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Asia Pacific
Airline direct-sell tactics ‘alienating’ trade and consumers
Airlines are running the risk of alienating both business travellers and travel management companies with direct-sell initiatives.
Low cost leisure fares offered direct to business travellers which cannot be booked by agents are tempting executives to deal direct with airlines.
The warning came from the 33-member Guild of Travel Management Companies, whose chief executive Philip Carlisle said: “A number of carriers are offering loyalty cardholders, and airline web registrants, discounted leisure fares in an undisguised attempt to move more travellers to book direct.”
He added: “The problem is that these are usually labelled ‘leisure’ fares and are sent direct to individuals’ email addresses, and are not available to TMCs.
“There is the very real danger of alienating high-yield business travellers who will see these fares and query why they cannot be booked by their Travel Management Company.
“By offering low-cost leisure fares to business travellers, airlines are tempting executives to book online without going through their company-appointed TMC.”
Carlisle said: “Companies control travel costs through policy compliance. If travellers are tempted to book through unauthorised channels, companies will lose that control – and it could end up costing them more, not less.
“At the same time, travellers themselves will quickly discover that although these fares may seem cheap, they’re not always good value.”
Report by Phil Davies
Phil Davies
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