Original title: Analysis of the market status of the global distribution system (GDS) industry in the civil aviation industry in 2021, TravelSky has the second largest share in the world and the first in China “Picture”
I. Overview of the global distribution system industry
GDS was originally developed by airlines with the help of computer information The system connects air transport flight plans, airline seats, fares, travel products (such as restaurants, tours, car rentals, etc.) and other distribution channels such as sales agents to form a variety of combined products for different market needs , so that consumers in different parts of the world can get timely, transparent, accurate, and wide-ranging information once they use or enter the system, and can choose and buy, thereby reducing the cost of choice and purchase, and providing consumers (users) with Maximum convenience for travel and other needs.
GDS originates from CRS (Computer Reservation System for Airline Sales Agent Distribution), but unlike CRS, airlines use computer information technology for their own flights Seat management, including seat reservation, control and management, and input of relevant information on reservation, ticketing and ticketing, used for the selection and determination of passengers’ flights and seats and their fares, the business process of the system does not A single customer (consumer) provides services but provides services to customers through intermediate links.
The general process of CRS providing specific services to users
Data source: CNKI, collated by Huajing Industry Research Institute
GDS consists of three parts, namely ICS (flight control system), computer distribution system ( CRS) and Airport Passenger (Departure) Control System (DCS). When passengers have the need to travel by air, the global distribution system (GDS) can coordinate operations among airlines, ticket sales agents, airports, and passengers. The operation process of GDS is as follows:
The operation process of the Global Distribution System (GDS)
Source: public Data Collation
II. Analysis of the Market Status of Global Distribution System Industry
1 , the global distribution system is greatly affected by the civil aviation industry
The growth rate of the number of passengers transported by China’s civil aviation, the domestic passenger traffic handled by TravelSky’s Electronic Travel Distribution (ETD) system The growth rate of flight bookings of foreign airlines and the revenue of aviation information technology service business of TravelSky are almost the same, which shows that the performance of TravelSky is closely related to the development of the domestic civil aviation industry.
2010-2021 TravelSky’s performance is closely related to the development of domestic civil aviation industry
Data source: Civil Aviation Administration, company announcement, collated by Huajing Industry Research Institute
2. Civil Aviation Passenger Traffic< /span>
From the perspective of my country’s civil aviation passenger traffic, excluding the impact of the new crown epidemic in 2020 and 2021, from 2009 to 2019, the air passenger traffic increased from 230 million passengers. The number of passengers has grown to 660 million, and the CAGR has reached 11.12%. The growth of civil aviation demand needs to be driven by the continuous increase in the number of flights per capita.
2010-2021 my country’s civil aviation passenger traffic and growth rate
Data source: Civil Aviation Administration, collated by Huajing Industry Research Institute
3. Number of civil aviation transport aircraft and airports in my country
The growth of civil aviation supply is mainly driven by the increase in the number of aircraft and airports. According to the Civil Aviation Industry Development Statistical Bulletin, from 2009 to 2021, my country’s transport aircraft (including passenger transport Aircraft and transport cargo aircraft) increased from 1,417 to 4,054 with a CAGR of 9.15%; the number of transport airports increased from 210 to 248 with a CAGR of 3.40%.
The number of transport aircraft and airports in my country from 2009 to 2021
Source: Civil Aviation Industry Development Statistical Bulletin, collated by Huajing Industry Research Institute
4. Key points of transport airports during the “14th Five-Year Plan” Construction Projects
According to the “14th Five-Year Plan for Civil Aviation Development” jointly issued by the National Development and Reform Commission and the Civil Aviation Administration of China, by 2025, the number of civil transport airports will reach 270. According to the “Notice of the Civil Aviation Administration on Printing and Distributing the Action Outline for Building a Powerful Civil Aviation Country in the New Era”, by 2035, about 450 transport airports will be built.
Key construction projects of transport airports during the “14th Five-Year Plan” period
Source: “14th Five-Year Plan for Civil Aviation Development”, collated by Huajing Industry Research Institute
III. Global Distribution System industry competition pattern analysis
1. GDS industry has high competition barriers
< span>Because the aviation information system is relatively complex and needs to be equipped with various functions, such as flight control, ticket distribution, check-in and stowage, etc., the development cycle is long and requires a lot of R&D investment, forming a certain industry entry barrier, GDS system) It is a highly complex system with a high initial capital investment. From the perspective of TravelSky’s capital expenditure, according to statistics, the median of TravelSky’s capital expenditure from 2012 to 2021 is 1.004 billion yuan.
2012-2021 TravelSky Capital Expenditure and Growth Rate
Source: company announcement, collated by Huajing Industry Research Institute
2. Four major GDS companies in the world strong>
The four major global distribution systems (GDS) are: Amadeus, Travelsky, Sabre and Travelport. Amadeus’ dominant market is in Europe, with a global market share of about 30%, making it the world’s largest GDS supplier. Travelsky’s dominant market is China, with a domestic market share of about 95% and a global market share of about 28%, making it the second largest GDS supplier in the world. Sabre’s dominant market is in North America and Latin America, with a global market share of about 23%.
Travelport’s dominant market is North America and Europe, with a global market share of about 18%.
Comparison of the four major GDS companies in the world
Data source: public data collection
Considering that excessive international GDS and premature entry into the domestic market may lead to problems in the management and control of civil aviation safety data, the current government has imposed certain restrictions on TravelSky. Policy protection not only restricts domestic GDSs to one, but also restricts foreign GDSs from entering the Chinese market. With the support of the government and the three major shareholders (the three major airlines), TravelSky, which is responsible for the establishment of the domestic civil aviation GDS system and the promotion of civil aviation informatization construction, has continued to develop, forming an absolute dominance over domestic civil aviation ticket bookings. At present, except for some low-cost airlines, all other domestic airlines have access to the GDS of TravelSky.
Global distribution system market share by region (%)
Data source: public data collection
Aviation information technology service business provides flight control system service ICS, electronic travel distribution system service CRS for airlines , Airport passenger processing system service APP and civil aviation commercial data network service, of which ICS+CRS service is bundled into airline passenger reservation system service, and the charges are based on the regulations of the Civil Aviation Administration of China. The fee for each person on the outer flight is not more than 6.5~7 yuan, and the specific fee is determined by the company and the airline based on the number of seats booked. At the same time, the Civil Aviation Administration of China has also set a price ceiling for APP services, requiring that the charge per person for domestic flights does not exceed 4 yuan, and the fee for domestic flights does not exceed 7 yuan per person. According to the regulations of the Civil Aviation Administration of China, the company’s aviation information technology unit price (ASP) should not exceed 10.5 yuan at most (6.5 yuan for passenger reservation system service price ceiling + 4 yuan for the APP price ceiling).
TravelSky Aviation Information Technology Service Charges
< p>Source: company announcement, collated by Huajing Industry Research Institute
IV. SWOT analysis of global distribution system industry
The major foreign GDS operators have been seeking to enter the Chinese market in different ways. At present, according to my country’s WTO commitments, foreign GDSs are not allowed to have commercial presence in my country. Once the promise of commercial presence is released, foreign GDSs will flood into the Chinese market, thus breaking the monopoly of TravelSky and dividing the existing Chinese GDSs. market share. With the advantages of foreign GDSs in functions, technology and services, a large number of enterprises and users will turn to foreign GDSs, and a large number of domestic agents will turn to access and use foreign GDS systems with high-quality and low-cost services. Foreign GDS companies will compete for the Chinese market one after another, and the competition will be further intensified.
Openness is a trend, and openness is inevitable for development. A mature market is often a relatively open market in a country. Although open may giveChina’s GDS industry brings certain risks and challenges, but by gradually opening up China’s GDS market, China’s GDS companies will continue to grow and develop, which can prompt companies to change their business philosophy and innovate business models, and at the same time, it can also bring funds, Market and advanced technology and management experience, etc., and constantly improve the ability to deal with market competition and risk pressure.
Through the analysis of the internal and external environment of my country’s air transport industry, according to SWOT analysis, my country’s GDS should adapt to the development and win the competition, should make full use of external opportunities, Give full play to your own advantages, tap your own potential, weaken, transform or eliminate your weaknesses, so that you can grow rapidly and gain a lasting competitive advantage.
Global Distribution Systems Industry SWOT Analysis
Data source: public data collection
V. Global distribution system industry development strategy
< span> With the implementation of my country’s GDS strategy and its measures in the near-term, mid-term and long-term, it is necessary to carefully evaluate the degree and effect of its implementation and progress, and timely adjust, revise and improve the long-term development strategy and Its goals and measures, combined with the actual situation, take countermeasures, constantly win development opportunities, and strive to achieve the development goal of my country’s civil aviation GDS globalization.
In order to realize the long-term development strategy and goals of my country’s civil aviation GDS globalization, it should be achieved: First, at the technical level, it has a considerable international level and independent innovation and development. Second, in the scope and field of services, it must have first-class international service fields and standards, and continue to win the recognition and pursuit of the market and users; third, in terms of independent brands, it must have the first-class international GDS market. The influence and competitiveness of the company has become a well-known brand in the Asian market and international related markets, and enjoys a high market reputation; fourth, in terms of the company’s development and innovation capabilities, it has a unique corporate culture atmosphere and first-class R&D and innovation talents, able to Under the ever-changing environment and conditions, keep up with the pace of development and have strong R&D and anti-risk development capabilities.
Looking at the rapid expansion and development of the global GDS system, there is no doubt that along with the trend of economic globalization and air transport liberalization, the development of major international GDSs has also appeared some The new trends, that is, the different development trends and trends of separation or integration, have attracted great attention and research from the industry. But despite this, no matter how GDS is separated or integrated, because it uses computer technology as a means and air transport marketing as its content, in view of its own attributes and functions, it cannot be separated from the scope of international air transport with national sovereignty attributes. , subject to its exclusion or limitation. Therefore, in a certain period of time, the development and changes of GDS still belong to the bilateral air transport arrangements between governments and the negotiating chips of “asking price” and “offering price” among member states under the international multilateral trading system.
It is true that the construction and development of China’s GDS system is one of the important means and methods for China’s air transport industry to integrate into international air transport and to continuously improve market competitiveness. The development and changes of the global GDS undoubtedly pose new challenges and requirements to my country. To fully understand and grasp the development trend of global GDS, in promoting the construction and development of China’s GDS system, talent is the first priority, technology is the key, management is the guarantee, service is the foundation, and innovation is the focus. As an enterprise, it must have a clear market positioning, identify the “breakthrough” for development, constantly innovate its business philosophy, enrich and improve the determined enterprise development strategy and supporting measures, and adapt to and keep up with the new requirements and new requirements put forward by the changing situation. challenge. At the same time, as the competent department of the government industry, it must stand at the height of overall development, review the situation, grasp the policy direction of macro-control and micro-opening, gradual and moderate opening, and create a good environment and conditions for the construction and development of China’s GDS, and strive to make The construction of China’s GDS system has been in the forefront of the development of the international advanced GDS system as soon as possible.
Original title: 2021 Global Distribution System (GDS) Industry Market Status Analysis of Civil Aviation The Industry Research Institute has conducted an in-depth analysis of the development status of China’s global distribution system (GDS) industry, the upstream and downstream industry chains, competition patterns and key enterprises, so as to minimize corporate investment risks and operating costs and improve corporate competitiveness; and Use a variety of data analysis techniques to predict the development trend of the industry, so that companies can seize the market opportunities in time; for more details, please pay attention to the “2022-2027 China Global Distribution System Market Panorama Evaluation and Investment Planning Recommendations Report.