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Galileo and Amadeus put hike on prices


GALILEO International and Amadeus are both increasing fees to airlines and other suppliers that are listed on their global distribution systems.



The increases take effect from January 1 with Galileo putting up its global booking fees by an average 5.3%, its fourth price hike in a year. Amadeus will increase its fees by an average of 4.5%.



Airlines, hotel groups and car-hire companies have to pay a fee to the GDSs each time agents make a booking.



A Virgin Atlantic spokesman said: “We have asked Galileo how it can justify a fourth increase in one year as we haven’t seen any improvement in either value or service. We will be reviewing our distribution policy.”



British Airways general manager global distribution Kieron Gavan said: “We will be taking the matter up with them.”



Galileo said it needed to raise fees to cover the ‘significant increase’in the cost of developing products and providing distribution services.



However, the GDS reported lower-than-expected bookings for October and November, blaming the drop on poor demand for holidays over the millennium.



Rival GDS Sabre will make a decision next week on whether to follow suit.


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