In a significant move that impacts travel agents and consumers alike, Qantas Airways has announced that starting July 1, it will implement Global Distribution System (GDS) surcharges for bookings made in the U.S. This initiative reflects the airline’s ongoing effort to streamline its distribution network while encouraging the shift towards new technologies. A surcharge of $13 per segment will be applied to those opting for traditional GDS bookings, while a reduced fee of $3 will be incurred for New Distribution Capability (NDC) transactions processed through major platforms such as Sabre, Travelport, or Amadeus.
Travel advisors looking to sidestep these surcharges can utilize the Qantas Distribution Platform or partner NDC aggregators. This strategic move aims not only to lower operational costs for travel agents but also to enhance the booking experience for clients. By fostering a shift towards NDC technology, Qantas underscores the benefits of these modern platforms, which promise improved pricing structures and wider fare options in the future.
The newly revised NDC program offers a myriad of advantages for travel advisors. Agencies that engage with the NDC platform can anticipate access to dynamic commission structures and the capability of locking in ticket prices up to five days ahead of finalizing purchases. This innovation aims to reduce the risks of subjectivity in pricing changes and minimizes the likelihood of debit memos, which can be a stumbling block in traditional booking processes. Furthermore, Qantas intends to curate a specialized NDC channel exclusive to select agencies, which will provide differentiated pricing and enhanced fare sales opportunities.
As part of its commitment to enhancing customer loyalty, Qantas aims to recognize elite frequent flyers during the booking process. Members with status will not only receive acknowledgment in their transactions but also access to periodic promotions and exclusive offers. This focus on customer recognition aligns with broader trends in the airline industry, where personalized experiences are increasingly becoming a significant competitive advantage.
Since launching its NDC capabilities in the U.S. market in May 2022, Qantas has steadily positioned itself as a forward-thinking airline that embraces innovation. The implementation of GDS surcharges, coupled with the advantages of its NDC program, reflects a broader industry shift towards modern distribution methods. In navigating this evolution, travel advisors and customers alike stand to benefit from enhanced pricing scenarios, improved booking processes, and greater overall service. As the market adapts, Qantas’s proactive measures may ultimately pave the way for a more efficient and customer-centric travel experience.