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For Immediate Release
Remarks of Cheryl Hutchinson
Former ACTE President and Chairman
Delivered At ACTE's Executive Forum
March 2, Newark New Jersey
Taking A Stand On The Complicated Issues
I fully believe the time is going to come when the business travel management industry will be free from controversy... When every segment of our industry moves together with common reflexes... When government and industry see the advantage of mutual cooperation... When every objective is being met as a matter of course.
I truly believe that day will come.
It just won't be today.
But today... I can guarantee you the second best thing... Today, I can promise you that some of the best minds in our industry are here to prevent a major issue from becoming a major confrontation.... And that's half the battle.
A big part of today's discussions entails understanding what's at stake. For the nation's carriers, any move that saves money is welcome. In contrast, the GDSs have reported substantial profits for 2004. The move toward alternatives by the airlines has got to be seen as abandonment by the GDS's creator... Or at least as a kind of financial threat. And in the midst of this stands the business travel manager and the procurement specialist... Who do not want to be left holding the bag if the bag is filled with higher fees or restricted services.
Many of those travel management executives are here this morning. But many more sent their opinions in a telling survey that is part of today's presentation. And I don't think it was a coincidence that this survey had a response rate of nearly 50 percent.
So we have come to Newark, New Jersey today to look at the GDS issue, the changing role of the business travel management executive, and the impact of open skies on our industry.
My name is Cheryl Hutchinson and during the last four years, I have had the honor of serving as the president elect, the president, the chair, and a board member for the Association of Corporate Travel Executives. And there is a scientific reason why my appearance here -- and the discussion of these issues -- seems like deja vous... again. That's because ACTE has been anticipating these dialogues for years... And we have not been shy about it.
On the subject of the GDS -- I predicted this would become a major issue of contention in 2002. ACTE responded by making distribution the focal point of three conferences, numerous forums, and countless speeches. And here we are today -- right on schedule.
The role of the travel management executive and procurement specialist changes with every toss of the technology dice... Or fluctuation in corporate philosophy... Or airfare pricing structure. For years, we have been like medicine men -- dancing and shaking our rattles for simplified fares. Now suddenly, it's raining simplified fares and we're looking ahead to the next move.
Since 1991, an open skies agreement has been dangled before Europe by the federal government as a great bargaining carrot. This has been useful bait for any number of situations. But I remember Congressman James Oberstar -- then the leader of the House Aviation subcommittee -- explaining that an open skies agreement with Holland would give the Netherlands access to the entire United States, while opening up an area smaller than his congressional district to US carriers.
But that situation has changed with the advent of the EU. In fact, the situation has changed dramatically for each of these three issues. It seems that the business travel industry can be roughly divided into two categories of concern. These include the high-profile glamor subjects that generate big headlines that bloom like 24-hour orchids... And the more tedious subjects that have no instant answers, but impact hundreds of millions of dollars, and require months or even years of discussion to resolve.
And that's where ACTE steps in. This association does not hesitate to roll up its collective sleeves and tackle a subject that may take years to nail down. We do this because the alternative -- no resolution -- is a far more expensive proposition. Long-range vision calls for long-term commitment. Nearly all of the challenges that will face this industry in the immediate future have international implications. From IATA changes to multi-nation policies on passenger privacy, you will find we have already instituted an initiative, or assigned a task force to the project for quite some time.
As far as ACTE is concerned, the best surprise is no surprise at all. And with the largest network of travel management executives, suppliers, consultants, and industry representatives -- many of whom are tied to the governments on three continents -- the "no-surprise" objective is a very realistic goal.
In the last month alone, ACTE has announced a merger in progress with Britain's Institute of Travel Management. We have reiterated certain key points regarding crucial areas of development in the Registered Traveler program to the Transportation Security Administration. And we have convened this forum.
Three different and highly complex issues that are ultimately related, and that are going to require a commitment in time, resources, and expertise. We are committing the time, generating the resources, and mustering the expertise.
Thank you.
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