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| Lufthansa makes flight booking sites add fee | Lufthansa makes flight booking sites add fee |
| (35 minutes later) | |
| Lufthansa Group is to introduce a surcharge for customers who buy its flights through third-party websites. | Lufthansa Group is to introduce a surcharge for customers who buy its flights through third-party websites. |
| The 16-euro ($17.80; £11.60) fee is likely to deter travellers from completing bookings on services including Expedia, Opodo and ebookers. | The 16-euro ($17.80; £11.60) fee is likely to deter travellers from completing bookings on services including Expedia, Opodo and ebookers. |
| It marks the latest effort by the airline industry to steer customers towards its own websites. | It marks the latest effort by the airline industry to steer customers towards its own websites. |
| One expert said this not only helped cut airlines' costs but also allowed them to them promote add-on services. | One expert said this not only helped cut airlines' costs but also allowed them to them promote add-on services. |
| However, the booking services suggest their own platforms are often easier to use and help keep prices low. | However, the booking services suggest their own platforms are often easier to use and help keep prices low. |
| Lufthansa Group's move will affect tickets bought for Lufthansa itself as well as Austrian Airlines, Brussels Airlines and Swiss from 1 September. | Lufthansa Group's move will affect tickets bought for Lufthansa itself as well as Austrian Airlines, Brussels Airlines and Swiss from 1 September. |
| Cost savings | Cost savings |
| There are two types of travel price comparison sites on the net: | There are two types of travel price comparison sites on the net: |
| Lufthansa's move is expected to be damaging to the former, while allowing its own site to appear the most attractive option on the latter. | Lufthansa's move is expected to be damaging to the former, while allowing its own site to appear the most attractive option on the latter. |
| "The distribution cost charge will drive up the cost of tickets booked via so-called online travel agencies like Expedia or Opodo," Martin Riecken, a spokesman for the German airline, told the BBC. | "The distribution cost charge will drive up the cost of tickets booked via so-called online travel agencies like Expedia or Opodo," Martin Riecken, a spokesman for the German airline, told the BBC. |
| "However, it is not about... trying to discourage anyone from comparing prices. | "However, it is not about... trying to discourage anyone from comparing prices. |
| "We rather aim for more transparency. Our rationale is twofold. | "We rather aim for more transparency. Our rationale is twofold. |
| "Firstly, to allocate the high distribution cost of global distribution systems [the flight inventory and fare databases used by online travel agents] - we are talking about a high three-digit million euro amount per annum for the Lufthansa Group - to those that are actually using the services, instead of evenly distributing these cost to all passengers. | "Firstly, to allocate the high distribution cost of global distribution systems [the flight inventory and fare databases used by online travel agents] - we are talking about a high three-digit million euro amount per annum for the Lufthansa Group - to those that are actually using the services, instead of evenly distributing these cost to all passengers. |
| "Secondly, to take advantage of greater degrees of freedom in our sales activities, providing customers with the exact tailor-made service that they are looking for." | "Secondly, to take advantage of greater degrees of freedom in our sales activities, providing customers with the exact tailor-made service that they are looking for." |
| Booking backlash | Booking backlash |
| Opodo said online travel agencies were opposed to the move and their lawyers were already looking into the matter. | Opodo said online travel agencies were opposed to the move and their lawyers were already looking into the matter. |
| "[This] is a global issue that affects all countries and worldwide travel agencies, traditional or online, corporate and leisure, and which is already being legally examined by the associations of European agencies," said a spokeswoman for the company. | "[This] is a global issue that affects all countries and worldwide travel agencies, traditional or online, corporate and leisure, and which is already being legally examined by the associations of European agencies," said a spokeswoman for the company. |
| "Lufthansa Group will clearly be the one whose most affected by this decision. | "Lufthansa Group will clearly be the one whose most affected by this decision. |
| "The fact that they have not provided any automated alternative to the global distribution systems will cause Lufthansa, Austrian Airlines, Brussels Airlines and Swiss to suffer a severe lack of competitiveness against other companies that are present in these channels and don't have an extra cost for the travellers." | "The fact that they have not provided any automated alternative to the global distribution systems will cause Lufthansa, Austrian Airlines, Brussels Airlines and Swiss to suffer a severe lack of competitiveness against other companies that are present in these channels and don't have an extra cost for the travellers." |
| One industry watcher said Lufthansa might have felt it had to act to boost its earnings. | One industry watcher said Lufthansa might have felt it had to act to boost its earnings. |
| The company recently reported 55m euros of net profit for its last financial year, representing an 82% drop on the previous period. | The company recently reported 55m euros of net profit for its last financial year, representing an 82% drop on the previous period. |
| Its services have also been disrupted by a series of pilots' strikes and the crash of one of its Germanwings flights in March. | Its services have also been disrupted by a series of pilots' strikes and the crash of one of its Germanwings flights in March. |
| "If you look at Lufthansa's recent performance, they have been through difficulties," said Laurie Price, an independent airlines consultant. | "If you look at Lufthansa's recent performance, they have been through difficulties," said Laurie Price, an independent airlines consultant. |
| "So they've been looking at every way to increase their bottom line. There is only so much cutting you can do. | "So they've been looking at every way to increase their bottom line. There is only so much cutting you can do. |
| "A better way is to generate revenue. And if you can get sales direct and offer add-ons, then that's a much better way." | "A better way is to generate revenue. And if you can get sales direct and offer add-ons, then that's a much better way." |
| Lufthansa Group's stock traded slightly higher following the announcement. | |
| But shares in Amadeus - the Spanish travel booking technology company that serves Expedia, Opodo and others - closed the day 10% lower. | |
| Direct sales | Direct sales |
| Lufthansa's action represents the latest in a series of clashes between airlines and price comparison booking services. | Lufthansa's action represents the latest in a series of clashes between airlines and price comparison booking services. |
| Last August, American Airlines briefly removed its flights completely from the online travel agency Orbitz in a row over fees. | Last August, American Airlines briefly removed its flights completely from the online travel agency Orbitz in a row over fees. |
| More recently, the US Travel Technology Association complained that Delta Air Lines had removed its schedule and fare information from more than a dozen online travel agencies, including TripAdvisor, Fly.com and Hipmunk. | More recently, the US Travel Technology Association complained that Delta Air Lines had removed its schedule and fare information from more than a dozen online travel agencies, including TripAdvisor, Fly.com and Hipmunk. |
| It added that the UK-based metasearch service Skyscanner had lost access to Delta's flights as a consequence earlier this year. | It added that the UK-based metasearch service Skyscanner had lost access to Delta's flights as a consequence earlier this year. |
| Skyscanner now points customers directly to Delta's site, benefiting the airline. | Skyscanner now points customers directly to Delta's site, benefiting the airline. |
| "Heightened attempts to lead travellers away from online travel agencies and metasearch travel sites is likely to lead to higher average airfares, increase consumers' search costs, make entry into city-pair routes by smaller airlines more difficult, reduce transparency, and strengthen the market power of the major airlines," a report prepared by a Yale professor for the Travel Technology Association said. | "Heightened attempts to lead travellers away from online travel agencies and metasearch travel sites is likely to lead to higher average airfares, increase consumers' search costs, make entry into city-pair routes by smaller airlines more difficult, reduce transparency, and strengthen the market power of the major airlines," a report prepared by a Yale professor for the Travel Technology Association said. |
| Delta responded saying it had the right to determine who it did business with. | Delta responded saying it had the right to determine who it did business with. |