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GTMC publishes new data revealing Lufthansa's market share drops 8.5% as surcharge begins to bite

The GTMC has published new data from its members that shows the detrimental affect the 16€ charge imposed on all Lufthansa bookings made via a GDS has had since it was introduced on the 1st September 2015. The data shows a reduction in the amount of business travel market share held by Lufthansa suggesting that TMCs have switched business away from the airline group to avoid passing on the charge to their customers.

The data, compiled by the 7R Group, compared the market share won by the Lufthansa Group, for flights from the UK to Germany between June and August 2015 (pre charge being applied) and then September and November (post charge). It is a sample of approximately 12,000 transactions in total and the flights were all booked via the GTMC’s members. They are UK based TMCs (Travel Management Companies) and are concerned primarily with business travel.  

Between June and November 2015 Lufthansa’s market share has dipped by 8.5 per cent. In June Lufthansa’s market share was 32.9 per cent compared to 24.4 per cent in November. When compared to rival airlines flying from all UK ports to all German ports during this time, the other carriers either matched or increased their market share. BA’s market share remained steady, Easyjet grew market share as did other airlines.  

Paul Wait, chief executive of the GTMC said “We predicted that the Lufthansa charge would upset and put business travel bookers off. They haven’t booked directly with Lufthansa as they hoped, instead, they have voted with their feet and taken their business elsewhere. In this highly competitive market, we believe, this charge has done some obvious damage to Lufthansa’s market share. It is a flawed and failed strategy which should be reviewed.”

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