7/19/06

The move to efficient servicing

The dismantling of the nice and cozy ubiquitous distribution system via Agencies continues. The agencies needed to consolidate and essentially they have in response to the new economic realities of Airline distribution.

There really is no place for smaller agencies unless they are in some shape aggregated. Lufthansa is just recognizing this and trying it in Canada first before (probably) trying it in USA and Europe

Cheers

T

Lufthansa withdraws ticketing plates in Canada Wednesday, July 19, 2006
Lufthansa has initiated an operation in Canada to withdraw ticketing authority from travel agents who do not generate minimum sales amounting to CAD 50.000. The campaign has, in some known cases, started without any advance warning, which has been admitted as an ‘oversight’ by the airline. UFTAA declares in its statement that it recognizes the fact that each airline uses its authority and discretion to choose its partners, but is astonished by the non-businesslike approach and confrontational method without enabling the travel agents to adjust and possibly even divert sales to the company in order to reach a target. "UFTAA finds that the abrupt and harsh action shows contempt of normal business ethics. As Lufthansa is a driving force within the Star Alliance - this could be a sign of the future to be followed closely by the agency community in making its own choice of partnerships." Vicky Karantzavelou - Wednesday, July 19, 2006

Timothy J O'Neil-Dunne
Managing Partner - T2Impact Ltd
Global Travel eBusiness
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