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Cheryl Hutchinson July 2002
When the Prediction Fades Before the Vindication Arrives...
by Cheryl Hutchinson
The difficulty with predicting anything is that you can be so far ahead of
the crowd (and the event) that no one remembers it was you who called the
shot right all along. Or worse, you can get run over by the mad stampede of
rear view mirror prognosticators in their haste to interpret the suddenly
obvious when your vision becomes a war cry.
Nearly a year ago, ACTE members concluded that the airfare pricing model
needed reform. Their findings resulted in a white paper issued at our last
global conference. In the last few months, our position has been seconded by
a number of carriers and leading industry authorities.
It isn’t important who gets remembered for being among the first to call for
airfare reform -- just as long as it gets done. And I think it's going to
have to get done in stages. The first stage was in suggesting airfare reform
and in fleshing out the concept. The second stage will entail bringing all of
the interested parties to the table. The third, and perhaps final stage, will
be the industry-wide buy-in to the program.
In this issue of the ACTE Global Business Journal, America West's Scott Kirby
takes a candid look at airfare reform, and what it means to the overall
aviation industry. Kirby's message is the good news and the bad news of
airfare reform: that the industry desperately needs it, and that it will mean
changing airline cost structures along with fare models. This is a much
larger proposition than the industry may have initially bargained for.
And while it may seem that airfare reform is the burning issue, other equally
significant developments still dot the travel management horizon. Low-cost
carriers are illustrating the sense in the adage "Strike while the iron is
hot." Combining a pre-airfare reform strategy with an aggressive take on
service, low-cost airlines have struck a chord in the heart of the global
business community. The story on page 6 documents a trend that is likely to
become a best practice.
Whether your travel program measures up to the expectations of upper
management, or is as effective as it can be, may depend on the alignment of
your company's corporate travel goals. This issue is covered in detail on
page 18. And what do airfare reform, low-cost carriers, and travel program
alignment have in common? Each is an ongoing issue that will be the subject
of ACTE forums, Webcasts and conferences in the future. As part of ACTE's new
"Advancing the Industry Program," these topics (and many others) will
be
serialized throughout their evolution.
The Advancing the Industry Program will serve as an educational link between
forums, conferences and Webcasts, guaranteeing our membership unparalleled
professional enrichment. I don't believe it's possible to know everything
about our profession. But ACTE makes it possible to stay abreast of what you
need to know.
Sincerely,
Cheryl Hutchinson
President
Association of Corporate Travel Executive
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