YOUR OPPORTUNITY TO MEET FACE-TO-FACE WITH YOUR
COLLEAGUES AND BEGIN RESHAPING THE FUTURE OF THE INDUSTRY

RECOVERY - How do we get there?
The second ACTE Summit was conducted in Los Angeles at Crowne Plaza Los Angeles - International Airport on Friday, October 5. There were 45 participants representing virtually all segments of the business travel industry.


Major Themes
1. -- Security

Where San Francisco seemed to focus on the philosophical with respect to airport and airline security, Los Angeles was focused on the practical. Travel / purchasing managers indicated that in the aftermath of 9/11 travelers are more observant about airport security as well as more outspoken. Travelers are reporting back much inconsistency from airport to airport in procedures and perceived quality of effort. One travel manager questioned why the same inane questions are still being asked at check-in counters. Another observed, such questions could erode one's confidence that security issues are really understood and being addressed.

U.S. retaliation, and terrorists' counter attacks, is in the backs of many travelers' minds. There is traveler concern about being stranded like they were on 9/11 away from family here in the U.S. and about being caught outside the country during a military campaign. There is also some consternation regarding flying U.S. airlines to or from international destinations. Likewise, some travelers are worried that as Americans they will be easy targets overseas.

It was discussed how the traveler is receiving mixed and confusing messages from the federal government and the national media. It was also mentioned that travelers are being hammered with an unprecedented amount of negative information about airport and airline security. When coupled with the additional time necessary for new airport security measures, an atmosphere that is discouraging of air travel has developed. Short haul markets are particularly vulnerable to business traveler defections to automobiles.

One airline executive advocated the immediate requirement for all travelers to show a passport. Several participants responded in the affirmative when the need to integrate INS and other U.S. security databases with those of the airline system was brought up.

There was considerable discussion regarding a national ID system using a triage approach. This idea has surfaced in a few quarters in recent weeks. One way such a system could work follows.

Frequent travelers could apply for a federal ID card wherein backgrounds are thoroughly checked. The card would be imbedded with a chip for purposes of a hard match of card to person at the airport. For example the card could contain a digitized image of the iris. At check-in a traveler's iris would be scanned for a match with the card. Travelers with a federal ID would experience a speedy check in process-maybe faster than prior to 9/11.

The second group of would represent infrequent travelers or those who are not willing to give the federal government the required information to secure an ID card. Those travelers would be subject to the more strict measures implemented at airports in recent weeks. The third group would be those identified at the airport from the second group who represent a high risk profile, or who otherwise cause security personnel to be suspicious. Those travelers would be put through a more rigorous searching, questioning and validating process.

2. -- Getting business travelers back into the air
   

Some 25 to 30% of Summit participants were generally of the view that business travel is off primarily due to the economy, that airlines have responded with capacity reductions and that nothing pro active should be done to encourage business travelers to fly again. This group felt that when the economy rebounded, business travel would as well.

The majority of Summit participants saw it differently. While they were not advocating "make travel," they felt there were artificial constraints keeping travelers off airplanes including mixed messages from government and an inefficient airport security process.

For this second group, getting the airlines full again will not only help all the other segments of the industry, but also the national economy. The issue is not whether the airlines will return to the historically high business travel levels of say April of 2000. But rather, the important question is how long will it take. This group would like to preserve as many airline and other industry segment competitors as possible. Thus, the sooner airplanes fill up again, the better, from a longer-term competition standpoint.

3. -- Obsolete domestic U.S. airfare structure
   

Travel and purchasing managers agreed that now would be an excellent time for airlines to consider offering an airfare structure they, their travelers and their senior managements can understand and embrace. One that would be simple, rational and not require a seventeen-minute explanation by an airline yield management manager. One travel manager stated, "a simplified airfare structure is much needed and well overdue."

Travel and purchasing managers would like to be in a position to go to senior management and say we should consider supporting the airline industry now because:

  • 1--here's the impact of a failing airline industry on the economy, on future competitive alternatives across all travel industry segments, on destinations served airlines, on flight frequencies and on our ability to conduct business;

  • 2-here are the short and long-term measures to improve airport and airline security we can support and communicate to our employees;

  • 3-here are the measures the federal government is taking in the short-term to identify the whereabouts of suspected terrorists or their associates here in the U.S. and here are the longer-term steps being taken to close the intelligence gathering gap that was causal in relationship to the tragedies on 9/11; and

  • 4-finally, here is a coherent, simplified and rational airfare program that represents an important response to what corporate customers of the air transportation system say they want and need.
4. -- Shift in travel manager's role
   

There was discussion regarding the impact of 9/11 on the travel manager's role. Business travel prices are depressed across all industry segments-air, rental car, hotel--on a worldwide basis. Purchasing as a travel department function will likely have less importance in the near and mid-terms. Traveler safety, security and communications are now top priorities.

Travel departments received much corporate visibility and recognition during the crisis for a job well done. There were weaknesses, however, in identifying and communicating effectively with travelers on the road.

There is a sense that the business travel function now needs to be managed much more holistically. Travel managers have the opportunity to make a case that they should coordinate broader business travel strategy that includes safety, security, communications technological, HR, m-commerce, car fleet and corporate aviation.

This is not to say these areas should necessarily report into Travel Department. Rather, the resources and expertise of these areas need to be leveraged to improve the safety and productivity of travelers. The travel manager is usually the only person in a corporation that dedicates his or her time to travel, and is therefore, best qualified to coordinate a more comprehensive strategy in this area.

Regional Summit Home

The Regional Summit Program is sponsored by:

Home | About | Membership | ACTE Sponsors | Resources | Events | Members Only | Contact Us | Canada | EMEA | Asia/Pacific | Site Map