INDSUurSve Ty RY
Monthly pricing method
10% 13.9% 13.1%
Fixed monthly amount “No-minimum” pricing
0% Productivity pricing plan Other
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Continued from Page 44
( 20.7%) on the GDSs.
ABOUT THOSE CONTRACTS
Half ( 50.9%) of ASTA agencies with GDSs have
three-year contracts. Another 18.5% have five-year pacts, and 11.4% have two-year agreements.
Those portions are not drastically different from
2005 or 2006, but there has been a notable change
since 2004 when there were more five-year pacts
Contracts also have moved toward more no-minimum pricing plans, which means subscribers
are not contractually obligated to book a minimum
number of trip segments. This year, more than a
third ( 38.2%) said they have no-minimum plans,
up from 24.8% in 2005 (Fig. 4).
On the other hand, today only 13.9% pay fixed,
monthly amounts for their systems, down from
27.2% two years ago.
Finally, about a third ( 34.8%) of GDS users said
they pay, or not, based on productivity, a share that
has not changed. The remaining 13.1% could not
pigeonhole their contracts in these categories.
Members reported that their average monthly
rack rate per CRT (or terminal), before discounts
or penalties, is $227.52, down significantly from the
$307.80 reported in 2006 .
However, after allowin g
for discounts and penalties, the agents reported they are paying an
average of $13.70 per
CRT each month.
Also, among those
agencies whose contract s
contemplate discoun ts for productivity, the a verage
minimum monthly se gment
requirement per CRT i s 115, a
threshold that has been declining in recent years
(Fig. 2, Page 44). The minimum requirement was
197 in 2004.
ASTA reported that agencies can earn rewards for
signing a GDS contract. Therefore, among ASTA
agencies with GDSs, more than half ( 57.3%) said
they receive an incentive credit for signing up. Another 42.6% said they have no opportunity to earn
incentives for signing up (Fig. 3, Page 44).
The other side of credits or bonuses is penalties.
Half of all ASTA’s GDS users ( 51.1%) said their
GDS contracts do not have minimum-use clauses,
meaning those clauses that require subscribers to
produce a stated minimum number of segments,
and another 27.4% said they were not sure.