Thousands of travel suppliers compete to reach travelers. The fragmented nature of the industry has created an opportunity for distributors to capture value by developing and managing efficient systems that are capable of bridging travel supply and demand on a global, real-time basis. Success in the travel distribution segment depends on securing comprehensive inventory and then delivering this inventory to travelers to purchase through a system of owned and third-party distribution channels. The key players of the travel value chain are outlined below:

At the top of the travel distribution value chain are suppliers which seek cost-effective ways to reach end-user travelers. Historically, these suppliers largely relied on traditional GDS s to connect their inventory of products and services with travel agencies who in turn distribute the products and services to travelers. In recent years, however, travel suppliers have begun to utilize other forms of distribution, including direct distribution via their own websites and emerging third party GDS-bypass technologies.

Wholesalers are another distribution channel through which travel agencies obtain access to travel products and services and distribute them to groups or independent travelers. Wholesalers acquire inventory from suppliers and distribute this inventory primarily to tour operators and travel agencies. In addition, connectivity, or ‘‘switch’’, providers connect hotel and car suppliers to GDSs, thereby providing accurate real-time inventory information to the GDSs to facilitate sales by these suppliers.

Historically, offline travel agencies, supplier reservation centers and ticket offices were the largest distribution channels to reach travelers. With the emergence of the Internet, however, numerous alternatives have developed for reaching travelers. For instance, online travel agencies and ‘‘meta-search’’ companies such as Kayak.com, Sidestep, Inc. and Yahoo!/Farechase provide a way for travelers to view multiple alternatives and book travel directly, while travel suppliers provide access to their own inventory on their own direct websites. New companies, often referred to as GDS New Entrants or ‘‘GNEs,’’ are also offering alternative distribution technologies that perform the same function as a GDS without the large technology investment and network of a traditional GDS.

Source: Travelport S-4 Registration Statement 1.57 Mb