Travelport has unveiled a new charging structure for its GDS users. Until January 1, Travelport charged agencies in a number of different ways for different products, meaning TMCs could pick and choose what they used – and only pay for that. Now agencies are charged under the new Travelport Agility package, with which there is a fee per user. This has prompted ongoing debate within TMCs, as it also means many will be paying what some say are substantially higher fees.
Bryan Conway, Travelport’s global head of commercial operations and supplier services, said this would increase transparency around GDS fees, but admitted some agencies would end up paying more. He said the previous structure’s different chargeable elements could be confusing for agents. “So, we decided to have a simple transparent structure, which is a single monthly charge, effectively per user.”
Conway added that Travelport Agility also offers more value, as it includes a number of added extras. Within the package, agencies gain access to Travelport’s Smartpoint app, Epricing, and Rooms and More. “We took the opportunity of the launch of the three products to build those into a broader package,” said Conway. “It’s the first time we have packaged all of the products that an agent needs in order to do their business into a single package.”
According to Ken McLeod, corporate director at Advantage Travel Centres, TMCs face a “high cost” under the new scheme. “The challenge that we’ve got is that the GDSs are doing exactly what the airlines are doing and charging for ancillaries,” he said. “The problem here is it’s not something like APD where, while we don’t agree with it, we can pass the cost onto the client. This is something that is quite difficult to pass on, therefore it is an inherent cost to the TMC.”
But according to Conway, the increase in fees should be offset against the increased earning opportunities Agility will give. He said Smartpoint is 72 per cent faster in searching for fees, while Rooms and More offers agents more opportunities to earn commissions from bookings.