BA and Iberia to add booking fee

IAG-owned carriers follow direction of Lufthansa
British Airways and Iberia, both owned by airline group IAG, will follow Lufthansa Group by charging a fee for bookings via third parties, such as the global distribution systems used by travel agents. The airlines are using new technology to take more control of their bookings.
From November 1, British Airways and Iberia will charge a €9.50 fee on bookings not made via their own websites or direct sales channels. The move is a blow to GDS providers such as Amadeus, Travelport and Sabre.
The relationship between these companies and airlines is often tense, especially as the GDSs usually enjoy much higher profit margins than airlines.
But new technology means carriers are now starting to be able to give corporate customers booking tools similar to those used by GDSs. Customers like Siemens have signed up to Lufthansa’s system.


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