Lufthansa and SAS Group have reached agreements with Sabre and Amadeus to reduce their distribution costs
Another string of deals are starting to be done between European airlines and Global Distribution Systems, as carriers assert themselves and look for ways to reduce their distribution costs.
One such deal was a recent agreement reached between Lufthansa and Sabre, under which Sabre agents in Germany, Austria and Switzerland that participate in the cheapest "Preferred Fares" programmes of Lufthansa and Swiss will be able to access and sell all fares without having to pay a fee.
Lufthansa says it agreed to waive the surcharge because of a "reduction from Sabre which means the costs on computer reservation systems have been lowered". It adds: "If a GDS is generally able to reduce distribution costs by a certain level, we are able to reduce our preferred pricing to them."
 |
|---|
"Sabre reasserted the value we had to Lufthansa during a long, complicated conversation"Martin Cowley |
The deal marks a shift in position from Lufthansa's announcement earlier this year when it insisted that by July travel agents would have to pay a fee of E4.90 ($7.60) per sector to access Lufthansa's cheapest fares. However, a source close to Sabre points out that as Sabre has a much smaller volume in Germany compared to Amadeus, the agreement is in effect a "direct attack on Amadeus". The source adds: "The question over the deal with Sabre is: will Amadeus follow? And the answer is no. This is a stand-off."
Lufthansa says it is "open to discuss this type of agreement with other GDSs", but it is "up to the GDSs to get back to us". Amadeus says it is in talks with the carrier with the objective of reaching a solution which is "acceptable to all involved", and which means that travel agents are not "impacted negatively or subjected to a discriminatory situation in the marketplace".
Another recent deal in the distribution field is a letter of intent signed between SAS Group and Amadeus, under which parts of the SAS commercial IT platform will be replaced in return for travel agencies that use Amadeus being able to keep access to the lowest fares of SAS. The carrier says the LOI, which followed a long and drawn-out process, will include "considerably reduced distribution costs". A final deal is expected to be signed this autumn and neither side will disclose any further details until then.
Richard Clarke of UK-based advisory firm Travel Technology Research says the LOI is "very important for Amadeus and very important for SAS", and is "a good thing for both of them".
Source: Airline Business
