EU GDS Code ofConduct:State of Play

Leuven, 6 December 2011

Introduction

➔ ETTSA: European Technology & Travel Services Association

➔ Founded in 2009 to represent Global Distribution Systems (GDSs) and Online Travel Agencies (OTAs) at pan-European level

➔ Membership:➔ GDSs: Amadeus, Sabre, Travelport➔ OTAs: ebookers/Orbitz, Expedia, Lastminute.com, OdigeO

incl. its brands Opodo, Govoyages and eDreams➔ Supporting Partners: ATPCO, OAG

➔ Mission: To maintain full transparency, fair competition and consumer choice in the travel distribution chain

Overview of Independent Travel Distribution

The GDS Code of Conduct

➔ First GDS Code of Conduct in Europe in 1989 (Regulation 2299/89)

➔ Aim: Ensure fair competition between air carriers and between GDSs, in order to protect the interests of consumers

➔ Revision of Code in 2009: Regulation 80/2009, ensuring:➔ Fair relationships between GDSs and transport providers➔ Pricing freedom leading to lower costs for transport

providers and, ultimately, travellers➔ Equal access to distribution facilities➔ Clear, neutral displays that do not mislead consumers➔ Robust protection of personal data➔ Provision of adequate data by transport providers so that

GDSs can comply with their obligations under the Code

The GDS Code of Conduct: State of Play

➔ European Commission in the process of undertaking Fitness Check of GDS Code of Conduct

➔ Report in preparation by Steer Davies Gleave, circulation late 2011 or early 2011

➔ Stakeholder consultation to gather comments on findings

➔ 2012: Commission deliberation on policy options

Value of the Code: ETTSA’s Perspective

➔ Code of Conduct is a robust piece of legislation that has enabled a functioning and effective independent travel distribution chain

➔ Revision in 2009 has led to greater pricing freedom, has benefited competition, and has led to lower prices for transport providers and travellers

➔ In its current review, Commission needs to take into account:➔ Relevance of the Code to metasearch engines, incl.

Google Flight➔ Application of the Code to « direct connect »-type

platforms and/or alliance and multi-supplier distribution tools

Conclusion

➔ Code of Conduct plays its role as a tool for consumer protection in the transport and travel market

➔ Scope needs to be considered as emerging distribution tools are biased by design

➔ Transparency in indirect distribution may incentivise direct distribution channel to improve transparency as well

➔ Deregulation is not an option as it would favour large powerful transport operators at the detriment of fair competition

Contact us

ETTSAEuropean Technology & Travel Services AssociationRue Defacqz 52, 1050 Brussels, Belgium

Christoph Klenner, Secretary General

Tel.: +32 (0)2 645 79 91, Mobile: +32 (0)478 410 064

E-mail: cklenner@ettsa.eu

Web: www.ettsa.eu