United matches American’s segment fees: others to follow?
United matched American’s $3.50 segment fees for agency bookings in a domino effect that already has implications for what some are warning could lead to “chaos” in the industry.
The American Society of Travel Agents made that warning after American’s move to impose the $3.50 per segment on segments booked on GDS’s not favored by the airline.
“This policy of shifting still more costs off on American’s financial statements onto the backs of travel agents and their customer’s is unconscionable,” said Kathryn W. Sudeikis, president and CEO of ASTA.
She said what made it worse was that American did not coordinate with other preferred GDS’s. ”So travel agents are still in the dark about the financial terms that each option provides,” she said.
She added the move threatened “chaos.”
She said: “American’s announcement tells every travel agency in America: if you want to sell us, run your business the way we tell you or you’ll be forced to pay us for the privilege of booking our services.”
American said the starting date of the move would be September 1.
David Cush, American’s vice president of global sales, said the GDS was an efficient channel but was not competitive cost-wise.
In common with American, United said it will not levy the $3.50 fee on agencies who book through qualified booking channels.
United’s list of qualified channels is different from American’s.
United promised further details of its plan in the next few weeks.
Report by David Wilkening
David
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 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airbnb eyes a loyalty program but details remain under wraps
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Major rail disruptions around and in Berlin until early 2026