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BA puts the squeeze on business travel agents

(13 February 2004)

BRITISH Airways is threatening to pull agents’ sales and marketing agreements if they fail to sign up to the carrier’s new access deals with the global distribution systems.

BA is only giving sales deals to business agents who have the full range of its lowest fares on their GDS. The only way agents can access the lowest fares is to opt in to one of the distribution agreements it has with the four GDSs.

Leisure agents who do not sign up to a distribution deal will still be eligible for a sales and marketing agreement, but will not get some of the benefits of being a preferred partner.

BA head of corporate sales Ian Heywood dismissed claims the airline was forcing agents into signing a deal.

“They are under no pressure to sign a deal and there’s no bullying,” he said. “It’s agents’ choice. We are neutral in all of this because we either get £3 per sector if agents don’t sign up or we save on the GDS costs if they do.”

He refused to comment on whether the number of deals handed out by the airline would fall this year.

CorporateChoice director Tim Giles said: “Agents are being held to ransom, we don’t have a choice.”

Corniche Travel Management managing director Alan Jackson said he didn’t think agents had much option but to accept the terms as adding a £3

sector charge would make them uncompetitive.

Leading business travel agencies are rumoured to be having reservations about paid-for GDS access, but BA said 80% of the flights currently booked through Galileo are from agents who have opted in.

Guild of Business Travel Agents air working party chairman Alan Coles said he had not heard anything from BA, but members are continuing to debate the changes.

News of pressure from BA comes as the carrier finalises new distribution deals with Amadeus and Worldspan.

From March 1, agents using Amadeus will face a 95p per sector charge for European economy flights. A fee will not be charged on long-haul and business-class European flights.

Amadeus is giving agents the opportunity to balance their books by offering a 95p credit on all hotel, car hire and cruise bookings.

Worldspan is expected to announce details of its deal this week.

The move follows Galileo’s controversial 50p per sector charge. Galileo and Amadeus agents can choose not to

opt-in to the GDS’ individual deals, but they face a £3 per sector charge.

Sabre is guaranteeing agents no BA flight booked through their system will include any charge for the next three years.