Half Of Travel Managers Plan To Cut Spending With LH
In response to the Lufthansa Group airlines’ move to add a $23.50 distribution cost surcharge to tickets purchased anywhere other than its websites, service centers and airport ticket counters, travel managers say they plan to hit back.
The new charge on GDS bookings kicks off next week (1SEPT). A new poll of Global Business Travel Association (GBTA) members shows 50% of travel buyers who currently include LH and its sister carriers in their travel program as a preferred carrier plan to decrease spending once the fee takes effect.
Additionally the poll found that 51% of all respondents definitely or probably will not use LH as a preferred carrier if the Lufthansa Group moves forward with the fee.
The GBTA position is that LH’s planned strategy will negatively impact corporate travel programs.
“It is a direct price increase to managed travel programs with no corresponding benefit,” the association says. “It could also ultimately lead to decreased price transparency if carried out by not only Lufthansa, but other airlines in the industry.”