Division (23)

As long as TAs use ‘single-homing’, GDS providers have exclusive access to TAs belonging to their respective TA networks. Each GDS provider therefore has a certain degree of monopoly power in relation to TSPs that need to reach the TAs exclusively connected to one GDS. This monopoly power allows the GDS provider to charge higher prices to TSPs. These ‘monopoly rents’ extracted from TSPs are to a large extent used to cover the financial incentives granted to TAs.