The Italian Competition Authority (AGCM) has launched an investigation into Ryanair "for possible abuse of a dominant [market] position" following recent steps by the low-cost carrier to restrict travel agencies from purchasing fares through its website as well as limiting the “breadth of offer” via GDS platforms.
The Irish carrier is a market leader in Italy, responsible for 37 per cent of the country’s national and international air traffic in 2022, according to data from Italy’s civil aviation authority ENAC.
AGCM said it has received “various reports” from the Italian Association of Travel Agents, the Federation of Organized Tourism and the Lombardy Codes Association which accuse Ryanair of “leveraging the dominant position held in the markets in which it operates to extend its power also in the offer of other tourist services (for example, hotels and car rental) to the detriment of travel agencies – online and offline – and of customers who use it to purchase these services".
The challenges also extend into the business travel segment with the antitrust authority claiming Ryanair fares available via GDS platforms – such as Sabre, Amadeus and Travelport – are “far worse in terms of price, breadth of offer and post-sale ticket management”.
TMC Cisalpina Tours, ranked 3rd largest in Italy and 15th in Europe according to BTN Europe’s Leading TMCs 2023 report, said the carrier has “complicated” and “inhibited” the services that the TMC can provide to its clients.
“We cannot define Ryanair as a partner in business travel given the difficulties in sales, post-sales and the total lack of assistance and commercial support,” said Cisalpina Tours chief commercial and operations officer, Giorgio Garcea.
Speaking to BTN Europe, Garcea said the carrier offers “a wide fare range” via its GDS partner Travelport but does not include ancillary services such as web check-in, seat selection and baggage options, which can only be purchased on the airline's website.
“I believe that this is a discriminatory and even deceptive distribution method,” Garcea said, adding that Ryanair is effectively “boycotting” online booking tools as it does not allow users to finalise bookings.
Ryanair’s highly-criticised online facial recognition verification is another sticking point for the TMC, which books 18 per cent of its national air travel volume with the low-cost carrier.
“The sudden, sometimes daily, introduction of new rules (as in the case of online facial recognition) renders it impossible for TMCs to provide a service,” Garcea said.
“Low-cost carriers in business travel are used where ‘Best Buy’ policies are particularly important and when departures take place from national secondary airports. In Italy, the latter are literally "colonised" by low-cost airlines and by Ryanair in particular,” he added.
UK-based business travel associations BTA and ITM have also reported issues related to Ryanair’s online booking policies, including concerns around spend management and traveller safety, with the latter having recently engaged in “an open channel of communication” with the carrier.
Following the antitrust probe in Italy, the Global Business Travel Association (GBTA) said it too is “actively engaging with Ryanair” on behalf of the business travel industry in Europe.
GBTA vice president, government and community relations, Shane Downey, said the association is “urging the airline to support this important sector”.
Ryanair said it welcomed the AGCM investigation “which will make it clear to passengers that they should book directly on Ryanair.com for the lowest fares”.
“Ryanair continues to offer licenced access to its air fares for price comparison purposes to online platforms and travel agents can also access Ryanair’s inventory through our GDS partners,” the carrier said in a statement.
Cisalpina’s Garcea added: “The investigation will be useful if it reveals the unfair competition that Ryanair has always implemented both towards the air transport market and towards the distribution of travel with TMCs at the forefront.”