BA sympathises with easyJet GDS booking fee
British Airways’ head of corporate sales told delegates at this week’s GTMC conference that he sympathises with easyJet’s decision to impose a surcharge for bookings on GDSs.
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The low cost carrier now charges travel management companies £7.5 for booking flights via GDS for all of its fares.
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BA’s Richard Tams told TMCs that when it comes to selling the lowest fares, it understands why easyJet had decided to impose the charge.
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“TMCs should be more confident in their ability to sell surcharged content,†he said.
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“With the Corporate Manslaughter Act, there is a massive opportunity for TMCs to justify the added cost of managing and tracking the travel they book.â€
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He criticised GDS companies for not being able to reduce their costs in line with other technology.
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“We at BA have reduced our technology costs by 40% but GDS costs have not come down and are a very expensive part of our sales.â€
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He said this was because GDS companies act as quasi monopolies in some markets.
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BA’s head of sales Drew Crawley asked who is the customer of the GDS companies.
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“I hear about how Amadeus is investing $200 million developing technology to sell train travel and hotels. As a customer, I don’t want to pay for that,†he said.
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The ongoing issue of who should bear the cost of distribution was the subject of a panel discussion at the conference.
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The final words went to Mike Hare, director of Portman Travel, who argued that the issue will become irrelevant if oil prices continue to rise.
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He believes fuel prices will force airlines to cut capacity, which will in turn lead to an increase in fares.
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“From what I see, the airlines can’t afford distribution because their fares are too low. Once they cut capacity and get their fares right, they will be able to afford distribution,†he said.Â
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by Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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