When Lufthansa Group in mid-2015 informed the market of a new distribution strategy, one stated objective was to lower associated costs. The company expects to prove wrong the skeptics and start achieving that by the end of 2018. Lufthansa’s financial reporting does not offer enough detail to completely validate progress, but there are indicators of…
According to published reports in Europe, Lufthansa Group on April 5 began discounting by 20 euros some short-haul economy-class roundtrip fares when booked through direct or NDC-enabled channels. This is on top of the 16 euro surcharge Lufthansa, Austrian and Swiss currently apply on bookings through global distribution systems, effectively more than doubling the disadvantage…
Boston – Travel management professionals agree that to be effective, new airline distribution programs need to offer at least as much functionality as existing systems do. Based on expert commentary at last week’s Global Business Travel Association convention here, it would appear that a solution to be welcomed by all key parties is a ways off….
NDC In Corporate Travel April 13, 2017 Many in the business travel community know the general idea behind the International Air Transport Association’s New Distribution Capability. It’s not only for direct channels. It could improve access to airline services. What else does NDC mean for corporate travel providers and programs? When is it coming? Listen to a recording of the live teleconference. Tackling these and…
[UPDATE, Nov. 28, 2016: The Germany-based distributor with which US Airways tested its Farelogix-powered direct connection was consolidator Aerticket, according to case testimony. US Airways was disappointed with the volume of bookings processed this way.] New York — According to court testimony, US Airways six years ago prepared to pay travel agencies as much as…
Airline distribution generates more than its fair share of controversy. Battles over financial flows, technology and content often underlie potential disruption to the status quo. Yet so far, it’s all talk. The split between airline direct and indirect volumes has barely changed. In corporate travel, the indirect global distribution system/travel management company channel remains dominant. American…
[UPDATE, Feb. 8, 2017: Southwest plans to complete by May 9 the second “foundational release” of the new Amadeus Altéa reservation system. That would cover passenger check-in and boarding, baggage check-in and other operational functions. The initial release in December 2016 allowed for domestic U.S. ticket sales. The airline described that as a “virtually flawless”…
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