Delta Air Lines is implementing Orbitz Supplier Link technology in a bid to reduce its distribution costs.Introduced in August 2002, Orbitz Supplier Link was designed to assist airlines in lowering distribution costs by establishing a"direct link” to an airline’s internal reservation system to store passenger records, manage information and book tickets. Supplier Link charges a minimal fee per ticket processed and currently represents approximately 50 percent of Orbitz’ overall air transactions.
“The airline industry continues to struggle with a difficult competitive environment and surging fuel costs. In order to be cost competitive and successful in the industry, airlines need to simplify their business models. Supplier Link technology is a proven and scaleable direct connection to airlines, providing eight major U.S. carriers with substantial cost-savings,” said Ken Esterow, President and CEO, Travel Industry Services, Americas, Cendant TDS.
Orbitz’ Supplier Link helps reduce distribution costs by charging a $4 flat fee per ticket processed through Supplier Link, while airlines typically pay about $12.50 to $14 per each ticket processed through Global Distribution Systems.
Pam Elledge, Delta’s vice president of Sales and Distribution commented: “Delta is committed to creating a competitive distribution cost model which allows us to provide content to customers in the lowest cost channels in line with Delta’s overall transformation efforts.”