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Expedia confirms Air-France KLM deal to avoid carrier’s new GDS charge

Posted by Lee Hayhurst on
Expedia confirms Air-France KLM deal to avoid carrier’s new GDS charge

Expedia has confirmed it has struck a deal with Air France-KLM so that its customers in Europe will avoid the carrier’s GDS charge.

The OTA said the deal covers all markets, including the UK and Switzerland and covers Air France, KLM and low cost brand Hop!

The €11 one-way and €22 roundtrip fee come in on April 1.

Expedia said the agreement covers its ebookers and travel management company Egencia brands.

In addition, Expedia Group and Air France-KLM and GDS partners, have committed to collaborate on the integration of Iata’s New Distribution Capability technology standard.

Separately Travelport and Amadeus has struck new distribution deals with Air France-KLM.

The deals also allow agents to book fares without paying the surcharge once they set-up a private channel with the airline via their GDS.

The fee brings the sister airlines broadly into line with Lufthansa, which has levied a €16 fee on GDS bookings since September 2015, and IAG-owned British Airways and Iberia, which introduced a €9.50 fee per fare component in November.

Travel management companies (TMCs) and agents can avoid the Air France-KLM fee by booking direct with the airlines or through the group’s agent portal, or developing an application programming interface in line with Iata’s (NDC.

BA, Iberia and Lufthansa have similarly restricted access to fares without the GDS surcharge.

However, BA-Iberia signed deals with TMCs including HRG, Carlson Wagonlit Travel and American Express GBT to waive the GDS fee in return for commitments to pursue NDC technology in the 
run-up to levying the surcharge.

Amadeus was the first GDS to sign an NDC fee-waiver deal with BA in the UK.

In a statement, Travelport and Air France-KLM said: “This agreement enables customers selected by Air France, HOP! and KLM to access a private channel via Travelport, through which they will receive content without the additional distribution surcharge levied by Air France-KLM.”

Emmanuelle Gailland, Air France-KLM vice-president distribution, said: “Both Air France-KLM and Amadeus are determined to work together to bring NDC content of new fares, products, services and rich media into the marketplace.”

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