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British Airways will introduce an £8 GDS booking fee next week to ‘cover distribution costs’


‘Agency sales are just as cost-effective for airlines’


Airlines make inflated claims of distribution costs, says a new study. Ian Taylor reports


Airlines’ pursuit of direct bookings has barely any impact in cutting distribution costs despite carriers’ claims to the contrary.


That is the conclusion of a study published this week by aviation consultancy Infrata, which concludes the carriers’ real aim is “to curtail consumer access to independent booking channels”. Infrata’s report on ‘Airline Distribution Costs’ highlights “the deficiencies in distribution cost calculations presented by airlines” and questions carriers’ motives in


72 travelweekly.co.uk 26 October 2017


attempting to drive more bookings direct. It was commissioned by the


European Technology & Travel Services Association (Ettsa), representing online travel agents (OTAs) and GDSs, and the European Federation of Travel Agents’ and Tour Operators’ Associations (Ectaa) which includes Abta. The report concludes: “Selling


through travel agents using neutral booking platforms (GDSs) is just as cost-effective for airlines as selling direct.” Yet it notes: “Some airlines


impose punitive surcharges and other forms of discrimination against consumers who book through neutral booking platforms.” British Airways and Iberia


will introduce an £8 fee per ‘fare component’ on GDS bookings from November, while Lufthansa imposed a €16-per-booking GDS fee two years ago. BA claims the fee is to cover “additional costs applied through these [GDS] channels” and says agents, OTAs and travel management companies (TMCs) can avoid it only by booking direct or committing to “using an NDC- based connection”. This refers to airline association Iata’s ‘new distribution capability’ (NDC). But aviation consultant Ian


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