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General Sessions

Below, please find recaps of this year's keynote presentations and featured speakers, as they discussed global trends impacting the business travel industry.

Please click on a presenter's name to go to his or her presentation summary.

SUNDAY, 18 MAY 2008, 18:00 – 19:45

When the Voting and Shouting Are Over: Thoughts on the Global Challenges the Next U.S. President will Face

David E. Sanger, the chief Washington correspondent for The New York Times, kicked off the opening night of the ACTE Global Education Conference in Washington, D.C. with his keynote presentation.

Sanger said that the race for the presidency in 2008 was one of the most consequential in modern American history -- not only for Americans, but for citizens of nations ranging from Europe to Asia, from Darfur to Tibet. Only Americans have a voice, he said, yet the rest of the world feels as if it has a stake.

Noted Sanger, “When the next president settles into the Oval Office on Jan. 20, 2009, he or she will inherit an agenda of problems unseen in Washington since the first days of the Cold War. Beyond Iraq lie a range of other challenges: The prospect of a nuclear and a more assertive Iran, the renewed battle for Afghanistan, the fear of loose nuclear weapons, the rise of a China that is rapidly globalizing, yet more sensitive than ever about international pressure on everything from global warming to human rights.”

He added that, around the globe, there are fears that America's economic troubles will spread, that its reaction to Iraq will be to turn inward, that its moral authority is eroded, and that a new era of protectionism is around the corner.

“We’re going to have to make some fundamental decisions on the Middle East and Africa – whichever decision we make there will be a cost. Iraq, Afghanistan and Pakistan will also loom as political hotspots,” said Sanger.

When speaking about the upcoming U.S. election, he said, “The next president will have to find leverage, leverage that’s eluded us so far. So how do we obtain that leverage? We need to rebalance our portfolio around the world.”
Ultimately, Sanger said, the next U.S. president will inherit enormous challenges although there are great opportunities in the international community.

“Clearly the next president will have to think how to do things differently and is going to have to listen to our allies. It’s truly a big challenge. We have to manage our portfolio better – we’ve gotten over-invested in some parts of the world and under-invested in others.”

David Sanger News

  • White House Correspondent David Sanger to address ACTE Global Education Conference in Washington, D.C....Read More

MONDAY, 19 MAY 2008, 08:30 – 09:45

Funky Business Forever

Dr. Kjell Nordstrom is a world-renowned researcher and consultant in corporate strategy, innovation, leadership and globalisation. He is ranked as number nine among management thinkers of the world and number one in Europe. Along with his co-author, Dr. Jonas Ridderstrale, Dr. Nordstrom has penned the international bestsellers Funky Business - Talent Makes Capital Dance and Karaoke Capitalism: Manangement for Mankind. At this year's Monday morning general session, Dr. Nordstrom addressed attendees about the future of global capitalism.

Dr. Nordstrom opened his session stating that capitalism is not an ideology. Rather, he went on, it is a machine that has one purpose: to sort the efficient from the inefficient. However, Dr. Nordstrom noted that the machine's logic has changed. Now, it seems that anything that fulfills four themes - femininity, emotional, personal, and simple - is rewarded as being efficient by the capitalist machine. Examples include the iPod and the Mini Cooper.

Another trend Dr. Nordstrom addressed as being very important to the future of the machine is the growing percentage of singles throughout the world and the rapid growth of cities. In a recent study Dr. Nordstrom cited, 64 percent of households in Stockholm are single. Also, 44 percent of households in London, 42 percent in New York, 56 Percent in Frankfurt, and 61 percent in Moscow are single. There is a fundementional change in the world that is driving people to live as singles - rather than as couples or families.

Additionally, 2007 was the first year in human history when more than 50 percent of the world's population lived in cities. By 2020 that rate will be 75 percent and by 2040 it will have jumped to 90 percent. Dr. Nordstrom sees this as the end of the nation-state and the re-birth of the city-state. As an exmple of this trend, Dr. Nordstrom noted that most European companies only operate - for the most part - in four U.S. cities. The country of the United States isn't their focus. Rather, the cities within that country are.

On the rise of China, India, Brazil, and other emerging markets, Dr. Nordstrom stressed that the logic of the machine does not change, just its size does. These nations have provided a deflation of prices over the last twenty years, but now as they become more consumer-oriented, the world will begin to see a return of inflation.

In regards to the United States' place in the world economy, Dr. Nordstrom was very optimistic. "The U.S. economy will bounce back," Dr. Nordstrom said, "And it will remain the center of the economic world for the foreseable future." The reason is that the U.S. can offer something that no other nation can. "America," he said, "Is an idea, not a country."

In the United States it takes no more than a few years to be considered "American," while in most other nations around the world it takes generations to become a full member of society. In Sweden, for example, Dr. Nordstrom said it takes three generations before a person or family is considered fully Swedish. In Japan the time frame is a resounding never. On account of this difference, companies within the U.S. can essentially acquire the best talent from throughout the world. The machine, Dr. Nordstrom said, is beginning to develop a logic of "Americratization."

The next segment of his discussion was on what he calls "Karaoke Capitalism." "Everything and everyone," he said, "Looks the same, uses the same components, attends the same conferences, looks for the same recruits, and reads the same books." This drives out the margin of business. The challenge is to be creative and make somehting different. "The power is shifting from the center of the human system to the periphere of the human system," he said.

To make money in this system, Dr. Nordstrom said, companies must start with an idea - a very good idea - that creates a temporary monopoly on a particular market. Most successful businesses don't beat their competitors, the simply don't have competitors. Innovation is essential to making money - a product or a service must step out of the karaoke somewhere within the system.

In regards to technology, Dr. Nordstrom agreed that technology made the western world rich. That, however, is over. World class technology is required for successful business, but it is not the differentiator.

Dr. Nordstrom closed by offering attendees two solutions that would allow them to find temporary monopoly within their industry. The first solutions is that a business needs to be "Sexy;" the second solution is that a business needs to be "Fit."

A "Sexy" business is one that appeals to the emotionally wired human brain. An example of this is BMW, which hires engineers for the smell of its cars, the sound the door makes when it closes, the color of the lights inside the cars, etc. Every aspect of the product creates an emotional connection with the buyer, and an immediate decision is made within the buyer's mind simply based on the "feel" that the car generates.

A "Fit" business is one that can change quickly, as the market changes, maintaining a temporary monopoly. Examples include Dell and H&M, which have extremely quick turn around time in regards to product development and when those products hit the open market. This allows them to react to consumer trends or competition more effectively.

"The more I see of this machine, the more happy I become," Dr. Nordstrom concluded. "An open world is a good place. Freedom is difficult, but the opposite is not an alternative. Enjoy capitalism."

Dr. Kjell Nordstrom News

  • ACTE Names Internationally-Renowned Economists as Keynote Speakers for Munich, Washington, D.C., and Rome...Read More

MONDAY, 19 MAY 2008, 16:30 – 17:30

Using Web 2.0 and Social Media to Build Community, Loyalty, and Sales

One of the most exciting new reporters on television, Amber MacArthur currently hosts various shows for CityTV, including Webnation; she has also worked for the CBC, and G4techTV, the Canada national channel devoted to technology. In the burgeoning world of podcasting, she hosts commandN, a weekly video podcast, and co-hosts Inside the Net, an influential weekly audio podcast with tech guru Leo Laporte. In all of her media work, she talks to the Web's users, content producers, product makers and social entrepreneurs, taking care to make accessible to viewers this sometimes confounding, ever-changing, and massively-influential world.

At this year's Monday afternoon session, Ms. MacArthur began by asking, "What is the difference between Web 1.0 and Web 2.0?" and offered the following examples:

Web 1.0: Reading, Companies, Home Page, Wires, Owning, Netscape, Dial Up

Web 2.0: Participating, Communities, Blogs, Wireless, Sharing, Google, Broadband

Throughout a whirlwind tour of the latest tools and techniques in the Web 2.0 world like Twitter, blogs, and other user generated content, she offered some fascinating and enlightening statistics that highlighted just how important Social Media is to organizations in today's market.

Statistics and Trends:

  • Africa, the Middle East, and Latin America are seeing the most growth in technology usage
  • 22 percent of Americans are on Social Networks
  • There are more than 600 travel applications on Facebook
  • There are 3.3 billion cell phone subscribers, but only 1.5 billion credit card holders
  • Phones, for the most part, will replace computers
  • There are 15 million active blogs
  • There is one new blog every second
  • The biggest advancement in the Internet and Social Media is user generated content

"Web 2.0 is about conversation," Ms. MacArthur said, "People want to have conversation. They don't want to be told what to do. They want to be told what to do by their peers. People, who five or 10 years ago wouldn't do this, are going online and contributing to the conversation."

Amber MacArthur News

  • Canadian Tech Journalist Amber MacArthur to Speak at ACTE Washington, D.C. Conference...Read More

Featured Speaker

Ambassador Arturo Sarukhan
Ambassador of Mexico to the United States

Ambassador Arturo Sarukhan was asked to speak at the ACTE Global Education Conference about the state of relations between Mexico and the United States. He began his talk by mentioning that 2007 was the 20th anniversary of Alan Rider's book Distant Neighbors, one of the definitive studies of Mexico-United States relations. The Ambassador posed the question: Are we still distant neighbors and, if so, can we find a strategic alliance in Travel, Trade, and Tourism that may change the status quot?

In 2001, the Ambassador began, President George W. Bush made his first visit abroad, and it was to Mexico, where he said that no relationship was more important to the United States. Ambassador Sarukhan agrees with the President, but believes that the President's statement should be taken one step further: No two countries around the world are more important to each other bi-laterally than Mexico and the United States. Each one's survival depends first and foremost on the other.

Mexico, the Ambassador said, is changing. The recent election of President Felipe de Jesús Calderón Hinojosa in 2006 brought massive reform in elections, in the judiciary, in pension programs, in fiscal programs, in infrastructure, etc. Travel and Tourism, the Ambassador said, fits in nicely with these changes.

Mexico is the eighth largest tourist destination in the world, hosting 21 million tourists a year, who bring in nearly $12 billion to the economy. In 2007, Mexico and the United States did nearly $350 billion in economic trade with each other, placing Mexico as the third largest trading partner to the United States.

For corporate travel, Mexico offers inroads into the Latin America region, and this year will host two ACTE events: an Executive Forum on 2 July, and the Latin America Education Conference, 29-30 October.

The relationship between Mexico and the United States still faces challenges on the road ahead. However, the Ambassador truly believes that the two nations can continue to move from being distant neighbors to strategic partners, and from playing checkers to playing chess.

Ambassador Arturo Sarukhan News

  • ACTE Announces Mexican Ambassador to the U.S. to Speak at Washington, D.C. Global Education Conference...Read More

TUESDAY, 20 MAY 2008, 09:00 – 10:15

The Future of Global Air Travel - Extending the Safest Period in Aviation's History while Dealing with Ever-Growing Demand and Improving Environmental Performance

Marion Blakey is one of the most widely recognized experts in the aviation industry. As President and Cheif Executive Officer of the Aerospace Industries Association, Ms. Blakey represents the nation's leading manufacturers and suppliers of civil, military, and business aircraft, helicopters, unmanned aerial vehicles, space systems, aircraft engines, missles, materiel and related components, equipment services, and information technology.

A former Administrator of the Federal Aviation Administration and Chairman of the NTSB, Ms. Blakey has been a tireless safety advocate, presiding over the safest period for air travel in the United States' history at the FAA and working to improve the NTSB's accident reporting process and increasing industry and regulatory responsiveness to NTSB safety recommendations.

In her remarks before the attendees at this year's conference, Ms. Blakey began by specifically addressing the corporate travel managers.

"What you do is vitally important," Ms. Blakey said, "But, rarely recognized. Thank you."

Systems

The challenges facing the air transportation system, Ms. Blakey said, are sky-rocketing rates and more flights, among other issues. By 2016, she noted, there will be one billion passengers flying the open skies each year, and it is essential that the United States take a serious look at the NexGen system as a means to replace the aging air traffic control system currently in place. On the current system, Ms. Blakey made it absolutely clear that it works and it is safe, but that it is most definitely not efficient. A change in the system, Ms. Blakey said, would limit the effect that weather had on flights (the number one reason for delays, currently), and also offer a way to decrease the congested air space above much of the United States major cities and regions.

Funding, however, is where most of the current delay in the rollout of the NexGen system can be found. Ms. Blakey noted that while all sides agree the new technology is needed, there has been vast disagreement on who will bear the cost. Everyone within the industry, she pleaded, must encourage the NexGen system. The future of global aviation depends on it.

Surroundings

Everyone wants to limit aviation's effect on the environment, and the aviation industry has a vey good track record in this regard, Ms. Blakey noted.

Most of the gains can be attributed to technology. From 2000 to 2008, fuel burned is down 70 percent, while there are 12 percent more passengers and 22 percent more freight in the skies. Carbon-dioxide emmissions are down a total of four percent, which is quite impressive considering the increase in traffic in the skies.

However, she added, the industry needs to develop a committed pathway to carbon neutral growth. This includes technology inovations like the Boeing 787's composite materials, a geared turbo fan, open roter engines, bio fuel, and the NexGen system, which will greatly help the environment by allowing for more direct routes.

Safety

For Marion Blakey, safety is one of the most - if not the most - important part of aviation. The industry has an extremely safe record, and this record of safety allows for business travel to be such an important part of the world.

Last year, there were no commercial jet crashes in the United States.

However, everyone assumes the simple fact that flying is the safest way to travel. This is important to note, she said, because it places such an importance on the need to maintain the industry's extremely successful record.

Therefore, it is important for the AIA, and the aviation industry as a whole, to continue to work together and with organizations such as CAST - which creates a forum for manufacturers and airlines to share flight data, maintenance records, etc. and look for trends and potential issues, ensuring that problems are caught before they become incidents.

The aviation industry is at a crossroads and in many respects its positioning is good - however challenges are still prevelant. If the industry can address the three themes Ms. Blakey discussed - Systems, Surroundings, and Safety - airlines, manufacturers, and business travelers will have a very smooth ride into the future.

Marion C. Blakey News

  • Marion C. Blakey of The Aerospace Industries Association to Keynote ACTE Global Education Conference in Washington, D.C....Read More

TUESDAY, 20 MAY 2008, 16:45 – 17:45

Transatlantic Trends

John Bruton is a former Irish Prime Minister (Taoiseach), who helped transform the Irish economy into the "Celtic Tiger": one of the fastest growing economies in the world. During his time in office (1994-1997), the Irish economy grew at an annual average rate of 8.7%, peaking at 11.1 % in 1997. Also deeply involved in the Northern Irish Peace Process leading to the 1998 Good Friday Agreement, the Ambassador is a proponent of peace and globalization, stating before the attendees at the Tuesday afternoon general session, "We have created an interdependent world. The more dependent nations are on each other, the less likey they are to go to war. Mutual dependence is a good thing."

Ambassador Bruton began his presentation of the transatlantic trends, and the relationship between the EU and the U.S. by addressing some important topics to the business travel community.

The EU wants complete access to U.S. airports for EU airlines, the Ambassador said, and, the EU wants to be able to buy larger shareholdings of American airlines. The U.S., he went on, takes issue with this, believing that it would allow for potential national security concerns. But, as the Ambassador pointed out, the EU believes it can show the U.S. that even if an airline is owned by a foreign shareholder, so long as that carrier operates in the United States, it is subject to United States law.

The EU wants to be able to bid for U.S. government business. Banning foreign bids for these contracts, he added, is bad for efficiency and ultimately bad for the U.S. taxpayer - who will bear the cost of higher bids, as a result of less competition. The Ambassador added that while the U.S. is not ready to agree on allowing foreign majority shareholders of its airlines, or foreign bidding for U.S. government contracts, it is ready in invest in other countries.

Another issue that the Ambassador addressed was the U.S. VISA process and access various EU members have to the U.S. that others do not. Most states in Western Europe, Ambassador Bruton said, enjoy VISA-free access to the United States. However, more recent members do not enjoy this same freedom. This results in fewer visitors and less business, and while progress is being made, the issue still remains under tense negotiations.

The Ambassador next talked about a recent DHS rulemaking, which would force airlines to manage and pay for the biometric data collection of individuals exiting the country. This, he said was unfair for airlines, who are currently facing an extremely volatile global economic market with rising fuel costs. Additionally, he pointed out, the process that has been proposed could create for an easier terrorist target.

ACTE took a stance on this very issue on 23 April 2008, when it said that this "DHS rulemaking shifts unfair costs to airlines...It is unreasonable to expect the airlines to shoulder this financial burden, especially at a time when they are facing staggering fuel increases, maintenance costs, and other rising expenses,” Susan Gurley, ACTE Global Executive Director, said.

On the issue of the climate change, the Ambassador began by pointing out that aviation is only responsible for three percent of the world's impact on the climate. However, he noted, three percent is the same impact other industries - like the steel industry - have.

In the EU there is a cap and trade system in place, which imposes costs on those who impose costs on the world. Currently, airlines are not included. However, with the rapid growth of the number of passengers flying, the increase in damage could turn out to be three to four times greater than it currently is. Therefore, he argued, it is increasingly important for airlines to be included in this system.

In the future, the world will continue to move into a more aviation-dependent lifestyle. Governments, citizens, and organizations must recognize this fact and act to put some limitation on aviation's growth, in order to protect the climate and environment. The world must improve air traffic management and air traffic design.

Some solutions the Ambassador offered to limit the impact of travel on the environment, as well as benefit the business traveler, include additional high speed trains (especially in the U.S.), increased road safety, reduced energy costs in hotels, and reduced restarurant costs by buying food as locally as possible.

In closing, Ambassador Bruton sees a turning point in world economic history. While the subprime crisis may be ending, the world economy's dependency on the American consumer is also ending. While the U.S. is still the most attractive place to invest, there is a general fear that protectionism sentiment in the U.S. will cause further problems on a global scale.

The Ambassador believes that there must be freedom of trade, freedom to invest, and freedom to convert currency. To the U.S., globalization has been worth over one trillion dollars. Fifty-seven million workers are employed in business dependent on international trade, and the Ambassador's opinion is that protectionism would destroy their business and their livelihood.

The protectionism, the Ambassador said, has been driven by growing economic and social inequality, a concern that people may lose their jobs or find themselves without health insurance, and other countries' unfair currency practices. However, he added, none of these issues would be resolved by pulling out of the global economy.

The Ambassador concluded that it is essential for the U.S. to resolve this movement. One way, he said, would be to create a more progessive income tax system. Another way would be to mandate a universal healthcare system. And, finally, there needs to be a change in practice among the American people moving away from household spending and towards household saving.

"The U.S. should maintain the open trading system it founded after World War II," Ambassador Bruton said. "It helps the U.S. and it helps the whole world. This process of globalization has been good for people; it has been good for peace in the world."

Ambassadro John Bruton News

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