ASTA condemned Northwest Airlines` (NW) announcement that effective Sept. 1, 2004, it will begin charging travel agents…
ASTA condemned Northwest Airlines` (NW) announcement that effective Sept. 1, 2004, it will begin charging travel agents $7.50 roundtrip or $3.75 one-way for bookings made in a Global Distribution System (GDS) for travel within the 50 United States, a fee which will be collected via a monthly invoice.
In addition, effective Aug. 27, 2004, Northwest plans to charge consumers a $5 fee for bookings made through its call centers and a $10 ticket fee for tickets purchased at an Airport Ticket Office (ATO) for travel within the 50 United States.
Northwest calls this a `Shared GDS Fee,` which implies they are doing something good for us, said Richard M. Copland, CTC, ASTA president and CEO. My answer is: Don`t do me any favors. When I want you to share your costs with me, I`ll let you know. It is insulting to be sent a message that says Northwest is `sharing` with me, when what they are doing is pushing their costs on to my business and my customers.
Northwest`s announcement to agents makes clear that it wants to drive agents to book on Northwest`s Web site, without addressing the fact that airline Web site bookings are not a complete substitute for GDS services, added Copland. The airline`s announcement reflects a failing business strategy and inability to compete with low-cost carriers, and its so-called solution is to impose the cost of its failure on travel agents in a move that will ultimately result in higher costs for consumers doing business with it. This action will result in huge management inefficiencies in an agency`s front office.
Northwest is, in effect, telling travel agents it wants them to pay Northwest for the privilege of using a business tool that is superior to what it offers. This is not a question of being for or against the Internet. It is indisputable that the airlines` Web site booking services are inadequate for the professional management of travel services. Even the Department of Transportation recognized this basic reality in its final decision deregulating the CRS business: `The inefficiency of using the Internet for airline bookings is probably the most important deterrent to a greater use of the Internet [by travel agents].`** Northwest is less efficient than many of its competitors and now it wants to drag the travel agents down with it, Copland concluded.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
