On Nov. 1, British Airways and Iberia will begin charging a €9.50 fee on
fares booked through some third-party channels, including global distribution systems.
The Beat, which like BTN is owned by Northstar Travel Group, obtained a memo
that BA and Iberia parent company International Airlines Group sent to agency
partners. It said the fee, also priced at US$10 and £8, is meant to offset distribution
charges and to push booking to channels that use the New Distribution
Capability interface or to direct channels like its website or call center. The
carriers also "have developed a wide range of NDC-based connections,
including direct NDC connections, aggregators, self-booking tools connected via
NDC and an IAG booking portal," according to the memo.
HRG recently announced it would distribute BA content via an
NDC-based interface, and Concur is doing
the same for BA and Lufthansa, which pioneered
the distribution charge in 2015. IAG is the first airline company to follow
Lufthansa's charge.
IAG's charge will apply to each "fare component,"
which it defined in the memo as a "portion of a journey or itinerary
between two consecutive fare break points." While that usually will apply
to a journey from its origin to its destination, there will be exceptions "depending
on the fare construction," according to IAG.
The fee applies to all cabins and classes but not to fares
on BA or Iberia flights booked through codeshare partners. The fee also will
not apply to the other carriers in the IAG family, Aer Lingus and Vueling.
The memo noted that IAG is working with GDSs on NDC
connectivity and is developing an IAG booking portal that will be available "shortly."