sharing economy were among issues raised at London’s Olympia last week. Ian Taylor reports
Leisure agents warned over Lufthansa’s fee
Lufthansa has defended the €16 (£11.20) fee on global distribution system (GDS) bookings it introduced last September, insisting: “We think it’s the right move.”
But travel management companies (TMCs) questioned the impact of the fee on the corporate travel market. Adam Knights, managing
director of ATPI, suggested that leisure agents should be concerned. Christian Schindler, Lufthansa’s UK and Ireland general manager, said: “We’re not against TMCs. We talk to them and do business together, but business is moving on. “We want to offer the same thing in other channels as on our website. What channel a customer uses is their choice. If they choose the GDS, they pay more.
‘Lufthansa wants to take out the cost of the GDS for a price- driven leisure booking’
There is a channel difference.” He dismissed figures released
by the Guild of Travel Management Companies last month suggesting Lufthansa’s UK market share had fallen since it introduced the fee (Travel Weekly, February 11). “The GTMC only has its members’ figures,” he said. “It’s only part of the picture.”
Schindler also denied claims that Lufthansa is discounting fares to keep prices below those of rivals despite the fee. He said: “We haven’t discounted fares. In Europe we
LUFTHANSA: The carrier says it has not discounted fares to offset its fee
have a new fare system. You can book a fully flexible fare or a ‘light’ fare if you book one hour before a flight or 360 days before.” However, Knights said: “I question whether booking direct [with Lufthansa] is significantly cheaper [than the GDS]. The [Lufthansa] fare and fee is still lower [than some rivals’]. “It’s not good for customers if
direct connectivity with Lufthansa is cheaper by €16. Customers need to be challenging this. “We don’t see the need to sign a direct-connect deal with Lufthansa. Booking through the GDS, with the security and data [that provides], is efficient. If a BA
Airbnb ‘won’t appeal to business travellers’
A senior corporate travel executive has poured scorn on the likelihood of business travellers choosing ‘peer- to-peer economy’ accommodation such as Airbnb. “Most corporate travellers don’t like sharing anything
– a very low percentage is interested [in sharing sites such as Airbnb],” said Nigel Turner, senior director of programme management and business services at Carlson Wagonlit Travel. “Is this an issue keeping us up at night? Not at the moment. It’s a disrupter – the same as when low-cost carriers or budget hotels came on the scene.” Speaking at a Business Travel Show seminar on the sharing economy, Turner said: “The question is: whywould you want to stay in a shared property? “We’re OK to do it if customers want to do it. But
take Airbnb – it’s almost impossible for us to book on behalf of someone.”
However, Institute of Travel and Meetings director
Robert Hughes said the San Francisco-based company he works for added Airbnb to its travel programme two years ago. “10% of our travellers look at non- traditional models,” he said. “Bookings in Europe are nowhere near the US, [but] why stop people so long as it meets certain standards? I see a place for Airbnb in the industry. Hotels are going to have to look at different ways of maintaining market share. “Regulation is a challenge with suppliers in an
unregulated environment. There are gaps there. [But] we feel comfortable. They tick the boxes for us.” However, Turner said: “A hotel in a corporate travel
programme has probably gone through an extensive RFP [‘request for proposal’ process]. To then go to something like this [Airbnb] where there are no controls is strange.”
TURNER: ‘Corporate travellers don’t like sharing anything’
3 March 2016
travelweekly.co.uk 77
flight cost €400 and Lufthansa was €416, the corporate customer would still book [Lufthansa] with the TMC, but a leisure customer would book BA. Lufthansa wants to take out the cost of the GDS for a price-driven leisure booking. It’s a leisure issue.”
Jason Geall, vice-president and UK general manager at American Express Global Business Travel, said: “[The fee] has increased costs. It doesn’t offer choice. Customers will make their minds up. “Amex has no direct connect
with Lufthansa. All our bookings go through the GDS. “Customers want the ability to choose from all fares.”
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