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BCD agrees fee-saving deal with Air France-KLM

The new agreement lets clients book reservations without incurring a distribution surcharge.

Business travel management company BCD Travel says it has reached an agreement with Air France and KLM that will let its clients book reservations on these airlines without incurring a distribution surcharge.

The airlines announced late last year that they would introduce a distribution surcharge beginning April 1 – a charge per one-way segment applied to all bookings made in global distribution systems.

The surcharge will not apply to sales via an NDC API connection, the Air France KLM agent website or Air France and KLM direct sales channels.

Under the multi-year deal, BCD Travel says it is “strongly committed” to working with the two airlines, as well as technology providers, “to determine how new technologies and distribution capabilities can be implemented to improve the travel experience for mutual clients and travellers”.

It is also “committed to ensuring that companies retain the benefits of traditional distribution channels and will continue exploring the option of GDSs providing a viable NDC solution”.

GDS agreement
Utrecht-based BCD, which had sales in 2017 of $25.7 billion, says that both Travelport and Amadeus support this agreement, which will allow AF and KL to waive the distribution surcharge for bookings made through these GDSs from April 1.

It adds that it is optimistic that similar support will be forthcoming from the other major GDS, Sabre.

“We are committed to ensuring that our industry moves forward and that new technologies are used to improve the customer experience for travel buyers. This agreement helps do that,” said Rose Stratford, BCD Travel executive vice president.

“It ensures that airline distribution channels will continue to provide corporate travel buyers with all the benefits they currently enjoy. This includes the ability to shop from among multiple competing offers between like city pairs and to capture essential data needed to keep travellers safe on the road. We applaud AFKL’s willingness to work with BCD Travel to reach an agreement that mutually benefits our customers.”

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