SIA to charge higher distribution fee

Singapore Airlines makes further moves to incentivise the shift to use its KrisConnect platform.

News regarding agents’ relationships with airlines rarely receives good news it seems and this week is no different we’re afraid.

Singapore Airlines has revealed it is increasing its ‘EDIFACT Distribution Fee’ for travel agents booking tickets via traditional GDS channels from US$15 to US$20 from 01 June.

The move is part of ongoing shift to encourage travel sellers to use its KrisConnect platform.

The levy will be applied per ticket, and arrives alongside other measures including expanding fare differentials between GDS and NDC bookings to now apply across the board, impacting all fare classes and Reservation Booking Designators (RBDs), while discounted fare differentials will also double from an average of 3% to 6% across all fare classes and RBDs when booked through NDC channels.

The carrier also confirmed an extra 1% differential will also apply for Corporate Discounted Fares, making the difference 7% in total, while Continuous Pricing will apply across the NDC channel, offering more price points to sell.

The Singapore Airlines distribution strategy changes apply to all points of sale globally as part of the carrier’s push to be able to offer more personalised fares at unlimited price points.

A SIA spokesperson told travelBulletin it was important to note that the US$20 fee only applies to tickets issued via the traditional EDIFACT booking channel.

“Tickets issued through the NDC channel, regardless of whether that’s GDS or other tech partners, won’t incur the additional US$20 fee,” the spokesperson said.

In addition to the higher fee for traditional GDS bookings, effective from 01 Aug this year, SIA’s “V” and “K” fare classes will only be available via Direct and NDC channels, meaning full content will no longer be available via EDIFACT platforms.

The carrier told trade partners it remained committed to advancing the KrisConnect program “and will extend our full support to guide you during the transition to NDC”.

“By embracing new technologies we can collectively achieve greater efficiences to better service our mutual customers and surpass their expectations.”

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