BCD Travel Joins In With New Fees For Non-Standard Bookings

BCD Travel last month alerted clients to a formalized program that charges them extra for supplier bookings which are more costly to support, joining rivals American Express Global Business Travel and Carlson Wagonlit Travel.

According to multiple sources, BCD Travel identifies such reservations as including those that must be booked or serviced outside global distribution systems. Also covered by the "booking process fee" is support for suppliers that require extra technologies for access to their "full range" of services, or those . . .

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Author: Jay Campbell

Jay Campbell in 2004 created travel business newsletter The Beat, in 2006 co-founded Travel Procurement magazine and in 2010 integrated them with Business Travel News. He served as editorial director until 2013. Jay made his travel industry media debut in 1993 at the Air Travel Journal of Boston while earning his undergraduate degree in journalism at Boston University.

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Chris Dane
Subscriber
Chris Dane

One could also argue that some of the TMC costs have been underwritten by GDS fees. There are clearly increased costs for work process changes (like those associated with NDC) … which, at the end of the day, was driven by the airline not the TMC. As is usually the case the consumer (in this case corporate buyer/traveler) is the loser because they are forced to pay either the LH, BA, AF distribution fee, or the TMC fee that is a result of avoiding those fees. Either way it is a price increase.

Ted Perlstein
Advisor

The good news about the traditional transaction-based pricing model is it has a lot of inertia behind it. The bad news is it does not do a good job of aligning value with cost. We as an industry should steer the pricing ship towards the latter focus or we’ll be discussing the same types of issues ad nauseam until the pricing ship we’re all on sinks.

The Company Dime
Admin

Some additional thoughts, provided by TCG Consulting: Customers are increasingly frustrated that the agencies want to nickel and dime them as a price for full content, especially as automation is becoming more prevalent in processing transactions without human intervention. Customers want to obtain a clearer picture of the total cost of their program spend and supplier management. These new fees add a layer of complexity. We have had to adjust our pricing templates to account for these additional fees in order to capture the total cost of agency support for program transactional requirements. Clients will want to have a foundational… Read more »