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Sales | Distribution Cost Recovery Surcharge

    IMPORTANT UPDATE: Starting from July 1st, 2024, the Distribution Cost Recovery Surcharge will be changing to 13.00 USD per coupon.

     

    Starting May 01, 2023 a Distribution Cost Recovery Surcharge of USD 12.00 per coupon will be applied to LATAM reservations issued via GDS (Agencies). 

     

    For all countries (except Brazil):

    • The surcharge is applied to each coupon ticketed on a LATAM-marketed flight.
    • The surcharge applies to all tickets issued on LATAM stock (or other companies) and to all fares whenever the itinerary includes a LATAM-marketed flight.
    • It is reflected as a surcharge code “YR”. E.g.: GRU-MIA (LA) + MIA-ATL (DL) → 1 surcharge applies (coupon GRU MIA onboard a LA flight).
    • Non-transferable.
    • Non-refundable (except in cases of flight rescheduling/cancellation or in countries where a Cancellation Law applies). The surcharge fee is charged per coupon. In the case of a partial involuntary refund, you can request a refund only for the YR fees directly associated with the segments that will be refunded.
    • In case of voluntary reissue, an additional surcharge will be charged if more coupons are added to the itinerary. For example: SCL - MIA (1 surcharge per coupon) reissued as SCL - LIM - MIA includes one additional surcharge for the second coupon.

     

    In Brazil:

    • The surcharge applies to each coupon issued.
    • It applies to LATAM fares and LATAM tickets issued in Brazil (regardless of the route issued).
    • It is incorporated into the fare construction as "Q" (Distribution Cost Recovery Surcharge for each of the reserved coupons, as long as the fare is from LATAM. Example: GRU-MIA (LA) + MIA-ATL (DL) → applies 2 surcharges (GRU-MIA coupon on LA flight and MIA-ATL coupon on Delta flight).
    • It is not commissionable.
    • The Distribution Cost Recovery Surcharge will be refundable in cases where the fare policy allows it, in cases of flight rescheduling/cancellation or by cancellation law in countries where it is applicable
    • In the case of voluntary reissues, an additional surcharge will be charged when more coupons are added to the trip. For example: SCL-MIA (1 fee per 1 coupon) reissued to SCL-LIM-MIA includes an additional fee for a second coupon.

    1. What is Distribution Cost Recovery Surcharge?

    In LATAM's current agreements with GDS, we pay a commission for the use of this channel. This is not the case with any of our other channels. Our Distribution Cost Recovery Surcharge will allow us to cover ONLY that cost. It is important to note that LATAM is not generating additional profits with this charge.

     

    2. In which channels will the Distribution Cost Recovery Surcharge be applied?

    It will only be applied in the GDS channel for EDIFACT technology. It does not apply to any of the NDC by LATAM channels or the DCP/eLATAM channel.

     

    3. What is the value of the Distribution Cost Recovery Surcharge?

    $12.00 USD per coupon and per passenger. See the following examples:

    Ticket 1: Santiago to Antofagasta, one-way direct trip SCL-ANF = 1 coupon= $12.00 USD fee

    Ticket 2: Santiago to Miami, round-trip direct trip SCL-MIA; MIA-SCL = 2 coupons = $12.00 USD x 2 = $24.00 USD fee

    Ticket 3: Santiago to London, round-trip via GRU SCL-GRU; GRU-LHR; LHR-GRU; GRU-SCL = 4 coupons = $12.00 USD x 4 = $48.00 USD fee

    It only applies to coupons with LA flight code, regardless of the airline used as the issuing plate.

     

    4. Does the Distribution Cost Recovery Surcharge apply to all markets?

    The Distribution Cost Recovery Surcharge applies to each coupon of each ticket purchased with LATAM, with the exception of those sold in the following points of sale:

    • China
    • Hong Kong

     

    5. Are there any exceptions to this?

    The only exceptions for payment of the Distribution Cost Recovery Surcharge are infants, group bookings (groups, series, and negospace), and tickets purchased in points of sale mentioned in the previous question. Any other type of passenger, market, and point of sale is subject to the Distribution Cost Recovery Surcharge when issued through the GDS channel in its EDIFACT technology.

     

    6. Is it possible to see it in the fare breakdown?

    Yes! This is possible, as the fare type in which the Distribution Cost Recovery Surcharge is charged is YR. The only exception is the point of sale in Brazil, where the Distribution Cost Recovery Surcharge is charged within the fare, in the Q fare type.

     

    7. How can agencies avoid it?

    Agencies can avoid the Distribution Cost Recovery Surcharge  by issuing tickets through the channels available in NDC by LATAM. Click here to find out more.

     

    8. Is it refundable?

    The Distribution Cost Recovery Surcharge is only refundable in the following cases:

    • Involuntary refunds: in case of an involuntary itinerary change or cancellation of the passenger's original flight where they choose the ticket refund option, the paid Distribution Cost Recovery Surcharge will be fully refunded.
    • Right of withdrawal (in countries where it applies).
    • In all other cases, LATAM will not refund the Distribution Cost Recovery Surcharge .

     

    9. Is the amount adjusted periodically?

    The Distribution Cost Recovery Surcharge will be periodically adjusted to match our distribution costs through GDS as closely as possible, and changes will be communicated in advance.

     

    10. Does the Distribution Cost Recovery Surcharge apply to reservation or issuance?

    Distribution Cost Recovery Surcharge will be displayed every time an agency generates a reservation and quotes it from May 1st. However, it will only be charged upon ticket issuance.

     

    11. What happens if the agency reissues a GDS ticket that was issued after May 1st? Does the Distribution Cost Recovery Surcharge apply?

    Exchange reissue (no coupons used) maintaining the same number of coupons: surcharge does not apply.

    Exchange reissue (no coupons used) adding one or more coupons: surcharge applies.

    Historical reissue (from the first used coupon) maintaining the same number of coupons: surcharge does not apply.

    Historical reissue (from the first used coupon) adding one or more coupons: surcharge applies.

     

    12. What happens if the agency issues a ticket in GDS before May 1st and reissues the ticket after that date?

    Reservations issued before May 1st, 2023, are exempt from the charge unless changes are made that involve an exchange reissue (changes to the first travel coupon).

     

    13. Does the Distribution Cost Recovery Surcharge only apply to LATAM flights?

    The YR or Q  will be charged on all LA coupons (including marketing) regardless of the issuing carrier.

     

    14. Does the Distribution Cost Recovery Surcharge only apply to LATAM plate issuances?

    It is charged per LATAM marketing coupon regardless of the issuing plate.