ACTE PRESS RELEASE


For Immediate Release


Face-to-Face: China's Corporations and International Standards in Managed Travel


Singapore 1 May, 2005 - The Association of Corporate Travel Executives (ACTE) is provides a two-way channel to facilitate mutual understanding between Chinese corporations and international travel professionals regarding the practice of managed travel. Many global corporations have expressed exasperation when trying to get programmes off the ground at their Chinese operational bases and while some have experienced success, it often came after much grinding of teeth. These corporations have cited a difficulty in implementing headquarter standards at local sites. However such difficulties fail to capture the fuller extent of the divide. This may be best explained not by the mere commission of error but by the omission of engagement, in particular with local Chinese enterprises. For many reasons a good number of international suppliers have yet cultivated business relationships with Chinese corporations. These organizations driven by an expanding domestic economy are showing clear signs of becoming major buyers of business travel products and services. Reasons surrounding the uninspiring number of relationships are varied and numerous but among the more debatable ones are the following:
  • A general lack of interest among Chinese companies to reduce business cost
  • Chinese companies don't spend significant financial resources on business travel
  • The lack of transparency in business transactions make it impossible to agree on a strategy to manage travel
ACTE is making the extra effort to get the perspective of the Chinese corporations and key suppliers in establishing a clearer view of the situation. Any information that makes

the connection will be invaluable to both the Chinese corporation and their international counterparts and would-be supply partners.

Many international travel managers and suppliers are already considering a novel argument that China's growing business travel industry has real potential to exert considerable economic influence on both international suppliers of business travel products and perhaps institute new benchmarks of success for managed travel programmes in force in China.

The travel industry is experiencing significant growth in China. Although it is imperative to implement international standards in China to support this growth, it is also important to recognize the unique aspects of doing business in China to ensure that we are implementing the right standards and metrics for success.

Megan Stowe, ACTE's Asia-Pacific Educational representative said," Some international standards simply cannot be ignored, not in China nor anywhere else but there must be exceptions in some aspects less we end up with situations where there are disconnects between measurement metrics and the very nature of the subjects we mean to measure. She also added," The Air industry in China is very new and negotiating a deal takes time. However, as more and more corporates negotiate, the easier it is becoming."

As ACTE probes deeper, international communities will be the main beneficiaries of new insights gained.

ACTE President, Greeley Koch will address an audience of international and Chinese corporations at CBITM in Beijing on 25th July. ACTE is a conference partner of CBITM which has made the education of Chinese corporations in the practice of managed travel part of the event's agenda. CBITM has called on ACTE to provide the educational support through its global network of practitioners of managed travel.

ACTE will also be delivering two workshop sessions at CBITM. For more information about these sessions go to www.cbitm.com

For more information about ACTE, contact:

ACTE Asia-Pacific Secretariat
Tel: 65-6336 4341
Email: [email protected]




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