has announced its 2003 global pricing for participating
airlines, effective March 1, 2003, which will reflect an average 2.2 percent
increase worldwide over 2002 rates.
Caption: Robert Coggin, executive vice president
of airline services - Galileo International
The increase, partly driven by higher processing and network costs related
to sophisticated shopping and faring programs, will vary by market, and will
range between 1 and 3.5 percent. In 2002, Galileo`s worldwide price-per-
segment increased by less than 0.5 percent.
Simultaneous with the pricing implementation, the company also noted it
will change its pricing methodology in North America and Japan to a format
more consistent with industry standards of charging for issued tickets. This
change is in response to airline interest in processing tickets more
efficiently, and will result in Galileo processing fewer segments at a higher
average price, but will have no effect on the total cost of issuing tickets.
The average cost to an airline for issuing a ticket in North America will
remain between $10 and $13.
Also effective March 1, Galileo announced it will begin offering airlines
an Internet booking fee for tickets processed by major North America-based
online agencies, such as CheapTickets.com
. The Internet fee of
$3.50 per segment, or $8 to $11 ticket, will be lower than the average fee for
tickets booked through traditional travel agencies. Previously, Galileo
maintained only one pricing structure, regardless of whether a ticket was
processed through a traditional, full-service agency, or through an online
agency. Galileo`s new Internet booking price acknowledges Internet
transactions typically cost airlines less than those processed by full-service
agencies due to the restrictive nature of many online tickets that result in
fewer changes and charges.
The new methodology and Internet price have no adverse financial impact to
Galileo and are already reflected in its 2.2 percent worldwide increase.
“Our changes to 2003 pricing and methodology reflect the interests of our
key airline customers to better align Galileo`s fees with the overall value
and services provided to airlines while ensuring we remain cost-competitive in
the global distribution market,” said Robert Coggin, executive vice president
of airline services for Galileo International and Cendant Travel Distribution
Services. “Our introduction of an online pricing fee and a new program called
Momentum, are further evidence we`re listening to our airline and agency
customers, and creating a more efficient GDS to help the viability of all
industry participants over the long-term.”
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(20/01/2002) Galileo Expands Asia Pacific Network Into Vietnam