Andreas Koster is senior director sales UK, Ireland & Iceland at Lufthansa Group. With so many changes in air distribution and content, he'll be commenting on the latest developments during a session entitled 'How to buy air travel in 2017' at Business Travel Summit London with Markus Ekland of FCM and James Filsinger of Yapta.
Has the business travel industry's attitude towards new distribution models changed in the last two years?
Now there is a much deeper and broader understanding of the need for an enhanced distribution landscape on the corporate traveller as well as on the agency side. The recent move of BA has further fueled this discussion here in the UK. Both agencies and corporate buyers increasingly see the opportunities behind new NDC based channels; however, in the end it is the individual decision of each player how to deal with it. Our role is to create transparency about the various options for a direct connect such as via our Distribution Dialogue event on 13th September, the day before London Business Travel Summit.
How are you seeing TMCs changing tactics?
While we have established and are engaged in numerous direct connect projects with agencies on both the leisure and the corporate side, we also face some resistance and procrastination by others. This is caused by various aspects, which need to be evaluated by each party individually. Our strategy in that respect remains clear: Lufthansa Group will strive for an enriched distribution landscape alongside the traditional GDS, and invest in new distribution technology and our gained freedom to differentiate content will support this path.
What kind of conversations are you having with travel buyers? Has it changed the way they negotiate with you and how?
The group has already established a number of direct connects with corporate customers, among them Siemens and Volkswagen. Most corporate buyers now understand that NDC based solutions will enable them to enrich their travel programmes with a new type of customised content and as such closing the steadily increasing gap between the airlines' own channels and the traditional GDS.
As a result, better cost control through avoidance of maverick buying and employee retention will lead to more effective and efficient travel programmes. Nevertheless, we certainly see the need to engage even more in dialogue about the opportunities with our corporate buyers to identify their specific needs.