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sbarr011

Another Airline Follows Lufthansa And Adds GDS Fees - 0 views

www.travelmarketreport.com/...ws-Lufthansa-And-Adds-GDS-Fees

#Lufthansa #ukraineinternationalairlines #hospitalitytechnology #GDS #gdsfees #travel

shared by sbarr011 on 04 Jun 18 - No Cached
  • “the overall business case is more positive than we thought,” he pointed to an uptick in ancillary sales through the direct channel.  “From what we hear in the industry and with the visible success of Lufthansa, I would be very surprised if others would not follow.”The global GDSs, including Amadeus, Sabre and Travelport, continue to strongly oppose Lufthansa’s strategy, saying that their platforms offer agencies and their clients the most choice of services.
  • Meanwhile, Lufthansa says it won’t change course on the booking-fee strategy, which is aimed both at reducing GDS costs, and encouraging agencies to use the airline’s direct-connect platform to buy tickets. 
  • But the Ukrainian flag carrier is also slapping a slew of new fees on all bookings made through a variety of channels, including third-party booking sites as well its own ticket offices – which will also be subject to the $9-per-segment fee.  Thus, the action appears to be designed to steer consumers to book directly on the airlines’ own website, rather than specifically targeting agencies.
  • ...3 more annotations...
  • Like Lufthansa, which introduced a 16-euro fee on GDS bookings in the fall of 2015, Ukrainian argues that the fee is in response to what it calls the “growing fees of GDSs.”  
  • Any new fee can generate a backlash, and particularly for price-sensitive leisure travelers, could lead to booking away from a particular carrier. 
  • Lufthansa German Airlines’ CEO recently raised eyebrows in the industry by predicting other airlines would match its controversial fee on all bookings made through Global Distribution Systems. But since then, the only news on this front has been from a relatively small carrier, Ukraine International Airlines, which said it will impose a new $9 surcharge on GDS bookings at the end of April.  
  • sbarr011 on 04 Jun 18
     
    This article discusses Lufthansa airlines and Ukraine International Airlines who both now impose a surcharge on GDS bookings. The GDSs Amadeus, Sabre and Travelport disagree with this strategy and say that they offer the most choice of services and think that steering clients away from using GDSs to book travel is not a smart idea. In 2015, Lufthansa and its other airlines (which also includes Austrian, Brussels, Eurowings and Swiss airlines) implemented a 16-euro fee on all GDS bookings. Ukraine International Airlines (UIA) is a much smaller airline than Lufthansa, however, some analysts believe that this decision could prompt other airlines to do so as well. About one month ago, UIA imposed a $9 surcharge on GDS bookings. Some analysts believe that the new imposed fee will drive some customers, especially the price-sensitive leisure travelers, towards other airline carriers. In addition to implementing a surcharge on GDS bookings, UIA is also adding fees to any bookings made on third-party booking sites. The airline is trying to incentivize its travelers to book directly through their website and not go through any other channel. Lufthansa has had success with their strategy. The CEO stated the fee had a net-zero impact on their business, but there was a rise increase in sales through their direct channel.
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