Post on 08-Apr-2018
F ARELOGIXIntroduction to Farelogix
We are a provider of distribution and management technology solutions for the global travel industry
For Travel Suppliers - provide low cost direct connect distribution technology for greater airline channel control custom content delivery (ancillarymerchandising) resulting in immediate distribution savings
For Travel Agencies - provide software for content sourcing management and travel-agency controlled business rules enabling greater agency control enriched content and closer supplier relationships
For Travel Consumers - although we do not sell solutions directly to consumers Farelogix technology enables airlines to significant realize distribution savings and differentiate their product leading to lower ticket prices and improved consumer choice
2
Why We Are Here F ARELOGIX
(The Issue at Hand)
GDS companies and their supporters are advocating legislation and rule making that if enacted would cause harm to both airlines and consumers The proposed rules would
w Force airlines to continue using antiquated high cost and inflexible distribution technology for travel agency (non airlinecom) sales
w Enable the GDS companies to avoid making needed investments into their own platforms and continue to widen the gap between the capabilities available to travel agencies versus on wwwairlinecom
w Restrict consumer choice and access to airline productsservices
w Unfairly protect GDS monopolistic power over airline distribution including protection of exorbitant GDS fees that translate to higher ticket prices
w Prevent airlines from marketing and selling products and services in a manner that enables brand differentiation and a move away from Ifcommoditized selling - which is vital to economic survival of the airline
3
F ARELOGIXSetting the Facts Straight (1)
You may have heard Airlines are attempting to hide fees from consumers
Airlines lack a market incentive to solve the problem N bull
When in fact the following is true The airline business model relies on repeat business
Fee information is readily available on websites and major OTAs
4
F ARELOGIXSetting the Facts Straight (2)
0lt You may have heard Technology has been built to enable airlines to publish fees through
the Airline Tariff Publishing Company (ATPCO)so it is simply a matter offorcing airlines to use it
0lt When in fact the following is true The ATPCO solution does not remotely address airline or consumer
requirements for shopping and purchasing in a matter that can compete effectively with wwwairlinecom
5
F ARELOGIXSetting the Facts Straight (3)
of You may have heard Airlines have not made fee information available~ in a useful wayN to
the GDSstravel agency distribution channel
of When in fact the following is true Due to GDS refusal to invest in their selling platform to accommodate
airline and consumer requirements the airline is extremely limited in what information it can provide using the antiquated~ high-cost
and inflexible GDS systems
6
F ARELOGIXSetting the Facts Straight (4)
~ You may have heard There are no Technological Barriers
Industry standards are in placeso whats the problem
When in fact the following is true Sure there are no technological barriers if you ignore airline and consumer shopping requirements and force airlines to use limited antiquated and high-cost technology that ultimately translates to
higher ticket fees and restricted consumer choice
and if you agree to have the selling display look like this
7
Existing GDS points of sale inflexible commoditized -
ADDITIONAL SVC FOR DETAIL gtDASL1 LN CXR DESCRIPTION PTC AMNT CUR M T SEG R C 1 AA CROWN ROOM ACCESS ADT 500 USD N T 01 N N 2 AA HOT DINNER ADT 15 00 USD N F 01 N N 3 AA ASSIGNED SEAT ADT 15 00 USD Y F 01 N N 4 DL BREAKFAST ADT 10 00 USD N F 02 N N 5 DL LOUNGE ACCESS ADT 10 00 USD N T 02 N N
F ARE L OGIXSetting the Facts Straight (5)
w You may have heard The ATPCO and antiquated high-cost and inefficient technology of
the GOS represent the only possible solution for selling airline fees in the travel agency channel and must be forced upon the
market
Iw When in fact the following is true Modern XML based low cost and highly flexible technology exists
that enables airlines to distribute their products and ancillary services through the travel agency channel at a cost savings of 80 relative to GOS legacy technology with significantly more
product choice and differentiation for consumers
As an example newer agency point of sale systems look like this 9
-- ----
---
F ARELOGIXModern Travel Agency Sales Platform Example (1)
elcome IlIchael ZumCIH -I J ut A
1- T - 10nl 001 Offi 10 -~ LO ~
F ar e Sea r c h
V Fi lon + E p ~ n j - It ()13030
Source AA AA Fli ght CflI ES- Depart -JrI e
-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)
-- 3 111 - - OF 03JULl5 30 08 J )
-- 1 E 3 11 - - OF 08JJL 07 O
-- 11 - - OF OaJUL1J 0 12 0 )
-- gao 111 - - OF OaJUL 13 30 20 2
- - -- -- - Joio t~ ~-
Flig ht Cities Oepan - In euro
-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30
-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-
~I ~ shy411ILUII IULIILUU~
S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO
il1IlY iI bull ~TII 1 COl StJps DuratJon +
~v~L Sa Qf FL Select FL 8 usmess
0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----
0 ~ 2 7- 0 170 81 0 2009 0 28 3
0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy
0 0 300 7 r 17J 81 C 200 C 22S 3 I shy
0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023
-~I - _ ~ ( -0 h _ -J r~~1r j ~
il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy
o o 2 T 7 bull ErJc y C1tt =oaolr g
~e - ~ $e - CJ Sea bull r -Flqr In e r e
o 0 2 77
o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5
0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L
F ARELOGIXModern Travel Agency Sales Platform Example (2)
~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----
ZUIIDIECI-II RE IZT GIGOSJ GLD PLT
l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0
bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I
Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it
r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy
~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~
47201110212008 11
The Proposed Rule Verbiage is F ARELOGIX
No Coincidence
f Proposed rule verbiage Share the fee and price information with the independent sales
channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H
f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost
technology that ultimately translates to higher ticket fees and restricted consumer choice
Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines
It is not about consumers or transparency - it is market protectionism
12
Airline Res
tIt bull
Airline delivers its parts
bull
GOS
GDS manufactures airline offer
Airline Res
Airline Direct Connect (FareJogix)
GOS GOS functions only
as a distribution network
Airline delivers its productoffer based on traveler authentication
Witt
~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~
Recap Protect Choice and Lower F ARE L OGIX
Costs for Airlines and Consumers
The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model
If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices
New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry
Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way
15
F ARELOGIXRecap What is at Stake
If a rule is passed to dictate how airlines sell their product the travel industry will suffer
Continued inflated distribution costs forcing higher prices to consumers
Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies
Stifled innovation and competition in the travel distribution marketplace
Continued GDS monopolistic control over airlines agencies and ultimately consumers
Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways
beyond what the free market will support 16
Thank You
Contact info
Jim Davidson
President and CEO
Farelogix Inc
760 NW 107th Avenue Suite 300
Miami FL 33172
305 222-5401 office
630865-3997 cell
idavidsonfarelogixcom
wwwfarelogixcom
F ARELOGIX
Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell
elopezfarelogixcom wwwfarelogixcom
Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17
Why We Are Here F ARELOGIX
(The Issue at Hand)
GDS companies and their supporters are advocating legislation and rule making that if enacted would cause harm to both airlines and consumers The proposed rules would
w Force airlines to continue using antiquated high cost and inflexible distribution technology for travel agency (non airlinecom) sales
w Enable the GDS companies to avoid making needed investments into their own platforms and continue to widen the gap between the capabilities available to travel agencies versus on wwwairlinecom
w Restrict consumer choice and access to airline productsservices
w Unfairly protect GDS monopolistic power over airline distribution including protection of exorbitant GDS fees that translate to higher ticket prices
w Prevent airlines from marketing and selling products and services in a manner that enables brand differentiation and a move away from Ifcommoditized selling - which is vital to economic survival of the airline
3
F ARELOGIXSetting the Facts Straight (1)
You may have heard Airlines are attempting to hide fees from consumers
Airlines lack a market incentive to solve the problem N bull
When in fact the following is true The airline business model relies on repeat business
Fee information is readily available on websites and major OTAs
4
F ARELOGIXSetting the Facts Straight (2)
0lt You may have heard Technology has been built to enable airlines to publish fees through
the Airline Tariff Publishing Company (ATPCO)so it is simply a matter offorcing airlines to use it
0lt When in fact the following is true The ATPCO solution does not remotely address airline or consumer
requirements for shopping and purchasing in a matter that can compete effectively with wwwairlinecom
5
F ARELOGIXSetting the Facts Straight (3)
of You may have heard Airlines have not made fee information available~ in a useful wayN to
the GDSstravel agency distribution channel
of When in fact the following is true Due to GDS refusal to invest in their selling platform to accommodate
airline and consumer requirements the airline is extremely limited in what information it can provide using the antiquated~ high-cost
and inflexible GDS systems
6
F ARELOGIXSetting the Facts Straight (4)
~ You may have heard There are no Technological Barriers
Industry standards are in placeso whats the problem
When in fact the following is true Sure there are no technological barriers if you ignore airline and consumer shopping requirements and force airlines to use limited antiquated and high-cost technology that ultimately translates to
higher ticket fees and restricted consumer choice
and if you agree to have the selling display look like this
7
Existing GDS points of sale inflexible commoditized -
ADDITIONAL SVC FOR DETAIL gtDASL1 LN CXR DESCRIPTION PTC AMNT CUR M T SEG R C 1 AA CROWN ROOM ACCESS ADT 500 USD N T 01 N N 2 AA HOT DINNER ADT 15 00 USD N F 01 N N 3 AA ASSIGNED SEAT ADT 15 00 USD Y F 01 N N 4 DL BREAKFAST ADT 10 00 USD N F 02 N N 5 DL LOUNGE ACCESS ADT 10 00 USD N T 02 N N
F ARE L OGIXSetting the Facts Straight (5)
w You may have heard The ATPCO and antiquated high-cost and inefficient technology of
the GOS represent the only possible solution for selling airline fees in the travel agency channel and must be forced upon the
market
Iw When in fact the following is true Modern XML based low cost and highly flexible technology exists
that enables airlines to distribute their products and ancillary services through the travel agency channel at a cost savings of 80 relative to GOS legacy technology with significantly more
product choice and differentiation for consumers
As an example newer agency point of sale systems look like this 9
-- ----
---
F ARELOGIXModern Travel Agency Sales Platform Example (1)
elcome IlIchael ZumCIH -I J ut A
1- T - 10nl 001 Offi 10 -~ LO ~
F ar e Sea r c h
V Fi lon + E p ~ n j - It ()13030
Source AA AA Fli ght CflI ES- Depart -JrI e
-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)
-- 3 111 - - OF 03JULl5 30 08 J )
-- 1 E 3 11 - - OF 08JJL 07 O
-- 11 - - OF OaJUL1J 0 12 0 )
-- gao 111 - - OF OaJUL 13 30 20 2
- - -- -- - Joio t~ ~-
Flig ht Cities Oepan - In euro
-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30
-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-
~I ~ shy411ILUII IULIILUU~
S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO
il1IlY iI bull ~TII 1 COl StJps DuratJon +
~v~L Sa Qf FL Select FL 8 usmess
0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----
0 ~ 2 7- 0 170 81 0 2009 0 28 3
0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy
0 0 300 7 r 17J 81 C 200 C 22S 3 I shy
0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023
-~I - _ ~ ( -0 h _ -J r~~1r j ~
il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy
o o 2 T 7 bull ErJc y C1tt =oaolr g
~e - ~ $e - CJ Sea bull r -Flqr In e r e
o 0 2 77
o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5
0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L
F ARELOGIXModern Travel Agency Sales Platform Example (2)
~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----
ZUIIDIECI-II RE IZT GIGOSJ GLD PLT
l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0
bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I
Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it
r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy
~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~
47201110212008 11
The Proposed Rule Verbiage is F ARELOGIX
No Coincidence
f Proposed rule verbiage Share the fee and price information with the independent sales
channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H
f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost
technology that ultimately translates to higher ticket fees and restricted consumer choice
Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines
It is not about consumers or transparency - it is market protectionism
12
Airline Res
tIt bull
Airline delivers its parts
bull
GOS
GDS manufactures airline offer
Airline Res
Airline Direct Connect (FareJogix)
GOS GOS functions only
as a distribution network
Airline delivers its productoffer based on traveler authentication
Witt
~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~
Recap Protect Choice and Lower F ARE L OGIX
Costs for Airlines and Consumers
The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model
If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices
New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry
Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way
15
F ARELOGIXRecap What is at Stake
If a rule is passed to dictate how airlines sell their product the travel industry will suffer
Continued inflated distribution costs forcing higher prices to consumers
Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies
Stifled innovation and competition in the travel distribution marketplace
Continued GDS monopolistic control over airlines agencies and ultimately consumers
Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways
beyond what the free market will support 16
Thank You
Contact info
Jim Davidson
President and CEO
Farelogix Inc
760 NW 107th Avenue Suite 300
Miami FL 33172
305 222-5401 office
630865-3997 cell
idavidsonfarelogixcom
wwwfarelogixcom
F ARELOGIX
Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell
elopezfarelogixcom wwwfarelogixcom
Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17
F ARELOGIXSetting the Facts Straight (1)
You may have heard Airlines are attempting to hide fees from consumers
Airlines lack a market incentive to solve the problem N bull
When in fact the following is true The airline business model relies on repeat business
Fee information is readily available on websites and major OTAs
4
F ARELOGIXSetting the Facts Straight (2)
0lt You may have heard Technology has been built to enable airlines to publish fees through
the Airline Tariff Publishing Company (ATPCO)so it is simply a matter offorcing airlines to use it
0lt When in fact the following is true The ATPCO solution does not remotely address airline or consumer
requirements for shopping and purchasing in a matter that can compete effectively with wwwairlinecom
5
F ARELOGIXSetting the Facts Straight (3)
of You may have heard Airlines have not made fee information available~ in a useful wayN to
the GDSstravel agency distribution channel
of When in fact the following is true Due to GDS refusal to invest in their selling platform to accommodate
airline and consumer requirements the airline is extremely limited in what information it can provide using the antiquated~ high-cost
and inflexible GDS systems
6
F ARELOGIXSetting the Facts Straight (4)
~ You may have heard There are no Technological Barriers
Industry standards are in placeso whats the problem
When in fact the following is true Sure there are no technological barriers if you ignore airline and consumer shopping requirements and force airlines to use limited antiquated and high-cost technology that ultimately translates to
higher ticket fees and restricted consumer choice
and if you agree to have the selling display look like this
7
Existing GDS points of sale inflexible commoditized -
ADDITIONAL SVC FOR DETAIL gtDASL1 LN CXR DESCRIPTION PTC AMNT CUR M T SEG R C 1 AA CROWN ROOM ACCESS ADT 500 USD N T 01 N N 2 AA HOT DINNER ADT 15 00 USD N F 01 N N 3 AA ASSIGNED SEAT ADT 15 00 USD Y F 01 N N 4 DL BREAKFAST ADT 10 00 USD N F 02 N N 5 DL LOUNGE ACCESS ADT 10 00 USD N T 02 N N
F ARE L OGIXSetting the Facts Straight (5)
w You may have heard The ATPCO and antiquated high-cost and inefficient technology of
the GOS represent the only possible solution for selling airline fees in the travel agency channel and must be forced upon the
market
Iw When in fact the following is true Modern XML based low cost and highly flexible technology exists
that enables airlines to distribute their products and ancillary services through the travel agency channel at a cost savings of 80 relative to GOS legacy technology with significantly more
product choice and differentiation for consumers
As an example newer agency point of sale systems look like this 9
-- ----
---
F ARELOGIXModern Travel Agency Sales Platform Example (1)
elcome IlIchael ZumCIH -I J ut A
1- T - 10nl 001 Offi 10 -~ LO ~
F ar e Sea r c h
V Fi lon + E p ~ n j - It ()13030
Source AA AA Fli ght CflI ES- Depart -JrI e
-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)
-- 3 111 - - OF 03JULl5 30 08 J )
-- 1 E 3 11 - - OF 08JJL 07 O
-- 11 - - OF OaJUL1J 0 12 0 )
-- gao 111 - - OF OaJUL 13 30 20 2
- - -- -- - Joio t~ ~-
Flig ht Cities Oepan - In euro
-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30
-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-
~I ~ shy411ILUII IULIILUU~
S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO
il1IlY iI bull ~TII 1 COl StJps DuratJon +
~v~L Sa Qf FL Select FL 8 usmess
0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----
0 ~ 2 7- 0 170 81 0 2009 0 28 3
0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy
0 0 300 7 r 17J 81 C 200 C 22S 3 I shy
0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023
-~I - _ ~ ( -0 h _ -J r~~1r j ~
il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy
o o 2 T 7 bull ErJc y C1tt =oaolr g
~e - ~ $e - CJ Sea bull r -Flqr In e r e
o 0 2 77
o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5
0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L
F ARELOGIXModern Travel Agency Sales Platform Example (2)
~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----
ZUIIDIECI-II RE IZT GIGOSJ GLD PLT
l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0
bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I
Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it
r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy
~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~
47201110212008 11
The Proposed Rule Verbiage is F ARELOGIX
No Coincidence
f Proposed rule verbiage Share the fee and price information with the independent sales
channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H
f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost
technology that ultimately translates to higher ticket fees and restricted consumer choice
Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines
It is not about consumers or transparency - it is market protectionism
12
Airline Res
tIt bull
Airline delivers its parts
bull
GOS
GDS manufactures airline offer
Airline Res
Airline Direct Connect (FareJogix)
GOS GOS functions only
as a distribution network
Airline delivers its productoffer based on traveler authentication
Witt
~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~
Recap Protect Choice and Lower F ARE L OGIX
Costs for Airlines and Consumers
The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model
If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices
New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry
Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way
15
F ARELOGIXRecap What is at Stake
If a rule is passed to dictate how airlines sell their product the travel industry will suffer
Continued inflated distribution costs forcing higher prices to consumers
Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies
Stifled innovation and competition in the travel distribution marketplace
Continued GDS monopolistic control over airlines agencies and ultimately consumers
Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways
beyond what the free market will support 16
Thank You
Contact info
Jim Davidson
President and CEO
Farelogix Inc
760 NW 107th Avenue Suite 300
Miami FL 33172
305 222-5401 office
630865-3997 cell
idavidsonfarelogixcom
wwwfarelogixcom
F ARELOGIX
Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell
elopezfarelogixcom wwwfarelogixcom
Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17
F ARELOGIXSetting the Facts Straight (2)
0lt You may have heard Technology has been built to enable airlines to publish fees through
the Airline Tariff Publishing Company (ATPCO)so it is simply a matter offorcing airlines to use it
0lt When in fact the following is true The ATPCO solution does not remotely address airline or consumer
requirements for shopping and purchasing in a matter that can compete effectively with wwwairlinecom
5
F ARELOGIXSetting the Facts Straight (3)
of You may have heard Airlines have not made fee information available~ in a useful wayN to
the GDSstravel agency distribution channel
of When in fact the following is true Due to GDS refusal to invest in their selling platform to accommodate
airline and consumer requirements the airline is extremely limited in what information it can provide using the antiquated~ high-cost
and inflexible GDS systems
6
F ARELOGIXSetting the Facts Straight (4)
~ You may have heard There are no Technological Barriers
Industry standards are in placeso whats the problem
When in fact the following is true Sure there are no technological barriers if you ignore airline and consumer shopping requirements and force airlines to use limited antiquated and high-cost technology that ultimately translates to
higher ticket fees and restricted consumer choice
and if you agree to have the selling display look like this
7
Existing GDS points of sale inflexible commoditized -
ADDITIONAL SVC FOR DETAIL gtDASL1 LN CXR DESCRIPTION PTC AMNT CUR M T SEG R C 1 AA CROWN ROOM ACCESS ADT 500 USD N T 01 N N 2 AA HOT DINNER ADT 15 00 USD N F 01 N N 3 AA ASSIGNED SEAT ADT 15 00 USD Y F 01 N N 4 DL BREAKFAST ADT 10 00 USD N F 02 N N 5 DL LOUNGE ACCESS ADT 10 00 USD N T 02 N N
F ARE L OGIXSetting the Facts Straight (5)
w You may have heard The ATPCO and antiquated high-cost and inefficient technology of
the GOS represent the only possible solution for selling airline fees in the travel agency channel and must be forced upon the
market
Iw When in fact the following is true Modern XML based low cost and highly flexible technology exists
that enables airlines to distribute their products and ancillary services through the travel agency channel at a cost savings of 80 relative to GOS legacy technology with significantly more
product choice and differentiation for consumers
As an example newer agency point of sale systems look like this 9
-- ----
---
F ARELOGIXModern Travel Agency Sales Platform Example (1)
elcome IlIchael ZumCIH -I J ut A
1- T - 10nl 001 Offi 10 -~ LO ~
F ar e Sea r c h
V Fi lon + E p ~ n j - It ()13030
Source AA AA Fli ght CflI ES- Depart -JrI e
-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)
-- 3 111 - - OF 03JULl5 30 08 J )
-- 1 E 3 11 - - OF 08JJL 07 O
-- 11 - - OF OaJUL1J 0 12 0 )
-- gao 111 - - OF OaJUL 13 30 20 2
- - -- -- - Joio t~ ~-
Flig ht Cities Oepan - In euro
-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30
-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-
~I ~ shy411ILUII IULIILUU~
S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO
il1IlY iI bull ~TII 1 COl StJps DuratJon +
~v~L Sa Qf FL Select FL 8 usmess
0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----
0 ~ 2 7- 0 170 81 0 2009 0 28 3
0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy
0 0 300 7 r 17J 81 C 200 C 22S 3 I shy
0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023
-~I - _ ~ ( -0 h _ -J r~~1r j ~
il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy
o o 2 T 7 bull ErJc y C1tt =oaolr g
~e - ~ $e - CJ Sea bull r -Flqr In e r e
o 0 2 77
o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5
0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L
F ARELOGIXModern Travel Agency Sales Platform Example (2)
~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----
ZUIIDIECI-II RE IZT GIGOSJ GLD PLT
l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0
bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I
Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it
r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy
~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~
47201110212008 11
The Proposed Rule Verbiage is F ARELOGIX
No Coincidence
f Proposed rule verbiage Share the fee and price information with the independent sales
channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H
f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost
technology that ultimately translates to higher ticket fees and restricted consumer choice
Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines
It is not about consumers or transparency - it is market protectionism
12
Airline Res
tIt bull
Airline delivers its parts
bull
GOS
GDS manufactures airline offer
Airline Res
Airline Direct Connect (FareJogix)
GOS GOS functions only
as a distribution network
Airline delivers its productoffer based on traveler authentication
Witt
~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~
Recap Protect Choice and Lower F ARE L OGIX
Costs for Airlines and Consumers
The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model
If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices
New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry
Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way
15
F ARELOGIXRecap What is at Stake
If a rule is passed to dictate how airlines sell their product the travel industry will suffer
Continued inflated distribution costs forcing higher prices to consumers
Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies
Stifled innovation and competition in the travel distribution marketplace
Continued GDS monopolistic control over airlines agencies and ultimately consumers
Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways
beyond what the free market will support 16
Thank You
Contact info
Jim Davidson
President and CEO
Farelogix Inc
760 NW 107th Avenue Suite 300
Miami FL 33172
305 222-5401 office
630865-3997 cell
idavidsonfarelogixcom
wwwfarelogixcom
F ARELOGIX
Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell
elopezfarelogixcom wwwfarelogixcom
Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17
F ARELOGIXSetting the Facts Straight (3)
of You may have heard Airlines have not made fee information available~ in a useful wayN to
the GDSstravel agency distribution channel
of When in fact the following is true Due to GDS refusal to invest in their selling platform to accommodate
airline and consumer requirements the airline is extremely limited in what information it can provide using the antiquated~ high-cost
and inflexible GDS systems
6
F ARELOGIXSetting the Facts Straight (4)
~ You may have heard There are no Technological Barriers
Industry standards are in placeso whats the problem
When in fact the following is true Sure there are no technological barriers if you ignore airline and consumer shopping requirements and force airlines to use limited antiquated and high-cost technology that ultimately translates to
higher ticket fees and restricted consumer choice
and if you agree to have the selling display look like this
7
Existing GDS points of sale inflexible commoditized -
ADDITIONAL SVC FOR DETAIL gtDASL1 LN CXR DESCRIPTION PTC AMNT CUR M T SEG R C 1 AA CROWN ROOM ACCESS ADT 500 USD N T 01 N N 2 AA HOT DINNER ADT 15 00 USD N F 01 N N 3 AA ASSIGNED SEAT ADT 15 00 USD Y F 01 N N 4 DL BREAKFAST ADT 10 00 USD N F 02 N N 5 DL LOUNGE ACCESS ADT 10 00 USD N T 02 N N
F ARE L OGIXSetting the Facts Straight (5)
w You may have heard The ATPCO and antiquated high-cost and inefficient technology of
the GOS represent the only possible solution for selling airline fees in the travel agency channel and must be forced upon the
market
Iw When in fact the following is true Modern XML based low cost and highly flexible technology exists
that enables airlines to distribute their products and ancillary services through the travel agency channel at a cost savings of 80 relative to GOS legacy technology with significantly more
product choice and differentiation for consumers
As an example newer agency point of sale systems look like this 9
-- ----
---
F ARELOGIXModern Travel Agency Sales Platform Example (1)
elcome IlIchael ZumCIH -I J ut A
1- T - 10nl 001 Offi 10 -~ LO ~
F ar e Sea r c h
V Fi lon + E p ~ n j - It ()13030
Source AA AA Fli ght CflI ES- Depart -JrI e
-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)
-- 3 111 - - OF 03JULl5 30 08 J )
-- 1 E 3 11 - - OF 08JJL 07 O
-- 11 - - OF OaJUL1J 0 12 0 )
-- gao 111 - - OF OaJUL 13 30 20 2
- - -- -- - Joio t~ ~-
Flig ht Cities Oepan - In euro
-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30
-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-
~I ~ shy411ILUII IULIILUU~
S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO
il1IlY iI bull ~TII 1 COl StJps DuratJon +
~v~L Sa Qf FL Select FL 8 usmess
0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----
0 ~ 2 7- 0 170 81 0 2009 0 28 3
0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy
0 0 300 7 r 17J 81 C 200 C 22S 3 I shy
0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023
-~I - _ ~ ( -0 h _ -J r~~1r j ~
il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy
o o 2 T 7 bull ErJc y C1tt =oaolr g
~e - ~ $e - CJ Sea bull r -Flqr In e r e
o 0 2 77
o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5
0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L
F ARELOGIXModern Travel Agency Sales Platform Example (2)
~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----
ZUIIDIECI-II RE IZT GIGOSJ GLD PLT
l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0
bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I
Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it
r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy
~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~
47201110212008 11
The Proposed Rule Verbiage is F ARELOGIX
No Coincidence
f Proposed rule verbiage Share the fee and price information with the independent sales
channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H
f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost
technology that ultimately translates to higher ticket fees and restricted consumer choice
Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines
It is not about consumers or transparency - it is market protectionism
12
Airline Res
tIt bull
Airline delivers its parts
bull
GOS
GDS manufactures airline offer
Airline Res
Airline Direct Connect (FareJogix)
GOS GOS functions only
as a distribution network
Airline delivers its productoffer based on traveler authentication
Witt
~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~
Recap Protect Choice and Lower F ARE L OGIX
Costs for Airlines and Consumers
The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model
If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices
New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry
Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way
15
F ARELOGIXRecap What is at Stake
If a rule is passed to dictate how airlines sell their product the travel industry will suffer
Continued inflated distribution costs forcing higher prices to consumers
Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies
Stifled innovation and competition in the travel distribution marketplace
Continued GDS monopolistic control over airlines agencies and ultimately consumers
Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways
beyond what the free market will support 16
Thank You
Contact info
Jim Davidson
President and CEO
Farelogix Inc
760 NW 107th Avenue Suite 300
Miami FL 33172
305 222-5401 office
630865-3997 cell
idavidsonfarelogixcom
wwwfarelogixcom
F ARELOGIX
Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell
elopezfarelogixcom wwwfarelogixcom
Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17
F ARELOGIXSetting the Facts Straight (4)
~ You may have heard There are no Technological Barriers
Industry standards are in placeso whats the problem
When in fact the following is true Sure there are no technological barriers if you ignore airline and consumer shopping requirements and force airlines to use limited antiquated and high-cost technology that ultimately translates to
higher ticket fees and restricted consumer choice
and if you agree to have the selling display look like this
7
Existing GDS points of sale inflexible commoditized -
ADDITIONAL SVC FOR DETAIL gtDASL1 LN CXR DESCRIPTION PTC AMNT CUR M T SEG R C 1 AA CROWN ROOM ACCESS ADT 500 USD N T 01 N N 2 AA HOT DINNER ADT 15 00 USD N F 01 N N 3 AA ASSIGNED SEAT ADT 15 00 USD Y F 01 N N 4 DL BREAKFAST ADT 10 00 USD N F 02 N N 5 DL LOUNGE ACCESS ADT 10 00 USD N T 02 N N
F ARE L OGIXSetting the Facts Straight (5)
w You may have heard The ATPCO and antiquated high-cost and inefficient technology of
the GOS represent the only possible solution for selling airline fees in the travel agency channel and must be forced upon the
market
Iw When in fact the following is true Modern XML based low cost and highly flexible technology exists
that enables airlines to distribute their products and ancillary services through the travel agency channel at a cost savings of 80 relative to GOS legacy technology with significantly more
product choice and differentiation for consumers
As an example newer agency point of sale systems look like this 9
-- ----
---
F ARELOGIXModern Travel Agency Sales Platform Example (1)
elcome IlIchael ZumCIH -I J ut A
1- T - 10nl 001 Offi 10 -~ LO ~
F ar e Sea r c h
V Fi lon + E p ~ n j - It ()13030
Source AA AA Fli ght CflI ES- Depart -JrI e
-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)
-- 3 111 - - OF 03JULl5 30 08 J )
-- 1 E 3 11 - - OF 08JJL 07 O
-- 11 - - OF OaJUL1J 0 12 0 )
-- gao 111 - - OF OaJUL 13 30 20 2
- - -- -- - Joio t~ ~-
Flig ht Cities Oepan - In euro
-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30
-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-
~I ~ shy411ILUII IULIILUU~
S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO
il1IlY iI bull ~TII 1 COl StJps DuratJon +
~v~L Sa Qf FL Select FL 8 usmess
0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----
0 ~ 2 7- 0 170 81 0 2009 0 28 3
0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy
0 0 300 7 r 17J 81 C 200 C 22S 3 I shy
0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023
-~I - _ ~ ( -0 h _ -J r~~1r j ~
il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy
o o 2 T 7 bull ErJc y C1tt =oaolr g
~e - ~ $e - CJ Sea bull r -Flqr In e r e
o 0 2 77
o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5
0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L
F ARELOGIXModern Travel Agency Sales Platform Example (2)
~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----
ZUIIDIECI-II RE IZT GIGOSJ GLD PLT
l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0
bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I
Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it
r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy
~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~
47201110212008 11
The Proposed Rule Verbiage is F ARELOGIX
No Coincidence
f Proposed rule verbiage Share the fee and price information with the independent sales
channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H
f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost
technology that ultimately translates to higher ticket fees and restricted consumer choice
Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines
It is not about consumers or transparency - it is market protectionism
12
Airline Res
tIt bull
Airline delivers its parts
bull
GOS
GDS manufactures airline offer
Airline Res
Airline Direct Connect (FareJogix)
GOS GOS functions only
as a distribution network
Airline delivers its productoffer based on traveler authentication
Witt
~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~
Recap Protect Choice and Lower F ARE L OGIX
Costs for Airlines and Consumers
The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model
If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices
New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry
Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way
15
F ARELOGIXRecap What is at Stake
If a rule is passed to dictate how airlines sell their product the travel industry will suffer
Continued inflated distribution costs forcing higher prices to consumers
Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies
Stifled innovation and competition in the travel distribution marketplace
Continued GDS monopolistic control over airlines agencies and ultimately consumers
Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways
beyond what the free market will support 16
Thank You
Contact info
Jim Davidson
President and CEO
Farelogix Inc
760 NW 107th Avenue Suite 300
Miami FL 33172
305 222-5401 office
630865-3997 cell
idavidsonfarelogixcom
wwwfarelogixcom
F ARELOGIX
Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell
elopezfarelogixcom wwwfarelogixcom
Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17
Existing GDS points of sale inflexible commoditized -
ADDITIONAL SVC FOR DETAIL gtDASL1 LN CXR DESCRIPTION PTC AMNT CUR M T SEG R C 1 AA CROWN ROOM ACCESS ADT 500 USD N T 01 N N 2 AA HOT DINNER ADT 15 00 USD N F 01 N N 3 AA ASSIGNED SEAT ADT 15 00 USD Y F 01 N N 4 DL BREAKFAST ADT 10 00 USD N F 02 N N 5 DL LOUNGE ACCESS ADT 10 00 USD N T 02 N N
F ARE L OGIXSetting the Facts Straight (5)
w You may have heard The ATPCO and antiquated high-cost and inefficient technology of
the GOS represent the only possible solution for selling airline fees in the travel agency channel and must be forced upon the
market
Iw When in fact the following is true Modern XML based low cost and highly flexible technology exists
that enables airlines to distribute their products and ancillary services through the travel agency channel at a cost savings of 80 relative to GOS legacy technology with significantly more
product choice and differentiation for consumers
As an example newer agency point of sale systems look like this 9
-- ----
---
F ARELOGIXModern Travel Agency Sales Platform Example (1)
elcome IlIchael ZumCIH -I J ut A
1- T - 10nl 001 Offi 10 -~ LO ~
F ar e Sea r c h
V Fi lon + E p ~ n j - It ()13030
Source AA AA Fli ght CflI ES- Depart -JrI e
-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)
-- 3 111 - - OF 03JULl5 30 08 J )
-- 1 E 3 11 - - OF 08JJL 07 O
-- 11 - - OF OaJUL1J 0 12 0 )
-- gao 111 - - OF OaJUL 13 30 20 2
- - -- -- - Joio t~ ~-
Flig ht Cities Oepan - In euro
-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30
-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-
~I ~ shy411ILUII IULIILUU~
S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO
il1IlY iI bull ~TII 1 COl StJps DuratJon +
~v~L Sa Qf FL Select FL 8 usmess
0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----
0 ~ 2 7- 0 170 81 0 2009 0 28 3
0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy
0 0 300 7 r 17J 81 C 200 C 22S 3 I shy
0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023
-~I - _ ~ ( -0 h _ -J r~~1r j ~
il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy
o o 2 T 7 bull ErJc y C1tt =oaolr g
~e - ~ $e - CJ Sea bull r -Flqr In e r e
o 0 2 77
o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5
0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L
F ARELOGIXModern Travel Agency Sales Platform Example (2)
~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----
ZUIIDIECI-II RE IZT GIGOSJ GLD PLT
l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0
bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I
Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it
r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy
~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~
47201110212008 11
The Proposed Rule Verbiage is F ARELOGIX
No Coincidence
f Proposed rule verbiage Share the fee and price information with the independent sales
channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H
f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost
technology that ultimately translates to higher ticket fees and restricted consumer choice
Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines
It is not about consumers or transparency - it is market protectionism
12
Airline Res
tIt bull
Airline delivers its parts
bull
GOS
GDS manufactures airline offer
Airline Res
Airline Direct Connect (FareJogix)
GOS GOS functions only
as a distribution network
Airline delivers its productoffer based on traveler authentication
Witt
~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~
Recap Protect Choice and Lower F ARE L OGIX
Costs for Airlines and Consumers
The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model
If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices
New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry
Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way
15
F ARELOGIXRecap What is at Stake
If a rule is passed to dictate how airlines sell their product the travel industry will suffer
Continued inflated distribution costs forcing higher prices to consumers
Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies
Stifled innovation and competition in the travel distribution marketplace
Continued GDS monopolistic control over airlines agencies and ultimately consumers
Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways
beyond what the free market will support 16
Thank You
Contact info
Jim Davidson
President and CEO
Farelogix Inc
760 NW 107th Avenue Suite 300
Miami FL 33172
305 222-5401 office
630865-3997 cell
idavidsonfarelogixcom
wwwfarelogixcom
F ARELOGIX
Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell
elopezfarelogixcom wwwfarelogixcom
Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17
F ARE L OGIXSetting the Facts Straight (5)
w You may have heard The ATPCO and antiquated high-cost and inefficient technology of
the GOS represent the only possible solution for selling airline fees in the travel agency channel and must be forced upon the
market
Iw When in fact the following is true Modern XML based low cost and highly flexible technology exists
that enables airlines to distribute their products and ancillary services through the travel agency channel at a cost savings of 80 relative to GOS legacy technology with significantly more
product choice and differentiation for consumers
As an example newer agency point of sale systems look like this 9
-- ----
---
F ARELOGIXModern Travel Agency Sales Platform Example (1)
elcome IlIchael ZumCIH -I J ut A
1- T - 10nl 001 Offi 10 -~ LO ~
F ar e Sea r c h
V Fi lon + E p ~ n j - It ()13030
Source AA AA Fli ght CflI ES- Depart -JrI e
-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)
-- 3 111 - - OF 03JULl5 30 08 J )
-- 1 E 3 11 - - OF 08JJL 07 O
-- 11 - - OF OaJUL1J 0 12 0 )
-- gao 111 - - OF OaJUL 13 30 20 2
- - -- -- - Joio t~ ~-
Flig ht Cities Oepan - In euro
-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30
-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-
~I ~ shy411ILUII IULIILUU~
S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO
il1IlY iI bull ~TII 1 COl StJps DuratJon +
~v~L Sa Qf FL Select FL 8 usmess
0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----
0 ~ 2 7- 0 170 81 0 2009 0 28 3
0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy
0 0 300 7 r 17J 81 C 200 C 22S 3 I shy
0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023
-~I - _ ~ ( -0 h _ -J r~~1r j ~
il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy
o o 2 T 7 bull ErJc y C1tt =oaolr g
~e - ~ $e - CJ Sea bull r -Flqr In e r e
o 0 2 77
o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5
0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L
F ARELOGIXModern Travel Agency Sales Platform Example (2)
~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----
ZUIIDIECI-II RE IZT GIGOSJ GLD PLT
l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0
bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I
Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it
r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy
~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~
47201110212008 11
The Proposed Rule Verbiage is F ARELOGIX
No Coincidence
f Proposed rule verbiage Share the fee and price information with the independent sales
channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H
f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost
technology that ultimately translates to higher ticket fees and restricted consumer choice
Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines
It is not about consumers or transparency - it is market protectionism
12
Airline Res
tIt bull
Airline delivers its parts
bull
GOS
GDS manufactures airline offer
Airline Res
Airline Direct Connect (FareJogix)
GOS GOS functions only
as a distribution network
Airline delivers its productoffer based on traveler authentication
Witt
~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~
Recap Protect Choice and Lower F ARE L OGIX
Costs for Airlines and Consumers
The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model
If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices
New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry
Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way
15
F ARELOGIXRecap What is at Stake
If a rule is passed to dictate how airlines sell their product the travel industry will suffer
Continued inflated distribution costs forcing higher prices to consumers
Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies
Stifled innovation and competition in the travel distribution marketplace
Continued GDS monopolistic control over airlines agencies and ultimately consumers
Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways
beyond what the free market will support 16
Thank You
Contact info
Jim Davidson
President and CEO
Farelogix Inc
760 NW 107th Avenue Suite 300
Miami FL 33172
305 222-5401 office
630865-3997 cell
idavidsonfarelogixcom
wwwfarelogixcom
F ARELOGIX
Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell
elopezfarelogixcom wwwfarelogixcom
Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17
-- ----
---
F ARELOGIXModern Travel Agency Sales Platform Example (1)
elcome IlIchael ZumCIH -I J ut A
1- T - 10nl 001 Offi 10 -~ LO ~
F ar e Sea r c h
V Fi lon + E p ~ n j - It ()13030
Source AA AA Fli ght CflI ES- Depart -JrI e
-- - ~ 1lh -OF 03JUU9 0 11 3 __ 70 111 - OF 08JUL 12 J 0)
-- 3 111 - - OF 03JULl5 30 08 J )
-- 1 E 3 11 - - OF 08JJL 07 O
-- 11 - - OF OaJUL1J 0 12 0 )
-- gao 111 - - OF OaJUL 13 30 20 2
- - -- -- - Joio t~ ~-
Flig ht Cities Oepan - In euro
-- -P 11 - - OF 08JUL 09 0 113 __ 73 11 - - OF 08JUl120 00 -- 11 - - OF - 08JUL 05 30 00 30
-- ~ - 9 11-middot OF OSJUL 07 09 _ __ __ r middot _~-
~I ~ shy411ILUII IULIILUU~
S I ted Fare lO Sl Fars from Depanur tIme 0630middot2120 e 3 1 52 34162 USO
il1IlY iI bull ~TII 1 COl StJps DuratJon +
~v~L Sa Qf FL Select FL 8 usmess
0 J 2 - 7 0 170 81 0 2009 0 228 03 Jogt ltr l1 -~----
0 ~ 2 7- 0 170 81 0 2009 0 28 3
0) 3 00 -7 G 170 81 0 2009 r- )8 3 - -- shy
0 0 300 7 r 17J 81 C 200 C 22S 3 I shy
0 J 300 73 (--- 21 0 r 2 0 27 2 raquo) 2 77 0 228 8 0 2 a oj2 0 28023
-~I - _ ~ ( -0 h _ -J r~~1r j ~
il1lIY iI ~)TIll 0gt Cm Steps Ourauon to)shy
o o 2 T 7 bull ErJc y C1tt =oaolr g
~e - ~ $e - CJ Sea bull r -Flqr In e r e
o 0 2 77
o 0 300 7 7 0 17J81 bull c e5 C cr dm-a s Iub C ~ da ~ Ii i~ e bull ErJc ou cem um O rrlt5
0) o 300 77 C 173 a 1 bull st cr t -lte o 3ao i ~ F EE --- __ 1 - - - ~- 1 --1 - ~ - -L
F ARELOGIXModern Travel Agency Sales Platform Example (2)
~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----
ZUIIDIECI-II RE IZT GIGOSJ GLD PLT
l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0
bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I
Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it
r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy
~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~
47201110212008 11
The Proposed Rule Verbiage is F ARELOGIX
No Coincidence
f Proposed rule verbiage Share the fee and price information with the independent sales
channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H
f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost
technology that ultimately translates to higher ticket fees and restricted consumer choice
Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines
It is not about consumers or transparency - it is market protectionism
12
Airline Res
tIt bull
Airline delivers its parts
bull
GOS
GDS manufactures airline offer
Airline Res
Airline Direct Connect (FareJogix)
GOS GOS functions only
as a distribution network
Airline delivers its productoffer based on traveler authentication
Witt
~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~
Recap Protect Choice and Lower F ARE L OGIX
Costs for Airlines and Consumers
The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model
If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices
New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry
Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way
15
F ARELOGIXRecap What is at Stake
If a rule is passed to dictate how airlines sell their product the travel industry will suffer
Continued inflated distribution costs forcing higher prices to consumers
Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies
Stifled innovation and competition in the travel distribution marketplace
Continued GDS monopolistic control over airlines agencies and ultimately consumers
Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways
beyond what the free market will support 16
Thank You
Contact info
Jim Davidson
President and CEO
Farelogix Inc
760 NW 107th Avenue Suite 300
Miami FL 33172
305 222-5401 office
630865-3997 cell
idavidsonfarelogixcom
wwwfarelogixcom
F ARELOGIX
Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell
elopezfarelogixcom wwwfarelogixcom
Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17
F ARELOGIXModern Travel Agency Sales Platform Example (2)
~ bull _ _ -J v Q __ ~_ _- ~ - ~ l- bull - - - --~ ~ -- - _ - -~r- r -T middotmiddot -- - bull EnJo tnB relaYing 3thmosph n a oa Includedbull Call tc rese r~ i- d (onfe rencl bull Ons-Da Pass alid for all ------- ~--- ---~ ------ ~----
ZUIIDIECI-II RE IZT GIGOSJ GLD PLT
l stBag Fo bull BaJ93~8 3 l1o~yance IS o 1 00 Included o 1 (0
bull EnN acmiddotess to email o J 9 In cluded o 99 bull - tI atlon IS QO erend b F __________~-~____~middot~ I I
Diabetic Jl ea I 8~e raQe lW bull Brunch Hot Brampaf1ast O hroom ch61j dar melet Vlth svegt potato hash ~ OQUfl s8ds onal ~ru lt bull Cold 8 ro3 f1ast Yogurt s3as on 31fru ll brea ljastc oh i o 1 00 o E OO o 1 GO bull l unch Dinner S 03tt ch ll 5alm )n grEen b-=ans hlts nee s ala l fresh frun bull Snacl - Gri lled chlcl en vllh corn sals3 fresh fru it
r Unaccompanied 11 lnor ChargB IDom estlc bull The safE of our children comes al 3 s first at -- o E OO o 7 00 o 7 00bull Children euroo ars and ol der rna rrael on -m erican Jrlines or m encan Eagle cn non-stop or sameshy
~~~OIir~JU~~ __ -_ bull -_ J ~ - ~~ -~ --- -- gt4 ~--___ ___- p --~~ _ _ ___ _A lt~
47201110212008 11
The Proposed Rule Verbiage is F ARELOGIX
No Coincidence
f Proposed rule verbiage Share the fee and price information with the independent sales
channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H
f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost
technology that ultimately translates to higher ticket fees and restricted consumer choice
Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines
It is not about consumers or transparency - it is market protectionism
12
Airline Res
tIt bull
Airline delivers its parts
bull
GOS
GDS manufactures airline offer
Airline Res
Airline Direct Connect (FareJogix)
GOS GOS functions only
as a distribution network
Airline delivers its productoffer based on traveler authentication
Witt
~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~
Recap Protect Choice and Lower F ARE L OGIX
Costs for Airlines and Consumers
The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model
If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices
New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry
Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way
15
F ARELOGIXRecap What is at Stake
If a rule is passed to dictate how airlines sell their product the travel industry will suffer
Continued inflated distribution costs forcing higher prices to consumers
Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies
Stifled innovation and competition in the travel distribution marketplace
Continued GDS monopolistic control over airlines agencies and ultimately consumers
Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways
beyond what the free market will support 16
Thank You
Contact info
Jim Davidson
President and CEO
Farelogix Inc
760 NW 107th Avenue Suite 300
Miami FL 33172
305 222-5401 office
630865-3997 cell
idavidsonfarelogixcom
wwwfarelogixcom
F ARELOGIX
Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell
elopezfarelogixcom wwwfarelogixcom
Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17
The Proposed Rule Verbiage is F ARELOGIX
No Coincidence
f Proposed rule verbiage Share the fee and price information with the independent sales
channels through the same systems and in the same manner through which the airline is already distributing fare and schedule information H
f In other words the GDS are asking the government to Force the airlines to use the same old limited antiquated and high-cost
technology that ultimately translates to higher ticket fees and restricted consumer choice
Enable the GDS to avoid investing in their own systems and to preserve their market power and exorbitant fees charged to the airlines
It is not about consumers or transparency - it is market protectionism
12
Airline Res
tIt bull
Airline delivers its parts
bull
GOS
GDS manufactures airline offer
Airline Res
Airline Direct Connect (FareJogix)
GOS GOS functions only
as a distribution network
Airline delivers its productoffer based on traveler authentication
Witt
~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~
Recap Protect Choice and Lower F ARE L OGIX
Costs for Airlines and Consumers
The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model
If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices
New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry
Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way
15
F ARELOGIXRecap What is at Stake
If a rule is passed to dictate how airlines sell their product the travel industry will suffer
Continued inflated distribution costs forcing higher prices to consumers
Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies
Stifled innovation and competition in the travel distribution marketplace
Continued GDS monopolistic control over airlines agencies and ultimately consumers
Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways
beyond what the free market will support 16
Thank You
Contact info
Jim Davidson
President and CEO
Farelogix Inc
760 NW 107th Avenue Suite 300
Miami FL 33172
305 222-5401 office
630865-3997 cell
idavidsonfarelogixcom
wwwfarelogixcom
F ARELOGIX
Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell
elopezfarelogixcom wwwfarelogixcom
Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17
Airline Res
tIt bull
Airline delivers its parts
bull
GOS
GDS manufactures airline offer
Airline Res
Airline Direct Connect (FareJogix)
GOS GOS functions only
as a distribution network
Airline delivers its productoffer based on traveler authentication
Witt
~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~
Recap Protect Choice and Lower F ARE L OGIX
Costs for Airlines and Consumers
The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model
If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices
New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry
Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way
15
F ARELOGIXRecap What is at Stake
If a rule is passed to dictate how airlines sell their product the travel industry will suffer
Continued inflated distribution costs forcing higher prices to consumers
Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies
Stifled innovation and competition in the travel distribution marketplace
Continued GDS monopolistic control over airlines agencies and ultimately consumers
Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways
beyond what the free market will support 16
Thank You
Contact info
Jim Davidson
President and CEO
Farelogix Inc
760 NW 107th Avenue Suite 300
Miami FL 33172
305 222-5401 office
630865-3997 cell
idavidsonfarelogixcom
wwwfarelogixcom
F ARELOGIX
Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell
elopezfarelogixcom wwwfarelogixcom
Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17
Airline Res
Airline Direct Connect (FareJogix)
GOS GOS functions only
as a distribution network
Airline delivers its productoffer based on traveler authentication
Witt
~ J ~middot~l jikl in rP~~~iiili2i1m1- ~~~[JnT-1 middottI~~
Recap Protect Choice and Lower F ARE L OGIX
Costs for Airlines and Consumers
The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model
If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices
New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry
Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way
15
F ARELOGIXRecap What is at Stake
If a rule is passed to dictate how airlines sell their product the travel industry will suffer
Continued inflated distribution costs forcing higher prices to consumers
Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies
Stifled innovation and competition in the travel distribution marketplace
Continued GDS monopolistic control over airlines agencies and ultimately consumers
Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways
beyond what the free market will support 16
Thank You
Contact info
Jim Davidson
President and CEO
Farelogix Inc
760 NW 107th Avenue Suite 300
Miami FL 33172
305 222-5401 office
630865-3997 cell
idavidsonfarelogixcom
wwwfarelogixcom
F ARELOGIX
Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell
elopezfarelogixcom wwwfarelogixcom
Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17
Recap Protect Choice and Lower F ARE L OGIX
Costs for Airlines and Consumers
The GDS and their supporters are masquerading as consumer advocates in order to preserve an antiquated technology and business model
If the DOTJOMB forces airline fee disclosure in the specific manner proposed the end result will harm consumers in the form of reduced choice and higher ticket prices
New technology and solutions exist that will remove billions of unnecessary dollars from the travel supply chain and translate to lower ticket prices for travelers as well as much needed innovation and competition in the industry
Product and service differentiation is simultaneously vital to airl ine economic survival and consumer satisfaction lets not get in the way
15
F ARELOGIXRecap What is at Stake
If a rule is passed to dictate how airlines sell their product the travel industry will suffer
Continued inflated distribution costs forcing higher prices to consumers
Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies
Stifled innovation and competition in the travel distribution marketplace
Continued GDS monopolistic control over airlines agencies and ultimately consumers
Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways
beyond what the free market will support 16
Thank You
Contact info
Jim Davidson
President and CEO
Farelogix Inc
760 NW 107th Avenue Suite 300
Miami FL 33172
305 222-5401 office
630865-3997 cell
idavidsonfarelogixcom
wwwfarelogixcom
F ARELOGIX
Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell
elopezfarelogixcom wwwfarelogixcom
Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17
F ARELOGIXRecap What is at Stake
If a rule is passed to dictate how airlines sell their product the travel industry will suffer
Continued inflated distribution costs forcing higher prices to consumers
Limited consumer choice and increasing gap between what is available on airline websites versus through travel agencies
Stifled innovation and competition in the travel distribution marketplace
Continued GDS monopolistic control over airlines agencies and ultimately consumers
Protect Consumers and Airline Innovation Do not compel airlines to distribute their product or share fee information in specific ways
beyond what the free market will support 16
Thank You
Contact info
Jim Davidson
President and CEO
Farelogix Inc
760 NW 107th Avenue Suite 300
Miami FL 33172
305 222-5401 office
630865-3997 cell
idavidsonfarelogixcom
wwwfarelogixcom
F ARELOGIX
Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell
elopezfarelogixcom wwwfarelogixcom
Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17
Thank You
Contact info
Jim Davidson
President and CEO
Farelogix Inc
760 NW 107th Avenue Suite 300
Miami FL 33172
305 222-5401 office
630865-3997 cell
idavidsonfarelogixcom
wwwfarelogixcom
F ARELOGIX
Edna Lopez SVP and Genera l Counsel Farelogix Inc 760 NW 107th Avenue Suite 300 Miami FL 33172 786-464-8620 office 305-804-6766 cell
elopezfarelogixcom wwwfarelogixcom
Confidentia l Farelogix Copyright 2011 Farelog ix Inc 17