Starting from July 1, Qantas Airways is set to roll out significant changes in its distribution strategy by imposing system surcharges on bookings made through global distribution systems (GDS). This decision primarily impacts transactions processed from the United States, with the airline applying a fee of $13 for each segment booked using traditional GDS platforms. In a bid to modernize its booking structure, Qantas introduces a lower surcharge of $3 for bookings made via the newer New Distribution Capability (NDC) framework through systems such as Sabre, Travelport, or Amadeus. As airlines globally shift towards NDC to enhance efficiency and customer experience, this move positions Qantas within the competitive landscape of modern travel distribution.
To mitigate these additional costs, Qantas encourages travel advisors to utilize their proprietary Qantas Distribution Platform or designated NDC aggregators. By doing so, agents can bypass these surcharges entirely. This pivot to NDC signifies a broader industry trend where airlines seek greater control over pricing and inventory, allowing for more tailored offers to both advisors and their clientele. Notably, Qantas highlights that agencies participating in its NDC program will benefit in terms of access to superior pricing structures and exclusive fare options, reducing reliance on traditional GDS channels that often incur higher fees.
Enhancements in the NDC Program
In conjunction with these surcharges, Qantas has revitalized its NDC program, emphasizing improved offerings for travel agents. These enhancements include dynamic commission structures, enabling advisors to earn variable commissions based on booking performance. Furthermore, agents will have the option to lock in prices up to five days prior to ticketing, a feature expected to provide an added layer of flexibility for both agents and their clients. These automated features also aim to reduce the likelihood of financial discrepancies, such as debit memos, enhancing operational efficiency.
Qantas is taking its NDC initiative a step further by establishing an exclusive channel for select agencies under the Qantas Premium NDC program. These chosen partners will enjoy differentiated pricing and increased opportunities for fare sales, positioning them favorably within the competitive marketplace. Such strategic partnerships are essential for Qantas as it seeks to expand its footprint in an increasingly digitized travel landscape while fostering strong relationships with key travel advisors.
In an effort to enhance customer experience, Qantas assures that loyalty will be rewarded during the booking process. Frequent travelers who hold status with the airline will receive tailored offers, integrating a personalized approach into the purchasing experience. This recognition not only cultivates customer loyalty but also incentivizes travelers to maintain their allegiance to the airline, enhancing overall satisfaction.
Qantas’s upcoming implementation of GDS surcharges reflects a pivotal moment in its distribution strategy. By driving agents towards NDC technology, the airline is not only modernizing its booking processes but also redefining the relationships between travel advisors, customers, and the airline. The focus on enhancing pricing strategies, commission models, and customer recognition points to a future where personalization and efficiency dominate the travel landscape, ultimately benefitting all parties involved.