Cutting out the GDS: How to turn an LCC into a Multi-channel Distribution Platform
TUIfly today serves as the in-house charter airline for TUI in Germany. However, the company’s business model means that not only is it an airline, but it also acts as an intermediary, providing a distribution service for other airlines and cutting out need for GDS.
TUIfly has a unique business model. The company defines itself as:
- predominantly a flight portal
- a company focused on leisure customers
- a company with a wide but targeted selection of airlines and destinations
- focused on flights with full price transparency for the customer
- offering own flights in full competition with all other flight content
- offering a complete product range besides flights
TUIfly provides airlines with access to both B2B and B2C leisure markets – through newsletters, website hits and registered website customers, travel agencies, price comparison and the fast growing tour operator market. Current partner airlines include Air Berlin, Germanwings, Germania, Condor, Pegasus, Jet4You and Air Mauritius.
The key to TUIfly’s success is in creating a link between legacy (ticketed) and leisure (ticketless) world.
Unfortunately I don’t have the know-how to explain how this works technically, so I’ll leave it up to Olaf Petersenn and Ingo Scholzel from TUIfly in their presentation at last years’ World Low Cost Airlines Congress. You can download it here.
