Tuesday, December 17, 2024

Oman Air implements distribution cost recovery surcharge

In a move to modernize its distribution platforms and ensure each sales channel reflects the true costs, Oman Air has implemented a Distribution Cost Recovery (DCR) Surcharge, effective December 4th, 2024.

The new surcharge, set at $10 per segment, was applied uniformly across all Global Distribution Systems (GDSs) and market segments. This surcharge was levied on all fare types and booking classes for Oman Air’s own flights as well as its code-share partners.

The decision to introduce the DCR surcharge was part of Oman Air’s revised commercial strategy, aimed at aligning its distribution costs with the actual expenses incurred by the airline. By implementing this surcharge, the company aimed to provide a more accurate reflection of the costs associated with each sales channel.

Notably, the surcharge was not applied to bookings made through Oman Air’s direct distribution channels, including its NDC (New Distribution Capability) platform. The airline encouraged its partners to leverage these direct channels, either through the SPNR platform, direct API integration, or an NDC aggregator.

“This surcharge was filed as a YR Tax code and was levied uniformly across all GDSs and markets globally,” the airline stated in its announcement. “All bookings ticketed as of December 4th were subject to this surcharge.”

Oman Air advised its partners to contact their respective regional sales managers for more information and support during this transition.

The implementation of the DCR surcharge was part of Oman Air’s broader strategy to modernize its distribution platforms and align costs with the services provided to each sales channel. This move was aimed at ensuring the airline’s distribution model reflected the true expenses incurred, ultimately enhancing its overall commercial efficiency.  It also reflects the airline’s commitment to enhancing its commercial efficiency and providing the best possible products and services to its customers and partners.

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