Travel Technology for Dummies: What Is Full Content?

What Does Full Content Actually Mean?

Since the legal dispute between US Airways and Sabre, we hear “full content” everywhere. After the verdict, where a jury decided among other things that methods of the GDSs (Sabre) to force airlines into full content agreements are unlawful, a number of airlines (among them American, Air Canada, JetBlue, Lufthansa Group, United Airlines, Alaska Airlines, and Virgin America) now try to enforce this verdict in order to get better deals. All this can be read in other blog posts I wrote or e.g. on The Beat [paywall] or The Company Dime [paywall]. But the question becomes: What does full content actually mean?

The term “full content agreement” refers to a clause in the contract between an airline and a Global Distribution System (GDS) which obligates the airline to distribute all of its fares via the GDS. It may point to a “Most Favored Nation (MFN)” clause as well as a “content parity” or “full content” provision in agreements between carriers and GDSs. GDSs and airlines enter into agreements via a common contract form called PCA (Participating Carrier Agreement). “Full content” in essence means that in order to pay less for distribution in certain markets, the airline agrees to provide the same content via a GDS as it does down any other channel, including its own – such as its website or call center. Those distribution fees can go down to $ 1.35 and average around $ 4.29 per segment in North America. If an airline violates such agreement, the fees are likely to go up – how much is a big question mark and other factors play in – including but not limited to parity provisions that deny airlines the flexibility to work in order to expand and enhance their partnerships with other lower-cost GDSs.

All Offers in One Spot? Full Transparency – the Suppliers’ Nightmare!

In an ideal world from a consumer perspective, if a GDS has full content agreements with all airlines, treats all airlines equally and has no technical flaws in the system, consumers should find the completed offer in one spot – meaning they should see all airlines being treated equally based on cost, departure/arrival, duration, class of services, availability, stops, etc. No shopping around necessary. But we all know that this is not the case. Why? My simple understanding is: Airlines need to compete one another and distinguish themselves. How can they do that if the consumer experience is broken down to a seat? The same applies to GDSs: they may earn more in booking fees if they prefer the sale of a certain airline. However, why exactly this is not the case is for social economists to explain. I want to explain what terms float around and how the travel industry works in reality rather than picturing myself in an ideal world which will never happen.

Airlines pay GDSs for distribution – so-called commissions and overrides.