NEWS YOU NEED TO KNOW 4
Air France-KLM signs GDS deals prior to surcharge
Ian Taylor
ian.taylor@travelweekly.co.uk
Travelport and Amadeus struck new distribution deals with Air France-KLM ahead of the airline group introducing a surcharge on GDS bookings.
Air France-KLM introduced an
€11 surcharge on one-way bookings (€22 for returns) this week for flights with Air France, KLM and Air France subsidiary HOP!. The deals allow agents to book fares without paying the surcharge
once they set-up a private channel with the airline via their GDS. The fee brings the airlines
broadly into line with Lufthansa, which has levied a €16 fee on GDS bookings since September 2015, and IAG-owned British Airways and Iberia, which introduced a €9.50 fee per fare component in November. Travel management companies
(TMCs) and agents can avoid the Air France-KLM fee by booking direct with the airlines or through the group’s agent portal, or developing an application programming interface in line
with airline association Iata’s New Distribution Capability (NDC). BA, Iberia and Lufthansa have
similarly restricted access to fares without the GDS surcharge. However, BA-Iberia signed deals
with TMCs including HRG, Carlson Wagonlit Travel and American Express GBT to waive the GDS fee in return for commitments to pursue NDC technology in the run-up to levying the surcharge. Amadeus was the first GDS to
sign an NDC fee-waiver deal with BA in the UK. In a statement, Travelport
5 STORIES HOT Air France-KLM introduced an €11
surcharge on one-way bookings on April 1
and Air France-KLM said: “This agreement enables customers selected by Air France, HOP! and KLM to access a private channel via Travelport, through which they will receive content without the additional distribution surcharge levied by Air France-KLM.” Emmanuelle Gailland, Air
France-KLM vice-president distribution, said: “Both Air France-KLM and Amadeus are determined to work together to bring NDC content of new fares, products, services and rich media into the marketplace.”
5 Tui considers third-party DM sales
Ben Ireland
ben.ireland@
travelweekly.co.uk
Third-party agents could be given access to Tui’s tours, transfers and in-destination services after the travel giant agreed to buy back the destination management (DM) division of Hotelbeds Group.
Tui sold global bed bank
Hotelbeds to private-equity group Cinven Capital Management in 2016 for €1.2 billion, but has agreed a €110 million deal to repurchase the DM division, comprising
the Intercruises Shoreside & Port Services, Pacific World and Destination Services brands. The brands collectively offer
tours, transfers and other in-destination services to about 2.2 million passengers in more than 70 countries. The acquisition will add 2,600 staff to Tui’s destination services division, with expected sales of €700 million a year. A Tui Group spokesman said the acquisition provided the operator with a greater breadth of product and destinations, and confirmed that sales through third-party agents could form part of its
6
travelweekly.co.uk 5 April 2018
“Tui is well placed to continue the division’s growth trajectory”
wider distribution strategy. Chief executive Fritz Joussen said: “The global market for these services is growing. The Tui brand guarantees the usual premium service, quality and comfort, despite the multitude and complexity of leisure offers and providers at the holiday destination.” Meanwhile, Hotelbeds Group said the deal would allow it to
focus on its core bed bank activity, following the integration of GTA and Tourico Holidays, which it bought in 2017. Executive chairman Joan Vilà said: “Our destination management division has been highly successful over the past 18 months, growing revenues significantly and enhancing its range of services. “After careful consideration, we
believe this is in the best interests of all stakeholders. Tui is well placed to continue the division’s growth trajectory.” The deal is subject to regulatory and anti-trust approvals.
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