Back in February I wrote about some of the challenges faced when changing airline suppliers, including the impact of frequent flyer cards and how they influence traveller behaviour.

While frequent flyer schemes will always be the subject of debate, there’s another – perhaps more sinister – challenge facing organisations who are trying to drive volume towards their preferred carriers. I’m referring to ‘squatter fares’.

It’s well known in the hotel business that some of the more unscrupulous establishments still maintain expired rates under old client codes in the GDS, after they’ve been advised that their corporate client has chosen a different hotel for the following year’s programme. These are known as ‘squatter rates’.

Hotels do this to try and encourage travellers to book outside of policy. Most TMCs are wise to it and undertake rate audits to ensure that only the rates from their newly preferred hotels are distributed through the GDS.

It seems that some airlines are now adopting the same practice. One of our clients has recently had a case where fares were not removed by the airline from the GDS at the end of the contract.

Not only that, on one route the airline deliberately reduced fares to a level lower than that offered in their (unsuccessful) bid!

It wasn’t until the TMC noticed that prices on that route were cheaper than normal – and much cheaper than those offered to other clients with contracted deals on the same route – that this sneaky practice was realised.

A short, sharp note to the airline concerned soon stopped it.

Although the instances are still relatively low, it is an underhand practice (in this case by a ‘reputable’ airline) and interrupts the efforts of organisations trying to support their preferred suppliers.

Buyers beware!