Starting from July 1, 2023, Qantas, Australia’s flagship airline, will impose surcharges on Global Distribution System (GDS) bookings, significantly impacting travel agencies and their clients. For U.S. point-of-sale bookings made via traditional GDS platforms, a surcharge of $13 will be applied per segment. This announcement comes in the wake of a broader industry trend towards redefining airline distribution methods and pricing strategies.
The new fees extend to New Distribution Capability (NDC) bookings, albeit at a lower surcharge of $3 when transactions are made through major GDS providers such as Sabre, Travelport, or Amadeus. In a landscape where airlines are increasingly exploring innovative distribution models, Qantas is positioning itself to encourage the adoption of its own distribution platform to help travel advisors evade these additional costs.
Travel advisors will be incentivized to utilize the Qantas Distribution Platform or the preferred NDC aggregators to not only dodge these surcharges but also to access enhanced pricing and fare options. This strategy marks Qantas’s ongoing evolution and its commitment to enhancing the travel advisor experience. The airline’s announcement suggests that agents who engage in NDC bookings will gradually witness improved opportunities, including more competitive fare sales and access to exclusive dynamic commission offers.
Furthermore, a noteworthy feature for advisors is the ability to secure a booking price for up to five days before ticketing, presenting both flexibility and financial security in a volatile travel market. The proposed automated processes aim to mitigate the risk of debit memos, addressing a perennial concern among travel professionals.
Qantas plans to roll out a specialized NDC channel catering to selected agencies, promising upgraded benefits and differentiated pricing compared to the standard NDC offerings. This exclusivity is likely to foster loyalty and collaboration among top-tier travel agencies, allowing them to deliver unique value propositions to their clients.
In addition, frequent flyers and customers qualifying for loyalty programs can expect to receive recognition during the booking process and be eligible for periodic special offers. Such measures not only enhance the customer experience but also encourage repeat business, ensuring a larger pool of loyal clientele for Qantas.
The introduction of GDS surcharges by Qantas, along with the shift towards NDC capabilities, marks a significant strategic maneuver in the airline’s distribution strategy. This transition reflects industry-wide shifts aimed at maximizing efficiency and enhancing customer service. As Qantas continues to navigate the evolving landscape of airline distribution, the adaptation and responses from travel agencies and customers will play a critical role in shaping the success of these initiatives. The airline’s strong emphasis on improving the advisor experience through enhanced technology and incentives demonstrates its commitment to remaining competitive while navigating the complexities of modern airline distribution.