Atpco's Supply Chain Model
3.3. Suppliers and Supply Chain
The identification of the suppliers for TP depends on where the company would position itself in the supply chain. Figure 7 illustrates the indirect distribution of airline tickets from airline companies to the travelers. Airline companies submit their fares to Airline Tariff Publishing Company (ATPCO) or Société Internationale de Télécommunications Aéronautiques (SITA). Both act the same and publish the latest fares which are being updated multiple times per day in electronic format to the next stage of the supply chain. Prior to 2011, ATPCO had a monopoly in the Americas as SITA was operating only in Europe, Asia and Africa. Although both are operating all over the world, ATPCO has higher dominance and control of this stage.
Figure 7 Indirect distribution model for airline tickets
The next stage of the supply chain are the main distributors of the flight data. In 1996, ITA software was introduced and started competing with the already existing Global Distribution Systems (GDS). In 2010, ITA was acquired by google. This acquisition enabled google to add the feature of comparing flight fares on their website. ITA and the different GDSs act as the supporting databases that provides all the required data for the Online Travel Agencies (OTA) and
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OTAs and SEs have different business model. OTAs get the flight fares and schedules as well as all required information from GDSs and process them to the user. The user can also book the tickets on OTAs’ websites if adequate tickets were found. OTAs’ revenue streams depend on how its business model is structured. In merchant-based model, OTAs earn money as a charge which is applied on each itinerary while they earn money through a commission from the airline company in the agency-based model. In both models, OTAs can earn money as a commission from the GDSs through which the booking is
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