May 07, 2009 - Special from The Beat.
Sabre and Lufthansa announced a new, four-year, "full content" distribution agreement. Following an
extension signed last year between the two parties, the deal will provide Sabre-connected agencies with access to the German carrier's full range of fares and inventory, provided those agencies participate in a new Sabre program that levies a €1 per segment fee.
"In effect, we signed a traditional full content deal [with Lufthansa], just like we have signed in the
United States with the U.S. carriers and others, with the only difference here being that because
Lufthansa's Preferred Fares Program was already in place, to participate in that program, it will require agencies to participate in the Sabre Efficiency Plus program" covering Germany, Switzerland, Austria and Lichtenstein, said Sabre Travel Network chief marketing officer Greg Webb.
Webb noted that the €1 segment fee for Efficiency Plus program participants compares favorably to the €4.90 segment fee agencies otherwise would be charged by Lufthansa on certain bookings. In Germany, "it became evident there would be a need for some opt-in so we would have the ability to manage through" Lufthansa's Preferred Fares Program, Webb added. As agencies opt in, "we will handle the communications with Lufthansa, at which point they no longer will be subject to the surcharge and will be included in the Preferred Fares Program."
STN vice president of customer marketing Brian Houser added that "for smaller agencies who receive less [than €1] in incentives, the opt-in fee would then be capped at whatever their incentive is for those bookings, so they wouldn't be in a net pay situation."
The Efficiency Plus program conceptually is similar to
Sabre's Efficient Access Solution introduced in the United States in 2006.
Sabre and Lufthansa one year ago announced an extension to a pre-existing full-content deal, running through June. The newly announced agreement takes effect on July 1.
Many have been paying close attention to the outcome of the
Sabre-Lufthansa negotiations, including BCD Travel. "We think a lot will depend on what happens with Sabre," BCD's senior vice president for global supplier relations Rose Stratford in February told
The Transnational. "Travelport agreed several months ago with Lufthansa, but Sabre is still pending and it has a bit more market share in Germany than Travelport, so they may have some impact on what happens in the market."
Amadeus, meanwhile, still has not come to terms with Lufthansa on a new deal.
Sabre previously reached a four-year, full content deal with Air France KLM. Webb said that four-year terms are becoming the norm for European airline distribution deals. "Certainly four feels like it adds some stability and gives people breathing room in terms of managing through their contracts on the GDS side and with their other supplier agreements," he said.
Webb also said that Sabre's distribution deal with British Airways is "in place for another year or so, slightly longer, and we'll begin talking to them in the next six months or so about renewing their distribution deal with us."
