Shaking Off The Shackles

LH Fee An Attempt To Break Free Of GDS Constraints


In a special to this week’s digital edition of Canadian Travel Press, industry veteran, Marc Rosenberg writes that Lufthansa’s recent declaration of a major shake-up to its distribution model should come as no surprise to industry stakeholders who follow the ongoing struggle by airlines to reduce their costs and dependency on the GDSs.

In the last 10 years similar moves, starting with Air Canada, then Northwest, American and now Lufthansa have met with mixed results.

However looking back, each of these attempts to break free from the perceived shackles of the global distribution system model has moved the airline industry closer to its ultimate goal of freedom to move.

The concept of freedom to move essentially gives control back to the carrier as to how and who it chooses to sell its products to and, all the while, managing the cost of acquisition.

While in most other industries this model is a norm, that has never been the case for the airlines. Freedom to move is not about minimizing the use of travel agents, it’s more about providing content in an environment where all the buyers, whether consumer or trade, can transact with a carrier in a manner that reflects that airline’s business model.

For the full story, check out this week’s digital edition of Canadian Travel Press by clicking here.


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