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While Visa and MasterCard are household names in the western world, there's a similar oligopoly (and similar history) in airline bookings system, which is large

While Visa and MasterCard are household names in the western world, there's a similar oligopoly (and similar history) in airline bookings system, which is largely unknown to people outside the domain. Majority of worldwide airline bookings go through Amadeus/Sabre/Travelport, who similarly get a cut on each transaction. (The GDS industry has long been thought to decline _just in a few years_ but for now it still stays rather strong - although big airlines are actively trying to get more independent). The net incomes are about order of magnitude lower than credit card industry, but that's still hundreds of millions per year.

tyingq 7y ago
Somewhat related, both VISA and the GDS providers have (or recently had) TPF mainframes at the core of their systems.
massysett 7y ago
I think airline bookings go through a GDS even if you buy direct from the airline, but why? Airline doesn’t want to build its own computer?
- karthikb 7y ago
  Tech debt accumulation from the 1950's onwards to now basically. The GDS are integrated with everything from check-in, rebooking, ops center, etc. Lots of companies looking to change this, and some airlines have been able to modernize. But it's a fraught process that can lead to mass cancellations during the upgrade period as stuff breaks.
  - velosol 7y ago
    To whit - Southwest has moved (is moving still?) to Amadeus and there has been a fair amount of reporting on the issues as they happen. https://www.dallasnews.com/business/southwest-airlines/2018/01/24/southwest-airlines-wants-bugs-fixed-new-500-million-reservation-system https://www.dallasnews.com/business/southwest-airlines/2018/...
zhte415 7y ago
SkyScanner and RedEye in the same niche in airline logistics including ticketing?
exidy 7y ago
Don't forget Navitaire, the darling of LCCs. While they were acquired by Amadeus in 2015, their technology is quite separate.

tyingq 7y ago

Somewhat related, both VISA and the GDS providers have (or recently had) TPF mainframes at the core of their systems.

massysett 7y ago

I think airline bookings go through a GDS even if you buy direct from the airline, but why? Airline doesn’t want to build its own computer?

karthikb 7y ago
Tech debt accumulation from the 1950's onwards to now basically. The GDS are integrated with everything from check-in, rebooking, ops center, etc. Lots of companies looking to change this, and some airlines have been able to modernize. But it's a fraught process that can lead to mass cancellations during the upgrade period as stuff breaks.
- velosol 7y ago
  To whit - Southwest has moved (is moving still?) to Amadeus and there has been a fair amount of reporting on the issues as they happen. https://www.dallasnews.com/business/southwest-airlines/2018/01/24/southwest-airlines-wants-bugs-fixed-new-500-million-reservation-system https://www.dallasnews.com/business/southwest-airlines/2018/...

zhte415 7y ago

SkyScanner and RedEye in the same niche in airline logistics including ticketing?

exidy 7y ago

Don't forget Navitaire, the darling of LCCs. While they were acquired by Amadeus in 2015, their technology is quite separate.