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Travel agents face £4 charge as BA stalls on GDS deal – 1 Feb 2007

British Airways is taking a hard line in negotiations with the global distribution systems and is threatening to walk away from new deals leaving agents having to pay £4 per sector.

Existing deals with Amadeus, Galileo, Worldspan and Sabre expire at the end of February and a proposal would see agents pay £2 per sector towards the cost of distribution.

However, Travel Weekly has learnt that BA, which is keen to save money on its GDS bill, is stalling and getting tough with the GDSs, threatening not to agree replacement deals, meaning the full cost of distribution could be passed on to agents.

Such a move would in effect see the end consumer paying BA distribution costs because agencies would have little choice but to pass the cost on.

Sources say BA believes it is in a position of power as research carried out among travel management companies revealed agencies demand BA is on the GDSs because their customers expect to travel with the airline.

Agents faced with having to pay £4 may switch to book through BA.com, the airline’s preferred distribution outlet.

Advantage business travel director Norman Gage said: “We wanted full content in one screen as we do not want to have to go off looking at other websites. We are nervous about what is going to happen.”

However, another source added the agency community would not be happy with a surcharge. “They will be paying twice for distribution. There is already a distribution charge included in the ticket price.” 

A BA spokeswoman said the airline was considering all options. “We are under pressure to reduce our costs,” she said.

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