“We See Ourselves Moving From Distributor, To Partner,To Consultant”

Raja Natesan, CEO, InterGlobe Technology Quotient (ITQ), speaks to Jyoti Koul, about the company plans and its vision

What are the current levels of growth and could you juxtapose that with the industry benchmark?

The GDS industry in India has witnessed a healthy growth of 18 to 19 per cent this year. We are growing at about 26 per cent annually.

What is being done to reduce cost and enhance revenue?

The question is not just about reducing cost but about bringing in more value for the same cost. Newer technology is making distribution reach every corner of the globe and every attempt is being made to get the maximum useful information for those who influence or decide the “buying” process. Also newer distribution methods are certainly reducing distribution costs, net based distribution being one such example.

Could you elaborate on the fee structure of GDS?

I cannot comment on the fee structure as this is negotiated directly between Galileo International and the vendor.

How long do you think it will take before the majority of suppliers and retailers are GDS compliant globally?

What is important for any supplier is to look at his cost and revenue model and accordingly choose the best distribution strategy

What are the future trends and challenges that you cite in this see in this segment?

I see content aggregation and consolidation as two major trends. It is the age of information and anyone who gives useful and unique information or services would certainly lead the pack. The other trend is of course the application of newer technology to attract clients. One visible challenge is the increase pressure on margins for all three segments ie the GDSs, the vendors and the agents.

At what level of evolution is India in terms of market maturity?

A mature market situation can only be contemplated in a steady state situation. Worldwide, the travel industry is facing many challenges relating to costs, both internal and external, efficiencies, staff turnover, changing distribution models, calamities, demanding and savvy clients. In such a state, it is not possible to measure maturity though I do feel that our market is very quick to adapt and adopt.

Are you considering other revenue opportunities in the future?

We already offer services that go well beyond distribution to include Business Process Improvement ( BPI), technology solutions (customised as well as ready frameworks) , Business Process Outsourcing( BPO) and we will offer these solutions to vendors, agents, tourism bodies and any body in the travel industry who could benefit from it.

How do you visualise your relationship with the travel trade?

Having worked with all kinds of travel related segments across various continents, we have a wealth of experience and a strong insight into the way the industry is evolving. Best practices, cost saving methods, enhanced revenue opportunities -- we have experienced them first hand and we are bringing them to India. Going forward, we see our relationship getting stronger and evolving from distributor to consultant.

Will your relationship with the airlines be altered if they were to re-examine their distribution costs?

All relationships evolve constantly and have to be nurtured. If we continue to add value in the true sense, our relationship with the airline will only get stronger

What differentiates you from other GDS providers in terms of vision, strategy, business model etc?

We are not just distributing products. We are travel technology consultants. We help improve efficiencies and bottom line. We are also strengthening the industry by introducing best practices and helping implement them. We provide additional revenue opportunities through the InterGlobe group. So the value our partners get by dealing through InterGlobe is a lot more.