W2, part of the GO7 group, now serves a record number of 97 airlines that have joined its network to expand global reach, revenues, and capacity amid an extraordinary travel demand boom. The airline and travel technology company provides global distribution and ticketing solutions for airlines, travel agents, and other travel operators and delivers on GO7’s vision of empowering airlines and other travel providers to create more commercial opportunities, improve connectivity, and provide a more valuable passenger service.
Over 50 airlines have partnered with W2 by GO7 this year, leveraging the company’s unique combination of AOC-holding airline and distribution solutions and services that deliver an immediate revenue uplift. W2 provides its airline partners with access to over 100,000 IATA-accredited travel agencies that can distribute their inventory in 190+ global markets and multiple global distribution systems (GDS).
Unique travel market conditions are driving historic growth
Driving W2 by GO7’s growth is the recognition by airlines of all sizes that expanding into non-core markets is valuable for optimizing their revenue strategies at a time when the industry is still operating at a loss (industry-wide losses are expected to decline for 2022 to “only” -$9.7 billion). Anticipating evolving airline revenue needs in a challenging travel climate, the company has enhanced its product portfolio, including ticketing and payments, to work agnostically across all passenger service systems (PSS) and provide payment capabilities in more than 190 global markets.
W2 by GO7 has also added China-based GDS Travelsky to its growing list of GDS partners, enabling airlines to access the 430 million+ tickets processed annually by Travelsky and providing entry into the world’s second-largest and fastest-growing civil aerospace and aviation services market.
At a time when travel demand is surging, the more distribution channels and markets an airline can have a presence in, the greater their competitive advantage. Our solutions give airlines the control and flexibility to expand and capitalize on changing market dynamics. Our growth over the past 24 months is a testament to our value and ability to deliver new revenue paths for airlines.Peer Winter, Chief Distribution Officer at GO7
The importance of airline network expansion
GO7’s synergistic portfolio of aviation and travel-related businesses combined with W2’s product enhancements and technology investments have enabled airlines to expand the distribution of their routes, optimize load factors and improve revenue quality – critical priorities for carriers of all sizes. While global airline capacity is growing month-over-month, it remains 14.2% lower compared to the same period in 2019, meaning that capacity growth through network expansion can be a difference-maker for many airlines.
The need for speed, cost-efficiency, and improving the value of their technology investments has also driven more airlines to join GO7 network, with little upfront investment required compared to traditional airline expansion strategies.
“The conventional process for an airline to list its inventory on a major GDS can take upwards of six months,” said Winter. “Our airline partners have been able to set up distribution and ticketing with us in less than a week, meaning they can be in new markets quickly.”
W2 by GO7 has also addressed a big pain point for airlines entering and operating in new markets: payments. Airline partners can avoid the lengthy process of establishing agreements with credit card issuers country by country by utilizing the company’s billing and settlement plan (BSP) agreements in 190 countries.
Expanding beyond air networks and embracing the “train to your plane” model
W2 by GO7 is also leading the way in driving passenger volume through intermodal travel with its Deutsche Bahn partnership. More than 50 airlines have added the ability to book high-speed train service to their networks through the rail operator’s Rail&Fly initiative; passengers can book their flight and rail tickets on a single itinerary and get to any airport or train station in Germany served by Deutsche Bahn, as well as Amsterdam, Brussels, Zurich and Vienna by rail.
Our investment in developing solutions for airlines that remove the complexity of doing business in niche and remote markets and give them more control over their distribution, ticketing and revenue processes is resonating with carriers of all sizes as they rethink their traditional expansion approaches and grapple with ongoing cost-reduction and new revenue-generation demands heading into 2023.Peer Winter, Chief Distribution Officer at GO7
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