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Without consultation with its distributors, or most valuable contract customers, the Lufthansa Group’s (LHG) recently announced proposal that it would surcharge customers 16 Euros if they purchase a ticket anywhere other than its websites, service centers and airport ticket counters beginning on 1 September 2015. The LHG’s plans, if implemented as currently proposed, would have negative worldwide implications for the competitive structure of the industry, travel agents and their customers.

LHG claims that the goal of its Distribution Cost Charge (DCC) program is to reduce distribution costs. However, that claim is belied by the fact that the surcharge would not be applied to the two most expensive LHG distribution outlets – its own airport ticket offices and reservation centers. DCC is a revenue generation strategy. In the process of seeking to extract more revenue from the managed-travel community LHG would, of course, create substantial collateral damage and not just transfer costs, but create new costs within the industry by effectively insisting on its direct-connect strategy for its contracted customers. Please find information on this page that helps illuminate this issue.

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PRESS COVERAGE

  • 06-29-15 CEO: Competitors to follow Buying Business Travel
  • 06-29-15 BTC forms spinoff  TravelPulse
  • 06-29-15 TAFI opposes LH surcharge  TravelBizmonitor
  • 06-26-15 Biz travel group forms coalition  Travel Weekly US
  • 06-26-15 Coalition formed to fight fee  Travel Weekly UK
  • 06-26-15 Global opposition group formed  TTG
  • 06-25-15 Travel groups form coalition  Travel Agent
  • 06-22-15 Group to fight charge  Buying Business Travel
  • 06-15-15 Airlines' middlemen face headwinds  WSJ
  • 06-15-15 Mixed reactions to Lufthansa's charge  TTG
  • 06-13-15 Agents mull legal options  Business Standard
  • 06-12-15 Tickets cheaper at airline site  Emirates247
  • 06-12-15 100 airlines would consider fees  Travel Weekly UK
  • 06-11-15 Lufthansa fee: Will you pay it?  The Street
  • 06-10-15 LH levy will test agents’ mettle  Travel Weekly UK
  • 06-09-15 Lufthansa surcharge steps up fight  WSJ
  • 06-09-15 Lufthansa surcharge steps up fight  Nasdaq
  • 06-09-15 Airlines weigh Lufthansa’s surcharge  Reuters
  • 06-09-15 Travel body outraged  Economic Times
  • 06-08-15 GTMC: Campaign against surcharge  TTG
  • 06-08-15 It's hard for to buy a ticket  Washington Post
  • 06-05-15 Bundeskartellamt should investigate  eTN
  • 06-05-15 Amadeus leads attack  BTN
  • 06-05-15 Delta won’t be adding surcharge  Skift
  • 06-05-15 Amadeus attacks Lufthansa's GDS charges  TTG
  • 06-05-15 Opposition mounts  Travel Weekly UK
  • 06-04-15 SPAA protests  Travel Weekly UK
  • 06-03-15 LH levy squeezes margins  Bloomberg
  • 06-03-15 It's on again  Travel Trends
  • 06-03-15 Amadeus shares drop  FT
  • 06-03-15 Lufthansa pushes direct bookings  BTN
  • 06-03-15 Industry hits back at Lufthansa  BBT
  • 06-03-15 Lufthansa makes flight booking sites add fee  BBC
  • 06-02-15 Lufthansa to add surcharge  Skift
  • 06-02-15 Lufthansa to add surcharge  Travel Weekly
  • 06-02-15 Lufthansa seeks more control over sales  Reuters
  • 06-02-15 Lufthansa passengers face fee  Business Traveller
  • 06-02-15 LH: Book through us or pay a fee  TravelPluse


ANALYSES & STATEMENTS

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