02 September 2008

Blog Entry #600 - Easyjet reduces GDS "Fee"

Easyjet is going the other way from Ryanair with its intermediary policy on bookings.

Effective almost immediately the Luton based carrier will reduce the surcharge it has been applying to GDS based bookings by nearly half: from a current fee of GBP 5
(€7.50) per seat (depending on the number of seats booked), will now be set at a fixed fee of £3.30 (€4) per seat.

With the lowering of the pound against the dollar - this is a significant development.

despite trying to jab one in the eye of Ryanair at the same time - Easyjet's policies are the same - just the response is not so draconian as FRs.

So on this occasion of the 600th blog entry for The Professor's Wisdom - I think this is entirely appropriate. Why?

It solidifies two trends we have been commenting on for a very long time:

Trend 1 - The airline distribution model in particular GDS is broken and needs reforming.

Trend 2 - The low cost carrier market is splitting into Pure type LCCs and HVCs - High Value Carriers who are Type 1 coming from LCC going up into looking and performing like a Legacy Carrier, and Type 2 which is a legacy carrier operating like a LCC.

So be it...


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