Lufthansa Group has intensified its efforts to encourage travel management companies to use its direct sales channels, either online or increasingly through its NDC-compliant API and new SPRK web channel.
The airline has just launched incentives of €1 per coupon for agencies to use a new NDC web solution called SPRK until the end of 2018. The platform is free of charge to use.
The €1 incentive may not be sufficient to sway agencies. However the group is also offering so-called NDC Smart Offers — the group's most competitive fare and ancillary bundles — exclusively through its online and NDC channels. These fares "will feature a consistent price reduction of £17 roundtrip or £9 one-way per ticket for its European Light and Classic fares on point-to-point routes" says the airline. This includes routes from London, Manchester and Dublin to Lufthansa Group's hubs in Frankfurt, Munich, Vienna and Zurich.
Andreas Koester, senior director sales, UK, Ireland and Iceland, Lufthansa Group, told Business Travel iQ, "For example on our top route London to Frankfurt, this means that because there is no Distribution Cost Charge on our NDC channels [£11.30 if booked through GDS channel] and the reduced fare of £17, we're talking about an almost £30 price reduction for continental routes. This should be a huge selling point for both the agency and its customers."
As well as SPRK, TMCs can access these discounted fares through an NDC-compliant API and Koester says that it is engaging with "a double digit number of candidates" to connect with the airline in this way following two trade distribution events. "We can also say that a number of agencies are certified and at the production stage already," says Koester.
The GTMC, which represents most of the major TMCs in the UK market has sounded a note of caution.
Adrian Parkes, the group's CEO, said: "The GTMC's TMC members have strong bilateral relationships with the Lufthansa Group and will therefore be discussing all opportunities and use of technologies on a direct relationship basis.
"TMCs will always ensure they attend to their clients in the most cost effective and efficient manner to maximise the management of travel policies and to provide best value for money.
"As airlines develop their NDC channels, it is vital that there is open communication with the industry and the GTMC provides the perfect platform for discussion and debate.
"The GTMC is keen to see fare and product transparency maintained and available to all TMCs to ensure competition in the air market remains strong and that content can be accessed by all TMCs in the most efficient distribution channels. This is vital to continue to serve the best interests all TMC's and airlines clients and travellers."
The size of the discounts on some of the best used routes means that corporates are likely to exert pressure on their TMCs to book these fares in this way rather than through the GDS and Lufthansa knows this.
Increased complexity of air shopping and lack of transparency in comparison is in no-one's interests however and it can only be assumed that this is the latest point of pressure to encourage others in the distribution game to change the way they do business.