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Author Question: Why did airlines spin off their GDSs? What will be an ideal response? (Read 100 times)

Garrulous

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on: Sep 11, 2019

Question 1

Why is price competition not as important a factor in lodging as it is in the airline industry?
 
  What will be an ideal response?

Question 2

Why did airlines spin off their GDSs?
 
  What will be an ideal response?


KKcool

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Reply #1 on: Sep 11, 2019

Answer 1

Similar to Question 2, price competition is not as frequent in lodging as with airlines because of the former's ability to differentiate its product.

Answer 2

Airlines spun off or set them up as independent public companies while retaining a substantial ownership stake in order to raise capital.


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