THE trade has shunned Galileo’s plan to introduce a
50p per sector charge for access to British Airways’ lowest fares, throwing
into doubt the era of paid-for GDS access.
According to a draft Guild of Business Travel Agents
press release seen by Travel Weekly, none of the largest travel management
companies has signed up to Galileo’s ‘opt-in’ scheme. However, the draft was
withdrawn without being officially released.
Under the deal, which starts next month, agents are
charged a 50p per sector booking fee. In return they can access all the flag
carrier’s fares including those on BA.com.
GBTA deputy chairman Adam White said: “The GBTA is
very concerned about this because of the effect it could have on the end
consumer.”
White warned any increase in costs could be passed on
to the customer.
Business travel agents fear the BA deal will prompt
other airlines to follow suit.
A leading industry source said: “Business agents feel
they are getting the thin end of the wedge. It will start with BA, but then
other airlines will want to do it so they need to nip it in the bud.”
ABTA is also objecting to the charge. Aviation board
director Sandy MacPherson said: “This will hit the corporates more because they
have client contracts which they can’t change at short notice.”
Galileo could be the only GDS charging fees. Sabre has
already agreed a deal with BA that means agents don’t have to pay for access to
all the airline’s fares. Amadeus and Worldspan are set to announce new deals with
BA imminently.
Cendant UK and Ireland director Alison Bell, with
responsibility for Galileo, dismissed the draft release, claiming she’d had a
“strong” response to the scheme.
Bell refused to reveal figures but stated she is “comfortable
with the uptake”.
She admitted Galileo would be isolated if the other
GDSs fail to charge a fee but insisted the model was right.
“It is not the wrong position. Ultimately, we have to
change the financial model. The revenue the GDSs are getting from airlines is a
shrinking pie,” she said.
Bell admitted Galileo is in talks with other carriers
about how they can reduce their distribution costs and said the BA model could
“possibly” be repeated.