Over 40% Of Travel Buyers Say They Have Decreased LH Bookings
In the wake of the 01SEP move by the Lufthansa Group to implement a €16 per booking surcharge on travel purchased through GDS systems, a survey of global travel buyers has found that 42% have decreased bookings with LH and its sister airlines.
A new global survey conducted by the GBTA and its European partner network shows 42% of travel buyers surveyed have decreased bookings with LH it implemented this surcharge.
Additionally, 93% of those surveyed are currently not considering the option to book directly on LH’s site. Only 2% of travel buyers surveyed said that they would book directly with LH to avoid the fee, while 39% say they are seeking alternative carriers.
“We believe that the booking surcharge strategy has effectively backfired,” said Michael W. McCormick, GBTA Executive Director and COO. “The resulting actions demonstrate the high value that travel buyers place in the existing distribution network. The efforts by Lufthansa to fragment the distribution system by artificially adding cost is not working.”
GBTA says it believes the surcharge is a direct price increase to managed travel programs with no corresponding benefit. “It could also ultimately lead to decreased price transparency if carried out by not only Lufthansa, but other airlines in the industry,” the group states.
GBTA’s survey of global travel buyers was conducted online between 14OCT and 19OCT. In total 434 travel buyers representing an estimated USD44 billion in global buying power participated in the survey.