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American offers agents lowest fares, for a fee
American Airlines is allowing agents in the US and Canada to sell its lowest web fares.
The EveryFare programme will allow traditional agents to sell fares through their GDS, which were previously only available on the American website and selected websites like Orbitz.
However, agents will have to pay the GDS fees that would have previously been covered by American. The move is part of a streamlining initiative by American to reduce costs.
A statement from the airline said: “The innovative EveryFare programme provides these web fares in exchange for effectively shifting the responsibility for the cost of global distribution system (GDS) booking fees from American Airlines to the travel agency”.
Agents are given a per-flight coupon allowance of $4, then pay an amount to American that equals their own GDS fee. American said the move will “give travel agencies a financial incentive to seek lower GDS fees”.
Over a period of five years, the coupon allowance diminishes, in which time American says the agent would have achieved cost reductions in distribution technology.
American also stated that it hoped in the future agents would be able to book directly on its website, further bringing down the cost of distribution fees.
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