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Agents will pick up tab for GDS deal

AGENTS are facing another financial blow following
British Airways’ ground-breaking deals with Sabre and Galileo.

The deals, which give the global distribution systems
access to BA’s full range of fares in exchange for a reduction in fees, brings
the possibility of agents being forced to pay for GDS access a step closer.

Galileo will introduce a 50p per sector booking charge
for access to the airline’s stock from March 1 when the deals come into force.

Galileo vice-president for airline services Bryan Conway
warned: “If agents want access to low fares via Galileo then they have to
contribute.”

He warned agents to expect fees to become commonplace
as other airlines look to lower their costs. “Expect us to announce other deals
in the coming months; we are in talks with a number of airlines about how they
can reduce their distribution costs,” he said.

Galileo and Amadeus had previously indicated they
would introduce fees but this was expected after deregulation of the market
next year.

Some fear incentives paid by GDSs to agents to help
with technology costs could be cut to fund the BA deal. Advantage director of
business travel Norman Gage said: “It is a theory with a lot of substance
behind it.”

Agents booking through Worldspan and Amadeus will have
to pay a supplement of £3 per sector from March 1 unless the GDSs can reach an
agreement with the airline.

Both claim they are in negotiations with
BA and will reach an agreement before the price hike starts.

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