Explainer: Passive Segments

From a travel management perspective, the cleanest and easiest way to book travel is through a content channel fed by a global distribution system. Many travel management company tools and processes are based on or integrate with GDS technology. It's been the predominant way corporate travel has worked for decades. It still is, but rates and inventory also come from other channels. TMCs need workarounds. Passive segments are a stopgap. They could become more important, at least temporarily, as airline distribution evolves.

What are passives?

A "non-billable" passive segment typically is . . .

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Author: David Jonas

David Jonas in 2006 co-founded business media firm ProMedia.travel after ten years as a journalist with Business Travel News. David rejoined BTN in 2010 as executive editor when its parent company acquired ProMedia, and in 2014 co-created The Company Dime. David has a bachelor's degree in communications from Cornell University.

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Mary Ellen George
Advisor

One thing we can count on is TMCs being entrepreneurial and they’ve done so in their use of passive segments as a work around. The good news is there’s technology available now that eliminates the need for passive segments. Post-booking management of hybrid content regardless of booking source can be done without the use of passive segments. TMCs just need to be open to adopting a new workflow and look to an enterprise solution versus their only known way, the layered-up legacy tech stack. As Zig Ziglar said, “You don’t have to be great to start, but you have to… Read more »

Michael Jacques
Advisor

The “explainer” piece was well done, but like several of my tenured industry and experienced colleagues I immediately thought of the 1974 song, “How Long Has This Been Going On.” It’s time for travel tech providers and developers to embrace change, and leverage APIs and new platforms. The GDS-centric model has been dying slowly. The relevance of the GDS will remain, just not at the center and they will continue to play a role, but come on, how long has this been going on? Too long.