SPOTLIGHT SERIES | TMC FEES
currently has no plans to follow suit and FCM said it will give “consideration to all possible constructive changes”. However, BCD Travel was set to introduce a similar three per cent surcharge in March. “During the past 18 months, some airlines in Australia have reduced remuneration to TMCs,” said Rose Stratford, the TMC’s executive vice president, global supplier relations and strategic sourcing, in a statement supplied to BTN Europe. The statement continued: “BCD did not immediately increase its fee structure to offset the decline; instead, we lobbied these airlines to restore their support. Regrettably, some airlines have declined to reverse their decision and we’re no longer able to absorb the financial shortfall. “We’re committed to running a sustainable business so that we can continue to service and support our clients and travellers long into the future,” said Stratford, adding that, as a result, for tickets
per cent surcharge on Qantas bookings made within Australia. Amex GBT told BTN Europe the surcharge, which was implemented in February this year, is being introduced “because of changes to the Qantas economic partnership model, which is not related to the introduction of NDC content”. A statement from the TMC continued: “In recent times Qantas, Australia’s largest airline, has spoken publicly about changes to its economic partnership model with travel management companies. These changes result in Qantas shifting the cost to service its bookings to TMCs like Amex GBT. As a result, TMCs must shift these costs to Qantas’ customers.” The TMC’s statement concluded: “Amex GBT is required by Qantas to provide, and incurs significant cost in providing, services to manage Qantas bookings. Qantas is now forcing us to shift those costs to customers by no longer reimbursing those costs.” Meanwhile, CWT told BTN Europe it
One concerned travel manager told BTN Europe: “TMCs are getting pushed from all angles and they need to invest in consuming content. Suppliers are forcing this on the TMCs and they [TMCs] might not be that far down their own road map and have to think about how they pass on the charge. But it can’t be at the expense of the buyer or the traveller paying more. The bottom of the supply chain consuming the content is having to pay more and that’s on top of generally increasing rates.” SUPPLIER REVENUE SLIDES Warner also highlights the impact of Qantas’ decision to cut agency commissions from five per cent to one per cent last year on Australia point-of-sale bookings. BTN Europe sister publication, The Beat, reported that CTM’s response to the loss of a significant source of revenue was to introduce a two per cent surcharge on such bookings. More recently, American Express Global Business Travel introduced a three
22
businesstravelnewseurope.com | SPRING 2023
Made with FlippingBook Online newsletter maker