Northwest GDS fees find unfriendly skies
Northwest Airlines’ plan to charge US and Canadian travel agents a “Shared GDS Fee” immediately hit some turbulence:
• Worldspan P.P said it was “shocked” and that the fees violated a long-term agreement it had with Northwest made in 2003.
• AAA said the new fees meant travelers will pay more, waste time and lose access to travel agents. “These new fares are worse than a fare increase,” said Steven Frank, president and CEO, AAA Minneapolis.
• Sabre said it would withhold some of Northwest’s discounts it receives through the Direct Connect Availability (DCA) program. Sabre also announced it would give more prominent display to carriers providing all fares.
• Galileo International, Inc., announced that Northwest is in violation of its 2003 Preferred Fares Select (PFS) agreement. Galileo said the airline will not be afforded the same benefits provided to participating carriers that honor their commitments under their agreements.
• And the Business Travel Coalition (BTC) said the new fees would “likely accelerate market share shift to low-cost airlines, dampen overall business travel demand…and result in more customer investment in technological alternatives to air travel.”
“This policy represents an endeavor to strong arm customers, and like the equally misguided ‘use-it-or-lose-it’ ticket policy the major airline industry segment embraced in 2002, it would likely backfire,” said BTC Chairman Kevin Mitchell.
He said BTC believed distribution costs are fully reflected in the price of an airline ticket.
Northwest announced in a cost cutting effort it would charge customers $5 for calling Northwest to book a ticket and $10 for purchasing one in-person at an airport location.
The airline also said that beginning 1 September, it would charge travel agents $7.50 to book a round-trip ticket, or $3.75 one way, through the global distribution system used by major airlines, hotels and rental car companies.
Report by David Wilkening
David
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