ITM in talks with BA over GDS contracts

27 Oct 2009 at 11:53 — by Stanley Slaughter in Air Travel, Travel Management | NEWS ITEM

Concern over impact on buyers 

Fears that new deals between BA and the GDSs might heavily affect buyers have been voiced by the UK and Ireland Institute of Travel and Meetings (ITM).

The Institute has already held what it said was the "first in a series of discussions" with the carrier over its concerns.

The current contracts between BA and the major GDSs, including Galileo, Sabre, Amadeus and Worldspan expire next April.

The talks that led to these contracts were engulfed in recriminations with BA being accused of trying to shift its distributions costs onto the rest of the industry.  

ITM, which has more than 1000 members, said it had spoken with airline executives about any impact new contracts might have on managed travel programmes.

It called on all parties including the airline, the GDSs and the travel management companies (TMCs) to work together "to make every effort to ensure minimal cost impact and maximum content for travel buyers".

It added: "In addition, ITM has stated that any potential changes to the distribution model should take into account the processing capability of all parties to ensure the travel distribution chain does not become more convoluted."

Chris Reynolds, ITM's industry affairs spokesman, said: "We recognise the detail of any re-negotiations are a confidential and commercial issue for BA and that the pressure placed on BA by the economic conditions and the precedents set by other carriers' relationships with the GDS will naturally cause BA to consider its options.

"However, both ITM and the airline understand that the impact of any changes to the distribution model can be wide-reaching when it comes to ensuring compliance is high and costs are low for travel buyers.  

"The ITM Industry Affairs Group's primary focus is the impact on our members and buyers in particular in the context of industry transparency and transactional processing."

www.itm.org.uk  www.ba.com

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