ACTE: Spring 1998 Quarterly

10 Years and Counting: ACTE Looks Back

1988 - A Kuwait Airways jet is hijacked over Oman. The first attempt at code-sharing-between United Airlines and British Airways-begins, with a less than enthusiastic response (but ultimate approval) by the DOT. The FAA bans smoking on domestic US flights of less than two hours in duration.

ACTE I - 1989
The Association of Corporate Travel Executives is established with 300 charter members.ACTE hosts its first conference, ACTE I, in New Orleans. Bob Graze is named Executive Director. First ACTE Quarterly is published.

Videoconferencing, smart cards, voice mail and globalization enter the scene. Eastern Airlines declares bankruptcy. Piedmont is merged into USAir, and ARC begins an electronic credit card billing and refund program.

ACTE II - 1990
The second Annual Members Conference is held in Miami. ACTE sponsors its first golf outing as a way to foster informal networking. The first Regional Forum is held. Members vote Rudy Monteleone ACTE's first President.

Germany begins reunification. Continental is the first airline to protect commissions on reissued "nonrefundable" tickets. United Airlines places an order for the first Boeing 777. President Bush signs the Americans With Disabilities Act.

ACTE III - 1991
The Gulf War delays ACTE III San Diego for three months. ACTE establishes the first Point-Counterpoint Program.

The Gulf War devastates the corporate travel industry; the public is fearful of terrorism and airport security worldwide is beefed up. Eastern Airlines ends a 62-year run. USAir institutes a new policy:service charges for ticket changes. Pan Am's final flight is flown, from Frankfurt to JFK. The U.S. Justice Dept. approves the American Express purchase of Lifeco Travel Services.

ACTE IV - 1992
The ACTE 'Dictionary' of corporate travel terminology is published. David Murphy is elected ACTE President.

American, Delta, United and USAir denied allegations of price fixing but agreed to pay a total of $44 million in cash and $368.5 million in discount fare coupons to customers; Northwest and TWA had reached earlier agreements in 1991. Travel Trust International and WoodsideTravel Management become Woodside Travel Trust. Braniff closes operations. Delta and Northwest get tough on ticket treachery-misuse of restricted fares, hidden city and back to back ticketing-by issuing debit memos to agencies who engaged in these practices on their client's behalf. New CRS rules allowing third-party software or hardware enhancements. TWA emerges from Chapter 11.

ACTE V - 1993
The ACTE Colloquium is conducted at Michigan State University. ACTE's first Canadian Regional Forum is held.

KLM and Northwest integrate their operations. The World Trade Center bombing has little impact on travel. The U.S. DOT approves code sharing for USAir and British Airways. TWA and Continental emerge from Chapter 11. The Travelgate scandal emerges. American Express makes its largest acquisition: Nymann & Schultz, Scandinavia's largest agency. Covia and Galileo merge to become Galileo International.

ACTE VI - 1994
ACTE headquarters moves from suburban New Jersey to Washington, D.C. ACTE names a new Executive Director, Terrell Mellen. Steven Bush is elected ACTE President.

BTCC attempts to rationalize airline pricing. Carlson Travel Group and Wagonlit Travel merge to become Carlson Wagonlit Travel, an alliance with 4,000 locations in 125 countries. American Express purchases Thomas Cook Travel and the business travel management division of the Thomas Cook Group in the U.K. Commission caps begin, with enormous (and immediate) repercussions. The first Internet-based bookings are facilitated by PCTravel. The first trains use the Channel Tunnel linking London and Paris.

ACTE VII - 1995
ACTE holds its first European Roundtable. ACTE Europe holds first its Regional Forum in the U.K. ACTE & ASQC establish a joint task force to identify and address service standards in the corporate travel industry. Armand LeCompte becomes ACTE President.

Airlines begin the second round of commission caps, with Delta capping domestic agency commissions at $40 on domestic round-trips of over $500, a move matched by American, Continental, Northwest, United and USAir. ARTA files suit against the seven, claiming antitrust violation. Service fees are instituted by some agencies. Automated travel tools and ticketless travel make headway. IVI Business Travel International and USTravel merge to create BTI Americas, the US's third largest agency. Open skies agreements are signed between Belgium, Austria, Luxembourg, Denmark,Finland, Iceland, Norway, Sweden and the U.S.

ACTE VIII - 1996
ACTE VIII in Seattle is the largest Annual Members Conference to date. Membership soars by 45 percent. ACTE establishes Canadian and European Regional Committees; bylaws insure proportional representation on the ACTE Board and key committees. The ACTE Foundation awards scholarship grants to three college students. ACTE & NBTA establish a joint task force to study the feasibility of universal hotel reporting standards. ACTE introduces its innovative web site at http://www.acte.org. ACTE introduces two newsletters: ACTE Update and ACTE Europe Update. Earl Foster is elected ACTE President.

European Airline Liberalization takes full effect; use of self-booking tools burgeons. The U.S. domestic ticket tax is reinstated. TWA flight #800, on its way to Paris, explodes near New York's Long Island. Northwest and KLM cut commissions to 5%, and impose caps on bookings made through on-line services. Boeing merges with McDonnell Douglas. A ValuJet flight crashes in the Florida Everglades. Microsoft establishes an accredited travel agency on the Internet. ARC announces that domestic airlines in 1996 saved $630 million with commission caps.

ACTE IX - 1997
ACTE establishes ACTE Europe headquarters in Brussels. ACTE 2000, a strategic four-year plan, is developed by ACTE's Industry Advisory Council. ACTE introduces a key Committee: Technology. ACTE holds its first "Face The Issues" tour. ACTE hires a new Executive Director, Nancy Holtzman.

More airline commission cuts; Continental, American, Delta, Northwest and United cap commissions on Internet bookings. Electronic ticketing becomes widespread. America West and Microsoft's web site for direct agency bookings bypass CRSs totally.

ACTE X-1998
The Annual Members Conference returns to New Orleans to celebrate ACTE's 10-year anniversary; a record number of 1,000 participants will attend. ACTE Global is slated for Paris. The number of Regional Forums expands to 22 worldwide. ACTE Europe holds the first Regional Forums outside the U.K. Earl Foster is reelected for a second two-year term as ACTE President. ACTE expands headquarters in new, Alexandria, Virginia offices.

American Airlines' Bob Crandall resigns. Northwest and Continental join forces, as do United and Delta, American and US Airways.