Budget carrier SpiceJet on Wednesday announced Amadeus as its global distribution system (GDS) partner in a move to expand its international footprints. The agreement will help the airline to access new markets and grow its customer base.
A GDS is a platform that enables airlines to sell seats to travel agencies and agents based in foreign location. Usually travel agents subscribe to these network providers to search and raise their tickets. These platforms charge the airline a fee for their service. The move will increase SpiceJet’s sales costs at a time when all airlines are looking to trim costs to improve profitability. However, experts are not convinced with the strategy.
“To be on a GDS platform for an LCC is a costly affair. You are not an LCC anymore if you opt for a GDS. It essentially increases cost per segment. From a longevity point of view it is not useful,” Mark Martin, founder, Martin Consulting, a consulting firm, said.
