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ASTA slams American’s EveryFare
The American Society of Travel Agents has warned agents against entering into American Airlines’ EveryFare programme.
ASTA president and chief executive, Richard Copland said: “It [EveryFare] appears to give travel agencies access to American’s low web fares in exchange for paying American’s GDS costs, but it doesn’t actually assure that American will offer any web fares to justify the agency taking on those costs”.
American’s EveryFare programme, launched last week allows agents access to the carrier’s lowest webfares if the agent agrees to shoulder some of the GDS fees. Mr Copland warned, however that agents are bound to a five year non-negotiable agreement that puts them at the mercy of American.
Mr Copland told TravelMole: “The airlines have got to learn sooner rather than later that they can’t dictate to travel agencies any more. About $90 billion of air tickets are sold every year through agencies, and American is turning its back on that distribution system. EveryFare is going to lose them money. The vast majority of travel agencies are not going to sign up for it.”
Ray Hanley, president of an agency called Travel Pro Network, based in Boston was also dubious of the scheme. He told TravelMole: “In this time of uncertainty we wouldn’t enter into anything for a five-year term, particularly something written totally unilaterally. It would be suicidal for small and medium size agents.”
Mr Copland said that the only way to get out of the agreement is to stop selling American tickets, or go out of business. He said that only larger agents with big corporate clients, may be interested in EveryFare, because they could pass the cost onto the client.
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27-September-2002 American offers agents lowest fares, but for a fee
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