EasyJet To Charge Steep Fee For Amadeus, Galileo Bookings

Travel management companies savaged today's announcement by EasyJet that it will become the first major European low-cost carrier to distribute through global distribution systems by selling seats through both Amadeus and Galileo by year-end.

The sting in the tail is that EasyJet will apply a point-of-sale fee for all GDS bookings. This will be €7.50 ($10.80) per segment for a one-segment booking, €6 per segment for a two-segment booking and €5 per segment for bookings of three or more segments.

Travel management companies warned they will have to pass the fees on to their customers and that the scale of the charges could prevent them from using the GDS option at all. "It sounds to me not so much as an incentive to use the GDS route as a punishment," said Philip Carlisle, chief executive of the Guild of Travel Management Companies. "EasyJet is clearly passing on all its costs, and possibly more than the costs, of using the GDS to TMCs and their customers. Something that adds cost rather than reduces it for the corporate client is not very helpful."

Mike Platt, director of industry affairs for HRG, was equally scathing. "Without a doubt, this charge will have to be passed on," he said. "At that price, I would expect TMCs not to avail themselves of the opportunity. We have all had to create work-arounds for many years to book EasyJet for our customers and I expect we will stay with those. Any administrative savings gained by switching to the GDS would not outweigh the costs. EasyJet has priced itself too high here."

HRG UK came close to establishing an application programming interface for EasyJet's inventory in 2005. It is believed that all the necessary technical challenges were resolved but agreement could not be reached over commercial terms.

Carlson Wagonlit Travel executive vice president for the United Kingdom Andrew Waller said, "We currently provide full access to EasyJet for CWT clients via CWT Webfares, so in itself this decision won't make any immediate change regarding content. We are evaluating the detail behind the announcement to determine the longer term picture."

EasyJet said it will apply a point-of-sale fee to maintain consistency with its principle of charging for non-Internet distribution channels, such as telephone and airport sales. It claims corporate clients will benefit from their TMCs being able to book the carrier through their everyday workflow. "Now Europe's travel managers and their clients can book with EasyJet, therefore removing the last barrier to the corporate travel market," said EasyJet chief executive Andy Harrison. "By adding a point-of-sale fee, we can ensure our Website remains our primary distribution channel, and fares will always be the cheapest when booking online. However, even with the point-of-sale fee, EasyJet seats sold through the GDS will still be dramatically lower than those offered on any of the traditional airlines."

EasyJet estimates that 20 percent of its passengers are managed business travelers. The airline carried 37.2 million passengers in the 12 months ending Sept. 30.