ACTE PRESS RELEASE
For Immediate Release
ACTE Produces Results for the Future of Corporate Travel
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Alexandria, VA (29 October 2004) The Association of Corporate Travel Executives 'Annual Global Conference in Stockholm captured the importance of brin ging together representatives from various segments of the business travel community by giving attendees the opportunity to view an instant snapshot of their industry. Hundreds of delegates participated in two live surveys covering a variety of topics, from outsourcing and GDS deregulation to low cost carriers and online travel management firms.
The survey results set the tone for the remainder of the conference, as a well-represented mix of corporate travel managers, suppliers and TMCs participated in lively debate, asking tough questions and producing strategic solutions.
Laudable audience approval boomed in the auditorium as the survey uncovered that 65 percent of attendees believe travel management is not a core competency of a corporation. Although 65 percent of audience voters said they view travel as a commodity purchase, 75 percent of audience voters said corporations are willing to pay extra for value-added services.
Less than 10 percent of corporation delegates said they outsourced all of their travel management functions, with 62 percent outsourcing only a portion of travel management service. A much larger percentage believes it is possible to outsource administrative functions, with almost 95 percent agreeing to consider outsourcing negotiation of rates from suppliers and actual booking of travel arrangements. A similar percentage, 85 percent and 92 percent, respectively, said it is possible to outsource T&E; processing, and tracking and reporting functions. A lesser percentage--just over one-third--of audience voters said it is possible to farm out more complex functions, including travel policy development and compliance. The majority of voters--71 percent--agreed that outsourcing is only possible under certain circumstances.
A second live audience poll found that a whopping 82 percent of delegates believe airline content will differ under GDS deregulation. Fifty percent agreed costs to corporations will increase following deregulation. Thirty-five percent think corporations will incur a fee to book in the GDS.
Ninety-five percent of participants said the industry is likely to see a spate of mergers and acquisitions within the GDS sector, while 78 percent think the next five years will bring mergers between GDSs and TMCs.
Not surprisingly to many members, the poll also found that self service reservations will increase over the next few years, with roughly three-quarters of TMCs and corporations moving the majority of bookings online. The survey calculated that less than one-third of corporations and TMCs bookings are presently made through self service reservations. Regardless of where bookings are made, roughly 50 percent of corporations say they favour a single management fee, while 65 percent want unbundled fees.
Other survey results lent further support to predictions that GDSs would continue to diversify their sources of revenue, becoming less dependent on fees paid by airlines. Forty-six percent of GDSs think airline bookings will represent 50 percent to 75 percent of GDS revenue in the future.
The complete survey results will be included in a White Paper that is being compiled by UK-based Cranfield University on behalf of ACTE. The White Paper is slated for release in November.
For more information, contact:
Jack Riepe
t: 610-719-8396
c: 610-256-0124
e: [email protected]
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