used as inventory-control system by airlines
In 1962 American Airlines introduced SABRE (Semi-Automated
Business Research Environment) the first commercial CRS,developed by IBM, that was used for:
generating flight plans for the aircraft
tracking spare parts
scheduling crews ...
Figure:
SABRE Reservation system in 1960s (Venema, 2011)
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Typical CRS Functions
Flight schedule information Days and times for flights operated by the airline
Availability information
Seat availability on a flight by service class (i.e. Economy, business, first class)
Fare quotes
A consolidated fare for an itinerary based on flight, day, time, service class and
passenger types chosen
Reservation information
Seat bookings
Ticketing information Generating and storing tickets
Refunds and cancellations
Cancellation of existing reservations and tickets
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Evolution of CRS
In the 1970s and 80s multiple CRSscame up
The growth of air traffic expanded
CRS
In order to distribute up-to-date
information to all potential customersworldwide and to support the operation
and administration of airlines, CRS
evolves from the central to the
distribution system
In the mid 1980s, CRS developed into
much more comprehensive globaldistribution system (GDS) offering a wide
range of tourism products and providing
the backbone mechanism for
communication between actors in
tourism industry
Source: Dennis, 2012.
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Travel Agent before GDSs
Travel agent required
individual connections to
airlines
If airlines used different
mainframe systems, travelagent had to use and be
trained on different mainframe
clients
Searches and reservations
were performed separately on
individual airline CRSs
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Travel Agent after GDSs
Source: Introduction to AirlineReservation Systems, 2009.
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From CRS to GDS
Among the first non-North American CRS, that was developed jointly byAir France, Lufthansa, Iberia and SAS in 1987, was Amadeus
Source: Schulz, 1996
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Global Distribution Systems - GDS
Besides air products, today GDSs provide access to: Car rentals
Hotel booking
Packaged holidays
Cruises and ships
Railways
Local road transport ...
GDS enable clients to compare, and access information about travel,
leisure, and other tourism related information from various tourism
service providers
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What is GDS?
GDS is an integrated information system and communicationchannel that:
incorporates all travel services
connects service providers with end users
providing information from all segments of the journey allows booking and selling of the required services
Today GDS is:
the most cost effective tool for buyers of business travel to manage
the complexity of supply
more than just a reservation tool - integrates the core business
processes of tourism businesses and therefore increase their
productivity, speed, and performance
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Major GDSs in operation today
Sabre Amadeus
Travelport (the umbrella company for the Galileo, Apollo, and Worldspan)
Figure: GDS Bookings Worldwide
market share (Amadeus, 2009)
37%
30%
29%
4%
Amadeus
Sabre
Travelport
Abacus
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Sabre
Founded in 1964 by American Airlines and IBM Headquartered in Southlake, Texas, USA
Used by www.expedia.com, www.lastminute.com,
www.travelocity.com ...
Source: Sabre Pacific, 2013.
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Overview of Sabre solutions
Sabre Travel Network - solutions for the travel industry Sabre Airline Solutions - solutions for the air transportation industry
Sabre Hospitality Solutions - solutions for the hospitality industry
Travelocity - online travel company
Source: Sabre Hospitality Solutions, 2013.
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Amadeus
Founded in 1987 by Air France, Iberia, Lufthansa and SAS Headquartered in Madrid, Spain
Largest booking share in Europe
Used by www.expedia.com, www.opodo.com, www.flights.com ...
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Overview of Amadeus’ principal
IT solutions offering
Amadeus Full
Altéa Suite
(PSS)
Airline IT
Other IT solutions
Other
airline IT
Reservation Inventory Departure control e-Commerce
Global services
Revenue integrity,e-ticket server
Non-air
Hotel
IT
Airport
IT
Rail
IT
Source: Amadeus, 2012.
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GalileoToday under Travelport GDS
Founded in 1993 by 11 major North American and Europeanairlines
Headquartered in Atlanta, Georgia, USA
Used by www.orbitz.com, www.hotwire.com and others
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WorldspanToday under Travelport GDS
Founded in 1990 by Delta Airlines, Northwest Airlines andTransworld Airlines
Merged with Galileo in 2006
Source: Travelport, 2013.
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Estimated air market share gain
(2000-2012)
Source: Amadeus, 2013.
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Travel Distribution Chain
Source: ETTSA, 2010.
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CRS Architecture
Source: TechTuners, 2013.
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GDS Organisations
In order to promote fair competition and to ensure that consumers do not receiveinaccurate or misleading information on travel services, it is necessary to have
regulations on GDS
Organisations work together with governments, and other relevant authorities to
help define the correct regulatory framework for the travel and transport industry
There are several organisations, such as:
IATA - International Air Transport Association
ICAO - International Civil Aviation Organization
ETTSA - European Technology and Travel Services Association
ATPCO - Airline Tariff Publishing Company
IATAN - International Airlines Travel Agent Network
SITA - Société Internationale de Télécommunications Aéronautiques
and many others
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IATAInternational Air Transport Association
Trade association for the world’s airlines Representing around 240 airlines or 84% of total air traffic
Formed on 1945
Headquartered in Montreal, Quebec, Canada
Supports many areas of aviation activity and helps formulate industry policy and
standards on critical aviation issues, such as: Security of passengers and cargo
Airline safety
Airline revenues
Infrastructure issues
Chargers and economic regulation and taxation Fuel
Airline distribution
Environment ...
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ETTSAEuropean Technology and Travel Services Association
Promote the interests of GDSs and travel distributors and support fulltransparency, fair competition and consumer choice in the travel
distribution chain
Launched in 2009
Based in Brussels
Members are Amadeus, ebookers, Expedia, Odigeo (and its brands eDreams,GoVoyages, Opodo and Travelink), Sabre (including its affiliate lastminute.com), and
Travelport.
ETTSA’s main activities include:
Engaging in policy-making
Providing insight and information
Reporting new developments
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SITASociété Internationale de Télécommunications Aéronautiques
IT company specialized in providing IT and telecommunication services toair transport and related industries
Founded in 1949 by 11 airlines in order to bring about shared infrastructure cost
efficiencies by combining their communications networks
Headquartered in Geneva, Switzerland
Almost every airline, airport, air cargo, and aerospace use some kind of SITA’s business
solutions
SITA solutions for:
Airport, aircraft, baggage, cargo operations
Passenger operations
Transportation security
Communications and infrastructure
Commercial management ...
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Challenges for CRS/GDS
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Problems of Big Data
Analysis from Google shows that the typical traveller uses 22 websites toresearch a trip, in multiple shopping sessions, before booking
The growth of Cloud, Mobile and Social Computing leads to the fact that
organisations are flooded by:
Huge volume of data
High velocity of data
Variety of data
Digital content will grow to 8ZB by 2015
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The physical size of Big Data
Name Symbol Binary Decimal
byte B 20=1 byte 100=1
kilobyte KB 210=1.024 byte (B) 103=1.000
megabyte MB 220=1.048.576 B 106=1.000.000
gigabyte GB 230=1.073.741.824 B 109=1.000.000.000
terabyte TB 240=1.099.511.627.776 B 1012=1.000.000.000.000
petabyte PB 250=1.125.899.906.842.624 B 1015=1.000.000.000.000.000
exabyte EB 260=1.152.921.504.606.846.976 B 1018=1.000.000.000.000.000.000
zettabyte ZB 270=1.180.591.620.717.411.303.424 B 1021=1.000.000.000.000.000.000.000
yottabyte YB 280=1.208.925.819.614.629.174.706.176 B 1024=1.000.000.000.000.000.000.000.000
brontobyte BB 290=1.237.940.039.285.380.274.899.124.224 B 1027=1.000.000.000.000.000.000.000.000.000
geopbyte GeB 2100=1.267.650.600.228.229.401.496.703.205.376 B 1030=1.000.000.000.000.000.000.000.000.000.000
Bit (b) – 0 or 1
Byte (B) – 8 bits
Kilobyte (KB) – 1024 bytes
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Big Data sources
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What is Big Data?
Source: Informatika. Available at: http://www.informatica.com/us/vision/harnessing-big-data/
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References
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17.07.2013)2. Venema, M. (2011). Global Distribution Systems (GDS). Edutour – Education for Tourism. Available at: http://www.slideshare.net/magielsr/gds-
overview-1232798141856259-2-2359117 (accessed: 18.07.2013)
3. Introduction to Airline Reservation Systems. Available at: http://www.slideshare.net/mave_boy/introduction-to-airline-reservation-systems-1237705 (Accessed: 17.07.2013)
4. Dennis, B. (2012). Hospitality Internet Booking Engines & Central Reservation Systems: A thought-piece concerning online reservation technology forthe hospitality industry. Buuteeq, Seattle, WA.
5. Schulz, A. (1996). The Role of Global Computer Reservation Systems in the Travel Industry Today and in the Future. Electronic Markets, 6(2). Availableat: http://aws.iwi.uni-leipzig.de/em/fileadmin/user_upload/doc/Issues/Volume_06/Issue_02/The_Role_of_Global_Computer_Reservation.pdf (accessed 17.07.2013)
6. Amadeus (2012). Corporate presentation 2012. PowerPoint presentation. Amadeus.7. Sabre Pacific (2013). Sabre online enhancements power increased productivity. Travel Blackboard. Available at:
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8. Sabre Hospitality Solutions (2013). Central Reservation System (CRS). Sabre. Available at: http://www.sabrehospitality.com/central-reservation-systems.php (accessed 18.07.2013)
9. Travelport (2013). Travelport GDS Privacy Policy. Available at: http://www.travelport.com/Privacy-Policy/Travelport%20GDS (accessed: 18.07.2013)
10. Amdekar, J., Padmanabhuni, S. (2006). Future of Travel & Tourism Industry with the adoption of Web Services in Electronic Distribution. Infosys.Available at: http://www.infosys.com/industries/hospitality-leisure/white-papers/Documents/webservices-adoption-travel-tourism.pdf (accessed18.07.2013)
11. ETTSA (2010). Technology and Independent Distribution in the European Travel Industry. PhoCusWright . Available at:
http://www.ettsa.eu/uploads/documents/ETTSA_Study_2010_Single_Pages.pdf (accessed 18.07.2013)12. TechTuners (2013). T-RES. Available at: http://www.techtuners.com/TRES.aspx (accessed 18.07.2013)
13. Davenport, T.H. (2013). At the Big Data Crossroads: Tuning towards a smarter travel experience. Amadeus IT Group. Available at:http://www.bigdata.amadeus.com/assets/pdf/Amadeus_Big_Data.pdf (accessed 18.07.2013)
14. Videcom (2013). GDS Distribution. Videcom Airline Reservation Systems. Available at: http://www.videcom.com/airline-global-distribution-systems.aspx (accessed 18.07.2013)
15. Amadeus (2013). Amadeus Introductory presentation. Available at:http://www.investors.amadeus.com/media/files/english/column_boxes/Introductory Presentation (long form) February 2013.pdf (accessed18.07.2013)