Amadeus enters into value-based distribution deal with Delta

Amadeus has entered into a value-based distribution agreement with Delta, following the lead of GDS rivals Sabre and Travelport.

The companies did not release specifics on the commercial arrangement, but under its new value-based approach to compensating GDSs, Delta has been doing away with flat segment fees and replacing them with them scaled payments to GDSs based upon the value of each booking.

The agreements have also emphasized the use by the GDSs of a more robust merchandising platform that is equipped to display Delta’s full range of products, including ancillaries and premium seats.

The Amadeus agreement, Delta said, will give users of Amadeus Travel Platform access to an optimized shopping display that “provides expanded product options on all flights, including attributes and ancillary services.”

Delta entered into its first value-based GDS deal in May with Sabre. A similar agreement with Travelport followed in August.

The Sabre deal led to an ongoing lawsuit brought by American against the GDS. American claims that Sabre’s new merchandising display, which it calls New Airline Storefront, biases search results toward Delta.

  • Related: American fails to stop Sabre from using new display

Delta’s value-based agreements don’t address how the GDSs will remunerate travel advisors for selling up. However, speaking about the Sabre deal in June, Jeff Lobl, Delta’s managing director of global distribution, said that for the new approach to work, Sabre would need to pass some of the extra money Delta pays for high-end ticket and ancillary sales along to the agents who book them.

Also, Travelport has said that its new agreement with Delta gives travel agencies a chance to earn additional incentives when they augment ticket sales with ancillary items.

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