Ryanair is the kind of airline that I would suspect might run their own stack, and therefore not have the same cost structure.
Ryanair is the kind of airline that I would suspect might run their own stack, and therefore not have the same cost structure.
Can you say how access to an airline's flight catalog works and what that business model looks like? Is it pay per search for these third party search engines?
Now the pricing can be complex, a good first order approximation is that you pay a fee for access to the GDS, that varies depending on how many queries you are doing. For a traditional travel agency this fee will be very low, obviously for a major OLTA it will be big. However, for every booking that you perform, the GDS will give back a sizable amount of the distribution fee that it took (we are talking several euros per flight here). So as long as your "look to book" ratio is reasonable, the access costs will be small compared to the incentives you make.
Edit: Why are airlines pushing for the "direct" channels? Because it means they can cut out the middleman of course, the GDS. The problem is that this makes it hard for a travel agency to connect to every airline - the fixed costs of setting up pipes to every airline would be astronomical. And there will be an incentive for agencies to negotiate preferential deals with certain airlines. Both of these factors are obviously negative for the end user, travelers. It's a similar question to the whole net neutrality thing
Sabre for example was originally American Airlines' system, and Amadeus was initially created by a consortium of european airlines in reaction to the threat of american hegemony on this market. They are now far more profitable than their parents :)
They were all originally heavy mainframe operations (IBM TPF - which was quite an impressive system... in the 80s), but there is a transition to modern architectures. Amadeus have completed the transition to Linux boxes, Sabre are still ongoing. They both have some of the biggest civilian data centres in the world
2017:
* American Airlines profit: 7.6 Billion USD
* United profit: 7.1 Billion USD
* Delta Airlines profit: 4.7 Billion USD
* Southwest: 2.2 Billion USD
Total operating revenues: 42.2B
Net income: 1.90B
For a profit of 4.5%. Where are you getting your numbers from?
https://americanairlines.gcs-web.com/static-files/17cae9f4-5...