Lufthansa levy hits carrier’s market share of business travellers

Lufthansa’s €16 GDS booking fee levy has hit the German airline’s market share of business travel flights between the UK and Germany, new data reveals.

Lufthansa’s market share dipped by 8.5% from 32.9% in June to 24.4% in November following imposition of the charge on September 1.

EasyJet grew its market share as did other airlines, while British Airways’s remained steady, according to new information from GTMC members.

The trend suggests that TMCs have switched business away from the German airline group to avoid passing on the charge to their customers.

The data, compiled by the 7R Group, compared the market share won by the Lufthansa Group, for flights from the UK to Germany prior to the charge between June and August 2015 and then September and November after the introduction of the fee.

It is based on a sample of about 12,000 transactions with flights all booked via GTMC members.

GTMC chief executive, Paul Wait, said: “We predicted that the Lufthansa charge would upset and put business travel bookers off.

“They haven’t booked directly with Lufthansa as they hoped, instead, they have voted with their feet and taken their business elsewhere.

“In this highly competitive market, we believe, this charge has done some obvious damage to Lufthansa’s market share.

“It is a flawed and failed strategy which should be reviewed.”

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