The National Business Travel Association (NBTA) applauded Northwest Airlines’ announcement that it has ended a recently enacted policy of charging users of the Global Distribution Systems…
The National Business Travel Association (NBTA) applauded Northwest Airlines’ announcement that it has ended a recently enacted policy of charging users of the Global Distribution Systems (GDSs) in the United States and Canada for Northwest bookings made via the GDSs for U.S. travel.
“By rescinding the new GDS fee, Northwest has quickly put its distribution practices back in line with the needs of its corporate customers,” said Carol A. Devine, CCTE, NBTA president and CEO. “We are pleased that Northwest made this business decision in the context of an open dialogue with NBTA, and we look forward to ongoing productive communication with Northwest on behalf of travel managers and their companies.”
Northwest’s announcement that it ended the fee came two days after a summit between the carrier and NBTA. In that meeting, NBTA explained its view that a full-service airline like Northwest must attract business travel to succeed and outlined why problems posed by the GDS fee would likely push business travel away from the carrier.
“We understand that airlines face challenges in today’s marketplace and that tackling those challenges requires creative approaches,” continued Devine. “The best way to tackle those challenges is with programs that promote business travel by supporting the practice of corporate travel management. The end of Northwest’s GDS fee is a return to a distribution process that supports corporate travel.”
NBTA also lauded the American Airlines announcement yesterday that it would not apply newly announced service fees to travel agency transactions. While American did not specifically address the concept of GDS fees, its announcement signals that the carrier does not plan to implement GDS fees as it addresses its distribution costs.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
