Sabre And Lufthansa Agreement

SOUTHLAKE, TEXAS, May 6, 2009 – Sabre and Lufthansa have signed a new four-year global agreement that continues to provide agencies and businesses around the world with access to the airline`s full content through the Von Sabre Global Distribution System (GDS). « We are committed to promoting the needs of the value chain to create revenue-enhancing opportunities for both airlines and buyers. At this point, Sabre and Lufthansa are actively discussing the airline group`s stake in Sabre. We continue to work towards an agreement with Lufthansa that balances the needs of all members of the travel ecosystem. Skift believes that the lack of an extension reflects Lufthansa`s pressure for a direct sale – although Lufthansa informed the site that it wanted to terminate the contract, not the airline group. The new agreement between Sabre and Lufthansa will come into force on 1 July 2009. Club Travel franchise director Jo Fraser told Travel News that she understands the agreement between the two parties will still expire on June 30. « The latest update we received from Sabre is that negotiations on the new contract are still ongoing and are going well, » Jo said. Prior to 2015, this approach, combined with fewer booking alternatives, generally led airlines and GDS to reach an agreement to keep all their content in the GDS. Over time, low-cost airlines (CCCs), which were generally not subject to the same agreements, increased and were able to gain market share with low anticipated prices for passengers, and then generate higher revenue per passenger through ancillary sales. The old airlines wanted the freedom to do the same.

Older airlines have invested heavily in product differentiation and have wanted to present it on third-party channels, usually through the GDS. In a statement from Sabre, it was stated that the team is working « carefully » with the Lufthansa Group to renew the distribution contract. « We remain committed to reaching an agreement with Lufthansa that balances the needs of all members of the travel ecosystem, including consumers, lufthansa Group, travel agencies and Sabre, » the company said. The lack of an extension reflects the direct sale of Lufthansa – although Lufthansa Skift has announced its intention to withdraw the agreement, not the airline group. In the travel industry, there are many pages on each topic and many black swans that each party tries to protect or long-term goals they are trying to achieve. The emergence of agreements on private channels, which essentially include the airline in traditional incentives for MDS in TMC-Incentives, the need for NDC content through the MDS and many other potential economic agreements could be possible to resolve these channel conflicts. Ultimately, suppliers want to present their entire offer of flight options, fares and ancillary options, while traditional distribution technology providers must devote innumerable resources and multi-million dollar investments over several years, so they want to ensure that they are properly compensated for their efforts.