Brussels (7 July 2004) -- Claims that fare discrimination for travelers in the European Union has come to an end are somewhat premature, according to a survey of business travel managers conducted by the Association of Corporate Travel Executives (ACTE). Eighty-two percent of survey respondents indicated that fare discrimination continues to exist for both paper and electronic tickets.

ACTE is a global association serving the interests of business travel professionals, corporate travel managers, travel management companies, suppliers, services providers, CFO's, consultants -- throughout the world. In Europe, business travel professionals are increasingly turning to ACTE to defend the industry's interests.

"Few European corporations are aware of the actual financial lost due to IATA regulations," said Nadine Dewart, EMEA Travel Manager, BMC Software in The Netherlands and ACTE Regional Chairs.

Dewart estimates that, on average air fare costs on intra European itineraries would be 15% cheaper without IATA outdated regulations.

"The end of fare discrimination -- a practice which allows higher airfares to be charged depending upon the country of booking -- was announced last month with great fanfare," said Cheryl Hutchinson, who is spearheading ACTE's initiative for the reform of the International Air Transport Association's outdated regulations. "This is definitely not the case as our members have indicated in this survey."

Dewart and business travel managers throughout the EU have been prodding the European Commission to investigate IATA regulations for over a year. She believes that recent activity by the EC in that direction may have resulted in the premature airfare discrimination announcement.

It is not just variable fares that are costing corporations more in Europe. There is a further estimated one billion euro hit from out dated IATA administrative rules and regulations impacting business as well. BTI UK managing director Mike Platt said "Current accreditation, staffing, licensing and settlement bureaucracycausing needless inefficiency hinders Travel Management companies from fully exploiting cost savings for consolidating corporations. The world has changed but IATA has stood still."

In the ACTE survey, 67 percent of respondents said they are using more than 10 travel centers to service company needs within the EU alone. Eighty-eight percent stated they would consider consolidation if these restrictions were lifted.

"The time has come for the EC to broaden its examination of IATA's outdated regulations," said Hutchinson. "The end to practices like fare discrimination is long overdue. Business leaders would rather commit that lost billion euros to growth or reinvestment. It's time for IATA regulations to support the economic objectives of the European Union."

Business leaders are responding to ACTE's message. A hundred met in Helsinki on 27 April to evaluate the fiscal damage, to consider their options, and to send a strong message to the EC.

About ACTE

The Association of Corporate Travel Executives was chartered in 1988 as the educational resource and forum for the international business travel management industry. With 2500 members in 37 countries, ACTE is renowned for its statistics, studies, and stances on key business travel issues. Fifty-six percent of ACTE members hold the title of "Director," or higher.



For more information, contact:
Jack Riepe
ACTE Communications Director (International)
t: 610-719-8396
c: 610-256-0124
e: [email protected]