IN BRIEF DISTRIBUTION
INDUSTRY PROTESTS AT LUFTHANSA’S GDS FEE
BUSINESS TRAVEL BUYERS AND SUPPLIERS are being urged to join a new cam- paigning group set up fol- lowing Lufthansa’s decision to begin charging a e16 fee for booking through a GDS. US-based lobbying
group the Business Travel Coalition, has formed Air Channel Choice, billed as a “broad coalition of global stakeholders to promote travel distribution system choice for travel agencies and their customers”.
UK-based members of the
group already include several TMCs such as ATPI Group, Eton Travel, Cresta World Travel and Matrix Travel
GDSs
Travelport MD: online travel sales slowing
THE GROWTH OF ONLINE TRAVEL SALES has slowed, a GDS provider has claimed. Simon Ferguson, Travelport’s managing director for UK, Ireland and the Nordics, told the GTMC conference in Brussels that the UK travel market as a whole was growing at 5 per cent and online travel at only 6 per cent. “Online is still growing, but not much more than the overall market – that’s a very common picture in a mature market.”
BUYINGBUSINESSTRAVEL.COM
Anything with any degree of flexibility needed a GDS, he said. “Less than 20 per cent of European managed business travel goes direct to a
dot.com, and that includes rail.” He said third-party distribution had brought airlines into overseas markets, allowed interlining, and secured them higher fares, citing Middle Eastern carriers as an example. “They are in 26 US cities. They are not going to sell that capacity just through their
dot.coms, because their brands are not strong enough in that market.” GDSs had also helped budget airlines like
Ryanair expand and gain corporate sales, he said. “Ryanair has 33 aircraft for delivery by 2018, it’s not going to sell this capacity with stag parties from Stansted.”
BBT JULY/AUGUST 2015 7
Management, as well as consulting specialist Bouda. Air Channel Choice
says that Lufthansa’s GDS charges “would have nega- tive worldwide implications for the competitive structure of the industry, travel agents and their customers”. The group said the move would “create substantial collateral damage” and new costs within the industry “by effectively insisting on its direct-connect strategy for its contracted customers.” Lufthansa has said that it
is “ready to co-operate” with distribution partners but there is “no going back” on the e16 fee.
ITM has written to the Lufthansa Group urging that the plan is scrapped and for talks to be held with corporate customers “to map out a mutually beneficial strategy for the future”. Its CEO Simone Buckley added: “The announcement came as a shock to many of our members from across all industries, many of which are long-standing Lufthansa Group customers. It is also beyond disappointing that the Lufthansa Group treats its loyal high-yield customers in the same way as one-time bookers in the leisure sector.” The move has attracted criticism from several in- dustry figures. GTMC chief executive Paul Wait said the fee further increases the “fragmentation of the reser- vation process” and “worsens the compliance to channel challenge”. Chambers Travel director of operations Julie Cope said the fee is “exorbitant” and the airline is “encouraging business travellers to buy direct”. GDS operator Amadeus said that travellers looking for “consistency, transparency and choice across all channels” will be penalised by the fee. See interview with ITM chairman Mark Cuschieri, p29
■ Carlson Wagonlit Travel has bought France-based meeting and events specialist Ormès, which will become part of CWT Meetings & Events. Ormès has seen its business grow by 20 per cent between 2013 and 2014.
■ Car rental firm Europcar is selling €854 million in shares in an initial public offering in Paris. The proceeds will be mainly used to reduce debt burden.
■ Competition watchdog the CMA has ordered Ryanair to sell all but 5 per cent of its 29.8 per cent stake in Aer Lingus. Ryanair has said it will appeal the decision. In May, British Airways
owner IAG made a €1.4bn cash offer for Aer Lingus.
■ American Express Global Corporate Payments and HRS have teamed up to offer a cashless payment system for hotel bookings, which enables buyers to settle hotel bills centrally.
■ Australia-based Flight Centre Travel Group – which owns FCM and Corporate Traveller – plans to launch its specialist entertainment TMC brand, Stage and Screen Travel Services, in the UK during the next 12 months.
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