In June 2015, Lufthansa Group imposed a €16 Distribution
Cost Charge on bookings made via global distribution systems but pledged to
launch direct reservation channels as an alternative. Lufthansa has been much
criticized for this strategy, but in September, it announced that Volkswagen
and Siemens had established direct connections to the carrier, bypassing the
GDS, and that Siemens had begun using its version.
Siemens piloted a direct feed from Lufthansa's passenger
services system into its online booking tool, Cytric, in March and by August
had rolled out the interface across all Siemens divisions in Germany. Led by
Eicke and global head of airline procurement Susanne Steinmann, Siemens had
wanted to head direct anyway, and it plans to work with more suppliers to do
so.
Lufthansa has said the direct connection reduces Siemens'
DCC bill by well into six figures but, said Eicke, "the real benefit lies
beyond the pricing aspect. We are able to have a customized solution which
focuses on the traveler." The first major benefit Siemens travelers have
gained is that they always receive lounge access from Lufthansa, regardless of
cabin or frequent-flyer status.
The influence of Siemens' deal with Lufthansa is still
emerging, but Eicke believes TMCs will be transformed by direct connects. "The
TMC's role is changing," he said. "They need to find a new
relationship that is a lot more than pricing and issuing tickets." As an
example, Eicke cites American Express Global Business Travel's move into
expense management through its acquisition of KDS.
Another lasting effect he identifies: "There will be
new ways of distributing air than just through the GDS. It is already happening
in hotel and car rental." Eicke said other buyers are talking to Lufthansa
about going direct. Meanwhile, Siemens hopes to connect directly to at least
one additional airline supplier during the first quarter of 2017.