As it prepares for an initial public offering or flotation, online distribution site Orbitz has moved to break away from one of the major global distribution systems (GDS), Worldspan. Citing unacceptable outages and service failures, Chicago-based Orbitz says it will terminate its long-term contract with Worldspan this month. Neither party would detail the dispute, although Worldspan insists it had provided superior service.
While the claims of poor service may or may not be resolved, Orbitz has goals of its own. It has said its volume agreement with Worldspan may hinder its internally developed Supplier Link, a form of direct access to airlines and travel suppliers that bypasses the GDS. Orbitz is obligated to meet certain quarterly minimum thresholds with Worldspan.
Orbitz has also been positioning itself since summer 2002 to attract the corporate clients that are the lifeblood of a GDS like Worldspan. Its 'Orbitz for Business' product last month moved to penetrate the corporate market more with a data-tracking and reporting tool to give clients control of their contracts, spending and preferred suppliers. The contract, believed to be the first of its kind for a travel portal, will apply information and auditing services from Prism Group.
Source: Airline Business
