Lufthansa Group pax (incl. SN) to pay a €16 fee when booking through a travel agent

[Passenger]

We finally have a juridical interpretation of this GDS fee: the UFTAA (international federation of travel agents) concludes that the BSP rules don't allow the GDS fee that Lufthansa plans:

http://uftaa.org/index.php?option=com_c ... est-topics

[airazurxtror]

A senior member of Emirates’ operations team has stated it is an unequivocal “no” from the airline giant over the question of introducing a GDS fee.

The Gulf airline's divisional senior vice president of commercial operations west, Hubert Frach, who was vice president for marketing at Lufthansa until September 2012, said: "The GDS system has become part of how we at Emirates breathe with the travel trade. That relationship is really important to us and we believe it drives business."

Frach insisted the travel trade remains "the back bone globally for our distribution". He said in the UK sales through the trade – including OTAs – far outstrip other channels.

"Agents will always have a role if they add value to the customer," he added.

- See more at: http://www.travolution.co.uk/articles/2 ... RrCJO.dpuf

[Passenger]

The Gulf airline's divisional senior vice president of commercial operations west, Hubert Frach, said: "The GDS system has become part of how we at Emirates breathe with the travel trade. That relationship is really important to us and we believe it drives business."

...Frach insisted the travel trade remains "the back bone globally for our distribution"...

..."Agents will always have a role if they add value to the customer"...

Sure... Would they believe it themselves? First they've cut the travel trade's commission, and now they have recently introduced this:
"...Emirates is offering customers the ability to temporarily lock in airfares before deciding to buy their tickets, the latest move that puts airlines in direct competition with the travel agency industry for revenue..."
http://www.thenational.ae/business/avia ... vel-agents

Like we say in Dutch: als de vos de passie preekt, boer let op uw ganzen (aka when the fox preaches take care of your geese).

[airazurxtror]

In early June, the Lufthansa Group ( Brussels Airlines, Lufthansa, Austrian and Swiss ) announced that, from September, tickets booked via global distribution systems (GDS ) would be subjected to a surcharge of 16 euros .

The European travel agents and tour operators have introduced Friday a complaint with the European Commission against Lufthansa.

http://www.lalibre.be/economie/actualit ... 4652f6de1b

[Passenger]

In early June, the Lufthansa Group ( Brussels Airlines, Lufthansa, Austrian and Swiss ) announced that, from September, tickets booked via global distribution systems (GDS ) would be subjected to a surcharge of 16 euros .

The European travel agents and tour operators have introduced Friday a complaint with the European Commission against Lufthansa.

Only the ECTAA has done so. The UFTAA hasn't decided yet.

[airazurxtror]

ABTA has pledged to support its European sister associations who have lodged a formal complaint against Lufthansa's new GDS fee with the European Commission.

ECTAA - The European Travel Agents' and Tour Operators' Associations - has filed the complaint with the EU Commission Directorate General for Mobility and Transport, claiming Lufthansa is breaching the GDS code of conduct under EU regulations.

Its arguments (in French) :
http://www.air-journal.fr/2015-08-01-fr ... 47952.html

[airazurxtror]

The Lufthansa Group is poised to begin leveling a surcharge on September 1, one month from today, on flight bookings that take place outside its channels and the Group, including Lufthansa, Austrian Airlines, Brussels Airlines, and Swiss, shows no signs of retreating from the fee.

Speaking in Frankfurt on July 30 during Lufthansa Group’s first half of 2015 call with analysts, CFO Simone Menne said the Group still considers the 16 euros surcharge “a very good strategic move. There will be ups and downs and we think it will remain broadly neutral. Yes, there is a risk to lose some passengers but they will be compensated by the higher payments in the other areas.”

Menne obviously meant that the Lufthansa Group airline would recoup the potential loss of some market share through the higher payments for flights that come through online travel agencies, traditional travel agencies and the global distribution system channel.

Lufthansa Group is imposing the surcharge as a counter to what it considers to be exorbitant global distribution fees and — barring a last-minute settlement — can expect a backlash and penalties from Sabre, Amadeus and Travelport when the fee kicks in.

[airazurxtror]

The European Association of Travel Agents and Tour Operators (Ectaa) is formulating a claim of market abuse against Lufthansa over the carrier’s plans to impose a €16 GDS booking charge.
Ectaa believes it has grounds for an ‘abuse of a dominant position’ claim against the carrier on certain routes.
The association, which includes Abta, believes Lufthansa is open to the charge for levying the fee on routes such as Brussels-Frankfurt, Brussels-Zurich and Frankfurt-Zurich where the German airline and sister carriers Swiss and Brussels Airlines dominate.
The association has already made a formal complaint to the European Commission alleging the charge will breach the GDS Code of Conduct. It expects a preliminary EC response next month.
Thykier said: “It’s a technical thing, but we are not sure Lufthansa can do this under Iata regulations.
In Brazil, the authorities have said ‘You can’t do it’.”

The carrier confirmed last week that Brazil had joined a list of markets in which bookings would be exempt from the DCC from September 1.
The list comprises Hong Kong, China, New Zealand, Iran, Libya and Yemen as well as Brazil.

- See more at: http://www.travolution.co.uk/articles/2 ... npiZC.dpuf

[airazurxtror]

A leading group of corporate travel agents began a policy of non-cooperation with Lufthansa this week as the carrier remained determined to introduce a €16 fee on GDS bookings from next Tuesday.
The 66 members of the Advantage Focus Partnership told Lufthansa and group carriers Swiss, Austrian and Brussels Airlines of the move in writing, as Advantage corporate director Ken McLeod declared: “This fee is unacceptable in its current form.”
He added: “If successful, this will be replicated across the airline industry.”
The group’s policy of non-cooperation began “with immediate effect” and means no training, marketing, sales calls, events, fam trips or “similar activities” with Lufthansa group airlines.

[airazurxtror]

Brussels Airlines stealthily increase its prices

Bernard Tuyttens is secretary general of the BTO (Belgian travel organization) representing travel agents in Belgium. He rebells against the new price policy of the Lufthansa Group, which includes Brussels Airlines. Interview.

The German group announced that from September 1, all its companies will introduce a new charge of 16 euros for aircraft tickets purchased from an agency using a GDS (Global Distribution System).
Lufthansa believes that the price of a GDS search cost them 18 euros, while they think it costs them two euros on their website. But this is not true, it is nonsense.

Brussels Airlines stealthily increase its prices to solve his financial problems. They could simply announce that they were increasing their fares: people would have understood. Here they make their distribution costs paid by the consumers. The price of their tickets will increase on average by 5%.

The Lufthansa Group offers a free alternative to agencies, through a kind of search engine including his own companies. But no Belgian agency has received an access code to this system and we do not even know if this alternative works.
And what a waste of time for agencies! Imagine going to Rome from Brussels: you have the choice between Ryanair, Brussels Airlines, Vueling and Alitalia. But with this system of Lufthansa, you will only receive therates of Brussels Airlines.

Read more :
http://www.lalibre.be/economie/libre-en ... a437cf9b9f

[Passenger]

Bernard Tuyttens is secretary general of the BTO (Belgian travel organization) representing travel agents in Belgium. He rebells against the new price policy of the Lufthansa Group, which includes Brussels Airlines.

BTO doesn’t represent “the Belgian travel agents”: BTO represent the business-travel agencies. UPAV and VVR are the travel trade organisations who represent “the travel agents” (they are also not amused with the LH decision). But BTO-members indeed have a problem when their business clients have access to the GDS system, and now will see that 16 € appearing but have no access to the LH travel-agent-site.

And what a waste of time for agencies! Imagine going to Rome from Brussels: you have the choice between Ryanair, Brussels Airlines, Vueling and Alitalia. But with this system of Lufthansa, you will only receive the rates of Brussels Airlines.

Apart from the fact that the new surcharge is indeed a very unpleasant and unilateral decision from Lufthansa, there are already some ways to avoid it. Example: if you want to fly from Brussels to Rome with Brussels Airlines on 2nd September, ask the GDS for the possibilities with Air Canada… Do you have clients for Johannesburg who want to fly only Lufthansa? Ask your GDS for flights */SA via FRA only (codesharing).

“Montrer sur un écran”: OK, most people have just one computer screen, but take a look at your own screen just now: how many programs have you opened: 5? 10? How many browser windows? So what’s the problem of adding one more? You do a search on Amadeus, and when LH or SN is indeed what you need, you click tab/Alt to get the new Lufthansa travel agent booking engine. Changing screen doens’t take “two or three hours each day”, like BTO says: I change screen in 1 second (and I’m a slow user). And if you select Vueling or Ryanair, you have to open another screen to calculate all extras and surcharges and fees.

Conclusion: it doens't help to fight Lufthansa's GDS fee by using wrong arguments.

(last phrase edited -> typo)

[sn26567]

The Lufthansa Group offers a free alternative to agencies, through a kind of search engine including his own companies. But no Belgian agency has received an access code to this system and we do not even know if this alternative works.

They will receive their access code when the system will be implemented on 1 September.

[airazurxtror]

Brussels Airlines denies wanting attract travelers to its own sales channels and invokes " a display technical problem" in reaction to the assertions of the Association of Travel Agencies ( BTO ) . The BTO was said Thursday ready to turn to justice to denounce a " misleading " advertising by the airline. The disputed supplement of 16 euros demanded by Brussels Airlines since September 1 for tickets edited via the Global Distribution System (GDS) . This distribution cost (DCC ) does not apply to tickets ordered through the channels of the company.

The BTO believes that Brussels Airlines advertising on its website, indicating a reduction of 16 euros for tickets purchased directly from the company, deceives consumers and is a " clear breach of trade practices ."

After a meeting with the association on September 2 , Brussels Airlines " took immediate action to fix what is said to be a display technical problem and does not constitute a campaign for a particular sales channel " according to the company.

After a feature in "La Libre"

[airazurxtror]

A formal complaint has been filed in Brussels against Lufthansa Group’s controversial €16 GDS fee.

The European Technology & Travel Services Association (Ettsa), which represents global distribution services and online travel agents, is claiming a breach of key provisions of the EU's code of conduct on computerised reservation systems.

The complaint to the European Commission covers the German airline and its associate carriers, Austrian Airlines, Swiss and Brussels Airlines.

The complaint was filed to the Commission's Directorate General of Mobility and Transport, which holds enforcement powers on the code of conduct.

Ettsa's secretary general, Christoph Klenner, said: “The only way for travel agents to avoid the discriminatory surcharge is to switch from traditional GDSs to an alternative platform controlled by Lufthansa, where only such content is shown that Lufthansa chooses to show.

"The EU code of conduct was designed precisely to prevent abuse by airlines who control GDSs. Therefore, the European Commission has a duty to step up and intervene in the interest of continued transparency and consumer choice,” Klenner concluded.

[Passenger]

A formal complaint has been filed in Brussels against Lufthansa Group’s controversial €16 GDS fee. The European Technology & Travel Services Association (Ettsa), which represents global distribution services and online travel agents, is claiming a breach of key provisions of the EU's code of conduct on computerised reservation systems.

ETSSA has just 13 members, including Amadeus, Sabre and Travelport. So it's quite normal they act against Lufthansa's GDS charge that defavourises them, and it's quite normal they file a complaint in group.

Ettsa's secretary general, Christoph Klenner, said: “The only way for travel agents to avoid the discriminatory surcharge is to switch from traditional GDSs to an alternative platform controlled by Lufthansa, where only such content is shown that Lufthansa chooses to show.

Some of these "ETTSA travel agents" don't even have a travel agency licence and/or a bankruptcy insurance (where it's compulsary): they're online booking engines, not online travel agents.

Ettsa's secretary general, Christoph Klenner, said: “The only way for travel agents to avoid the discriminatory surcharge is to switch from traditional GDSs to an alternative platform controlled by Lufthansa, where only such content is shown that Lufthansa chooses to show.

There is an easy way to avoid Lufthansa's GDS fee for LH flights: book the codesharings. And when there is no such availability, the solution isn't that complicated as ETTSA presents it: one only has to open another window on the computer (= Alt-tab).

Ettsa's secretary general, Christoph Klenner, said: “The only way for travel agents to avoid the discriminatory surcharge is to switch from traditional GDSs to an alternative platform controlled by Lufthansa, where only such content is shown that Lufthansa chooses to show. "The EU code of conduct was designed precisely to prevent abuse by airlines who control GDSs. Therefore, the European Commission has a duty to step up and intervene in the interest of continued transparency and consumer choice,” Klenner concluded.

Consumer protection? Transparency??? At least one of the ETTSA members is active in Belgium, but applies Dutch law for complaints and refers to a Spanish registration... Another makes it even more difficult for Belgian clients with complaints: "De wetten van de Bondsrepubliek Duitsland zijn van toepassing. De Duitse vertaling heeft voorrang / Les lois de la République Fédérale d'Allemagne s´appliquent. La version allemande de cetexte a préséance sur toutes les autres."


Conclusion : yes, the Lufthansa GDS fee is an ugly thing. But I don't like it when GDS's and online booking engines with ugly General Conditions use "consumer rights" as argument to counter LH.

[sn26567]

A few off-topic posts have been removed. Guys, you have been warned: we'll continue to clean up this topic (and all others in this forum) as long as necessary for everyone to understand this!

[airazurxtror]

The majority of travel management companies are refusing to register for Lufthansa’s website as the row over the airline’s GDS fees intensifies.
The German airline, alongside sister carriers Austrian Airlines,Brussels Airlines and Swiss, introduced a €16 fee on September 1 for all bookings made through GDSs.
This fee can be avoided by using Lufthansa’s direct websites, including its dedicated trade portal, but the Guild of Travel Management Companies (GTMC) found that 67% of its members had no intention of signing up to these sites.
The survey found that 27% of GTMC members had registered for Lufthansa’s website but “purely to look at the functionality and capability” of the portal rather than using it for bookings.
Just 6% of GTMC members said they would use Lufthansa’s website - and only if they were directly requested to do so by a client.

https://www.ttgmedia.com/news/news/gtmc ... ebsite-895

[sn26567]

Let the storm go away, and the majority of the travel agents will see where their interest is and will adhere to the new system...

[airazurxtror]

An independent business travel agent shares his experience of using the Lufthansa agent portal.
•Unlike the GDS, you cannot make and hold an option. You can only instantly book and pay for a seat.
•Once you have confirmed a reservation, you cannot action any changes through the portal – you have to call the LH call-centre to make the changes. And depending on the circumstances you can be on hold for a long time.
•The booking portal doesn’t offer a credit facility, so have to pay via agency or client credit card – which attracts a £4.50 fee.
•There is limited ability to offer interline tickets with other carriers.
•Unable to split-class a booking: one of the biggest arguments LH has is that the GDSs don’t show content easily to upsell. Well, the portal didn’t allow me to book economy class out and business class back on an itinerary to the US for a client. So actually the portal offers less content than the GDS, yet Luftansa argues that the GDSs don’t provide enough. Maybe you can split-class or upsell on this portal – if so, it’s made incredibly difficult and I haven’t figured how yet. Surely the point of the agent portal is to make things easier to upsell LH products and services.

http://buyingbusinesstravel.com/feature ... ect-portal

[Passenger]

Tnooz.com (travel & tourism news) has obtained an internal Sabre document on LH’s bookings for the first two weeks of September. Tnooz doesn’t has most relevant figure = the number of LH’s direct bookings through their new website portal, so it’s impossible to state how much of the loss through Sabre LH has picked up by direct bookings. However, for year-to-date bookings, LH's competitors BA, SAS, AZ and United show an extraordinary progress that suggest that they pick up most of the traffic that LH has lost.

Wk1 Sept shows a -12,9% for LH, compared to +5,1% for AF/KL, +6,1% for BA, +6,7% for SAS and +5,6% for AZ.

Sept MTD shows -16,1% for LH, compared to +4,0% for BA, +10,7% for AF/KL, +3,2% for SAS and +8,4% for AZ.

Overall, Sabre is forecasting a 11% year-on-year decline in its Lufthansa bookings for the rest of 2015.

More info - source:
http://www.tnooz.com/article/lufthansa- ... s-benefit/

My conclusion (though without knowing the relevant figure of direct LH website bookings): Houston wir haben ein Problem.