What if the very systems that airlines rely on are the root cause of your travel hassles? Join us for an eye-opening conversation with Paul Sies, CEO of Journey Mentor, as we uncover the antiquated technology that still governs major airlines today. With Paul’s 37-year aviation journey, we explore the early days when he worked to dismantle regulated airline systems and the subsequent rise of low-cost carriers. Despite technological advances, why do these outdated systems persist, causing frequent outages and poor customer experiences?
Ever wondered why airline tickets cost so much? The cost isn’t just in the airfare itself but in the complex distribution systems that airlines are reluctant to abandon. We also tackle the industry’s hesitation to innovate despite the clear cost savings from direct online sales. Discover how major players like Amadeus and Sabre maintain their grip on the market by absorbing emerging technologies that could otherwise disrupt their stronghold.
Say goodbye to clunky travel booking systems! Paul and Shane introduce us to Journey Mentor, a revolutionary platform aiming to transform your travel experience. By connecting directly with airlines, hotels, and car rental companies, Journey Mentor promises transparency and efficiency, cutting out unnecessary intermediaries. Learn about the innovative backend designed to minimize costs while maximizing user-friendliness, and explore the pricing models that could change the future of travel booking. 
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Episode Summary
Journey Mentor’s forward-thinking approach offers the promise of a more streamlined and transparent travel booking process, making this episode valuable for anyone interested in the future of air travel.
In this episode, “Unveiling Airline Tech and Distribution: Challenges and Innovations,” Paul Sies, CEO of Journey Mentor, discusses the intricacies of airline distribution systems and the technology behind the aviation industry. Despite significant advancements in technology, many airlines continue to rely on outdated systems, resulting in operational disruptions and negative customer experiences. With over 37 years in the aviation industry, Paul offers a unique perspective on the technological challenges that persist today.
Paul reflects on his early career during the late 80s and early 90s, a period of significant change in the industry, marked by the rise of independent and low-cost carriers. Although internet-based solutions have since been introduced, many airlines are still reluctant to abandon traditional systems like Sabre and Amadeus. These systems, while profitable for the companies behind them, continue to impose high costs on airlines, costs that are ultimately passed on to consumers. As a result, air travel remains more expensive than necessary, and innovation is slow to take hold.
The price of an airline ticket is more than just the airfare—it’s also tied to the complex distribution systems that airlines are hesitant to move away from. Paul explains that Global Distribution Systems (GDS) and financial settlement processes like ARC and BSP contribute significantly to airline costs. For example, a booking made through a travel agent can cost an airline $25 to $50 per ticket. These charges support large infrastructures that could be reduced through direct online sales, yet the fear of losing market share and the high costs of innovation keep airlines tied to these systems.
The pandemic has added pressure to the aviation industry, and Paul is cautiously optimistic that it might prompt a shift in how travel is managed and purchased. The current reluctance to innovate might give way to more efficient, cost-effective solutions. However, major players like Amadeus and Sabre maintain their hold on the industry by acquiring emerging technologies that could challenge their dominance. This creates an environment where meaningful change is difficult to achieve.
Journey Mentor seeks to address these challenges by providing a platform that connects directly with airlines, hotels, and car rental companies, removing the need for intermediaries. This approach aims to increase transparency and efficiency. The platform offers two pricing models: a lower transactional fee compared to traditional systems, or a profit-sharing model based on additional revenue. Both options aim to reduce costs for airlines while offering a more sustainable system in the long run.
Paul and his colleague Shane, both experienced in the aviation field, discuss their vision for Journey Mentor and compare its potential impact to the transformation seen in banking with companies like Revolut. They explain how Journey Mentor strives to offer a more flexible and straightforward travel experience, particularly during disruptions. The platform’s AI-driven search technology helps users find the best travel deals based on their preferences and continues to look for savings even after the booking is made, providing a more seamless experience for travelers.
Journey Mentor’s approach could lead to improvements in how travel is planned and booked, with its direct connections to service providers and continuous search capabilities. This has the potential to shift the way people experience travel by making it more efficient and customer-focused.
