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BA puts the squeeze on business travel agents

BRITISH Airways is threatening to pull agents’ sales
and marketing agreements if they fail to sign up to the carrier’s new access
deals with the global distribution systems.

BA is only giving sales deals to business
agents who have the full range of its lowest fares on their GDS. The only way
agents can access the lowest fares is to opt in to one of the distribution
agreements it has with the four GDSs.

Leisure agents who do not sign up to a distribution
deal will still be eligible for a sales and marketing agreement, but will not
get some of the benefits of being a preferred partner.

BA head of corporate sales Ian Heywood dismissed
claims the airline was forcing agents into signing a deal.

“They are under no pressure to sign a deal and there’s
no bullying,” he said. “It’s agents’ choice. We are neutral in all of this
because we either get £3 per sector if agents don’t sign up or we save on the
GDS costs if they do.”

He refused to comment on whether the number of deals
handed out by the airline would fall this year.

CorporateChoice director Tim Giles said: “Agents are
being held to ransom, we don’t have a choice.”

Corniche Travel Management managing director Alan
Jackson said he didn’t think agents had much option but to accept the terms as
adding a £3

sector charge would make them uncompetitive.

Leading business travel agencies are rumoured to be
having reservations about paid-for GDS access, but BA said 80% of the flights
currently booked through Galileo are from agents who have opted in.

Guild of Business Travel Agents air working party
chairman Alan Coles said he had not heard anything from BA, but members are
continuing to debate the changes.

News of pressure from BA comes as the carrier
finalises new distribution deals with Amadeus and Worldspan.

From March 1, agents using Amadeus will face a 95p per
sector charge for European economy flights. A fee will not be charged on
long-haul and business-class European flights.

Amadeus is giving agents the opportunity to balance
their books by offering a 95p credit on all hotel, car hire and cruise
bookings.

Worldspan is expected to announce details of its deal this
week.

The move follows Galileo’s controversial 50p per
sector charge. Galileo and Amadeus agents can choose not to

opt-in to the GDS’ individual deals, but they face a
£3 per sector charge.

Sabre is guaranteeing agents no BA flight booked
through their system will include any charge for the next three years.

 

 

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