BTA backs American NDC complaint Ian Taylor


The Business Travel Association (BTA) has confirmed its support for an American Society of Travel Advisors (Asta) complaint to the US Department of Transportation (DOT) about American Airlines. Asta, the US equivalent of Abta,


has accused American Airlines of “abusing its market power” by withdrawing 40%-plus of its fares from GDS distribution in April, leaving its best-priced fares available only through New Distribution Capability (NDC) channels or its website. The complaint, submitted on


July 31, was revealed in mid-August. The DOT has yet to respond. BTA chief executive Clive Wratten


confirmed the association signed the letter of complaint to the DOT, describing it as “a line in the sand”. He told Travel Weekly: “The


issue is the removal of fares from the market – in particular, on routes where American Airlines holds a dominant position.” NDC is an Iata technology


standard for airlines to offer fares direct to agents and travel management companies (TMCs) via online application programme interfaces (APIs), bypassing GDSs. Asta argues the industry remains


“largely unprepared” for NDC and American’s action has “caused widespread disruption”, leading to “significant price discrepancies” and “difficulty to shop for, book and


TMCs have spent a lot of time and money getting ready for NDC, and the airlines have not delivered


service bookings”. It also accuses American of anti-competitive behaviour in imposing “draconian” new terms on agents since May 1 in a Governing Travel Agency Agreement. Wratten noted “we’ve no


comment on the competition issue” and insisted: “We’re very supportive of NDC.” But he argued: “TMCs have spent a lot of time and money getting ready for NDC, and the airlines have


Indie agents offer mixed reaction as Tui courts trade


Juliet Dennis


Independent travel agents say Tui has “a lot of work to do” following a major shift in its approach to third-party retailers. Agents gave a mixed reaction


to news that the operator is increasing its trade relations team by five in preparation for its “biggest summer season” in 2024. Tui chief marketing officer Neil


Swanson said the enlarged team of 14 would “build relationships with independent agents and allow us to better understand our valued trade partners”. The news represents a significant


shift in Tui’s overall approach to working with independent agents, and follows years of sour trade relations dating back to its decision


4 31 AUGUST 2023


in 2005 to slash third-party agents’ commission earnings to 7%. Agents cautiously welcomed Tui’s


move but many stressed it would need to be backed up by an overhaul of its trade pricing strategy and improvements to its after-sales care before they would consider working proactively with the operator again. Heidi Evans, director at Oasis


Travel in Stoke-on-Trent, said: “We want price parity. On Tui’s website they will charge low or no deposits for direct clients, but if we book it the client has to pay a £200 per person deposit. How are agents meant to compete with that?” Sutton Travel managing director


Andy Tomlinson said staff at Tui’s contact centres often lacked the ability or product knowledge to make amendments or answer agents’


queries, adding: “Many of us who have been in the industry for decades have seen false dawns where Tui looked to work with agents again but never seemed to pull it off.” Chris Bailey, managing director of


Bailey’s Travel, said he had no plans to re-engage with Tui. “I’d trust Tui as much as I’d trust a Conservative government minister – not at all.” But agents already working more


actively with Tui welcomed the move. Leanne Williams, head of retail at


Travel House, which has 16 branches in south Wales, said: “It’s a great move by Tui. It is one of the only operators with its own airline flying from Cardiff airport, making it our number-one tour operator.” Paul Waters, managing director


at Premier Travel, said the agency had a “relatively strong working


not delivered. The point of NDC is it’s supposed to be a standard, but it varies by airline. It’s so very piecemeal. There is a long way to go with it.” He added: “The fear in the US is


that others could follow [American]. There is a risk that could happen. [But] the mood music in the UK at the moment is not to do that.” Travel Weekly was awaiting a


response from American Airlines as it went to press. But in April the carrier accused Asta of an “ongoing campaign to misrepresent American’s commitment to delivering a modern retailing experience”. However, it conceded: “Retailers need an NDC connection to book and ticket best-


available third-party channel content.” i Business, page 47


Neil Swanson


relationship” with Tui but welcomed improvements. He added: “What we lacked was the frontline support [but] their proposed changes will help give this and better all-round support to our business.”


travelweekly.co.uk


PICTURE: Andrew Fosker/PinPep


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