Lufthansa slammed for ‘incredibly damaging’ direct connect deals
Paul Wait, CEO of the GTMC, has criticised Lufthansa’s first direct connect deals with UK-based travel management companies announced this week.
The German carrier revealed that it had reached direct connect agreements with Portman Clarity and Click Travel, which will go live on May 1.
Lufthansa said it was in discussions with small and large leisure agencies in the UK with a view to rolling out similar deals.
The direct connect agreements allow TMCs and other agencies to avoid the €16 distribution fee, which Lufthansa introduced around 18 months ago for bookings made by GDS.
However, Wait described the move as ‘incredibly damaging’. He said direct connect ‘does not offer a positive, efficient customer experience’ as it doesn’t make it easy for them to compare fares.
"The primary booking tool of TMCs is the GDS and anything outside of that has a negative impact on productivity.," he said. "The inevitable knock on effect is the cost to the customer increasing.
"TMCs must offer an efficient and cost effective corporate travel service with wide-ranging choice and variety. Put simply, a TMC cannot satisfactorily service the complex requirements of the corporate customer without the GDS, and therefore the vast majority of professional TMCs will continue to use it.
"Any prediction for the future that says otherwise and envisages TMCs aggregating themselves is far removed from the management information, reporting, duty of care and cost effective service required by the clients of a TMC.
"Currently, direct connect technology does not represent a viable alternative. We welcome ambitious plans and change to established norms, however they must add to the customer benefits, not detract from them."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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