VIEWS OF THE TRAVEL TRADE VIEWS OF THE TRAVEL TRADE

ON EUROPEAN LEGISLATION ON CRSsON EUROPEAN LEGISLATION ON CRSs

Michel de BlustMichel de Blust

Secretary General, ECTAA - GEBTASecretary General, ECTAA - GEBTA

www.ectaa.orgwww.ectaa.org

www.gebta.orgwww.gebta.org

ECTAA GEBTAECTAA GEBTA

Together represent 80.000 Together represent 80.000 businesses in Europebusinesses in Europe

30.500 IATA travel agencies in 30.500 IATA travel agencies in Europe issued 138 million tickets in Europe issued 138 million tickets in 2006 (IATA BSP data)2006 (IATA BSP data)

The vast majority of ticket sales on The vast majority of ticket sales on network carriers are processed network carriers are processed through CRSsthrough CRSs

Why is CRS regulation Why is CRS regulation crucial for ECTAA-crucial for ECTAA-GEBTA?GEBTA?

1. No EU Internal Market for air 1. No EU Internal Market for air transport transport Fragmentation and Fragmentation and DominancesDominances

2. Strong potential for abuses leading 2. Strong potential for abuses leading to increases of costs and final pricesto increases of costs and final prices

3. Differentiated content between 3. Differentiated content between distribution channels at the distribution channels at the detriment of travellersdetriment of travellers

Fragmentation, Fragmentation, dominance and potential dominance and potential for abusefor abuse

EU air transport market ≠ US market EU air transport market ≠ US market Dominance of airlines and ultra-Dominance of airlines and ultra-dominance of CRSs on national marketsdominance of CRSs on national markets

Potential for abuse as soon as Potential for abuse as soon as airline airline and CRSand CRS have profit redistribution / have profit redistribution / even stronger potential if double even stronger potential if double dominancedominance

Special concerns for 3 markets : Special concerns for 3 markets : France, Germany, SpainFrance, Germany, Spain

Without specific Without specific rulesrules

Reinforcement of dominant positions, Reinforcement of dominant positions, notably for associated airline and CRSnotably for associated airline and CRS

Increase of costs / final price for travellersIncrease of costs / final price for travellers

Difficulty to provide comprehensive and Difficulty to provide comprehensive and neutral offer, especially for SME travel neutral offer, especially for SME travel agentsagents

Difficulty and delays to apply general Difficulty and delays to apply general competition rulescompetition rules

Parent carrier Parent carrier mandatory participationmandatory participation

Absolute necessity to put effective Absolute necessity to put effective obligations on parent carriers:obligations on parent carriers: Non-discrimination in access to content Non-discrimination in access to content

and bookingsand bookings

Prohibition to link the use of a CRS to Prohibition to link the use of a CRS to any incentive/disincentiveany incentive/disincentive

EU market: those safeguards must EU market: those safeguards must be applicable to any carrier with be applicable to any carrier with control or control or any level of ownership any level of ownership stake in a CRSstake in a CRS

Access to faresAccess to fares

Online/offline travel agents: only neutral Online/offline travel agents: only neutral access to comprehensive air transport access to comprehensive air transport offer thanks CRSs.offer thanks CRSs.

Liberalisation of access to fares :Liberalisation of access to fares : Increase of costs for CRS/travel agents (e.g. Increase of costs for CRS/travel agents (e.g.

US) + risk of final price increase for travellersUS) + risk of final price increase for travellers

in EU market: risks of content fragmentation in EU market: risks of content fragmentation between distribution channelsbetween distribution channels

Optimum review of CRS RegulationOptimum review of CRS Regulation: : guarantee unbiased and reasonably priced guarantee unbiased and reasonably priced access to full content for all CRS access to full content for all CRS subscribers subscribers

Thank you for your attention!Thank you for your attention!

For more information, please go to:For more information, please go to:

www.ectaa.orgwww.ectaa.org

www.gebta.orgwww.gebta.org