Air France/KLM to Apply GDS Booking Surcharge Next Year

by Richard D'Ambrosio
Air France/KLM to Apply GDS Booking Surcharge Next Year

Photo: KLM


Air France and KLM announced that starting April 1, 2018, they will charge an 11 Euro (US $13) surcharge per one-way segment for all traditional GDS bookings.

Like many carriers before them, the Air France/KLM alliance is trying to incent agents to book through the carriers’ New Distribution Capability (NDC) channel, which uses Internet-based computer coding to provide more dynamic offers and personalization of airfares and inventory.

In a letter announcing the surcharge, Marnix Fruitema, Air France/KLM senior vice president, North America, wrote to agents that “Air France KLM is developing its NDC offer and invests in options for partners to access, book and sell it: by connecting to Air France KLM NDC APIs (Application Programming Interface), available in January 2018, or by using the dedicated Air France KLM Agent Booking Tool, an online booking portal for travel agencies, deployed from April 1st, 2018.”

Fruitema said that GDS distribution “represents higher costs for Air France and KLM, and comes with more constraints.”

Air France/KLM said the surcharge “will cover the cost difference between the GDS model and the corresponding costs of Air France and KLM direct sales. This surcharge applies as soon as Air France, KLM or HOP! participate as marketing carriers in the itinerary” and that “the amount is subject to change in the future.”

In a note to agents, Delta Air Lines, a part of the SkyTeam Alliance with Air France and KLM, said “This surcharge will not apply to Delta marketed segments.”  Similarly, agents can avoid paying the BA/Iberia surcharge booking under the American Airlines codeshare.

Delta is not implementing a GDS surcharge, a spokeswoman said. “Our strategy is about empowering customers with consistency, transparency and choice across all of our products and channels.”

  0
  5
Tip of the Day
Daily Top List

5 Offline Places to Find Luxury Travelers

1. Local schools.

2. Professional services.

3. Local luxury retailers.

4. Arts community.

5. Luxury establishments.

Source: TMR

TMR Recommendations
Top Stories
Five Tips for Navigating Busy Airports This Summer
Five Tips for Navigating Busy Airports This Summer

Help you clients have stress-free travel experiences by giving them the low-down on security requirements, timing, and travel documents.

JetBlue Founder Backing New U.S. Airline
JetBlue Founder Backing New U.S. Airline

David Neeleman, who is now a part owner of Portuguese airline TAP Air Portugal, is reportedly weighing backing a new entrant into the U.S. market.

What Individual Fare Pricing Means to Travel Agents
What Individual Fare Pricing Means to Travel Agents

Travel sellers cannot afford to remain unaware of this seemingly inevitable and revolutionary development in the way that air travel is sold.

North America Announced as the Host of the 2026 World Cup
North America Announced as the Host of the 2026 World Cup

The U.S., Canada, and Mexico will share the event, which is expected to be the largest in World Cup history.

Airlines Expect Fare Increases Because of Rising Fuel Costs, Over-Capacity
Airlines Expect Fare Increases Because of Rising Fuel Costs, Over-Capacity

Passengers and travel sellers should brace for a series of airfare increases, as the industry prepares to absorb a hefty hike in the cost of jet fuel.

Benefits of New Airline Distribution Tools Growing More Clear
Benefits of New Airline Distribution Tools Growing More Clear

Amadeus and Sabre executives expand on how NDC technology advancements will make travel agents more relevant in the future.

News Briefs
TMR Report Cards
Advertiser's Voice
Advertiser's Voice: Norwegian Cruise Line