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September 1, 2004
ACTE Calls Nation's Airlines to the Council Table
Alexandria, Va (September 1, 2004 ) -- The Association of Corporate Travel Executives is calling the nation's airlines together in an industry council prompted by a recent pricing action by a major carrier. The summit has three objectives:
- To discuss the impact of airfare and GDS structure on the corporate consumer
- To provide critical feedback (collected from surveys and commentary gathered this week) from ACTE members
- To strengthen the corporate consumer/supplier relationship through communication at this critical time
Specifically, pricing is not on the agenda.
In addition to the council discussion, ACTE is hosting a Executive Forum in Los Angeles on September 21, focusing on the two hottest topics in the industry -- the health of the US network carriers and distribution. Also the entire distribution process, plus the 40-year-old GDS revenue model (often questioned by ACTE members), will be a primary focus of ACTE Global Conference in Stockholm, October 17 - 19, 2004. And a special webcast addressing the current situation will be announced shortly.
A primary goal of all of these efforts will be to prevent a corporate consumer shift away from an industry player at a sensitive time in the industry's recovery.
"We are dealing with two questionable business models," said ACTE Executive Director Holtzman. "A growing number of ACTE members have suggested that both the airfare pricing model and the GDS model are in need of change, and have been for quite some time. The players must come to the table with more than just a desperate need to raise capital or with the aim of preserving the status quo. The current situation with Northwest is just a symptom of a larger and deeper condition that needs long-term resolution."
The call for dialogue was issued by ACTE this morning as the pricing announcement by Northwest entered it's sixth day. History has shown us that immediate changes to pricing policies cause panic reactions and generate backlash. This industry has witnessed several significant price policy changes that were recalled after a week or ten days. "We've used this week to provide our members -- corporate and supplier alike -- with the opportunity to express themselves and to accurately measure their responses."
Holtzman added that the current business travel market is fragile enough without the threat of a consumer strike and additional court action. "Business travelers are not hesitant about voting with their feet. This would be the wrong time to introduce additional and questionable charges in the face of the corporate consumer."
For more information, contact:
Jack Riepe
ACTE Communications Director (International)
t: 610-719-8396
c: 610-256-0124
e: [email protected]
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