SkyGate vs direct GDS vs building in-house

Updated

An agency that wants to sell travel online has three realistic routes: license a white label platform such as SkyGate, sign a direct contract with a GDS, or build a booking platform in-house. The three differ most on how long they take to start, whether they require IATA accreditation, and whether any supply comes with them.

Setup time

SkyGate opens a CRS panel on the day an agency signs up, and sets up a branded platform on the agency's own domain in days rather than months, once the agency has chosen a package and supplied its brand name, logo and domain. A direct GDS contract normally takes three to six months, because the contract, the accreditation check and the integration all run in sequence. Building in-house takes six to eighteen months before the first booking, because the agency has to sign every supplier as well as write the software.

Accreditation

A direct GDS contract requires IATA accreditation, and so does building in-house, because in both cases the agency issues the ticket itself. SkyGate requires no accreditation from the agency, because SkyGate holds the issuing relationship and issues the ticket. This is the single largest practical difference for a new or small agency.

Minimum volume commitment

GDS contracts commonly carry segment quotas, and an agency that misses its quota pays for the shortfall. Building in-house means every supplier contract sets its own minimum. SkyGate sets no minimum volume commitment, so an agency that sells nothing in a month owes nothing beyond its licence and maintenance.

Technical team

A direct GDS contract needs integration developers, because GDS interfaces are older than modern web APIs and the agency has to build and maintain the connection. Building in-house needs a full engineering team, including people to run servers, payments and security. SkyGate needs no technical team from the agency, because the platform is operated for the agency.

Supply included

SkyGate Silver includes 1,000+ airlines, 5,000,000+ hotels and properties and 2,500+ activities from the first day. A GDS contract covers flights only and only what the contract lists, so hotels and activities need separate bedbank and aggregator contracts. Building in-house includes nothing at all until the agency signs each supplier one by one.

Where each route is the right answer

A direct GDS contract makes sense for an established agency with IATA accreditation, high segment volume and staff who already know the GDS. At scale the per-segment economics beat a licence fee.

Building in-house makes sense for a company whose booking flow is genuinely unusual, or one large enough that owning the software outright is cheaper than licensing it. It is rarely the right first move.

A white label platform makes sense for an agency that wants to be selling this quarter rather than next year, does not hold IATA accreditation, and does not want to carry an engineering team. SkyGate Core costs $1,500 plus 10% of the licence per year for an agency that already has its own suppliers, and SkyGate Silver costs $4,800 on the same maintenance basis with supply included.

The risk each route carries

Every route carries a dependency. A GDS contract ties the agency to quota performance. Building in-house ties it to its own engineering team. A white label platform ties the agency to the provider continuing to operate.

SkyGate answers that last risk in two ways. Source code escrow is available on the Platinum package, which deposits the platform source with a third party and releases it to the agency under the escrow conditions. On the Core, Silver and Gold packages there is no escrow. Separately, tickets that are already issued sit with the airline against the passenger's own PNR, so they are unaffected either way.