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Expert issues stark warning to agents over airline distribution
The European business travel industry will be damaged beyond repair unless airlines and GDS companies reach a sensible conclusion over full content, an expert has warned.
Speaking at the Annual General Meeting of the Guild of Travel Management Companies, Kevin Mitchell, chairman of the US-based Business Travel Coalition, urged travel management companies and their corporate clients to take action now to secure the outcome of the agreement, which is due to be reached at the end of February.
“The damage done could be far worse that reduced incentive fees, content surcharges or content fragmentation,” said Mitchell.
“Indeed, something very big is at stake here. Based upon our sources, some major European airlines’ distribution strategies indicate that intermediaries are marked for extinction, that corporate travel programmes are at great risk, and that the long-term health of the system is being gambled.”
He said the unique competitive structure of the airline industry was fuelling the issue.
“In such a ruthless and cutthroat business, airlines are always trying to shift costs to distributors and customers, who are already paying for distribution and other airline expenses in the price of their tickets,” he said.
“Accepting content fragmentation, and a distribution cost-transfer though, places all corporate travel buyers on a slippery slope where what could be transferred next might be the cost of credit or pilot pension expenses. As a matter of principle, customers should not pay twice for the cost of distribution, or any other cost, already reflected in the price of their tickets.”
GTMC chairman Paul Allen said the Guild would keep up the pressure on British Airways in its talks with GDS companies.
“Where one leads, others will surely follow and it’s time the parties concerned realised the damage they could be causing to this industry,” he said.
“What we need is full content at no extra cost to the traveller and of course parity with the web.
“It’s simple, it’s what airline pricing surely already includes and doesn’t need further debate. This industry needs those concerned to get their acts together and sort the issue – plain and simple. If America could do it, why the hell can’t we?”
Report by Bev Fearis
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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.
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