Global distribution system Worldspan on April 1 will change categorizations that will result in a 2.1 percent increase in the average global booking fee.
"It depends on the level of carrier participation and usage factors of the agencies they do business with," said Vela McClam-Mitchell, Worldspan senior vice president and general manager of worldwide travel supplier solutions. "Some agencies hit the system more and consequently have different usage factors and fall into different usage categories."
Worldspan said the fee in Asia will remain flat, and that the fee in other regions-North America, Latin America and Europe-could be "more or less" than the 2.1 percent average increase.
Sabre on Feb. 1 raised by 2.9 percent the average global booking fee for the remainder of the year. Galileo International's fee hike, effective tomorrow, amounts to a 2.2 percent average increase over 2002 levels, varying by market between 1 percent and 3.5 percent. Amadeus, the first to announce 2003 pricing, raised fees on average by 2.9 percent, though executives at certain airlines and competing GDSs said the increase in North America would be noticeably higher.
Unlike Sabre and Galileo, Worldspan did not announce any formalized discount program in conjunction with 2003 pricing. "We have said over the past year that we are working on all sorts of programs to help suppliers reduce costs," McClam-Mitchell said. "We have the lowest global fee increase among our competitors."
Meanwhile, a Worldspan official objected to the U.S. Department of Transportation's recent proposal to delay until Jan. 31, 2004 expiration of rules governing computer reservations systems. "It is safe to say we don't want the rules extended. Keep the original deadline and let's make a decision," the official said. "We are in favor of deregulating the industry."
DOT this month filed the proposal to push back for a sixth time the expiration date-from March 31 to early next year-to allow adequate time for impacted parties to comment on DOT's proposed rule changes
(BTN, Dec. 9, 2002) and for DOT to consider those comments while the Office of Management and Budget conducts a review.
"This proposed extension of the current rules would keep them in effect while we carry out our reexamination of the need for CRS regulations," DOT said in a filing. "We have tentatively concluded that most of the current rules should be maintained on a temporary basis because they may be necessary for promoting airline competition and protecting consumers, although the Department may determine in its reexamination that the need for most or all of the rules has ended. Allowing the rules to sunset may be contrary to the public interest. Extending the sunset date will give us time to complete our reexamination of the rules as promptly as possible, so that the rules are updated to reflect current industry conditions and economic realities."
Today is the last day DOT is accepting comments on the proposed extension of the expiration date.