The Lufthansa Group of Airlines Increases Distribution Cost Charge
by Daniel McCarthy /The Lufthansa Group of airlines, which includes Austrian Airlines, Brussels Airlines, Lufthansa, SWISS, and Air Dolomiti, is boosting its Distribution Cost Charge (DCC) for EDIFACT bookings starting in the new year.
Effective Jan. 1, 2024, Lufthansa is increasing the DCC for EDIFACT bookings on every single channel. The increases, which Lufthansa announced in a message to users this week, include:
- Amadeus (1A) bookings going from $18.50 to $19.00 USD.
- Sabre (1S/1B) bookings going from $20.50 to $26.50 USD.
- Travelport, including Galileo (1G), Apollo (1V), and Worldspan (1P), going from $24.00 to $24.50 USD.
All the new charges will continue to be applied to bookings via a YR-tax code in all GDSs.
The fee was first introduced in 2015 and was originally around 16 euros. It was a non-refundable, non-commissionable fee that provoked a substantial backlash from the industry. Lufthansa, at the time, said that the move was made in order to secure “freedom in distribution.”
The increase is standard for Lufthansa since 2015. It last announced an increase to the DCC in September 2022, saying at the time that “the adjustment is in line with the Lufthansa Group airlines’ policy to increase transparency by reflecting GDS cost accurately.”