1996 Summer ACTE Quarterly: President's Message | The New Era of Distribution | European Airline Liberalization

In North America, last year's capping of commissions had broadened into a complete revamping of the airline distribution system. The new distribution paradigm has ushered in the fastest, most dramatic period of flux since airline deregulation more than 20 years ago. It's fundamentally changed relationships among companies, their travel agencies, and airlines. It's changed the way we look at our own departments--no longer as "profit centers" but as purchasing entities. It's changed the way we look at ourselves--as managers who have to take a broad view, and first understand the overall business mission of our companies before taking any action. We're no longer merely travel arrangers. Travel management is now exponentially more complex, and we have a steep learning curve to keep up to date.

In Europe, the big story is airline liberalization, which is expected to usher in a spate of fundamental changes in travel management techniques just as US deregulation did, though with a few salient differences. With more competition expected on more routes, and the availability of sophisticated MIS products, companies are able to demonstrate their purchasing power, thereby opening a whole new dynamic between corporate travel manager and airline.

The point of all this is that one of the skills required in the new era of travel management is the ability to manage partnerships--travel managers with suppliers and vice versa, and at all times with an eye on bringing value and service to the equation. That means ensuring a balance between maintaining profitability for suppliers and cost controls for corporate travel managers.

So how do you keep up with the changing dynamic? Your involvement in ACTE is an excellent starting point. Attending ACTE educational events is essential too. This year's ACTE Global Madrid, for instance, promises to be one of the industry's leading educational events. The program, which focuses on global travel management, is the perfect forum for learning and networking with your peers. We've worked hard to ensure that the most challenging issues in travel management today are on the agenda. I look forward to seeing you in Madrid, and hearing your feedback.

Earl Foster
President

1996 Summer ACTE Quarterly: President's Message | The New Era of Distribution | European Airline Liberalization