A month before Lufthansa Group will add 16 euro to fares booked through GDSs, many think the company is bluffing. They expect the parties to settle on terms and return the status quo. But what if they’re wrong and an alternate universe awaits? First of all, after Sept. 1 Lufthansa’s airlines will be that much less price-competitive for 70 percent of its customers….
Germany’s largest travel management company is not happy with the country’s dominant airline. BCD Travel has been discussing with clients how to react to Lufthansa’s decision to levy a 16 euro fee on bookings through GDS channels. There a few options, none particularly good. That’s according to BCD Travel executive vice president Rose Stratford. She…
Some suggest Lufthansa is making its bold move in business travel distribution out of desperation. The airline company itself attributed Tuesday’s announcement to profit improvement efforts. Carriers attempting similar programs in the past usually were bleeding. While the German aviation group’s earnings could use a boost, the company’s competitive strength gives it leverage. It’s anybody’s guess as to…
Lufthansa Group on Tuesday said corporate clients could avoid its 16 euro surcharge for GDS bookings after September by using its websites. That’s not a genuine alternative. Without workarounds, direct airline booking requires users to jettison price comparisons and complex bookings. Companies would forego data reporting for policy and spend management, duty of care and CO2 tracking. For many, it means they’re…
Lufthansa Group in September will add a 16 euro per-ticket surcharge to bookings made through global distribution systems. The idea is to lower distribution costs by encouraging customers to use direct channels. The strategy dismantles agreements that required the airlines to include all fares and inventory in the systems. Corporate accounts instead can have travelers book on the group’s airline…
Personalization. It’s not just for people anymore. Lufthansa is using Amadeus technology to offer product and service add-ons to passengers based on where they work rather than who they are. The capability applies in direct and indirect channels, including travel management companies that use Amadeus or integrate using Web services. Negotiated discounts are not the…
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