With the new Global Distribution System (GDS) fee announced by Northwest Airlines, NBTA has concerns about costs that may be incurred by corporations and their business travelers….
With the new Global Distribution System (GDS) fee announced by Northwest Airlines, NBTA has concerns about costs that may be incurred by corporations and their business travelers. NBTA will continue to monitor developments and provide its members with tools to manage this and other GDS industry changes. The Association is providing the following information to help travel managers understand and manage the Northwest fee.
- Northwest Airlines announced on August 24, 2004 that beginning September 1 it would charge GDS users for Northwest bookings made in the GDS — US$3.75(CAD$4.75) per one-way ticket and US$7.50(CAD$9.50) per roundtrip. The fees will be charged to GDS users within the United States and Canada for travel within the United States.
- At the same time, Northwest announced that tickets issued through distribution channels that bypass GDSs, including the Orbitz Supplier Link program and the carrier’s travel agent Web site, www.worldagentdirect.com, would not incur a fee. The move is part of a broader effort to “align its distribution costs with those of low-cost carriers.”
- NBTA encourages its Direct Members (travel managers) to analyze how Northwest’s new fee will impact their companies. That information can be used:
- to determine if changes should be made to corporate travel policy
- to inform negotiations with air carriers, GDS providers, and travel management companies.
- The end of broad regulation of the GDS business has enabled GDSs, airlines, and GDS users (travel agencies, travel management companies, and corporations) to bargain over the terms under which GDS services are provided, just as these parties negotiate agreements with suppliers of other products and services.
- NBTA expects additional changes in the GDS marketplace and will continue to monitor developments and provide its members with the information they need to manage the change.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
