1997 Summer ACTE Quarterly: President's Message | Expense Management Solutions| Hot Topics Survey

ACTE regularly uses surveys to poll members on the challenges they face and the issues that concern them. The data serve two main purposes: to gauge current trends and identify emerging ones; and to determine which topics are appropriate for upcoming educational programming. For the latest "Hot Topics" survey, 392 attendees at the ACTE IX Chicago conference seminar responded to a series of questions on issues ranging from distribution costs to automation. The results follow. Note that for polling purposes, respondents identified themselves either as corporate travel managers, travel agency employees, or suppliers.

Ranking of issues in terms of their importance to one's company: Automation and distribution came out on top, followed by globalization, safety & security, and airline consolidation.

The effect of supplier consolidations. The recent spate of supplier consolidations was generally considered a positive trend by all three constituencies. Fewer than 1/5 of respondents considered it a negative development, but there was significant divergence among travel agencies and corporates on its value.

Nearly two-thirds (62%) of agencies thought consolidation is having a positive impact, compared to only 45% of corporates. Also interesting: more than a quarter of travel managers thought it would have no impact at all, and 12% had no opinion. "Suppliers see greater opportunity in terms of creating brand identity and capturing a greater share of market," suggested Steven Schoen, CEO of the Global Group and one of the creators of this survey. "On the corporate side, it appears that travel managers are not yet convinced that consolidation will benefit them. One reason: there are many suppliers calling themselves global companies, but travel managers still can't negotiate with one person worldwide."

Expanding number of airline alliances. Near perfect agreement here that more airline agreements and code shares will both improve service and reduce choices. On the matter of competition, however, there was a sharp difference of opinion. Corporates and agencies agree there will be less competition (58% and 56%); but only 39% of suppliers thought there will be less competition.

Is a consolidated purchasing strategy important to the success of a travel management program? All three groups agree; 88% of travel managers think it's extremely or very important, as do 84% of agencies and 67% of other suppliers. The gap between travel managers and suppliers may have to do with lingering concerns travel managers have over the investments they have made in the automation that makes consolidating purchasing possible--something suppliers may not be factoring into their answer.

The top challenges for travel managers: Automation was rated as one of the top challenges, with 82% of travel managers claiming it's extremely or very challenging, and 71% of agencies and 69% of suppliers agreeing with them. Internal communications also remain a leading concern, as are policy compliance and loyalty programs. Garnering senior management support remains a perennial effort, with nearly two-thirds of respondents considering this is still an extremely or very challenging issue. There were, however, mixed reviews on the effects of supplier consolidation. Roughly half (48% of travel managers, 56% of agencies and 43% of suppliers) of respondents calling it extremely or very challenging, and 40%, 30% and 35% saying it was "somewhat" of a challenge.

There also was an interested variance in the response to the automation challenge. Eighty-two percent of travel managers find it extremely and very important, compared to 69% of suppliers, which may be signaling that suppliers and travel managers are not in tune.

How deeply have automated travel tools penetrated the corporate market? Only 12% of respondents--all travel managers--have automated booking systems in place right now, but a whopping 50% say they will have them up and running within 12 months, and another 24% will have them up within 18 months.

Automated expense management, on the other hand, is a bit further along. Nearly one-quarter of travel managers (22%) have them in place; 47% say they will implement them in 12 months, with another 22% intending to have them in 18 months.

The survey was based on 392 responses, roughly half of the conference attendees. Forty-three percent were corporate travel managers, 30 percent were suppliers, 20% were travel management companies, and seven percent classified themselves as "other." The majority--80%--were from the U.S., 14% from Europe and 6% from Canada.

Summer ACTE Quarterly: President's Message | Expense Management Solutions| Hot Topics Survey