Skift Travel News Blog

Panama’s Copa Airlines is increasing its surcharge for tickets issued in Amadeus, Sabre and Travelport from $12 to $18 per direction.

The fee hike takes effect from April 3, 2023 — coinciding with when American Airlines removes 40 percent of its own airfares from these same retail channels. 

In both cases, the airlines are pushing travel agencies and other retailers to move towards so-called New Distribution Capability. This is a technology standard developed by the International Air Transport Association, and it aims to give airlines more control over their airfares, rather than rely on global distribution systems, such as Sabre, Amadeus and Travelport.

What’s interesting is that up until now, Europe’s airlines were the ones adding expensive fees to encourage adoption. Now it seems to be catching on in the Americas region.  

In March 2022, Copa Airlines said that Copa Connect would be the best way for travel agencies to access its fares, schedules, and other content. “Through Copa Connect, agencies will be able to provide their clients better offers in a more innovative and efficient way. Among the benefits are: access to better fares, exclusive sales promotions, access to ancillary products, and others,” it said.

Since September it has added a $12 Distribution Cost Recovery Surcharge. Reports on social media suggest the increase to $18 will apply April 3.

Copa Airlines’ website reflects that: “A fixed amount of $18 will be charged per direction (or each “one-way” of the trip) whenever Copa Airlines participates as the marketing carrier regardless of the operating or ticketing carrier,” says its FAQ document.

The American Society of Travel Advisors, which represents 160,000 travel agency workers, this month asked American Airlines to push back its move date to the end of the year. It argues that withholding such a substantial portion of its fares from “critical independent distribution channels” will have a negative impact on corporate travelers.

Copa Airlines recently expanded its direct connection partnership, through New Distribution Capability, with Envision Tecnologia, according to reports.

It’s currently one of the world’s most profitable carriers too, thanks in part to the location of its Panama City hub.

South Korean hospitality tech company Onda, announced on Thursday that it has raised $10 million in its Series-B funding round.

Led by South Korea-based private equity firm TS Investment, the investors in this round included Industrial Bank of Korea as well as other South Korean investment companies like NAU IB Capital, Square Ventures, K Bridge Ventures, and Breeze Investment.

We confirmed on the ground that the domestic tourism industry was rebounding, and made our decision to invest in Onda, said TS Investment in a statement.

Specializing in online booking solution, global distribution system and property management, Onda has so far raised a total of $25.5 million.

In its pre-series B funding round, the company had raised $8 million.

With the Series B funding, Onda plans to accelerate its efforts on the digital transformation of the domestic hospitality industry, and develop a system to attract inbound travel, the company said in a statement.

The company recently launched Dive — a hotel property management system that it had been developing for the past two years.

Onda is now gearing up for its overseas expansion with a launch in the Southeast Asian hotel market. “Onda plans to provide a variety of solutions to assist outbound Korean tourists finding local hotels,” the company said.

“We plan to support the growth of Korea’s tourism industry in this post-Covid stage, both domestically and abroad,” Hyun-seok Oh, CEO of Onda said.

In its last earnings report, Onda had reported a gross merchandise value of $81 million in the first half of 2022, compared to $40.5 million in the first half of 2021.

The company has also said that it plans to directly operate residences and hotels, after successful trial operations in 2021.

Sonder has been trying to up its footprint in corporate travel, announced that it now has a chain code, SS, in the Sabre and Amadeus global distribution systems.

When travel agents are looking to book corporate clients in Sonder properties, having that chain code makes it easier for them to search and find them, Sonder said Wednesday.

Sonder said it obtained the chain code through a partnership with RateGain, which uses a connectivity switch solution to process electronic hotel bookings.

Sonder, a property manager of short-term rentals and hotels, said in its most recent earnings call last month that it had nearly 400 corporate accounts, up from around 250 at the end of March.