industry alert

The Cost of Content: Our Corporations at Risk

It's now all up to corporate travel managers!

London, England, 13 February 2007-Negotiations between British Airways and global distribution systems (GDSs) are reaching a moment of truth -- and that truth could be a bitter one for corporations. BA's best corporate customers might be expected to pay for all of the airline's distribution costs, not just once but a second time, since they are already baked into the price of a BA ticket. All other airlines in Europe and around the world are watching; travel managers are slowly mobilizing in the knowledge that the outcome in the UK will be felt everywhere. Travel managers can influence travel distribution for a generation to come if they act now.  But the big question remains: is there the resolve?

According to recent Business Travel Europe stories and analysis:

''Talks between British Airways and the GDSs over the new agreements on distribution fees are set to fail, according to industry sources. . .''

''I get the impression that BA does not want a deal, that they want the negotiations to fail.... ''

''So in one move, BA would have transferred its distribution costs to the big corporates.... ''

''I don't think corporate travel managers know how close they are to picking up the bill for BA's distribution costs.... ''

''[Corporates must] wake up and [not] get pulled into thinking that everything is going to be okay....''

''BA is not going to listen to the GDSs or to the TMCs. But it might listen to the corporate customers which buy their tickets.'''

As a source told BTC today, ''BA is watching closely to see if corporates take up arms or shrug their shoulders over a potential new distribution model that would impose new costs and fragment content. Mr Walsh is clearly betting on the shrug, but he may have misjudged the growing resolve and resentment of customers who are now in a fighting mood.''

TO ACT NOW, join with your colleagues and become a Signatory to a letter to Willie Walsh, CEO of British Airways, at http://businesstravelcoalition.com/advocacy/statements/131.htm.

You can also let British Airways know how you feel about getting stuck with the bill - twice - for their distribution costs by visiting them in booth 413 this week at the Business Travel Show.