British Airways And Iberia Adopting GDS Booking Surcharge

British Airways and Iberia will implement a $10 surcharge per “fare component” on bookings through the GDS, beginning Nov. 1.The carriers, both owned by International Airline Group (IAG), announced the policy in a letter to U.K. travel agents.

IAG said it would implement the fee to make up for the extra costs of merchandising through the GDSs. BA and Iberia emphasized that over the last few years they have invested substantially in IATA’s New Distribution Capability (NDC), the XML-based standard that lays the groundwork for airlines to sell all of their products, including ancillaries, through travel agencies.

“Our distribution strategy is focused on providing an enhanced range of booking options to our partners,” the carriers said.

They defined a fare component as, “a portion of a journey or itinerary between two consecutive fare break points.” In most cases, BA and Iberia said, a fare component is equivalent to an origin and destination journey.

Agents who wish to book BA and Iberia tickets without the surcharge can use direct channels, such as the airline websites and call centers. They can also use NDC direct connections, NDC connections via ticket aggregators and self-booking tools with a direct connect to BA or Iberia. A new IAG booking portal will be available shortly.

BA and Iberia follow Lufthansa, which began charging an $18 GDS surcharge in September 2015. Travel agents in the U.S. and Europe objected strongly to that move, fearing that it could be a harbinger to the disruption of the longstanding industry business model.

In a statement about the decision, ASTA said, “As with Lufthansa’s GDS surcharge, ASTA’s position is that while the creation of a ‘trade portal’ is a positive sign, the complications these changes will present to our member companies’ business operations — as well as their presumed intent to make it difficult for agents to comparison shop on behalf of clients — only disservices the end traveller. We will continue to monitor these developments and advocate for our members on the issue as it continues to evolve.”
Source: http://www.travelweekly.com, 26 May 2017

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