Many travel management companies, including American Express and Carlson Wagonlit Travel, are passing through to corporate clients the opt-in charges imposed on them by global distribution systems for booking British Airways tickets in the U.K. and Ireland. HRG, however, will not to pass on to clients added expenses incurred as result of the distribution shakeup—at least for the next 12 months.
Following British Airways' recently completed GDS deals, agency subscribers in the United Kingdom and Ireland must pay to access British Airways' content. While GDS opt-in programs shield subscribers from BA's £3 per-segment surcharges for "full content," fees to opt in range from £0.50 to £1 per booking, based on fare class
(BTNonline, April 10). The new GDS charges went live April 10, except for Sabre subscribers, which the distributor said "have been protected from the BA surcharge until May 1, 2007."
Meanwhile, Amadeus has yet to sign a new content deal with British Airways, but a spokesperson said it would "reimburse in full the £3 per-segment surcharge incurred by the agencies during the period from April 10 to May 1," as it continues to work toward an agreement with the carrier.
TMCs have had to consider whether to pass the opt-in charges on to their corporate clients and CWT and Amex have decided that they will. At press time, an informed HRG source said the company was likely to issue a statement that it will not pass on the opt-in charges for at least 12 months. It is understood that HRG's GDS economics, which were structured differently than the other travel management companies, are less affected by the new deal than that of its rivals.