A PARTNERSHIP between
Lufthansa Group and
Tourvest effectively shortens
the supply chain between
airlines and their customers
by eliminating the GDS.
The two parties announced
recently that they had
developed the first NDCcapable
Direct Connect
solution in the South African
market.
The deal, probably the first
of many, will likely change
the relationship between
airlines and agents as well
as that between GDSs
and agents and GDSs and
airlines.
André Schulz, gm
Southern Africa for
Lufthansa Group, said
the move followed similar
successful integrations in
Europe and he described
the development as a
“major milestone for the
collaboration of airlines and
TMCs”.
Commenting on the
changing landscape,
Jannine Adams, senior
manager marketing and
communications, of
Amadeus South Africa
said: “We acknowledge that
some airlines will choose to
have more control of their
offers, and that agents will
continue to require access
to all relevant content at
the lowest possible cost.”
She said with Amadeus
integrating NDC into its
platform, agencies will be
able to get access to NDC
content without having to
work on a direct connect.
For Lufthansa, said André,
having its own distribution
channel was about content
differentiation – allowing the
airline to display its products
in a way that, he said, GDSs
were not capable of doing.
The development will see
TTS agents and corporate
clients booking on TTS’s
online booking solution,
Travelit, circumventing the
group’s €16 (R233) GDS
surcharge; benefit from
exclusive offers; and also
enjoy the ability to book
tickets and ancillaries within
a single workflow.
While neither party
would comment on how
the partnership would
affect commission and
override agreements,
both emphasised that the
deal was not just about
circumventing the €16
charge. Asked whether
agents would be incentivised
to use Direct Connect,
André said the group would
continue to incentivise
agents and TMCs to
generate revenue, regardless
of distribution channel.
Philip Katz, ceo of Travelit,
said the solution was fully
integrated into both the
agency/consultant and the
customer workflows. “Every
booking made by Travelit
is created in a PNR. For
Lufthansa direct bookings,
payment is facilitated via
BSP as normal.” He said
while the back-end solution
would not change how
bookings were made, TTS
agents and corporate clients
would be able to book
tickets and ancillaries
within a single workflow.
Morne du Preez, ceo of
TTS, said this would result
in saved time, and therefore
money, and additional
revenue through the sale of
ancillaries. The development
also means more content will
be available to TTS agents
and corporates and that they
will benefit from exclusive
offers available via Direct
Connect. Morne explained
that these specials could be
pushed out within an hour
and could be tailored to
specific clients. He used the
example of special fares for
delegates attending a trade
show, or promotional fares
on a new route.
Philip said testing and
certification was complete
and the solution would go
live on March 20.
TTS is the first TMC
consortium in SA to
establish an NDC-capable
Direct Connect to Lufthansa
Group, although the group is
engaged in similar projects
with other agencies in SA.
