INDUSTRIA AERONÁUTICA

British TMCs say distribution fee has hurt Lufthansa, airline disagrees

Lufthansa lost GDS market share on bookings from the U.K. to Germany following the imposition of a controversial 16-euro surcharge in September, according to trade group the Guild of Travel Management Companies (GTMC).

Lufthansa counters that the fee has not harmed its bookings companywide.

The data, based upon a sample of 12,000 bookings made by GTMC members in the three months before and after the surcharge went into effect, shows that Lufthansa"™s market share declined 8.5%. Those numbers suggest "that TMCs have switched business away from the airline group to avoid passing on the charge to their customers," GTMC said.

The data, compiled for GTMC by England-based travel technology company 7R Group, showed that in June Lufthansa"™s market share for U.K.-to-Germany bookings among the trade group"™s members was 32.9%. In November, that number had dipped to 24.4%. Meanwhile, other carriers either matched or increased their market share during that time.

GTMC members account for more than 80% of managed business travel spending in the U.K., the guild says.
In a statement to Travel Weekly, Lufthansa said that the GTMC figures are incomplete, as they only account for bookings made through the trade group"™s channels. The company added that the share of Lufthansa"™s tickets that have been sold via its supplier website rose from 29% in June to 35% in December.

"Looking across the Lufthansa Group, we cannot see any decrease resulting from the introduction of the [distribution-cost charge]," Lufthansa said.

Lufthansa Group is levying the fee on bookings for its four airlines: Austrian Airlines, Brussels Airlines and Swiss International Air Lines in addition to its namesake Lufthansa German Airlines…

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