Lufthansa to add surcharge for GDS bookings

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On September 1, Lufthansa Group will start applying a Distribution Cost Charge (DCC) to bookings on an LHG airline - Lufthansa, Austrian, Brussels, and Swiss airlines - processed by a GDS in most countries in the world.

Canada >US Eurozone
$23 $17.50 €16

The fee will also remain at a set level for British pounds (£11.30), Swiss francs (Fr. 16) and Japanese yen (¥2180). In countries using other currencies, the fee will be converted at the time of ticket issuance.

In a webinar presented with the Association of Corporate Travel Executives, Lawrence Ryan, director of marketing, sales programs and distribution for the Americas, addressed issues raised by the corporate travel community:

Fare transparency:
Requests in GDSs for fare quotes that include all taxes and fees will automatically include the DCC. A display in any corporate booking tool whose ticketing is enabled by a GDS will include the fee also.

Lufthansa will temporarily implement the DCC using a YR-IATA tax code due to a technical snag. The plan is to implement the DCC in an OB field at a later date.

The surcharge will not apply to travel originating in China, Hong Kong, Iran, Libya, New Zealand, and Yemen, where its legality is questioned. If travel is booked in one of those countries but originates elsewhere, the DCC will be applied. In Brazil, where the YR code is reserved for government-imposed fees, the DCC will be delayed until the OB plan is in effect.

The DCC will not be applied when a Lufthansa-operated flight is sold and ticketed as a United or Air Canada code-share, but Ryan cautioned that agents cannot simply book a code-share for every transatlantic Lufthansa flight. At least one leg of a code-share itinerary must be operated by the plating carrier.

In addition, certain services offered by an operating carrier, such as premium economy, pet carriage and special meals, may not appear in the display of the marketing carrier.

Refunds and exchanges:
The DCC is nonrefundable even if the fare is refundable. If the ticket is voided before the transaction is reported to ARC, it will not incur the fee. The fee will not be reassessed if the ticket is changed, regardless of the nature of the new itinerary.

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