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Hot Topic: Unbundling: The New Buzzword!    

Firstly, you had better read the leading news link in this weeks News Around the Net. The story is about unbundling airline services beyond the travel itself in an attempt to bring the travel portion of any flight into the forefront so that the large ticket Global Distribution Systems (Sabre, Galileo, etc.) so they can competitively offer ticket prices against Low Cost Carriers (LCC's). This will impact both the amount and the type of In-Flight Entertainment system and content on your future flight. It will probably affect your wallet at the same time.

The gist of our story, as we note above, is an initiative by the GDS crowd will almost definitely force travelers into re-thinking how to spend their travel dollars as well. For the uninitiated, we offer a conversation with our airline economics guru, but you should look for one of the underlying reasons for this change - new revenue streams. Take IFE for example, If passengers want IFE, in the new system, they will have to pay for it. The GDS people would like that decision to be made up front (where their revenue cut is obvious), but we think this is often a compulsive purchase (i.e., crying baby) and IFE systems just may have to provide a simple pay & play-as-you- go front end on their products. At least, a card swipe option, is a requirement.

Not only IFE will feel the impact of these new programs, think about ticketing and the issues sorting seating based on an internet purchase. A person who bought and paid for a window seat in the exit row will not only have to be placated but money will have to change hands and this may be difficult for crews in flight. Inflight Entertainment wont be as clean either. What if you purchased the entertainment package and plunked down $10 for the flight. Things break, so you alert your cabin crew that you need IFE and you only get a "blue screen"? Change seat, heck no, I also paid for more legroom section and I am not moving to a cramped seat with a working IFE terminal. I see a portable or portable-like solution in this future, don't you?

Experts tout that a new stream of merchandising and attendant revenue is awaiting airline adoption of this program but we see problems with the implementation of the plan. There is no standardization of feature pricing and travelers will have to begin throwing in dollar-based, weighted points in their economic voting decisions. What is more legroom actually worth. It seems that when airlines cut out food, we brought our sandwiches or we carried our own water (pre-TSA) when serving personnel were reduced. IFE may go the same way - if content does not rock your world, you may choose to bring your own Rock! . Be afraid, be very afraid!

Foot Notes

1. Geoff Underwood sends this along to our readers; "How about this one to make you go buy your own Bose QC3's"!

http://www.ncbi.nlm.nih.gov/sites/entrez?cmd=Retrieve&db=PubMed&list_uids=1731163&dopt=Abstract 

2. A Blogger called 'Slinky Sausage' wrote this:

"Australian international airline Qantas has just announced in-flight broadband will be available across all classes in its new fleet of A380s. Also on offer will be laptop power in economy and internet access in the seat-back entertainment system. They are retrofitting existing 747s with elements of the technology, and providing several ports for passengers with more expensive tickets: 'The USB ports will be used for "viewing of content" on the in-flight entertainment system, though Qantas wouldn't be drawn on whether that would include Divx video capability, or the ability to connect an iPod. It would also allow recharging of USB-powered devices. The Ethernet port is for laptops that don't have wireless, or for people who simply prefer an Ethernet connection over Wi-Fi, which could potentially become congested in an aircraft if in-flight internet usage becomes popular.'"
 

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Boeing, Air India Celebrate First 777-200LR Delivery
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MEZZO announces new contracts with three TUI Group airlines
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GDSs Enable Unbundling Of Air Pricing
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Inflight Broadband and Laptop Power to Every Seat... on Qantas
Yahoo Tech

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eTravel Blackboard
 

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9/3/2007 - 9/6/2007

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9/3/2007 - 9/6/2007

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