Europe’s GDSs Hit Africa’s Slowest Distribution Region with Surcharges

THE NEWS: Lufthansa Group raised its Distribution Cost Charge twice in five months, joining other European carriers in increasing GDS surcharges to push agencies toward NDC and direct channels.

DETAILS:

• Air Europa introduced a brand‑new fee in July and announced plans to pull its content from Sabre entirely.
• Turkish Airlines implemented its own GDS surcharge increase in May.
• The carriers’ strategy is to make traditional GDS bookings expensive enough that travel agencies migrate to NDC and direct distribution channels.
• This approach assumes agencies have alternative platforms available for migration.

WHY IT MATTERS: The cumulative fee hikes by Lufthansa, Air Europa and Turkish Airlines could accelerate the industry’s shift away from legacy GDS systems, reshaping revenue streams for GDS operators and requiring agencies to invest in new technology or partnerships to maintain booking capabilities.

FAQ

Which European airline raised its Distribution Cost Charge twice in five months?
Lufthansa Group raised its Distribution Cost Charge twice within a five‑month period, part of a broader effort by European carriers to increase GDS fees and encourage agencies to move toward NDC and direct booking channels.

What new fee did Air Europa introduce and what distribution change accompanies it?
Air Europa launched a fresh fee in July and simultaneously announced it will withdraw its inventory from the Sabre Global Distribution System, signaling a move away from traditional GDS reliance.

When did Turkish Airlines increase its GDS surcharge?
Turkish Airlines raised its GDS surcharge in May, aligning with recent fee increases by Lufthansa Group and Air Europa as European airlines seek to make legacy GDS bookings less attractive to travel agencies.

Read Original Article.