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Industry lobbying body the Business Travel Coalition (BTC) has described the fact that Amadeus will no longer soak up Lufthansa’s E4.90 per segment surcharge as an “ominous development for corporate travel managers”. From February 1, the charge, which was previously absorbed by the GDS, will be passed onto business travellers.
The US-based BTC says Lufthansa’s initiative establishes “a permanent indirect price increase” by shifting its distribution costs “onto the backs of its very best customers” and described it as a “callous disregard for consumer welfare”.
BTC chairman Kevin Mitchell said he objected to Lufthansa’s attempts to move the consumer away from the GDS and towards the airline’s own website, where choice was compromised. He said: “The European travel distribution system model should not be allowed to be dictated to the industry by one marketplace participant at the expense of all others. With the full weight of this surcharge now slated to hit corporate travel budgets on 1 February, there is a brief opportunity for travel managers to demand a seat at the table. He added: “We have seen this movie before in the US and UK marketplaces and the ending can be positive if travel managers seize the moment and communicate to Lufthansa and Amadeus in no uncertain terms that they expect the parties to return to the negotiating table to forge an agreement that (a) puts consumers first, and (b) preserves the efficiency and full fare content of the GDS channel.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
