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Date published 13.11.2017

AIR FRANCE – KLM is following other major European carriers with the implementation of a distribution surcharge on GDS bookings from April 1, 2018. The new fee will be added to each sector and is intended to cover the cost difference between GDS and direct sales but will not apply to travel agency direct sales and bookings via NDC connection.

British Airways, Iberia and Lufthansa group carriers have already applied GDS surcharges for non-direct, non-NDC sales.

The Association of Southern African Travel Agents said an £11 levy would be added to each sector and Air France-KLM claimed it wanted to take back control of all of its sales channels by embracing IATA’s NDC and that using the IATA standard would allow it to create more personalised sales offerings and display those offerings in a more comprehensive format.

While retailers have been critical of the charges in the past, new partnerships are being established that enable retailers to bypass the additional cost.

Earlier this month, the Flight Centre Travel Group confirmed a new multiyear distribution deal with British Airways and Iberia and the Lufthansa group has said it is working on its first TMC partnerships in South Africa.

• See the December issue of TIR for a full report. To send feedback on this story, email sarah@tir.co.za before November 15.

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