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KLM’s extranet service boosts client coverage


KLM is trialling an extranet service with 12 key agents and corporate clients until June.



The system is currently only used for gaining information on the Dutch carrier and its partner Alitalia.



In June, the extranet will be able to take bookings.



Director of sales Peter Cornwall said: “Alitalia has helped us greatly with this. It is an example of the cutting edge of technology in our alliance.”



Cornwall said agents will receive their usual commission if bookings are taken through the extranet. The on-line system provides a secure link between the airline, agents and corporates.



KLM will use it to target deals, special offers and provide information on ticketing.



Cornwall pledged that KLM commission will stay at the 7%-10% rate until at least January 1 next year.



After this, he said agents will need to show enhanced support for KLM but he conceded rates may drop to as low as 5%. However, he said the upper end could be up to 11%.



“There will be more opportunities for the independent agents to gain higher rates by showing greater support. We are not just targeting the top 500 agents as British Airways is doing,” he said.



Cornwall criticised BA for rejecting low-yield passengers saying it was a flawed policy if there is a sales downturn.



He also said BA may suffer with customers downtrading to World Traveller Plus from its Club World class.



KLM takes 89% of its bookings through the trade -Êa figure Cornwall said may drop to 75% with increased direct bookings on the Internet and through other channels.



The airline has a 5% target for on-line bookings over the next two years.



Other initiatives to increase sales include a KLM-branded credit card for corporate clients.



This will provide an easier way for clients to track expenditure.



Alitalia will work alongside KLM in all departments from April.



“We will have one pricing structure, one distribution method and one discount policy,” said Cornwall. The partners will also have joint ticket stock by June.


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