26 November 2008

Lobby group slams Lufthansa surcharge move

Industry lobbying body the Business Travel Coalition (BTC) has described the fact that Amadeus will no longer soak up Lufthansaââ¬â¢s E4.90 per segment surcharge as an ââ¬Åâœominous development for corporate travel managersââ¬~.

From February 1, the charge, which was previously absorbed by the GDS, will be passed onto business travellers.

The US-based BTC says Lufthansaââ¬â¢s initiative establishes ââ¬Åâœa permanent indirect price increaseââ¬~ by shifting its distribution costs ââ¬Åâœonto the backs of its very best customersââ¬~ and described it as a ââ¬Åâœcallous disregard for consumer welfareââ¬~.

BTC chairman Kevin Mitchell said he objected to Lufthansaââ¬â¢s attempts to move the consumer away from the GDS and towards the airlineââ¬â¢s own website, where choice was compromised.

He said: ââ¬ÅâœThe 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: ââ¬ÅâœWe 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.ââ¬~

By Dinah Hatch

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