Goodbye Tango fares

[Mitch Cronin]

5 eh? hmmmm....

[manwest]

If I quote you and try to add smiles no post allowed.

* You have posted a message with more emoticons that this board allows. Please reduce the number of emoticons you've added to the message.*

Try replying to your post and try to add smiles now.

[manwest]

5 eh? hmmmm....

5 eh? hmmmm....

If I remove some of yours then I can add mine.

[Mitch Cronin]

No, I can't.... You're right, I was just playing with you. I cheated.... I used "images" for the first 5 and then smileys for the next 5... It allows 5 of each.

Cheers,

Mitch

[manwest]

No, I can't.... You're right, I was just playing with you. I cheated.... I used "images" for the first 5 and then smileys for the next 5... It allows 5 of each.

Cheers,

Mitch

[manwest]

Over 3,687 Canadian travel agency owners, managers, agents, and even consumers, have signed ACTA’s call to action for Air Canada to immediately reverse their May 2nd misguided anti-consumer move and to roll back their Tango fares on travel agencies channels (GDSs and Air Canada’s agent Website).

"Of course, retail travel professionals understand the importance of adapting and they appreciate that the travel industry has worked hard to make the market as efficient as possible. Implicit in this market efficiency are harmonious and reciprocal business relationships, a concept well entrenched between retail travel professionals and their clients. Despite the recent unfortunate events, we believe there is still time for Air Canada to commit itself to fostering the same relationships with retail travel professionals, who are, after all, its primary drivers for brand loyalty and revenue. Working together on behalf of our mutual customers is clearly a much better route. With such unprecedented support from the retail travel community, ACTA is calling on Air Canada and the GDSs to end the current crisis by immediately rolling back all of their fare actions taken since May 2, which would restore Tango fares to the GDSs and stop the delisting of Air Canada services in the GDSs," wrote Christiane Théberge, Vice-President, Public Affairs at ACTA in a letter accompanying the 3,687 signatures sent yesterday to Air Canada CEO, Montie Brewer.

ACTA wishes to thank everyone who stood up and spoke out against Air Canada’s decision to remove Tango fares from travel agencies’ channels. It is now up to Air Canada to choose dialogue over conflict in its dealings with the retail travel industry to avoid a repeat of the kinds of tumultuous times we have all experienced since the May 2 announcement.

Below is full text of the letter from ACTA to Air Canada CEO Montie Brewer....

May 17, 2006

Mr. Montie Brewer

Chief Executive Officer

Air Canada

Dear Mr Brewer:

You will find enclosed a Call to Action signed by more than 3687 Canadian travel agency owners, managers, agents and, even consumers, who have expressed their profound disappointment concerning the unprofessional manner in which they were treated by Air Canada with respect to the removal of Tango fares from the GDSs and your agent Website without warning or consultation.

Retail travel professionals feel that removing such important low-fare inventory from the reservation channels they use discriminates against them and their clients, frustrating efforts to automate and consolidate all traveler bookings, and interrupts the workflow of their travel management companies. In summary, it undermines efficiency to the detriment of consumers.

Of course, retail travel professionals understand the importance of adapting and they appreciate that the travel industry has worked hard to make the market as efficient as possible. Implicit in this market efficiency are harmonious and reciprocal business relationships, a concept well entrenched between retail travel professionals and their clients.

Unfortunately, it is apparent, and frankly saddening, that this isn’t the kind of relationships Air Canada is intent on fostering with retail travel professionals, which are, after all, its primary drivers for brand loyalty and revenue.

With such unprecedented support from the retail travel service community, ACTA is calling on Air Canada and the GDSs to work in good faith to find sustainable solutions to not only put these important fares back into the systems, but also to make sure GDS technology is flexible enough to support what Air Canada calls "simplified fare products." ACTA calls on Air Canada to choose dialogue over conflict in its dealings with the retail travel industry to avoid a repeat of the tumultuous times we have all experienced since the May 2 announcement.

Retail travel professionals would like to go on with their business doing what they do best, serve their customers in an efficient and cost-effective way, and are hoping Air Canada and the GDSs will find a better way forward.

Sincerely,

Christiane Théberge

Vice-President, Public Affairs

© Open Jaw 2006

[manwest]

From the CBC:

Air Canada angers travel group by pulling cheap fares off distribution system

17:51:32 EDT May 17, 2006

JAMES STEVENSON

CALGARY (CP) - Several Canadian travel associations said Air Canada (TSX:ACE. was hurting its best customers by removing its cheapest fares from the distribution systems used by travel agents around the world.

Canada's largest airline was accused Wednesday of removing its Tango fares from the global distribution systems used by travel companies "in the middle of the night, May 2nd, without warning."

The Association of Canadian Travel Agencies and other business travel groups said the "unilateral action" taken by Air Canada has struck a nerve in the travel industry, and they would like to see the decision reversed.

"I was unable to find, in active history, an issue that has so quickly and overwhelmingly moved the industry to take strong and decisive grassroots action," said Christiane Theberge, vice-president of the travel agency association.

Air Canada spokeswoman Angela Mah said the airline's Tango fares are still available for purchase on its website and that there was no impact to consumers.

She said the technology of traditional global distribution systems in the travel industry does not support new features of the airline's simplified fare products, such as the Go Discount which gives customers extra discounts for not checking in luggage or changing their tickets.

"This is how we differentiate ourselves from the competition, by offering the simple, innovative on-line products that are currently only possible by using the web-based technology."

Mah said Air Canada would be willing to put its Tango fares back on the distribution systems if they were able to handle the same functionality and capabilities that are found on its website.

But Kevin Mitchell, chairman of the Business Travel Coalition, said it is not a technology issue.

"The Air Canada action is about driving customers to its low-cost website distribution channel and up-selling its products."

"Those objectives may make abundant sense to Air Canada at the firm level, but the wide-ranging negative impacts to customers and other stakeholders in the way that Air Canada went about it makes the action irrational and indeed irresponsible at the industry level."

Air Canada chief executive Montie Brewer told a transportation and aerospace industry conference in Toronto on Tuesday that his airline was looking to regain stability by cutting costs and changing the way its customers travel.

[manwest]

Mah said Air Canada would be willing to put its Tango fares back on the distribution systems if they were able to handle the same functionality and capabilities that are found on its website.

Translation:

Our new "simplified" fares are so complicated that the systems that have been in use for years can no longer handle them.

[Spinnaker]

I think this move is just brilliant before the summer rush.

[dagger]

I think this move is just brilliant before the summer rush.

Actually, this is precisely when you do it - after the summer is basically sold out.

You don't do it in January in the middle of a seat sale.

Live and learn, my friend.

[yul07]

Thats right, you do it now when you don't need the travel agents because your flights are full. That way when you need them in November to sell your after X-mas surplus they'll be there for you.

For what its worth, went to YUL last Thursday Via 1 at 18:30 was full. For the first time in my experience only a handful detrained at Kingston. Flew back WS ( Sunday) 18:20 flight nearly full, took the 20:15 98 pax. Never seen that flight so full. Fares were above 150 for most of the week. I think travel agents are steering their former tango pax to WS because I use travel the route a fair bit, and have been doing most of it on WS. Loasd used to be 50% or less per flight. Not last week, and my tickets this week are all flex fares ( by choice ) at 197.00 each way.

[manwest]

Open Jaw

Report Suggests GDS Bias Could Cost AC $245 Million In Revenue

Management consultancy Air Trav Inc. has produced a report suggesting that punitive measures undertaken by Sabre and Cendant in response to Air Canada’s removal of Tango fares from GDS system could cost the airline $245-million in revenue if the situation was to continue for a full year.

The company says that number would translate into $7.4-million in net income loss, or 7.2 cents per share (basic), 6.0 cents per share (diluted). The report suggests that 2.1% fewer passengers, representing more than 730,000 seats, would fly with AC if the dispute continues.

However, the author of the report, Air Trav President & Managing Director Robert Kokonis, believes there will eventually be a resolution.

“The three GDSs that previously had struck full content deals with Air Canada – Sabre, Galileo and Amadeus – are certainly all in talks with Air Canada,” Kokonis says. “AirTrav believes that eventually they will come to terms with Air Canada, adding technological functionality and, likely, lowering the GDS fee charged for Tango and GO Discount fares. These agreements will likely be staggered, with completion between one month and six months from today depending on the GDS.”

Kokonis says the heart of the dispute is distribution costs. “Ultimately, in today’s economic environment many airlines have a problem with paying high GDS fees to distribute low fare product. Until the GDS providers fully address this issue and improve on technology that has been somewhat limiting, the airlines are going to continue to seek ways to dis-intermediate themselves (primarily) from the GDS networks. From Air Canada’s perspective, GDS providers cannot today fully match the functionality and merchandising capabilities of its own website”

It’s likely not just GDS fees that Air Canada would like to reduce, the report suggests. While commissions to agents have dropped steeply in recent years, there are still ‘back-end’ incentives paid to many agencies.

“AirTrav Inc. believes Air Canada’s action is simply part of the ongoing airline industry trend to further reduce distribution costs, with many airlines examining ways to increase direct sales by dis-intermediating travel agents,” the report says. “On the surface, it seems illogical to remove the Tango fares, and in turn the GO Discount, also from the agent web portal because that channel comes with no GDS cost. However, by pulling Tango fares from the agent website and from the GDS’s, Air Canada can claim it is being even-handed. Also, by reducing agent sales from both the web portal and GDS’s, Air Canada will reduce the amount of back-end incentive commissions it still pays many agencies.”

© Open Jaw 2006

[manwest]

Too funny.......

And Ivannagabalot at openjaw says:

May 19, 2006

Excuse me, dahrlings, but…

Victoria Who?

Could be that I’m just more modern than most, and certainly any excuse to have a day off is a worthy cause, but Queen Victoria, Pumpkins? Why? What about Al Green, Lester Pearson, Nelly McClung?

Gives us a break from the AC Tango fandango. Things are really heating up on the “don’t you dare, how could you, why I otta…” front. While AC’s M&M go on their merry way. (They’re probably up at the cottage right now having a little Bacardi and soda with extra ice cubes, trying on the maid’s outfit.)

In any case, some cold hard numbers might sober them up. One analyst today says GDS “punitive measures” (oh, I’ve been so bad) will actually hurt to the tune of 245 million over one year. That’s enough to take the fizz out of your sparkler.

[Cargo Agent]

This Tango/GDS thing must really be pissing you off manwest. The thread you wouldn't let die.

Lot's of great articles all written by totally unbiased groups or individual's.

[dagger]

Too funny.......

And Ivannagabalot at openjaw says:

May 19, 2006

Excuse me, dahrlings, but…

Victoria Who?

Could be that I’m just more modern than most, and certainly any excuse to have a day off is a worthy cause, but Queen Victoria, Pumpkins? Why? What about Al Green, Lester Pearson, Nelly McClung?

Gives us a break from the AC Tango fandango. Things are really heating up on the “don’t you dare, how could you, why I otta…” front. While AC’s M&M go on their merry way. (They’re probably up at the cottage right now having a little Bacardi and soda with extra ice cubes, trying on the maid’s outfit.)

In any case, some cold hard numbers might sober them up. One analyst today says GDS “punitive measures” (oh, I’ve been so bad) will actually hurt to the tune of 245 million over one year. That’s enough to take the fizz out of your sparkler.

And the same article said that the negotiations will lead to AC getting its way, including lower GDS fees. The fact that the GDS systems are willing, even desperate to make a new deal with AC would suggest that this hasn't been the ill-conceived, one-sided "Charge of the Light Brigade" that it has been made out to be. Let's see now, for a one-time cost about $1-2 million in net income, I could get, oh, $30 million a year in lower GDS fees, reduced TA incentives and better GDS positionning of my discount products. What should it be. $1 million vs $30 million. Which is bigger? And in the process, I get to switch more customers to online booking! Wow, tough choice. (You see, Manwest, sometimes to score major gains you have to take bold action that may be unpopular until people get used to them, but in the end, you are much further ahead. That's the difference between a future thinker and a buggy whip maker. Made your buggy whip quota today? Or have you been too busy licking Clive's boots?)

Too funny.

[manwest]

This Tango/GDS thing must really be pissing you off manwest. The thread you wouldn't let die.

Lot's of great articles all written by totally unbiased groups or individual's.

As stated from the start cargo agent, I really don't care personally, I am more than happy just to sell a tango plus, but I didn't like the way that AC treated the agents. Yes I am keeping the point alive AC would like nothing better than for this to slowly go away. It would be nice if AC apolggized to the agent community for the way they have handled this, but I am not about to hold my breath waiting for that to happen. Don't take this personally its against Milton and Monty that the agent have the disrepect for.

Have a great long weekend.

[Rockyc]

“On the surface, it seems illogical to remove the Tango fares, and in turn the GO Discount, also from the agent web portal because that channel comes with no GDS cost. However, by pulling Tango fares from the agent website and from the GDS’s, Air Canada can claim it is being even-handed. Also, by reducing agent sales from both the web portal and GDS’s, Air Canada will reduce the amount of back-end incentive commissions it still pays many agencies.”

© Open Jaw 2006

I thought the fares were removed from the Agent Web because Sabre had a "me too" clause in the contract stipulating that any fares made available to others (TA's) had to be made available to them. And so the fare was removed from all.

What's your take, Manwest?

What I find strange is that it is generally the product supplier who determines how its product should be priced. In this case it is the GDS that wants to dictate how the product is priced. It would appear that the "dinosaur" tag saddled on Airlines may have to be moved over to the GDS's.

The way the world is going with web based systems with flexible and fast adaptability, the GDS's might want to think about adapting to market reality. Or they might just perish. Travel Agents, through necessity, have already become quite adept at adapting to market realities.

[manwest]

Rockyc:

This basically is a dispute between Air Canada and the GDS systems. AC is trying to break their contract to get lower rates. I have no problem with AC negotiating honestly and fairly with the GDs systems. Agents are caught in the middle. Agents are mad at AC for the way that they have treated us in this dispute.

Many agents use the internet to book many products, I myself tend to use AC agent site when the fare is lower than what I can get in our GDS. I also book WestJet on their agent site and rarely in my GDS. I find the internet sites quicker.

I am not prepared to sign in as a separate passenger on the AC public site to make a tango booking. This is not productive for our office. I will continue to book AC when requested by the passenger on the agent site letting the pax know that a lower fare may be available but we do not sell basic tango. Also they will be informed that basic tango pax are first to be denied boarding if the flight is oversold and the luggage restrictions that come with some tango fares.

Air Canada is making it fairly clear that they don't want travel agent bookings and would like nothing better to be rid of we pesky agents. Reality is not all of us are going away, we will be here for many a year to come.

[manwest]

For those interested.

Latest Update: Canadian Travel Press

They’ll be back: new ACTA boss says of Tango fares

Mike Dunbar

The new chair of the Association of Canadian Travel Agencies (ACTA) expects Air Canada will restore its Tango fare to the GDSs and make them available once more for sale by travel agents.

Jean Collette says he doesn’t think it makes good business sense to continue with the Tango de-list, given the sheer volume of business administered by the retail trade on behalf of Air Canada. “It makes me mad when they say they don’t see value in a sales force of more than 17,000 agents,” he declared.

According to the new ACTA chief, travel agents handle sales, administration and after-sales functions for almost two million Air Canada customers a year. “If those agents go away, Air Canada would need to hire at least 15,000 people to handle the volume,” Collette said.

The Montreal-area retailer stated, “There’s got to be a (distribution) cost somewhere, but we represent a labour force that they don’t want to pay. If the customer has to pay, I’m being cut off at the knees and that’s not good business practice.”

Collette reckons the current issue goes to the heart of the agent-principal relationship. He explained, “Nobody would buy a home if they had to pay the agent $20,000 in commission. But it makes good sense for the seller to pay.”

Acquiring profitable, viable margins for members is going to be Collette’s priority during his tenure, he said. And he added bluntly, “We don’t want to see Air Canada’s actions expand to other suppliers.”

indifferent

[Thebean]

For those interested.

Latest Update: Canadian Travel Press

They’ll be back: new ACTA boss says of Tango fares

Mike Dunbar

The new chair of the Association of Canadian Travel Agencies (ACTA) expects Air Canada will restore its Tango fare to the GDSs and make them available once more for sale by travel agents.

Jean Collette says he doesn’t think it makes good business sense to continue with the Tango de-list, given the sheer volume of business administered by the retail trade on behalf of Air Canada. “It makes me mad when they say they don’t see value in a sales force of more than 17,000 agents,” he declared.

According to the new ACTA chief, travel agents handle sales, administration and after-sales functions for almost two million Air Canada customers a year. “If those agents go away, Air Canada would need to hire at least 15,000 people to handle the volume,” Collette said.

The Montreal-area retailer stated, “There’s got to be a (distribution) cost somewhere, but we represent a labour force that they don’t want to pay. If the customer has to pay, I’m being cut off at the knees and that’s not good business practice.”

Collette reckons the current issue goes to the heart of the agent-principal relationship. He explained, “Nobody would buy a home if they had to pay the agent $20,000 in commission. But it makes good sense for the seller to pay.”

Acquiring profitable, viable margins for members is going to be Collette’s priority during his tenure, he said. And he added bluntly, “We don’t want to see Air Canada’s actions expand to other suppliers.”

indifferent

15,000 new agents?

I've told you a million times not to exaggerate......

[manwest]

Travel Industry Leaders at YYZ

http://www.newswire.ca/en/releases/archive...6/13/c4427.html

[dagger]

Travel Industry Leaders at YYZ

http://www.newswire.ca/en/releases/archive...6/13/c4427.html

Paid for by Sabre, too, which is why the press release is a joke - it basically outlines Sabr'e point of view, which makes no commitments to give the airlines the ability to differentiate their fares. Shame on these associations - claiming to be pro-consumer - that sucks up to Sabre rather than demanding that they invest in differentiated products and lower their GDS fees. How can you be pro-consumer when you are bought and paid for by the global GDS oligopoly?

[manwest]

Memo To AC: What Part of Customer Service Are You Not Getting?

by Bruce Parkinson

The signatures of nearly 4,000 travel agents might not be enough to draw a response from Air Canada president Montie Brewer, but an op-ed piece by one of Canada’s most respected journalists headlined “Air Canada doesn’t give a damn. I’ll fly WestJet” certainly caught his attention.

The article (diatribe might be a more accurate term) in last Saturday’s Globe and Mail included such stinging lines as “So which is now Canada’s most hated corporation? Opinions will obviously vary, but here’s a resolute vote for Air Canada. Anyone else agree? Or is any company worse?”

While ignoring the complaints of the travel agents who sell two-thirds of his airline’s tickets and now have to leap through hoops to access the low-cost Tango fares that customers are demanding, Brewer was quick to respond to the Globe piece, with his own article published in yesterday’s paper, graced with his smiling face above his byline.

Brewer wrote: “I was more than a little dismayed to pick up my Saturday Globe and Mail and read Jeffrey Simpson’s column. Coming as it did without warning, and containing a level of vitriol rarely exhibited by the normally reflective Mr. Simpson, my first response was shock.”

The AC president goes on to admit that some of Simpson’s criticisms are fair. He says the airline is not perfect. He offers a personal apology “to all our customers who have experienced problems when flying with Air Canada.” Thankfully for him, he has a broad public forum to make this apology. Doing so personally would be a Herculean task.

Brewer saves his verbal ammunition to attack Simpson for “unfounded and downright insulting” criticisms of AC employees.” He says, “Our employees work hard every day toward better serving our customers.” And he claims that monthly customer surveys reveal a steady rise in customer satisfaction over the past three years, in all areas, including baggage handling.

There’s only one problem with Brewer’s spirited defence of his work force. Simpson does not put the blame on employees, who he describes as being “pulverized.”

“They don’t feel very good about their company. They’re earning less. They’ve got so many rules and regulations to follow, and they’ve been stripped of so much discretion in the drive for profits, and so much is out of their hands, that even if they’d like to help, they often can’t,” writes Simpson. “It’s not their fault. Attitudes start at the top.”

Mr. Brewer is defending employees who haven’t been insulted. But he’s not saying much about the attitudes that start at the top. Anyone smell a red herring?

It’s hard to put all the blame on Brewer, CEO Robert Milton or other AC leaders. The employee malaise predates their appearance on the scene. My seminal Air Canada moment occurred about 10 years ago. Not being the assertive or complaining type, I’d never asked for an upgrade or voiced service concerns, despite several years of working as a travel writer, a milieu in which such behaviour is de rigueur. “Do you know who I am?”

Working for a small ad agency at the time, I was sent to Halifax from Toronto on short notice. Because the flight was the next day, the ticket price was $1,700.00. I thought that princely sum might justify a request to be moved up to the front, despite the short duration of the flight. I politely asked the gate attendant, who was new on the job, very friendly, and not sure how to respond. Her supervisor came over and asked what the problem was.

“This gentleman is asking if he can be upgraded,” said the gate attendant. The supervisor scowled at me over her glasses, examined the ticket information on the screen and looked back at me as she said, “You don’t have to give him anything.” I seethed with the quiet, lasting indignation of the Canadian WASP. And yes, the front of the plane was empty.

I’ve never flown AC since. Instead, I’ve been introduced to the world of charters and low-cost carriers. And while I’ve never asked for an upgrade again (there’s not often anywhere to be upgraded to!) I’ve met some very nice people. The first time I flew WestJet I thought the staff were on happy pills. But you know what? It’s more fun to work with a smile on your face, even when conditions aren’t ideal. And when are they?

At a trade show earlier this year I happened to mention to the folks at the CanJet booth that I’d be flying with them in a couple of days. “Have you flown with us before?” I was asked. “No,” I replied. “You’ll love it. Have you reserved your seat yet?” “No, I replied again.” “We’ll take care of that.”

The CanJet rep got on her cellphone in the middle of a busy tradeshow and made the arrangements. Two days later she happened to be at the gate when I arrived. She greeted me by name, despite meeting me only the once. My seat was selected both ways and service on the plane, while just as limited in terms of amenities as AC, was friendly, courteous and full of shared conversation between passengers and staff.

To retreat to the vernacular, service in Canada generally sucks these days. Living outside Toronto, I stay in a lot of hotels in the big city, and I can confidently say that most of the front desk staff couldn’t care less how my stay was. Not that they ask.

Maybe one day Air Canada will have enough competition to understand that quality customer service can build shareholder value. Maybe the hospitality industry will post definitions of the word on their screensavers. Maybe customs agents will learn that they can do their jobs well without making returning citizens feel like sleeper cell members.

In the meantime, I’ll respond to Jeffrey Simpson’s closing statement: “Open skies – bring ‘em on. WestJet, you’ve got a new customer. Any other takers?”

Way ahead of you there Mr. Simpson. And I’m not the only one.

© Open Jaw 2006

[yul07]

<<<Brewer wrote: “I was more than a little dismayed to pick up my Saturday Globe and Mail and read Jeffrey Simpson’s column. Coming as it did without warning, and containing a level of vitriol rarely exhibited by the normally reflective Mr. Simpson, my first response was shock.” >>>

Come on Monte, grow up. Like you really expect Simpson to call you and ask permission to write a negative article based on his own experiences. Editorial Pages denote opinion which does not have to be balanced or fair. Thats why they are Editorials.

News articles should be balanced and fair, in which case a journalist should give you a chance to reply. Simpson was not obligated to do so.

[ChicoChico]

So let me get this straight this guy asks for a free upgade ONCE and never flies AC again???

Riiiiiggghht.

BTW I think I'll ask my chevette dealer for a free upgrade to Escalade - I mean all the Escalades are sitting on the lot unsold!

While I'm at it I think Safeway should upgrade my hamburger to steak it too is languishing under the counter unsold.

Oh an while I'm at it maybe Moores can upgrade me for free into an Armani suit, they are just hanging there waiting for someone.

....aaarrrrgggghhhh

Chico