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Distribution

Qantas to Launch New Distribution Model, Revise Surcharges

By Donna M. Airoldi / December 02, 2024 / Contact Reporter
Business Travel News on X

Qantas plans to launch on July 1, 2025, a new distribution model that will include updated fees on bookings through the traditional EDIFACT channel as well as New Distribution Capability bookings through global distribution systems, the carrier announced Thursday.

As of that date, fees will vary depending on the booking channel chosen. Previously, Qantas on Aug. 1, 2019, started to charge for bookings made by agents that did not participate in its Qantas Channel. 

The new model will replace Qantas Channel agreements and help Qantas "recover costs of indirect distribution," according to the carrier. Qantas has partnered with the Amadeus, Sabre and Travelport GDS providers, as well as 10 other "certified technology partners," including Serko and Travelfusion.

Beginning July 1, traditional EDIFACT bookings will incur a Qantas surcharge on the ticket of A$11.50 per segment in Australia, NZD$17.50 in New Zealand and up to US$13 per segment in other points of sale, according to the carrier. Standard GDS NDC bookings will incur a Qantas surcharge on the ticket of A$4.50, NZD$5 or US$3 per segment. 

Previous surcharges had been A$17.50 for any non-Qantas Channel booking from Australia and US$12.50 for U.S. points of sales. Other fees varied by country and region.

To avoid the updated charges, agents can use the carrier's standard NDC offering via Qantas' technology partners or the Qantas Distribution Platform portal with no surcharge on the ticket, "better pricing versus EDIFACT" and "access to most sales fares versus EDIFACT."

In addition, Qantas plans to offer a "premium NDC option," available by invitation after an expression-of-interest process. This option, which would be negotiated by the carrier and individual agencies, will offer differentiated pricing versus standard NDC, access to all available NDC sale fares versus standard NDC, and future products and fares, according to Qantas.

"It appears the new model makes an agency's selection of commercial model more scalable," Garner CEO Cory Garner told BTN. In a post on LinkedIn, he also said that Qantas' new model basically is Lufthansa's distribution model, and that the Australian carrier provided some clarity on differences between its various channels. 

Garner added in his post that the new model "very subtly hints that 'full content' commitments from Qantas to agencies are either off the table or to be reserved for those with custom distribution deals that qualify for 'Premium NDC.' " He also noted that the move is not a huge departure from what Qantas already has in-market, and that it is a "continuation of the pre-pandemic era" rather than helping to "define the next era of distribution strategies." 

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