Industry reactions to Lufthansa GDS charges

The Canadian travel industry is weighing in on the incoming surcharges for Lufthansa Group airline bookings made via GDS.

Earlier this week, it was announced that as of Sept. 1, a surcharge of 16 euros would be tacked onto GDS bookings for airlines within the group, including Lufthansa, Austrian Airlines, Brussels Airlines and Swiss International Air Lines Ltd., as part of a new commercial strategy. In a statement, Lufthansa Group said that annual costs associated with GDS total in the millions of euros for the company.

A statement from ACTA called the new charge “very disappointing,” citing the addition of another non-commissionable fee requiring agents to explain and collect the charge from clients.

Vincent Veerasuntharam, president of Suvara Travels, told PAX that while he understands the company’s need to re-evaluate its business model, he disagrees with the approach.

“If a fee is going to be charged on GDS bookings, why not on bookings through the website,” Veerasuntharam said. “I feel there’s not enough openness and dialogue and unfortunately, I think other airlines will follow. Customers will just move onto airlines that don’t have the surcharge.”

Meanwhile, Wolf Schwarts of Handa Travel said that while the move is unfortunate, it will likely do little to deter GDS bookings from Canada.

“I think as Canadians, we’re complacent to additional charges on airfare,” he told PAX. “The thought is ‘I’ve got to travel, so I’ve got to pay,’ and as long as that continues, the additional charges will too.”