ACTE 2000: A LOOK AT OUR FUTURE

ACTE’s MISSION

ACTE’s mission is to offer the information and resources its members need to address the demands of a quickly evolving global business environment. To this end, the organization is dedicated to providing comprehensive educational programs and member services geared toward senior-level business travel professionals from all segments of the corporate travel industry. ACTE considers facilitating communication within its membership a key function as well, and therefore provides members with innovative opportunities for interaction and the exchange of ideas.

PLANNING FOR THE FUTURE

Strategic planning is a fundamental management process that influences an organization’s mission, goals and objectives and determines its future direction. Without planning, proactive strategies and programs cannot be developed to ensure the organization’s success. The importance of strategic planning for an association is the same as that of any corporation. By undertaking this process, ACTE’s intent is to develop an understanding of where the organization should be devoting its resources and energy to meet the needs of the members it serves.

Organizational environments are becoming far more competitive and complex because of increasing international competition and technological progress. As with any organization, ACTE must dynamically respond to changes in the business environment, anticipate the demands of its constituents and proactively adapt its products and services to ensure the delivery of added value.

ACTE’s leadership is profoundly aware of the challenges presented by today’s rapidly changing environment and, consequently, has undertaken a comprehensive assessment of its members’ needs, future trends in the corporate travel industry and the sufficiency of products and services it offers.

This analysis was performed by the Industry Advisory Council, a committee representing a cross-section of all ACTE members. In order to gain the perspectives of the general membership, two extensive membership surveys were conducted. Input was also obtained from the Executive Committee, the ACTE Canadian and European leadership and from committee chairs throughout the organization. The strategic vision and recommendations that evolved from this extensive process were endorsed by the Board of Governors in April, 1997 as the basis of a comprehensive Four-Year Plan.

Central to the Four-Year Plan is the belief that in order to address the demands of an increasingly complex business environment, all participants in the travel management process -- purchasers, suppliers and intermediaries -- must be equipped with the necessary skills, tools and information. ACTE is committed to delivering innovative products and resources that will enable its members to meet the challenges that lie ahead.

IMPORTANT INDUSTRY TRENDS

The world of corporate travel has changed so dramatically in the past ten years that travel management is virtually a new discipline. This change is being driven by several forces.

Corporations are seeking to exert greater control over most areas of travel management and to substantially reduce costs in an area that typically represents their third largest controllable expense, particularly now that global expansion activities are fostering more international travel spending.

Change is driven also by travel suppliers, who increasingly are seeking ways to reduce distribution and other operating costs through re-engineering and the utilization of new technologies.

Concurrently, there has been:

• Significant acceleration in consolidation of airline, hotel and car rental vendors, either by mergers, acquisitions or the formation of strategic marketing alliances;
  
• A dramatic shift away from commission-based to fee-based pricing relationships between corporations and travel agencies;
  
• A resultant shift by travel management companies away from booking and ticketing toward more consultative and information-management roles;
  
• Greater willingness among airlines and other travel vendors to negotiate net fares and rates, and to forge other direct deals.

A third driving force for change is technology. Besides generating improvements in such labor-intensive processes as reservations and expense management, recent advances in electronic commerce are accelerating long-needed reforms of the travel distribution system.

Electronic ticketing, smart cards, automated travel booking products and Internet and corporate intranet applications, reduce suppliers’ distribution costs and empower the consumer to manage information and make sound purchasing decisions efficiently and autonomously.

GROWING SOPHISTICATION OF THE TRAVEL MANAGEMENT FUNCTION

As best practices in travel management are identified and tested, both buyers and suppliers recognize opportunities for improvement. Perhaps most important are the new opportunities for consolidated, global purchasing of corporate travel products and services -- expansion efforts that will make managing travel and entertainment spending more challenging, with important implications for the skills needed by travel managers and suppliers.

Among purchasers, the importance of sound travel management practices has captured the attention of upper management.

• Travel negotiation and policy enforcement decisions increasingly are being made by more senior-level executives. It's not unusual for travel managers in multinational corporations to report to the Chief Financial or Chief Operating Officer.
  
• Increasingly, managers are being brought into travel purchasing and supply-side management roles from other organizational areas, reinforcing the multidisciplinary aspect of travel management and reflecting the increasing sophistication of the function.

Consequently, new skill levels are needed, by both purchasers and suppliers, to anticipate and address the needs of this challenging environment. Strong management skills, a strategic approach, effective understanding and utilization of new technologies, competency in finance, a firm grasp of process improvement and access to benchmarking data are part of the everyday job description of travel managers in the 1990s.

In this new era of travel management, the traditional assumptions--about roles and relationships between buyers and suppliers, travel department managers and other department heads and about the responsibilities of the corporation to the traveler--are all being rethought and revised.

The division between purchasers and suppliers is being blurred as corporate customers and suppliers seek long-term, cooperative partnerships. Business is being awarded less frequently on the basis of price alone than on a broader context that takes into account these factors and more: traveler productivity, service levels, value for money, reliability and timeliness of reporting information and traveler safety and security.

As the travel management function grows in stature within corporations, travel managers are being held to increasingly higher standards. Above all, it is expected that they will add value to their companies. This means being attuned to company objectives and contributing to overall productivity goals as, concurrently, they procure the optimal level of corporate travel services for the least cost. As travel management is increasingly integrated into the overall goals and objectives of the company, the role of the travel manager is continually being redefined.

VISION FOR THE FUTURE

As corporate travel professionals look ahead to the challenges of the next century, ACTE's underlying goal will remain constant: to enable its members to address the challenges of a rapidly changing global business environment while maintaining financial strength and the necessary professional infrastructure to support these efforts.

Focus on Education

Through the Annual Members’ Conference, ACTE Global and a variety of National and Regional Forums, ACTE will respond to quickly changing, significant industry developments and give members the critical information they need to develop effective strategies. With the Education Committee providing direction and consistency in ACTE’s educational approach, the association will maintain its focus on the educational needs of senior-level corporate travel professionals. In addition, ACTE will continue to expand the frequency and number of markets served by Regional Forums, and will structure programs in a manner conducive to networking and the exchange of ideas. Programming content will continue to be developed by ACTE members, leveraging their considerable expertise for the benefit of all members. Using input from member surveys and post-conference feedback, ACTE will proactively identify members’ educational preferences. The speed with which ACTE responds to new trends, products and ideas with targeted programming will remain a critical success factor.

Through its new Technology Committee, ACTE is assembling a team of leading industry experts to guide the association in developing innovative methods for educating members about the emerging technologies. ACTE is committed to using technologically advanced media for members communications and educational services.

ACTE's focus on education will continue to be supplemented by member publications and a World Wide Web site that allow users to tap into a resource library and other rich sources of data. Recognizing that members are expanding their utilization of the Internet and related technologies, the association will increase its emphasis on the Internet as a vehicle for both distributing travel management information and facilitating the interaction of members.

Membership Development

As an association, ACTE differentiates itself by offering advanced educational programs and by enabling both suppliers and purchasers to gain equal benefit from membership. As multinational companies increasingly procure travel on a global basis, ACTE is unique as well in its global membership approach that offers members valuable opportunities to interact with peers on an international level.

ACTE endeavors to develop and maintain a positive presence as the leading organization for senior-level travel professionals on a worldwide basis. To achieve that result, ACTE will consistently tailor products and services specifically to attract the senior-level corporate travel professional, and will increase the value of membership through additional Regional Forums and reference and communication tools.

Beginning with Europe, ACTE is developing a model for expansion into new markets and a worldwide plan and timeline for membership growth by geographic region. The association is working to create specific membership development and retention strategies for each region where it operates, with an emphasis on maintaining qualified growth.

Finance and Administration

ACTE’s membership has grown dramatically over the last three years and is expected to continue to increase at a rate of fifteen percent through the year 2000. Correspondingly, the level of services provided to members will continue to expand, commanding greater resources than in the past. The association’s financial goal is to provide a consistently high level of member services while building a reserve equivalent to one year’s operating expenses by the year 2000. This conservative approach emphasizes the accumulation and investment of income to ensure effective operation of the association, and the funding of growth internally rather than through borrowing. Key to ACTE’s financial success will be consistent delivery of value to members through educational programs and services, and the supplying of added value to sponsoring organizations.

Administratively, ACTE’s leadership will continue to maintain the necessary staffing and infrastructure to support the association’s administration and services. With a focus on core competencies, ACTE will develop a long-range plan to address the association’s operational needs and develop a strategic positioning on outsourcing versus the internal management of administrative functions. ACTE is committed to utilizing appropriate and effective technological tools for member communications and the distribution of products and services as well as for improving internal efficiency.

There has never been a more exciting time to serve our members in the corporate travel industry. From phenomenal changes in distribution to the virtual explosion of technological products and services, this association has never seen as much rapid change -- or as much opportunity. Through these strategic initiatives, ACTE will maintain the position of strength necessary to help our members lead the charge into the 21st century.