When Lufthansa Group and Siemens in 2016 unveiled a direct-connect partnership, it wasn't clear how exactly they were bypassing global distribution systems. Later we learned they were using Amadeus-provided technology to connect Siemens' corporate booking tool (Amadeus-owned Cytric) to the Lufthansa internal reservations system (also provided by Amadeus). In a Tuesday interview about the airline company's expanded deal with travel tech ﬁrm Farelogix, Lufthansa Group head of distribution Xavier Lagardere explained that the use of Amadeus to bypass itself would be limited to Cytric clients. Other booking tools and TMCs aiming to connect directly and avoid the Lufthansa Group carriers' GDS surcharge will use Farelogix. "We're working with several booking-engine providers," said Lagardere. "One was announced last year — Onesto, a local German provider — and at least one other large booking-engine provider is close to production."
Lagardere said Lufthansa would not suggest corporate agencies use its consumer-like agent web booking portal. Rather, they would be advised to connect using the Farelogix API and their own interfaces or the Farelogix Sprk desktop.
Farelogix CEO Jim Davidson said the company has renewed its investments in travel agency services after a hiatus. He claimed 5,000 travel agencies and 19 airlines are using the direct-connect service. Airlines pay $1 to $1.20 per segment to distribute through Farelogix, versus a few to several dollars through GDSs.
Davidson said while the market traditionally was skeptical about change, with professionals assuming distribution alternatives represented airline attempts to gain leverage in negotiations, it's diﬀerent nowadays. "I have not run into a corporation or agency that has their head in the sand thinking this will go away," he said.
Lagardere said Lufthansa is "counting on" TMCs "to complement our oﬀering. The intermediary isn't out."
Full Article: Farelogix
Source : Farelogix