One reason more to increase sales via NDC based booking channels.
Lufthansa Group recently announced to raise its distribution cost charge (DCC) from 11.30 to 14.00 £ due to the decreasing value of the £. Brexit surely is one of the reasons the £ is on an ongoing path downward. The raise of the DCC by the Lufthansa Group follows the increase of the per leg fee from 8 to 9 £ installed by IAG for Iberia and British Airways in November 2018.
Buying Business Travel (BBT) published its annual survey results on the TMC market. The results of the survey show, that low margins and Brexit rank two and three in the list of main challenges in the future.* The increasing fees on GDS bookings do not particularly ease the pressure in the margin TMC’s face.
A way to meet the challenges arising out of this development, is to start booking via airline direct connect or NDC aggregators. Of course, this increases the volume to downstream processing resulting in manual workload. Ranking four in the list of challenges, TMCs name NDC followed by booking direct via suppliers ranking five. The entry barrier to these channels remain to be the scalability of using NDC Booking channels.
Guess what? The Midoco ERP/ mid-office software has live integrations with NDC booking channels in place and direct connections in development, so you can uniformly process every booking regardless of its source. Read about NDC and our NDC Engagement.