S P O T L I G H T

GDSTechnologyandtheFutureofTravelDistribution
BobOffutt
October2016

Despiterumorsoftheirimminentdemise,globaldistributionsystems(GDSs)arestillalive
andwell.Thetechnologythatsupportsthebusinessservicestheyprovidewillhavea
profoundandlastingeffectontraveldistribution.Phocuswrightposedaseriesofquestions
regardingtechnologyandtraveldistributiontothreeleadingGDSsAmadeus,Sabreand
Travelport.ThisanalysissummarizestheGDSkeyinitiativesandstrategies,andalso
includesdetailedQ&Athatshedslightontheirapproachtotechnologyandthefutureof
travel.

ThiscontentispublishedbyPhocuswrightInc.,awhollyownedsubsidiaryofNorthstarTravelMedia,LLC.Theinformationhereinis
derivedfromavarietyofsources.Whileeveryefforthasbeenmadetoverifytheinformation,thepublisherassumesneither
responsibilityforinconsistenciesorinaccuraciesinthedatanorliabilityforanydamagesofanytypearisingfromerrorsoromissions.
AllPhocuswrightpublicationsareprotectedbycopyright.ItisillegalunderU.S.federallaw(17USC101etseq.)tocopy,faxor
electronicallydistributecopyrightedmaterialbeyondtheparametersoftheLicenseoroutsideofyourorganizationwithoutexplicit
permission.

2017Phocuswright,IncAllRightsReserved.
GDSTechnologyandFuture October2016

About

Phocuswrightisthetravelindustryresearchauthorityonhowtravelers,suppliersandintermediaries
connect.Independent,rigorousandunbiased,Phocuswrightfosterssmartstrategicplanning,tactical
decisionmakingandorganizationaleffectiveness.

Phocuswrightdeliversqualitativeandquantitativeresearchontheevolvingdynamicsthatinfluencetravel,
tourismandhospitalitydistribution.Ourmarketplaceintelligenceistheindustrystandardforsegmentation,
sizing,forecasting,trends,analysisandconsumertravelplanningbehavior.Everydayaroundtheworld,
seniorexecutives,marketers,strategistsandresearchprofessionalsfromallsegmentsoftheindustryvalue
chainusePhocuswrightresearchforcompetitiveadvantage.

TocomplementitsprimaryresearchinNorthandLatinAmerica,EuropeandAsia,Phocuswright
producesseveralhighprofileconferencesintheUnitedStatesandEurope,andpartnerswithconferences
inChinaandSingapore.Industryleadersandcompanyanalystsbringthisintelligencetolifebydebating
issues,sharingideasanddefiningtheeverevolvingrealityoftravelcommerce.

ThecompanyisheadquarteredintheUnitedStateswithAsiaPacificoperationsbasedinIndiaandlocal
analystsonfivecontinents.

PhocuswrightisawhollyownedsubsidiaryofNorthstarTravelMedia,LLC.

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GDSTechnologyandFuture October2016

TableofContents

Introduction 4

KeyServicesandCapabilities 4

CloudServices 4

Standards 4

SocialMedia 5

APIAccess 5

NDCImplementation 6

PNRStrategy 6

LegacyTechnologyPlans 6

MerchandisingandBrandedFares 7

EmbracingNewTechnologies 8

Tripvs.CustomerOrientedStructure 8

SupplierConnectivity 9

Mobile 9

HotelDistribution 9

KeyIssues 10

Summary 11

GDSTechnologyInterviewQ&A 11

Endnotes 22

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Introduction
Despiterumorsoftheirimminentdemise,globaldistributionsystems(GDSs)arestillaliveandwell.Thetechnologythat
supportsthebusinessservicesthattheyprovidewillhaveaprofoundandlastingeffectonthewaytravelisdistributedthrough
theover50,000travelagentsintheworld.

PhocuswrightposedaseriesofquestionsregardingtechnologyandthefutureoftraveldistributiontothreeleadingGDSs
Amadeus,SabreandTravelportandeachprovidedawrittenresponse.ThisInnovationEditionanalysissummarizesthekey
initiativescommonacrossallthreeGDSs,aswellasnotabledifferencesinstrategies,withsomematerialparaphrasedand
otherresponsesquotedandattributed.Forreaderslookingforadeeperdive,theGDS'detailedresponses(editedtoimprove
readability)appearinaseparateQ&Asectionthatfollowsthemainanalysis.

KeyServicesandCapabilities
CloudServices

Amadeus:

Amadeushasadoptedamultifacetedcloudcomputingstrategythatisdesignedtoprovidecustomerswithfastertimeto
market,improvedscalabilityandbetterperformance.Amadeus'ssolutionscanrunonmultiplepubliccloudservicesplatforms
aswellasonAmadeusCloudServices,dependingoncustomerpreferenceandbusinessneed.

Sabre:

SabredidnotaddresscloudstrategydirectlybutstatedthatSabreLabscanleveragenewtechnologies.

Travelport:

TravelporthasengineereditsTravelCommercePlatform(TCP)aroundcloudcompatibletechnologies.Travelport'splanis
that,alongwiththeirnewmobilecapability,cloudcompatibletechnologieswillgivethemthetechnologybuildingblocksto
scale,growandevolve.ThisstrategyisexpectedtoenableTravelporttoredefinetravelcommerceasuserneedsand
expectationschange.

Standards

Amadeus:

Fortheindustrytofullybenefitfromwideadoptionandtheneededeconomiesofscale,Amadeusbelievesthatmeaningful
standardizationisrequired.Airhasthebenefitofbeingstructuredandintegratedwithglobalstandardsthatdefinedataand
operationalinteroperability.IATA'sNDC(seebelow)isbecominganewstandard.Hospitalitylacksasimilarstructure.
AmadeushasbeenactiveinvariousforumsincludingHEDNAwhereAmadeuscochairsastandardsworkinggroupwith
DHISCO.Amadeusbelievesthatforhoteldistributiontoevolve,thefoundationalelementssuchasstandardizedstructured
dataneedtosupportchangingbusinesstrendsandcustomerbuyingbehavior.

Sabre:

Sabresupportsavarietyofstandards,bothlegacyandcurrent.Thekeylegacystandardusedforsupplierconnectivityisthe
ElectronicDocumentInterfaceforAdministration,CommerceandTravel(EDIFACT),however,newdevelopmentisbasedon
opensystemsandstandarddatabasesthatenabletheuseofhigherlevelprogramminglanguages.Thismixofstandardshas
enabledSabretoensureinteroperabilitybetweenthevariousindustrystandardsduringthetransitionperiodfromlegacyto
modernstandardswhileensuringconsistencyinaccesstoproductsandservicesacrossairlinesandchannels.Sabrehas
extensiveexperienceusingXMLbaseddatatransmissiontoairlineshavingcompletedanXMLbasedproductwithAmerican
AirlinesusingNDC(seebelow)standardsinearly2016.
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Travelport:

TravelportbelievesthatconnectivityisthebackboneofitsTCP.Ithasbeenpioneeringintheareaofconnectivitystandards,
mostnotablywiththesupportofIATA'sNDCstandardforairdistribution.ThebenefitsofdeployingaNDCcapabilityare
realizedthroughTravelport'sRichContentandBrandinginitiativethatbringspersonalizedoffers,brandedproductsuitesand
additionalsalesopportunitiestothetravelagent'sdesktoportotheOTAs.

Travelportrecognizestheissuewiththelackofstandardsinhospitalityandthathotelconnectivityiscritical.However,the
biggerconcernsarethechallengesofprovidingthetravelerwithrelevantchoicestofacilitatetheshoppingexperience.The
presentationofappropriatelodgingalternativesbecomesmorecriticalasTravelportrollsoutnewproductsandservicesonits
recentlyacquiredMTTmobileplatform.

Thatsaid,Travelportbelievesthatbetterstandardsarenecessaryandactivelysupportsthedevelopmentofthosestandards.

SocialMedia

Amadeus:

In2015AmadeuslaunchedconsultativeworkshopsaroundtheU.S.focusingonspecificstrategiesthataddressedsocial
mediaandmobilemarketing.TheseworkshopsweredesignedtoeducateAmadeus'scustomersonhowmuchthesales
processhaschangedandtoequipthemwiththeappropriatetoolstocompeteinthissociallyconnectedworld.Feedbackwas
thatthesocialmediaworkshopswere"trueeyeopeners"forAmadeuscustomerswhowereunawareofsocialmedia's
potentialinthesalesprocess.

Sabre:

SabrehasdevelopedaTravelInsightenginethatprovidesitspointsofsale(POSs)withasuiteofinspirationalshopping
servicesthattheycanleveragetostimulatedemandviasocialmedia.AnexamplewouldbeaPOSusingsocialmediato
sharemarketinsightsandtotailorcontenttomeettheneedsofthecustomer.

Travelport:

TravelporthasextendeditsproductsuitetoincludeTripAdvisorcommentsandothersocialmediacontentinitsSmartpoint
productandislookingforwaystoincorporatesocialmediacontentintotheleisureandcorporatetravelexperiences.

APIAccess

Amadeus:

AmadeusseesitsAPIsasakeypartofitsstrategy.ThecompanyplanstodevelopaselfservicecentralAPI,notjustforPOS
solutionsbutforotheraccessaswell.GraduallyAmadeusexpectsPOSAPIsolutionstomigratetothecloudandbecomeless
importantastheuseoftheselfserviceAPIincreases.

Sabre:

SabreprovidesasuiteofrichcontentandothercapabilitiesthroughitsAPIs.AsthefirstGDStointroduceaportfolioof
RESTAPIs,SabrehasmadeitsAPIssimpleandveryusable,reducingtimetomarketfornewcapability.TheSabreRed
WorkspaceisbuiltontheRESTfulAPIs.SabrealsosupportsSOAP(SimpleObjectAccessProtocol)togivedevelopers
flexibility.

Travelport:

ThemajorityofTravelport'sbookingsnowcomethroughitsopenAPI.Travelport'svisionistohaveaUniversalAPI.The
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UniversalAPIisakeypartofTravelport'sAPIplantofacilitatecustomerempowerment,toaccesstherichestcontentwith
easytoadoptindustrystandardinterfaces,andtoenableanomnichannelexperience.KeycomponentsofTravelport'sAPI
strategyaretheacquisitionofmobiletravelappdeveloper,MTT,andTravelport'sinvestmentintheAPIchanneltowidenits
POSs.

NDCImplementation
Author'snote:NDCstandsfornewdistributioncapability.NDCisanIATAsponsoredinitiativethatusesmodernInternet
capability(e.g.,XML)toallowairlinestomakepersonalizedofferstoselladditionalmerchandise,brandedfares,and
servicesandtoexplorenewformsofconnectivity.

Amadeus:

AmadeusfullysupportsIATA'sNDCstandards,havingimplementedaproductionsystemseveralyearsago.Amadeusenjoys
IATA'shighestlevelofcertification(Level3)asanNDCprovider,andismovingtowardcertificationasanaggregator.

Sabre:

SabrewasanearlysupporterofIATA'sNDCprogramandhaspartneredwithIATAandotherindustryparticipantstodevelop
NDCprotocols.SabrepartneredwithAmericanAirlinestodeliverpaidseatcapabilitiesusingNDCinearly2016.

Travelport:

TravelportalsosupportsIATA'sdirectionbutinadditionhasdevelopeditsowncapabilityforsellingmerchandise,ancillaries
andbrandedfares.ThroughitsRichContentandBrandingproductTravelportdeliversdatafor160airlinesand220ancillary
productsfrom56differentairlines.

PNRStrategy

Amadeus:

Intoday'slegacysystems,thepassengernamerecord(PNR)isthebackboneoftheinteroperabilityrequiredforairshopping
andbooking.However,asconsumerdemandsincreaseandthetravelindustryexpands,thelegacycapabilityisnotsufficient
andexpandingPNR'scapabilitiestoallowmoretravelerprofileinformationandothernonairlinkagesbecomesakeyenabler.

Tosupportthechangingmarketneeds,AmadeusextendedthetraditionalPNRwiththetotaltravelerrecord(TTR),which
includesadditionalinformationthatisrelevanttotoday'straveler.

TheTTRhasthecapabilitytorecordavarietyofdata(18structuredtypestostorenonAmadeusbookings,travelrequests,
quotes,digitalattachments,sales,financialinformation,etc.).InAmadeus,everyPNRisaTTR,providingfullsupportfor
Amadeuscustomers.

Sabre:

SabrehasbeenaddingcapabilitytothelegacyPNRoverthepastseveralyears.ThisrevisedPNRisdesignedtocontain
moreinformationaboutsupplierofferings,greaterproductinformationandpersonalizationdata.Airlinebrandedfares,
ancillaryofferings,uniquepackagedcontent,andtheuseofvirtualformsofpaymentareallthingsthatwillrequirePNR
changes.

Travelport:

TravelportbelievesithasledtheindustryinPNRexpansionwithitsTravelCommercePlatform.

LegacyTechnologyPlans
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Amadeus:

From:RasheshJethi(HeadofR&D,Americas):"TheAmadeusplatformcontinuestobeoneoftheleading
technologyplatformsintheworld,processingoverabilliontransactionsperday...Atatechnologylevel,ourdatabases
processasmuchtransactionvolume(ifnotmore)thanseveralofthepopularconsumerwebsitessuchasGoogleand
Amazon,routinelyhandling50,000transactionspersecond.Itismisleadingtothinkthatthepopularconsumerwebsitesare
kingsofthehill'ourtechnologypowersseveralofthemostpopulartravelwebsitesincludingtravelagenciesandairlines...
andindoingsowehandlesignificantlymorevolumethantheGDSsofyesteryear....Overthelastseveralyearswehave
movedtosystematicallyadoptopenstandardsandplatforms."

Sabre:

SabrehasprovidednewcapabilitythathastransformeditstraditionalGDStechnology.ThishasbeendonewiththeSabre
RedWorkspaceandinvestmentsinwebservices,expandingtheagentdesktopandimprovingcontentintegration,shopping,
pricing,ticketing,payments,merchandising,reservationsanditinerarymanagementcapabilities.

Travelport:

Travelportusesanongoingtechnologystrategicplanningprocesstoensurethatnewtechnologiessuchascloudcomputing,
machinelearning,virtualization,andopenstandardsareconsideredsoastoprovidethemaximumpossiblecustomerbenefit.

TravelportiscurrentlyrollingoutitsnextgenerationsuiteofPOStoolsincludingagraphicalinterfaceandmobileapps.

TPF1remainscoretoTravelport'sinfrastructureportfolio.TravelportconsidersTPFasapowerful,reliableplatformthatstill
outperformsotherplatformsforcertainworkloads.Travelport'stechnologystrategyinvolvesblendingtheperformanceofTPF
withtoday'sdigitalplatformsandservicestogetthebestofbothworlds.

MerchandisingandBrandedFares

Amadeus:

Amadeushastwokeytenetsforprovidingmerchandisingandbrandedfarestoitshostedairlines:

1. Tosupportairlines/vendorsgoalstodifferentiatethemselves.TodothisAmadeusprovidesaninterfacethat
enablesairlinestoofferbundledsolutionsandbrandedfares.

2. Tonormalizetheseofferssothattheycanbepresentedthroughgraphicandcrypticinterfacesorthroughthe
webservicesAPI.

Inadditiontoitsownsolutionforupsellingandthedistributionofbundledfares,AmadeussupportsthecurrentATPCO
brandedfaresproductandtoolstoenableupsell.

Amadeusplanstoprovideitsairorientedmerchandisingtoolstootherchannelssuchashotelandcaraswellasenabling
merchandisingacrosschannels.

Sabre:

SabrefeelsthatithasbeenaGDSmerchandisingleaderforyears.Sabreprovidestoolsfortravelproviderstosellproducts
andservicesinthemostsuitablemanner.Sabrealsoprovidesflexiblesourcingsothatsupplierscanpickhowtheywantto
distributetheirproducts.Thisflexiblesourcingincludesprovisionsfortravelproductssuchasbrandedfares,productbundles
andpersonalizedoffers.

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SabresupportsATPCOandIATAstandards.

Travelport:

Travelportwasanearlysupporterofbrandedfares,workingwithAirCanadatodeveloptheconcepts.TodayTravelportoffers
asuiteofairlinemerchandisingsolutionstoover160airlines.Travelportiscontinuingtodevelopitsmerchandisingcapability
andplanstoleverageMicroservicesandanEventEnabledIntegrationPlatformtoensurecustomerswillgettheexactblendof
contenttheywantdeliveredseamlessly.

GoingforwardTravelportplanstoenableeveryaspectofthetraveler'sjourneywiththesemerchandisingtoolsona
personalizedbasis.Asignificantpartofthisstrategywillbetoleverageitsnewlyacquiredmobilecapability.

EmbracingNewTechnologies

Amadeus:

AmadeushasarobustR&Dprogram.Ithasalreadyimplementedacloudservicesstrategy.TheAmadeusR&Dteamis
lookingataugmentedreality(AR)andvirtualreality(VR)aswellasartificialintelligence(AI)andmachinelearning.

Sabre:

Sabreseesafundamentalchangeinhowtravelersdream,searchandpurchasecontent.Thereissubstantiallymore
computercuratedcontentthatassistshumansinmakingtravelchoices.ThroughSabreLabs,Sabreisexploringhow
suppliersandbuyerscanusenewtechnologiestoimprovetheshoppingexperience.

Travelport:

TravelportismonitoringdevelopmentsinAR,VR,cloudcomputingandbigdata,andisdevelopingitsTCPtoleveragethese
technologies.Overthepastfiveyears,Travelporthasinvestedinnewtechnologiesthatprovidefasterdataconsolidationand
bettertargetedcustomeroffersaswellasimproveduserexperiences.

Tripvs.CustomerOrientedStructure
Author'sNote:Today'sGDSsrecordeachpassenger'stripseparatelyinapassengernamerecord(PNR).ThesePNRsare
notconnected.AtriptomorrowDFWSFOwouldnotbeconnectedtoatripnextweekDFWORD.Thisiscoretothedesign
oftheGDSs.

GDSswereasked:HistoricallytheGDShasbeentriporiented.Whatareyourplans,ifany,tochangetoacustomer
orientedstructure?Arelatedquestion:Doyouhaveplanstoprovidetoolsthatfacilitatecombinedbusinessandleisuretrip
planning?

Amadeus:

Asdiscussedabove,AmadeushasmovedfromthePNRtothetotaltravelrecord(TTR).TheTTRisthecentraltripdata
repository.Itallowsinteractionwiththetraveler,regardlessofthechannel,andgivesthetravelagentafullviewofthe
customer,therebyenablingupsellandothermerchandisingservices.

Sabre:

SabrefeelsthatitsSabreRedplatformwithitslatestupgradeswillprovideagentswithwhateverflexibilityandnewcapabilities
areneededatthePOS.

Travelport:

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TravelportplanstocontinueitsmigrationfromatraditionalGDSstructuretoitsTCPstructure.MigrationtotheTCPwillenable
theintegrationofbothleisureandbusinesstravel.ManyoftheextensionsoftheTCPplatformwillbedonebythirdparty
developersusingTravelport'sAPIandtravelerprofileinformation.

Author'sComment:ItisnotclearifanyoftheGDS'PNRstrategiesactuallyprovideafullcustomerviewasopposedtoatrip
orientedview.

SupplierConnectivity

Amadeus:

AmadeushasbeenusingthenewInternettoolssuchasXMLforalmostadecadetointegratecontentfromvariousairlines.
Currently,AmadeusislookingbeyondXMLanditsenablingstructure,SOAP(SimpleObjectAccessProtocol),toJSON
(JavaScriptObjectNotation)andREST(REpresentationalStateTransfer).Whileunderstandingthatmultipleconnectivity
protocolswillexist,Amadeusispushinginitiativesforthedevelopmentofstandards.AmadeusbelievesthatIATA'sNDCis
destinedtobeakeystandard.

Sabre:

SabresupportsavarietyofconnectivityprotocolsincludingXML,SOAP,REST,FTPandHTTP.TheXMLdailyrunrateis
approximately250milliontransactions/day.TheworkhorseremainsEDIFACT,whichhandlesapproximately1billion
transactions/daywithTeletypeasanEDIFACTbackup.WebservicesandJSONformobileaccountforapproximately800
milliontransactions/day.

Travelport:

WithconnectivityakeycomponentforitsTCP,Travelportisexploringwaystoimproveandstreamlineconnectivitytoexisting
suppliers.Travelportisalsolookingfortechnologiestoenableconnectivitytonewcontentsuppliers.LikeAmadeus,Travelport
supportsthedevelopmentofstandardsusingnewtechnologiesforsupplierconnectivity.

Mobile
Author'sNote:Althoughtherewasnospecificquestionaboutmobilestrategyallthreeincludeddiscussionsaboutmobile.

Amadeus:

Amadeusrecognizedthatmobilerepresentedasignificantchangeinconsumerbuybehaviorandthatwithitslimitedreal
estate,themobilechannelisachallenge.Amadeusbelievesitneedstomovequicklyinmobileandgetitrightthefirsttime.
Mobileisseenasparticularlyimportantinhoteldistribution.

Sabre:

Sabreisabletousethesameplatformtodeliveritscontentsandcapabilitiestoavarietyofclientsincludingmobile.

Travelport:

TravelporthasaugmenteditsmobilecapabilitywiththepurchaseofMTT,anIrelandbasedmobiletechnologycompanythat
specializesintravel.Whileconsideringmobileanimportantpartofshopping,Travelportbelievesthatthetruevalueofmobile
willbewhentheguestisontheproperty.Travelporthasmademobileakeycomponentofitstechnologystrategy.

HotelDistribution
Author'snote:ThequestionposedtotheGDSsstartedbysayingthathoteldistributionwas"amess."EventhoughTravelport
disputedtheuseoftheword"mess,"allagreedthattheindustrywasveryfragmented.
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Amadeus:

Amadeuscalledforbetterinteroperabilityandstructureddatastandards,suggestingthatthehotelindustryneedsastrong
standardsprocess,suchashasbeenestablishedbyandfortheairlines(see"Standards"above).Amadeusismaking
significantinvestments(NMI2acquisition,IHG3nextgenGRS4,enhancedconnectivityanddatastandardization)toshape
thefutureofhospitalitytogetherwithitspartners.

Sabre:

HotelierswillfocusonloyaltyprogramstodelivervaluedirectlytothePOSorindirectlythroughanintermediarysuchasa
GDS.Theabilitytosupportmerchandising,toenhanceloyaltyprogramsandtomaximizetheguestexperienceareallfactors
thatwilldeterminewhichdistributionchannelsincludingtravelagentsthathotelsprefer.

Travelport:

Travelportseesseveralopportunitiesinhospitality:

Toolsthataggregatemultiplecontenttypesintoanintegratedworkflowtoenableeasier
shoppingforagenciesandconsumers
Morerelevantchoicesinshopping.ToolsareneededtohelpthePOSmakesenseofthe
multitudeofavailablechannelsandoffers
Accesstorelevanthotelinformationregardlessofthechannel
Bettertechnologytohandlepaymentsandreducefraud
Integrationofmobileintoallaspectsofthedream,search,shopandexperiencephases
ofthetravelvaluechain

KeyIssues
Author'snote:EachGDSwasaskedaboutthethreetechnicalissuesthatkeptthemupatnight.Hereareexcerptsfromtheir
responses:

Amadeus:

(Mobile)"isaveryfastpacedenvironment,withlimitedrealestatesowehavetogetitrightquick,
alwaysonandextremelypersonaltoeachconsumer.

Thesocialconnectivityrequiredwhereeveryonewantstosharewhilepreservingandrespecting
privacy.

Howtoimproveourselfserviceandexplorationfeatures,sothatcustomerscanbeexploringand
helpingthemselvestoourservices24/7.

Traveltechnologychangessorapidlythatweareconstantlychallengedwithbeingastepaheadand
knowingwhattoprioritizetoensurewhenthenextbigthingisherewehavealreadyaccountedfor
it."5

Sabre:

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"Macroeconomicconditions/externaleventsthatwillimpactthebroadertravelecosystem.

Keepingupwiththepaceofchange,andincreasingcomplexity.

Abilitytoattractandretaintalentwhocankeepupwiththeacceleratedpaceofchange."6

Travelport:

TravelportfeelsthattheyhaveasolidtechnologyplanwithitsTCPandaslongastheystickwiththefollowingprinciplesthey
willnothavetechnologyissues:

"Designandbuildfromtheenduserexperienceback.Startwithmobilefirst.Understandanycontent
youthinkendusersmaywantmustbedeliveredandseamlesslyintegratedintoeachenduser's
personalexperience,anytimeandanywhere.

Buildforscaleandvolumetodoubleeveryyear.
Buildforspeedandeaseofuseforconnectivitytotheplatformasthekeydifferentiatorsfor
capturinganddeliveringanyandallcontent."7

Summary
TherearemoresimilaritiesthandifferencesintheGDS'technologydirections.Allarestrugglingwithstandards,particularity
inhospitality.ThepersonalizationandPNRstrategiesdifferbutarealldrivingtowardanewworldwherecontentdelivery
meetstheneedsandexpectationsoftheshopper.PNRstrategiesarecritical.ThePNRisthefoundationofthetraveler's
experience.AsthePNRchanges,sowilltheexperience.

MobileandtheroleoftheGDSversusthatofthePOSremainsawildcardwithTravelporttakingaboldmoveforwardwithits
acquisitionofMTT.Otherkeydifferencesaretheapproachestosocialmediarangingfromtoolstoeducation.

AstothedemiseofGDSs,theirmarketpositionwillmostprobablyerodeasdirectconnectstandards(NDC)evolveandare
implemented,andnewcapabilitiesofconnectivityandcontentaggregationaredeveloped.However,GDSswillremainthe
linchpinoftraveldistributionfortheforeseeablefuture.

GDSTechnologyInterviewQ&A
ThissectionincludestheGDS'detailedresponsestoPhocuswright'squestionsregardingtheirtechnologyplans.Responses
arelistedinalphabeticalorderbyGDSsomeresponseshavebeeneditedforlengthorclarity.

Q1:Despiteasolidfoundationinoldertechnology,theGDSsarecontinuallybombardedwithnew
technologyideas.TheGDSswereoncethelargesttransactionprocessorsintheworldnowthelikesof
Yahoo,GoogleandAmazonarethekingsofthemountain.Whatisthecurrentstateofyourtechnology
foundationandplansthatyoucandiscloseaboutthefuture?(Ifyoucontributetothepreviousquestion,
pleaseanswerthefollowing:Willyourchangesbeevolutionaryversusrevolutionary?Transformative
versusincrementalchange?Whatisyourtimeframe?WhatareyourplansforTPF?)

Amadeus:

RasheshJethi(HeadofR&D,Americas):TheAmadeusplatformcontinuestobeoneoftheleadingtechnologyplatforms
intheworld,processingoverabilliontransactionsperday.Everyminute,Amadeushelpsmorethan1,500passengers
walkthroughanairportboardinggateandontoanairplanearoundtheworld.Atatechnologylevel,ourdatabasesprocess
asmuchtransactionvolume(ifnotmore)thanseveralofthepopularconsumerwebsitesreferenced,routinelyhandling
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50,000transactionspersecond.Itismisleadingtothinkthatthepopularconsumerwebsitesare"kingsofthehill"our
technologypowersseveralofthemostpopulartravelwebsitesincludingtravelagenciesandairlines...andindoingso
wehandlesignificantlymorevolumethantheGDSsofyesteryear.AndwhileotherGDSshavelockeddownonlongterm
contractswithexistinglegacytechnology,overthelastseveralyearswehavemovedtosystematicallyadoptopen
standardsandplatforms.

Sabre:

SabrehastransformedourGDStechnologywithsignificantandvisibleinvestmentsinourwebservices,expandingtheagent
desktopwithRedAppsandmorecontentintegration,shopping,pricing,ticketing,payments,merchandising,reservationsand
itinerarymanagementcapabilities.

AllthelatestcapabilitiesthatenabletravelconsultantsandsuppliersleveragetheSabretravelmarketplacewithbroadand
continuouslyenhancedcontent.

Ourtechnologystandardsarebasedonopensystemsandstandarddatabasesthatsupporthighlevelprogramming
languages.AtSabre,webuildanddeployoursoftwareasinteroperableservicesworkingonasharedplatformtoallowflexible
andscalablecapabilityenablementthroughhighlevelorchestration.

Travelport:

Travelportensuresthatitstechnologyinnovationremainsleadingedgethroughacomprehensivetechnologystrategic
planningprocess.Thishasensuredalldecisionsaremadeholistically,constantlyensuringparadigmssuchascloud,
virtualization,machinelearningandopenstandardsareleveragedsoourcustomersbenefitfromnextgenerationtechnologies
astheyemerge.

Nextgenerationenablementishappeningnow,andcustomerswillbeseeingsomeexcitingdevelopmentsoverthecoming
months.TPFisapowerful,reliableplatformandstilltodayoutperformsotherplatformsforcertainworkloads.Forthisreason,
TPFremainscoretoourinfrastructureportfolio.But,beyondthat,ourstrategyfullyembracesdigitaltechnologiessuchas
cloudbasedservicedelivery,socialmediaandmachinelearning.Thisallowsustoblendthehighperformanceandreliability
ofTPFwiththespeed,executionandcoststructuresofthedigitalera,resultinginTravelportleadingthewayastheindustry
pivotsinthenewworld.

Tomeettheunmetneedsofourcustomers,Travelporthasalsobeeninvestingindigitaltechnology,suchasMTT,thetravel
industry'sleadingproviderofmobiletechnology,andLocomote,whichislookingtotransformthewaycorporatetravelis
bookedthroughtheirinnovativecorporatetravelplatform.Thesetransformativeinvestments,andothers,aremajorreasons
whyTravelportisredefiningtravelcommerce.

Q2:HistoricallytheGDShasbeentriporiented.Whatareyourplans,ifany,tochangetoacustomer
orientedstructure?Arelatedquestion:Doyouhaveplanstoprovidetoolsthatfacilitatecombined
businessandleisuretripplanning?

Amadeus:

Author'sNote:AmadeushasexpandedthetraditionalPNRtoprovideadditionalservicesandperspectives.Thisexpansionis
embodiedinthetotaltravelerrecord(TTR)discussedintheanswerstoquestion3.

Sabre:

OurSabreRedplatformhasalwaysbeenagentoriented.And,throughaheavyinvestmentinourupgradedversionofthe
platform,weareenablingnewcapabilitiesinthepointofsale.

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Specifically,ourcustomersgetmoreproductdetailswithlessinputwhileusingourintuitiveagencyplatform.Inordertobetter
meettravelers'needs,newtypesofsearchhavebeenenabledsuchaslowfareshoppingthatispoweredbyourAdvance
AirShoppingservices.InspirationalShoppingisdesignedtoquicklyanswerthosetoughandtimeconsumingquestions,like
searchingwheretogointheCaribbeanwith$500forfivenights.

Travelport:

TravelportwillcontinuetoleadthewayinmovingfromatraditionalGDStoaTravelCommercePlatform,realizingthe
customerwantstransparencyofofferingsandtravelcontentproviderswanttheabilitytodifferentiateandpersonalizewhere
possible.

Ourstrategyencompassestheseamlessintegrationoftheleisureandcorporatewallets
throughouropenAPIsandourcontinualdrivetofacilitatetheleisureandbusiness
traveler.

ThroughourinvestmentinMTT,theworld'sleadingtravelmobilecompany,wewill
continuetobuildoutourcapabilitiestoenableourcustomerstointeractwiththeirtravelers
forbusinessandleisure,notjustduringbookingbutthroughoutthejourney.

Wealsoworkwithanetworkofhighlytalentedandinnovativedevelopers,manyofwhom
accessourcontentviaourUniversalAPI.Theyaredevelopingbespokeapplicationsand
agencysolutionstomeettheneedsoftheeverevolvingandeverconnectedleisureand
businesstraveler.

Q3:Withpersonalization,ancillaryandthirdpartycontentsales,thetraditionalPNRmaynotbe
adequate.Whatareyourplans,ifany,toexpand/supplementthetraditionalPNR?
Amadeus:

Toundertakethesechallenges,atAmadeuswehavecomplementedthetraditionalPNRwiththetotaltravelrecord(TTR).

TheTTRencompassesthetraditionalPNRaswellassupplementaryinformationnecessarytohandletoday'swayof
travel.NomigrationisnecessarytraditionaltravelagentscannotseethedifferenceinthewaytheyhandleaPNR,
exceptthattheycannowaddrichtravelcontentwithinthesamerecord(18structuredtypestostorenonAmadeus
bookings,travelrequest,quotes,digitalattachments,salesfinancialinformation,etc.).

ActuallyinAmadeuseveryPNRisalreadyaTTR,andTTRisthecentraltripdatarepositoryallowingafullomnichannel
approach,fosteringtheinteractionsbetweenallactors(traveler,travelagent,etc.),bringingefficiencytotheTA,
empoweringAmadeusproductsandserviceswiththisfulltripview,whateverthebookingsource.

Gettingandusingthisfulltraveler'stripinformationisabsolutelykeytoreachingtherightpersonalizationlevel.Toputit
simply,youcannotbringanythingrelevanttoatravelerifyouonlyknowhalfoftheirtrip.

Sabre:

Acknowledgingtheneed,SabrehasbeenexpandingthetraditionalPNRformanyyearstocovermoreandmoreinformation
aboutsupplierofferings,expandedproductinformationandpersonalpreferences.

Sabre'smissionistosupportacompletetravelexperienceregardlessofsourcecontentortype,andcaptureallthe
necessarytermsandconditionstoservicethattrip.Airlinebrandedfares,ancillaryofferings,uniquepackagedcontentand
theuseofvirtualformsofpaymentareallgoodexamplesoftheevergrowingsizeandcomplexitySabremustsupporttooffer

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GDSTechnologyandFuture October2016

acomprehensive,moredynamic"reservation."

Travelport:

Intoday'slegacysystems,thePNRisthebackboneforinteroperabilitywithintheairspace.Astheconsumerdemandsand
thetravelindustryexpandstoprovideendtoendtravelservices,expandingthePNR'scapabilitiestoallowmoretraveler
profileinformationandothernonairlinkagesbecomesakeyenablertoprovidingthisservice.

TravelporthasledtheindustryinPNRexpansionwiththedeliveryofourTravelCommercePlatform.Werecognizetheneed
forseamlessintegrationacrossthetotalityofthetripandthelongtermimportanceofatravelerpersona.Assuch,wewill
continuetoinvestinandleadinnovationofthePNR.

Q4:SupplierconnectivitywasonceadonedealforGDSs(acombinationofEDIFACTmessaging,direct
connectaccessandteletype).Whatareyourplanstoconnecttonewtypesofcontentusingmore
moderntools(likeXML)?
Amadeus:

GianniPisanello(StrategicMarketingDirector,AirlineDistribution):"OurfirstXMLconnectivityimplementationwas
backin2007,andsincethenwehaveintegratedmanymoreairlinesinXML.ButAmadeusisalreadylookingbeyond
XML/SOAPtoleadingedgedatainterchangeprotocolssuchasJSON/REST,alighter,simplerformatthatisbecomingthe
dataexchangeofchoiceformobile.Amadeushaslongpredictedthatmultipleconnectivityprotocolswillcoexist,andhas
boththecapabilityandcapacitytomanagethis."

Sabre:

WhileSabrecontinuestosupportthetraditionalcommunicationprotocolsthatenabledustoscaleourselvesandthetravel
technologysector,Sabrehasembracednewprotocolsbothproactivelyandincollaborationwithourcustomersandpartners.
WesupportXML,SOAP,REST,FTPandHTTP.

WedoutilizeXMLformanyhotelandloyaltyprovidersinadditiontoothersuppliers,evenairlineslikemajorEuropeanLCCs.
Withmorecarriersonthewaythisyear,XMLforsuppliersisrunningatabout250milliontransactionsperday.

Withregardstosuppliercommunications,themajorityisstillviaElectronicDocumentInterfaceforAdministration,Commerce
andTravel(EDIFACT)toairlines,hoteliersandcarrentalcompanies,anditcomprisesabout1billiontransactionsperday.
Teletype(TTY)hasamuchlowerrunrateatonly25milliontransactionsperday,andinmanycasesitisusedasabackup
toEDIFACTprocessingneeds.SecureFileTransferProtocol(SFTP)isalsoheavilyutilizedinourenvironment,with
hundredsofjobstransmittingavastnumberoffileseachdaytosuppliersformostlybillingrelatedfunctions.

Asforvolumes,methodsofcommunicationthatsupporttransactionsintheSabretravelmarketplaceandGDSgenerate1.5
billiontransactionsperdayfromourcustomers,whereaswebservicesandJSONformobileapplicationsrequestscomprise
approximately800millionperday.

Travelport:

ConnectivityisthebackboneofprovidingaTravelCommercePlatform.Travelportcontinuestofocusonandinvestincreating
simplerandeasierwaystoconnecttoandextendourexistingconnectivitycapabilitieswithanytypesofnewcontent(suchas
TravelportRichContentandBranding)andformats,leveragingbothexistingandemergingconnectivitystandardsthatare
likelytobeadoptedbroadlywithintheindustry.Wehavebeenpioneeringinthisareaandhavebeenworkingwithmodern
toolsandtechnologyforsometimenow,andcontinuetoreviewnewwaysofworkingwithourtravelcontentproviders.

Q5:Newdistributioncapability(NDC)continuestobeinthenews.WhatareyourNDCplansandhowwill
theyfitthemarketneed?WhatareyourplansforandstatusofimplementingtheNDCreference
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GDSTechnologyandFuture October2016

architecture?

Amadeus:

GianniPisanello:AmadeusfullysupportsIATA'sNDCXMLandwewerethefirstintheindustrytoimplementNDCXML
1.0inproductionbackin2014withUnitedAirlines.Amadeushasreceivedthehighestlevel(Level3)ofIATAcertification
forNDCasanITProviderandwearemakinggoodprogressontheAggregatorcategory,workingcloselywithourairline
customerstosecureIATAcertificationforboththeairlinesandAmadeusforthoseconnections.

Sabre:

TheuseofXMLtechnologystandardsintheairdistributionbusinessisnotnewbutitisgrowing,asevidencedbyIATA's
NDCprogramfocusedondefiningindustrystandardsforXMLbaseddatatransmissionforairlines.

Sabrehasbeenutilizingavarietyoftechnologystandards,includingamixofXMLandEDIFACTstandards,foryearsandwe
haveextendedourplatformtoprovidetheflexibilitytomanagethisevolutionincontentsourcingandcontentdistribution
technology.

FromthebeginningwehavepartneredwithIATAandotherindustryparticipantstodevelopknownNDCprotocols.Infact,we
partneredwithAmericanAirlinestolaunchpaidseatcapabilitiesusingNDCstandardsearlierthisyear.

Thebiggestchallengewillbeensuringinteroperabilitybetweenthevariousindustrystandardsduringthetransitionperiodto
ensureconsistencyinaccesstoproductsandservicesacrossairlinesandchannelswhichisanongoingareaoffocusfor
Sabre.

Travelport:

IATAhopesitsNDCprogramwillenablethetravelindustrytotransformthewayairproductsareretailed.Thisisagoal
sharedbyairlines,travelagentsandintermediariesalike.

Travelporthasthereforebeenworkingwithourairlinepartnersoverthepastcoupleofyearstodevelopasolutioncalled
TravelportRichContentandBranding,whichishelpingtomeetthisobjective.Itallowsairlinestoeffectivelyretailtheir
completeoffering,withrichgraphicsanddetailedinformationonspecificproductattributes,totravelagentsandtheend
traveler.Travelportisleadingtheindustryinthisendeavorandhasover160airlinesliveonitsTravelCommercePlatformto
search,sellandbookthiscontent.Wealsohaveafurther220differentancillariesavailablethrough56airlines,highlighting
ourcommitmenttotravelbuyers,allowingthemtoaccessthemostcomprehensiveinformationpossible.

IATAhopestoachieveitsvisionforNDCthroughthedevelopmentofamodernInternetbaseddatastandardfor
communicationsbetweenairlinesandtravelagents.IATA'spreferredapproachistointroduceanXMLbasedAPIscheme.
Thisisasensibleoptionandinfact,25airlines(includingthelikesofDeltaAirLinesandUnitedAirlines)arealready
distributingtheirfaresand/orancillariesviaanAPIthroughTravelport'sinnovativeAggregatedShoppingproduct.

Q6:InternettoolswithsuchthingsasXML,RESTandwebserviceshavemadepointofsale(POS)
connectivitymucheasier.OnPOS,howhasyouropenAPIbeenreceivedasasourceofincomeand
extensionofyourbasicservices?
Amadeus:

Wedon'tseeopenAPIsasnecessarilylimitedtoaPOSsolution.AsPOSsolutionsmoveintothecloud(likeournewSell
Connect),andthankstoeasierdirectconnectivitythoughtechnologieslikeREST/JSON,thePOSAPIwillbecomeless
important,anditsfunctionswillstarttobeintegrateddirectlythroughaselfservicecentralAPIprogram.

Sabre:
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GDSTechnologyandFuture October2016

OpenandExtensibleServiceEnabledPlatformshasbeenanongoingkeyareaoffocusforSabre.Intoday'sworld,across
theentiretechnologyindustryandwhenitcomestoAPIs,RESTistheleadingtechnologythatdeveloperswanttoutilizewhen
consumingwebservices.

SabrewasthefirstGDStoleadinthisspaceandintroduceaportfolioofRESTAPIs.ByexposingRESTAPIs,Sabrehas
simplifiedandoptimizedAPIUsability,cuttingthetimeittakesnewandexistingSabredeveloperstointroducesolutionstothe
market.BasedonthesetechnologicalAPImarketdrivers,wecontinuetoexpandourREST(JSON)portfoliowhilestill
supportingourSOAP(XML)portfolio,givingourdeveloperstheflexibilitytochooseourAPItechnology.

Thewealthofinformationandcapabilitiesweprovide,suchasshopping,availability,pricingandtripmanagement,arejusta
sampleoftherichcontentandcapabilitiesaccessedviaourAPIsandwebservices.

Forexample,thisrichcontentandcapabilitiesareusedtopowerourupdateddesktopbookingtool,SabreRedWorkspace.

MorebroadlyourcontentandcapabilitiescanbedeliveredtoOTAs,corporatebookingtools,mobileappsandemerging
technologiesviathesameplatformtoenhanceshoppingandsellingthroughallchannels.

Travelport:

Travelport'svisionforourUniversalAPIistoprovideaccesstotherichestcontentwitheasytoadoptindustrystandard
interfacesofferingspeed,breadthanddepth.TheopenAPIisapivotalelementofTravelport'scommitmenttocustomer
empowerment.Wewillcontinuetodramaticallyincreasethecapabilitiesofthischannelthroughfuturereleases.

Akeypartofourvisionrelatestoanomnichannelortravelercentricapproach.OurAPIsareusedbyOTAs,corporate
bookingtoolsandmobiledevelopers,aswellasbyouragentdesktop(TravelportSmartpoint).ThebulkofTravelport's
bookingsnowcomethroughourAPIs.Wearealsoseeingmoreofourcustomerslooktoputcontrolinthehandsofthe
travelerbyinvestinginselfservicecapabilitiessuchassaleofancillaries/hotelsandautomatedexchangesallpowered
throughourAPIs.

Q7:Merchandisingisahotsubject.Whattechnologiesareyoudeveloping/implementingtoenable
supplierstomakeoffersofmerchandiseandbrandedfarestothePOSsservicedbytheGDS?

Amadeus:

Wehavetwoprimarydriversforourmerchandisingsolution.Firsttosupportthegoalsofairlines/vendorstodifferentiate
themselvesandmimictheirdirectchannelsolutionandcommercialbrandingobjectives.Todothisweprovideaninterface
thatallowsairlinestoofferbundledsolutionsortailortheiroffersbasedontheendcustomer,aswellasprovideadhoc
purchasestothecarriersfortheendcustomertotailortheirtraveltofittheirneeds.Secondlyweaimtonormalizethese
offersacrossallcarriersthroughaseamlessintegratedsolutionthatissupportedinbothcrypticandgraphicalsolutions
andthroughourwebservices,providingconsistentbehaviorregardlessofcarriersolutionormessageofdelivery(e.g.
EDIFACT,ATPCOorXML).

WehavepreviouslyimplementedsolutionsformanagingairlinefarefamiliesbothviaATPCOBrandedFaresandAmadeus
FareXpertsolutionsthatalsoincludesanintegratedupsellpropositionfortheagentsatpricing.Thisprovidesour
subscribersuptosixupsellpropositionsatatime.Ourfarefamilyandupsellpropositionsarepoweredbytheindustry's
leadingsearchplatformMasterPricerTravelboardashighlightedinourrecentbenchmarkBest.Search.Ever.

Sabre:

MerchandisingisacoreareawhereSabrehasbeenaleaderforyears.Fromaplatformperspective,Sabreenablestravel
providerstoselltheirproductandservicesthewaytheywantthemsold,toreducechannelfrictionbetweendirectandindirect
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GDSTechnologyandFuture October2016

distribution.Sabrealsoenablesflexiblecontentsourcingfortravelproductslikeancillaries,brandedfares,bundlesand
personalizedoffers.WhetherasupplierwantstodistributetheseproductsusingindustrystandardsolutionslikeATPCO,or
viaanAPI,wesupportit.

Sabrehasalsodeliverednewcapabilitieswithinourownpointsofsale,likeSabreRedWorkspaceandourcorporateonline
bookingtool,GetThere,aswellasinourAPIsthatcorporatebookingtoolsandOTAsusetoensurethiscontentisfully
integratedintheshopping,booking,fulfillmentandservicingprocess.

Travelport:

Travelportclearlyrecognizedsometimeagothatthetravelindustrywasmovingtowardaretailmodel,withamixtureof
bundlingandunbundlingofproductsbytravelcontentproviders.WehandledsomepioneeringworkwithAirCanada,which
wasoneofthefirstairlinestoreallythinklikethis.Today,throughoursuiteofairlinemerchandisingsolutions,includingRich
ContentandBranding,wecontinuetoleadtheindustryinourabilitytooffermerchandisingandbrandedfares.Travelport
nowhasover160airlinesbothnetworkcarriersandlowcostcarriersactivelymerchandisingtheirfullproductoffering
throughourTravelCommercePlatform.Thisisunrivaledintheindustryandhasearnedusenormousrecognition.

Ourstrategygoingforwardwillenablethisthroughoutthetraveler'sjourneyandtheninlocationthroughtheintegrationofour
mobilechannels,alongwithourinvestmentindataandanalyticswithpersonalization.

Q8:Socialbasedmediaandecommercehavegonefromanichecapabilityforteenagersto
mainstream,asignificantpartofthetraveldream,search,shop,buyprocesses.Howareyouhelping
yourpointsofsalesutilizesocialmediaforbetterconversions?

Amadeus:

Werecognizethepowerofsocialmediaasamarketingtoolandareveryexcitedtohelpourcustomersimprovetheir
socialfootprintandbrandawareness.In2015welaunchedconsultativeworkshopsaroundtheU.S.focusingonspecific
strategieswithinthesocialmediaandmobilemarketingrealms.Theseworkshopsaredesignedtopropelourcustomers
intothemodernageandequipthemwiththeappropriatetoolstomaximizetheirexposure.Itisourresponsibilitytoset
themupforthebestchancesforsuccess.Wehavereceivedfeedbackthatthesocialmediaworkshopsare"trueeye
openers"forourcustomerswhethertheyhaveabrickandmortarbusinessmodelwithzeroonlinepresenceorhave
recentlyimplementedanonlinebookingenginebutarestrugglingwithacquiringtraffictotheirsite.Evenmediumsized
OTAsbenefitfromthisconsultation,asmanyofthemhavenotadoptedanytypeofsocialmediastrategy.

Sabre:

Sabre'sTravelInsightengineprovidesourcustomerswithasuiteofIntelligenceandInspirationalShoppingservices.Our
customerscanleveragetheseservicestostimulatedemandviasocialmedia.Forexample,oursubscriberscangeta
traveler'sattentionbysharinguniquemarketinsightsorbyleveraginginspirationalshopping(e.g.themebasedshopping)to
providecontent/shoppingexperiencestailoredtowardtravelers'interests.

Travelport:

Travelportalreadyincludessocialmediadatainitsproducts.Asanexample,weincludeTripAdvisorcommentsinSmartpoint.
Wealsorecognizethatsocialmediaisaconstantlygrowingandchangingenvironmenttherefore,weareworkingwith
leadingtravelcontentprovidersintheindustrytocontinuouslyrefinesocialmediaofferingsandintegratetheseintothe
corporateandleisuretravelexperiences.

Q9:Hospitalitydistributionismess(technicalterm).Howdoyouseehoteldistributiontechnology
evolving?
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GDSTechnologyandFuture October2016

Amadeus:

StewartAlvarez(VicePresident,StrategicPlanning&BusinessDevelopment):Thehospitalitysegmentremainsvery
fragmentedandislargelyoperatingonlegacytechnology.Unliketheairlineside,whichismuchmorestructuredand
integrated,thehospitalityindustrylacksglobalanduniversalindustrystandardsandstructureddataisstilltheexception.
Inorderforhoteldistributiontechnologytoevolve,theunderlyinginfrastructurewillneedtobeenhancedtoaccommodate
thebusinesstrendsandconsumerbuyingbehavior.Specifically:

Connectivity/communicationprotocolswillneedtobeenhancedtoaccommodateXML/JSONorother
structureddatastandardsmovingoffexistinglegacy/limitingmethods.

StandardizationGreateffortshavebeenmadeontheairlinesidetostandardizeoperationsto
supportinteroperability,suchasschedules,farefilingandticketing.Hoteldistributionwould
significantlybenefitfromindustrystandardsonroomidentificationandratetypes,cancellationpolicy,
hoteldescriptions,etc.AmadeushasformallysubmittedrecommendationstoHEDNAtoadoptthe
IndustryStandardsinitiativewhichtheyhaveacceptedandkickofftheWorkingGroupthatAmadeus
nowcochairswithDISCO.(Amadeus'sproposalpapercanbeprovidedifyouwouldlikemore
details.)

StructuredDataOnceindustrystandardsareestablished(orevenbefore),movingtostructured
data,atleastfortheaforementionedkeycomponents,willsignificantlyfacilitatedistributioninboth
thedirectandindirectchannels.Thiswillalsoallowforricherandmoregranularcontentenabling
personalizationforbusinessandleisureconsumers.

MobileandPersonalizationWiththesignificantshiftinconsumerbuybehavior,moreandmore
hotelsarebeingbookedviathemobilechannelratherthanondesktopsoriPads.Thisisalsobeing
fueledbyatrendinlastminutepurchasesmadepossiblebyinstantbookappslikeHotelTonight,
TripAdvisor,etc.Consumershaveandcontinuetoshifttomobilesosuccessfulhoteldistributionwill
havetoincludemobilefirstcomponents.

Amadeusisawareofthecurrentlandscapeandevolvingtrendsandismakingsignificantinvestments(NMIacquisition,
IHGnextgenGRS,enhancedconnectivity,datastandardization)toshapethefutureofhospitalitytogetherwithour
partners.

Sabre:

Hotelmarketerswillincreasinglyuseloyaltyasabasisfordeliveringvaluebothdirectandwithselectpartners,includingthe
GDS.Tocontinueenhancingloyaltyandotherguestexperiencefactors,hotelmarketerswillalignwithpartnerswhocan
executeefficientlyontheirmerchandisingstrategies.Thetravelagencychannelwillcontinuetolookforopportunitiesto
partnerwithhotelsinwaysthatdelivermutualbenefits.

Travelport:

Travelportdoesnotseehospitalitydistributionasa"mess."Hospitalityisjustmorecomplicatedinmanywaysthanair
distribution.

Travelportseeshospitalitydistributionevolvinginanumberofways:

Simplificationofcontentchannelchoice.Withthefragmentationofthehotelindustry,
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GDSTechnologyandFuture October2016

andthegrowthofnonU.S.marketswhereindependentpropertiesdominatethe
landscape,aggregationofmultiplecontenttypesintoasingleworkflowforagenciesand
travelersiscritical.Travelportprovidesover650,000propertiesanunrivalledfigure,we
believe,intheB2Bworld.Ourtechnologycanaggregatehotelcontentacrossarangeof
sourcesandratetypes,offeringrelevantchoicesfromhotelchains,wholesalersand
aggregators,andnowfromarangeofuniqueindependentpropertiesviaTravelport's
HotelExtranet.

Enablemorerelevantchoiceinhotelshopping.Agentsandtravelerscanbepresented
withliterallyhundredsofchoices.Butahotelbookerprobablywantstochoosebetween,at
most,10to15optionsaroundtheirpreferredlocationnotalaundrylistofallavailable
propertiesandoptionsinagivenlocation.Atthesametime,travelersaregivingusaccess
tomoreandmorepersonaldata.Unfortunately,theindustryisnotdoingmorewiththis
datatohelpagenciesandtravelersmakebettersenseoutofthemultitudeofhoteloffers.
TravelporthasrespondedtothisneedinthecorporatetravelmarketthroughTravelport
Hotelzon,ourintuitivehotelonlybookingtoolandextranetforcorporateselfbookers.

Needforagentsandtravelerstoaccesshotelcontentquicklyandeasilyeverywhere.
Travelers'leisureandbusinesspersonaswillcontinuetoblur.Theyincreasinglywillwanta
rangeofsolutionsallowingthemtobookhotelsacrossarangeofdevices.Travelport
enableshoteliers,agentsandtravelerstoengageacrossarangeofpointsofsale,allwith
accesstoourleadingcontentfromourawardwinningSmartpointagencydesktopand
ourAPIsthatpowerthecontentofferingsofOTAsandcorporatebookingtoolstothe
mobiletravelsolutionsavailableviaMTT.

Solvingforpaymentandsettlementinefficiencies.Hoteliersandagenciescontinueto
leakcostsandrevenuesintryingtomanagetheinefficienciesinherenttodayinhotel
paymentsandsettlements.Atthesametime,bothcontinuetostrugglewithcyberfraud
andtheneedtohelpcorporationsreconcilehotelspendversusbookings.ThrougheNett,
Travelport'sleadingtravelpaymentsplatform,weareworkingtomakehospitality
paymentseasierandmoresecurefortravelagenciesandhoteliers.

Continueddesireoftravelcontentproviderstogetagreaterreturnontheir
distributiondecisions.Identifyingandmanagingplatformdistributioncostsand
efficiencieswillbecomeevermoreimportant.Theinterplayofplatformchoice,growthin
availablecontentandchangingtravelerbehaviorsmeanthemostinsightful,effectiveand
efficientchannelwillprevail.

Mobilitywillcompletelyrevolutionizethebusinessandoperatingmodelofhotels.
Mobileisagreatpreflighttoolforairlinesintermsofshopping,bookingandcheckin.The
truevalueofthemobilephoneforhotels,however,willberealizeduponarrivalatthe
property.

Q10:WhichofthesefastgrowingtechnologiesarerelevanttoyourGDS(andwhy?):artificial
intelligence,virtualreality,augmentedreality,cloudcomputingandbigdata?Anyothers?

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Amadeus:

RasheshJethi:Amadeushasaclearlydefinedcloudstrategy.Wearerollingoutourownprivatecloud,AmadeusCloud
Services,andworkingwithmultiplepubliccloudproviders.OurR&DteamcontinuestodriveinnovationinleveragingAR
andVRforourcustomers,particularlyintraveldestinationandbookingareas.WearealsousingAI,machinelearningand
deeplearninginvariousareasfromimprovingthetravelbookingexperienceforconsumersandtravelagentsandin
multipleareasinourbackendsystemstoimprovingalgorithmicquality,softwaredevelopment,databasemanagementand
systemperformance.

Sabre:

Ourcollectiveeffortsfocusondeliveringtherightproductsandservicetothetravelersviatheirtechnologyofchoice.

Whyisthisimportant?Becausetravelersareevolving,andtechnologyenablestheirbehavioreachday.Personasand
generationalphaseshavecreatedthemostdynamictravelmarketplaceever.

ForSabre,successisimmersingourselvesinunderstandingthetravelers'wantsandneeds,andcreatingproductsand
servicesthatallowsuppliersandagenciestomeetthedemands.

AllofthetechnologiesarerelevanttoSabre.SabreLabs,ourresearchanddevelopmentarea,exploreshowsuppliersand
buyerscanleverageexcitingnewtechnologiessuchasbotsandautonomousassistantsthatarequicklyemerging.

Thereisafundamentalchangeinhowweshopandsearchcontentashiftfromhumandefinedalgorithmsverifiedand
refinedbycomputers,tocomputerdefinedalgorithmsverifiedandrefinedbyhumans.

Travelport:

AllofthesegrowingtechnologiesarerelevanttoTravelportaswecontinuetobetheinnovatorsinthetravelindustry.
TravelportcontinuestoinvestinensuringourTravelCommercePlatformisopen,cloudcompatibleandmobileenabled
allowingustoleveragealowercost,highlyscalableandclosertotheconsumerplatform.Overthelastfiveyears,wehave
investedinandsignificantlyupgradedourtechnologyplatformsothatwecanmaximizeconnectivityanddistributionoptions
fortravelcontentproviders,whilealsoenablingvaluecreationatthesellingendofthePlatformthroughourindustryleading
POSsolutions.

Travelport'stechnologyinvestmentsallowustoadoptandenableemergingtechnologiesforfasterdataconsolidationand
bettertargetedcustomeroffers,aswellasforenhanceduserexperiences,throughourTravelCommercePlatformaswe
continuetoredefinetravelcommercetoaddresstheneedsoftomorrow'straveler.

Q11:Whatthreetechnicalissueskeepyouupatnight?

Amadeus:

IfweputasidegeopoliticalissuesandrecentchallengeswithemergingmarketslikeBrazil,Russia,
Turkey,Chinaandthedisruptiontakingplaceintheenergysectorwithashiftawayfromfossilfuels
torenewables,onthetechnicalsidewouldhavetosayshifttomobile.Thisisaveryfastpaced
environment,withlimitedrealestatesohavetogetitrightquick,alwaysonandextremelypersonal
toeachconsumer.

Thesocialconnectivityrequiredwhereeveryonewantstosharewhilepreservingandrespecting
privacy.

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Howtoimproveourselfserviceandexplorationfeatures,sothatcustomerscanbeexploringand
helpingthemselvestoourservices24/7.

Traveltechnologychangessorapidlythatweareconstantlychallengedwithbeingastepaheadand
knowingwhattoprioritizetoensurewhenthenextbigthingisherewehavealreadyaccountedforit.

Sabre:

Macroeconomicconditions/externaleventsthatwillimpactthebroadertravelecosystem.Keepingupwiththepaceofchange
andincreasingcomplexity.Abilitytoattractandretaintalentwhocankeepupwiththeacceleratedpaceofchange.

Travelport:

Technicalissuesforthemostpartaren'twhatkeepusupatnight.WecontinuetoengineerourTravelCommercePlatform
aroundopen,mobileandcloudcompatibletechnologieswhichweareconfidentaretherightprinciplesenablingustogrow
andscaletoevolvingvolumesanduserdemands.Thesetechnologiesarethefundamentalbuildingblocksthatwillallowusto
seamlesslyintegrateanyoftheemergingcapabilitiesandtechnologiesthatwilldriveanenhancedtravelerexperience,and
whichwilldrivefurtherdifferentiationbetweenlegacyplatformsandtrulydigitalcommercetravelplatforms.

Webelievetherearethreeprinciplestoguideourinvestments,ourtechnologydesignandourdeliverycapabilitiestocontinue
anddriveanenhanceduserexperience.Thesethreeprinciplesallowforthedifferentiationandmicrosegmentationthetravel
industryandthetravelerwilldemandintheimmediatefuture:

Designandbuildfromtheenduserexperienceback.Startwithmobilefirst.Understand
anycontentyouthinkendusersmaywantmustbedeliveredandseamlesslyintegrated
intoeachenduser'spersonalexperience,anytimeandanywhere.

Buildforscaleandvolumetodoubleeveryyear.

Buildforspeedandeaseofuseforconnectivitytotheplatformasthekeydifferentiators
forcapturinganddeliveringanyandallcontent.

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Endnotes
1. TPF:IBMsTransactionProcessingFacility,ahighspeedcomputingcapabilitythatischallengingto
programbutoffershighperformanceanderrorrecovery.

2. NewMarketInternational,aproviderofcloudbasedITsolutionsforthehospitalityindustry,filledmany
oftheholesinAmadeus'shospitalityoffering.

3. InterContinentalHotelsGroup

4. IHGandAmadeusaredevelopinganextgenerationguestreservationsystem(GRS)thatisexpected
tocompletelyrevisetechnologicalfoundationsoftheglobalhospitalityindustry.Amadeuswillusea
newcloudbasedcommunitymodel,afirstinthehotelsector,andsimilartothemodelitdevelopedfor
theglobalairlineindustry.(http://www.amadeus.com/web/amadeus/en_1Acorporate/Amadeus
Home/Newsandevents/News/2015_29_4_IHGandAmadeustoRevolutionisethe
Technological/1319560217161PageAMAD_DetailPpal?
assetid=1319627837429&assettype=PressRelease_C

5. RasheshJethi,headofR&D,Americas,Amadeus

6. WadeJones,seniorvicepresidentofmarketing,SabreTravelNetwork

7. TravelportresponsetoPhocuswright'squestions

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