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
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025