industry note

November 12, 2006

Dear Travel Industry Colleagues:

            This has been a challenging year, but ultimately one of empowerment for corporate travel managers and travel management companies. In the US, we took our seat at the table in important distribution negotiations between airlines and GDSs. As the paying consumers of airline and GDS services, we demanded full content through the efficient and reasonably priced distribution channels we prefer. As a result, long-term contracts were successfully put in place between US GDSs and top US airlines which will help us maintain the integrity of our managed travel programs.  

Of course, it is critical for travel managers and TMCs to remain vigilant – wherever and whenever content is withheld or other attempts are made to undermine distribution economics and managed travel programs. To that end, the Business Travel Coalition is sponsoring a new initiative called the Full Content Commission – we are actively recruiting Commissioners and ramping up our activities.  The response from the industry has been most encouraging. The Commission will be a watchdog group that will have bark as well as bite. 

An important and recurring comment we’ve heard is that it is imperative for the Commission to think about distribution not only from a US but from a global perspective. Whether headquartered in New York, London, San Paulo or Toronto, many corporations today regularly conduct business and send employees around the world; therefore, fragmented content and unreasonable distribution costs are threats everywhere.  

Indeed, while the US may have reached a period of relative stability after a very tumultuous summer, markets in places like Europe are currently poised for potential upheaval. Airlines and GDSs are right now negotiating contracts that will have far-ranging implications for worldwide managed travel programs. Once again, it’s critical for us to take our seat at the table and forcefully articulate our views. 

As a first step, BTC will soon ask you to review and sign letters to the CEOs of several international carriers expressing our concerns and asking for opportunities to meet and establish a constructive dialogue. I hope you will give these Signatory letters careful consideration and provide your support. We have proven that together we can make a difference.   

Very truly yours, 

Kevin Mitchell
Chairman
Business Travel Coalition