Speaking to TTG at the Capa World Aviation Summit 2015 in Helsinki, Travelport’s global head of product and marketing Ian Heywood branded the charge “anti-consumer” and said it was impacting the airline group’s business.
But he is hopeful it will yet have a change of heart and start a new round of talks with the industry, with the hope of finding a solution to the charge that left GDSs outraged when it was introduced at the start of September.
Heywood said: “I would hope that Lufthansa will see the error of their ways.
“I would hope they would engage in the discussions with the industry and I hope that they can come up with solutions.
“We need solutions that work for the industry and more importantly works for the consumer than the current Lufthansa window.
“It is anti consumer; you are forcing the consumer through price to do something they don’t want to do and there’s no justification for that price differential.”
Heywood also argued the decision to drive bookings in house with the charge may not even be that cost effective, with the airline finding itself handling a raft of increased costs covering everything from technology to marketing.
He added: “Lufthansa has got to have a very serious look at how much it costs them to deal with direct (bookings).”
Heywood said Travelport also generated $3.9 billion of sales for the Lufthansa Group in 2014 with ticket prices three times higher than through any other channel.
He also revealed 72% of the sales were also generated outside Lufthansa’s home markets, adding: “We are bringing them that consumer that’s so much more difficult for them to attract.
“We can get a much higher (booking price), that’s the value we’re bringing to Lufthansa.”
And while Heywood would not reveal any details, he admitted the airline’s policy had impacted its sales via Travelport.
“We have seen a continued decline in Lufthansa sales and an increase in sales with their competitors on routes where they are competing,” he added.
It is good to see Travelport strike such a conciliatory tone, although perhaps it will be the financial cost that brings Lufthansa back to the negotiating table.
