Agents will pick up tab for GDS deal

AGENTS are facing another financial blow following British Airways’ ground-breaking deals with Sabre and Galileo.

The deals, which give the global distribution systems access to BA’s full range of fares in exchange for a reduction in fees, brings the possibility of agents being forced to pay for GDS access a step closer.

Galileo will introduce a 50p per sector booking charge for access to the airline’s stock from March 1 when the deals come into force.

Galileo vice-president for airline services Bryan Conway warned: “If agents want access to low fares via Galileo then they have to contribute.”

He warned agents to expect fees to become commonplace as other airlines look to lower their costs. “Expect us to announce other deals in the coming months; we are in talks with a number of airlines about how they can reduce their distribution costs,” he said.

Galileo and Amadeus had previously indicated they would introduce fees but this was expected after deregulation of the market next year.

Some fear incentives paid by GDSs to agents to help with technology costs could be cut to fund the BA deal. Advantage director of business travel Norman Gage said: “It is a theory with a lot of substance behind it.”

Agents booking through Worldspan and Amadeus will have to pay a supplement of £3 per sector from March 1 unless the GDSs can reach an agreement with the airline.

Both claim they are in negotiations with BA and will reach an agreement before the price hike starts.