United Kingdom
United States
Asia Pacific
Chaos looms for agents over American Airlines’ new GDS charges in the US
American Airlines has sent the US travel industry into a panic after announcing it will charge agents $3.50 per segment for GDS bookings that are not made with its preferred GDS partners.
It is feared airlines and GDS companies are planning the same move in the UK.
Alan Coles, managing director of P&O Travel and chairman of the GTMC Air Working Party, said discussions about similar moves were currently taking place between the airlines and the GDS companies in the UK.
“Our hope is that they come up with a better solution,” he said.
“What we need is access to all content and deals simply and efficiently. It is not a welcome move at all. It’s a case of shifting costs around again, and by passing the cost on to agents ultimately it is the customer that will pay.”
Kathryn Sudeikis, president and CEO of the American Society of Travel Agents, said: ”American’s announcement tells every travel agency in America: if you want to sell us, run your business the way we tell you or you’ll be forced to pay us for the privilege of booking our services.
“American is trying to use its market power to impose its costs on other market players, as a condition to providing what travel agents clearly require to do business efficiently.
“To make matters worse, American did not coordinate with all of the so-called ‘preferred’ GDSs, so travel agents are still in the dark about the financial terms that each option provides.
“American has allowed only six weeks for agents to sort this out after the other GDSs make their financial terms for full-content opt-in clear. As of today, only Sabre has done so and that was a few weeks ago.”
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Turkish Airlines flight in emergency landing after pilot dies
Boy falls to death on cruise ship
Unexpected wave rocks cruise ship
Woman dies after going overboard in English Channel