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GDS Trends Latin America

GDS Trends Latin America

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Published by LeticiaM325

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Published by: LeticiaM325 on Oct 30, 2009
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11/17/2010

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TRENDS AND OUTLOOKTRENDS AND OUTLOOK
Latin American Carrier Opportunities Latin American Carrier Opportunities 
Presented by: 
Emre Serpen
Senior Vice President, SH&E 
Presented by: 
Emre Serpen
Senior Vice President, SH&E 
Airline Business Distribution Conference April 2007
 
1
Presentation Agenda
Industry DevelopmentsDistribution in Latin AmericaOpportunities
TRENDS AND OUTLOOKTRENDS AND OUTLOOK
Latin American Carrier Opportunities Latin American Carrier Opportunities 
 
2
US carriers have been successful in reducing their distributioncosts over the last six years
11.2%13.3%11.0%7.1%7.4%7.1%
0%2%4%6%8%10%12%14%16%
Legacy LCC Hawaiian
1999YE2Q06
Source: Form 41 Database, company reportsNote: “Legacy Carriers”are AA, CO, DL, NW, US; LCCs are HP, TZ, FL, B6, WN. Domestic Sectors Only.
US Airline Distribution Costs as aShare of Operating Revenue
1999 vs. YE2Q06 
US Airline Distribution Costs as aShare of Operating Revenue
1999 vs. YE2Q06 
Continental increased internet salesfrom 5% of total to nearly 50% oftotal between 2000 and 2005
 – Hawaiian went from around3% to 50% as well – Nearly 60% of Southwest’s saleswere on-line (by revenue) in 2005
Airlines have introduced charges(generally $3.50) for bookingsthrough GDSs to encourage useof other channelse-ticketing savings estimated at$9 per e-ticket (IATA)

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