Pictured: Champa Magesh
Lufthansa has shown a lack of understanding of the role of retailers in imposing a €16 charge onthird-party bookings, according to Champa Magesh, UK managing director of Amadeus.
© Travolution archives
Magesh told delegates at a recent Business Breakfast, hosted by Travolution’s sister title Travel Weekly, that she believes the German flag-carrier has “boxed itself intothe view” that being a good retailer means selling direct to the customer.
She pointed to other major brands such as Microsoft and Apple which, she said,had understood the benefits of working with a supply chain, despite having opportunities to go direct.
Addressing Lufthansa’s controversial move, Magesh said: “We have to be upfront and say it’s a shortsightedapproach. It shows a lack of understanding of retailing.
Look at any retailer out there and they operate through all channels.”
Magesh also questioned the economics of Lufthansa’s decision, saying it was simplisticand showed a lack of understanding of the costs of going direct.
She added the “simple law of economics” meant Lufthansa would see its costs rise by making itselfbeholden to Google.