8/25/06

CO + ARC + ASTA = FUBAR

Continental has announced that is has figured out a way to charge for that nasty $3.50 fee for agencies not using its preferred agreements and booking via BAD GDSs.

It is going to use one of its lackey organizations – ARC and the ARC Payment express to autobill agencies for the segment fees imposed. Fine so they will shout at each other and scream and then it will still get implemented.

But my comment is not that the fee is going in nor that ASTA the toothless tiger is complaining – ASTA firmly objects, demanding changes to the process

Frankly that is immaterial. What is interesting is that this is going to lead – in my humble opinion to a reevaluation of the whole process of ARC and BSP.

As some of you know we are providing support to the restructuring of Varig. Frankly without revealing confidences – the issuance of tickets via BSP or via the airline direct in a pure ticketless environment makes the financial agent based neutral solution somewhat moot.

Thus why do we need BSP or ARC and what value do they bring?

Keep asking yourself that question

Cheers

Timothy

Timothy J O'Neil-Dunne
Managing Partner - T2Impact Ltd
Global Travel eBusiness
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