Air France-KLM to introduce GDS surcharge

Air France-KLM has become the latest airline group to announce it will start levying a surcharge for GDS bookings from next year.

Lufthansa was the first airline to slap agents with a fee of EUR16 (R263) for every booking made on the GDS in September 2015, followed by British Airways and Iberia in November this year with an £8 (R149) surcharge.

Now, Air France-KLM has announced it will levy an EUR11 (R181) fee for every one-way trip booked on the GDS from April 1, 2018. In a presentation released online as part of its third-quarter earnings announcement, Air France-KLM said that the fee will cover the cost difference between GDS and direct sales.

“GDSs are a key component of Air France-KLM distribution,” the airline group said. “However, their model represents higher costs than other options and comes with more constraints.”

Air France-KLM said that its goal is to take back control of the offers in all its sales channels by embracing IATA’s New Distribution Capability (NDC), the XML-based standard that lays the groundwork for airlines to sell all of their products, including ancillaries, through travel agencies.

The airline group said that using NDC would allow it to create more personalised sales offerings as well as dynamically built product bundles and to display those offerings in a richer, more illustrative format.

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