Travelport’s Tailored Offers Take Off, CEO Says

The uptake of Travelport’s tailored offers—bundles of ancillary services negotiated by corporations—has been “quite amazing,” said Gordon Wilson, chief executive officer of the GDS company.  

Travelport’s merchandising functionality enables airlines who participate in Rich Content & Branding (RC&B) to “recognize” when a traveler is eligible for a bundle, which might include a checked bag allowance, seat assignment, and discounts on various other services. 

In an interview with Travel Market Report following Travelport’s fourth quarter and full year earnings call with investment analysts, Wilson said that implementation is simple, provided the travel management company is a Travelport subscriber: Any airline that uses RC&B need only ensure that whatever is in a corporation’s contract is stored in the Travelport system.  

Large airlines such as American and Delta have envisioned the capability for years. “It’s been a huge source of frustration for the airlines” that a corporation might negotiate such a package while the traveler remains unaware of it, Wilson said. “We showed it live with Delta and BCD Travel at our Investor Day,” and it got an enthusiastic reception.  

Meanwhile, IAG signed an agreement with Travelport to “extend and enhance” its contract, adding RC&B for its two network carriers, British Airways and Iberia. 

Other Travelport news
During the earnings call, Wilson also disclosed that JetBlue Airways has a new contract with Travelport, and it, too, will use RC&B. In addition, Travelport has achieved a record 50% attachment rate (the percentage of air bookings that include a hotel, car rental, or other non-airline service). 

Travelport is working with Mobile Travel Technologies, which it acquired in July, to revamp its View Trip itinerary management app. It is currently undergoing testing and should roll out later this year. 

Travelport reported net income of $6 million for the fourth quarter, compared to a $42 million loss in fourth quarter 2014. Revenue was up 4%, to $535 million. 

Full-year 2015 net income decreased by $71 million, to $20 million, due to Travelport’s $356 million gain in 2014 on the sale of shares of Orbitz Worldwide. 

Total segments booked dropped 7%, to 76 million, in the quarter, and 4%, to 342 million, for the full year. The decreases were due in part to the loss of some of Orbitz Worldwide’s business when it chose to diversify its GDS distribution.