Tuesday, August 22, 2006

BTC's Position Paper

My apologies for being off the radar for a few weeks. I've been called back by the U.S. government (GSA eTravel project) to assist with a major software procurement. I can't go into much detail, but the solution has the potential to save some significant dollars (as in Billions) for the U.S. taxpayer.

I wanted to comment on the position paper published by the Business Travel Coalition (BTC) in April and which has acted as the organization's talking points concerning corporate buyer's view of the current changes in travel distribution. For those not familiar with BTC, the organization has been around for approximately 10-15 years. BTC's leader Kevin Mitchell is a well known advocate of corporate buyers. The BTC membership consists of some of the largest U.S. corporations. Mr. Mitchell came to prominence in the 1990s when he took center stage at a NBTA convention calling on the major U.S. airlines to abandon their frequent flyer programs due to their counter productive effect on corporate policy compliance.
BTC's latest stance has some valid points. There is no question the current distribution changes may have a negative impact on corporate buyers through additional fees and lack of total content. Where I disagree with Mr. Mitchell is BTC's complete dismissal of the issue of U.S. airline health. Over the last 4 years the major U.S. airlines have racked up more losses than all other prior years combined. During that same period we've seen consistent profits from the GDS and large TMCs. It is in the best interest of U.S. corporations to recognize the need of these airlines to cut costs through distribution so that they can remain profitable . The key point missed by BTC's position paper is the need for corporate buyers to gain control of the distribution of their travel expenses. Whether this involves traditional methods such as switching (or threatening to switch) GDS at a particular location(s) or working with the so called GNEs who have the ability to direct sourcing at a segment level, the key message has to be purchasing leverage. Alfred Kahn's (the Father of airline deregulation) comment at the NBTA conference in the 1990s regarding the airlines still applies: the definition of "yield management" is "you yield to my management". Rather than complaining about the evolutionary changes happening in distribution, BTC should be focused on educating their participants and corporate buyers in general on strategies to regain leverage in airline negotiations by controlling distribution.

8 comments:

Anonymous said...

酒店經紀酒店打工 酒店工作酒店上班酒店兼差酒店兼職打工兼差打工兼職台北酒店 酒店應徵 禮服酒店 酒店經紀 打工 兼差

Anonymous said...

酒店經紀 酒店打工 酒店工作 酒店上班 酒店兼差 酒店兼職 打工兼差 打工兼職 台北酒店 酒店應徵 禮服酒店 酒店 經紀 打工 兼差

Anonymous said...

徵信社
徵信

My Blog said...

There is no question the current distribution changes may have a negative impact on corporate buyers through additional fees and lack of total content.

Anonymous said...

Welcome to our bracelet pandora online store. We have colourful pandora jewellewry charms online.Have a browse through the handmade designs, you will see that all the 92.5 silver jewellery is of a very high standard, and also quite unique, alot of the pieces being one off about pandora bracelets designs.We source our exclusive range of contemporary sterling silver jewellery personally. We get every piece handmade for us by artisans we know and trust, and we test and hallmark every piece to guarantee it is handcrafted silver jewellery. All so we can bring you silver bracelets and bangles that are different, handmade silver necklaces, pandora canada and amber that you won't find anywhere else and silver jewellery uk that will draw comments wherever you go.This personalised service is there to take the risk out of buying jewellery as a gift.It is a range of bracelets pandora that any woman would be thrilled to wear. Beautiful silver bracelets, solid silver bangles and unusual silver necklaces. uk silver jewellery pendants with interchangeable silver chokers, rare Keshi pearls, Baltic and Dominican amber and a fabulous range of unusual jewelled and silver rings. Jewellery we know you will love.So whether you are looking for a treat for yourself, something for a friend or a romantic gift for the woman in your life,pandora bracelet can help.

wedding dresses said...

Thanks for sharing this with all of us. Every girl has her most beautiful moment in the life just when you wear your own wedding dresses in your wedding.You can visit our wedding dress shop.Cheap wedding dresses have good quality. You can find ball gown wedding dresses,mother of the bride dresses,mermaid wedding dresses,flower girl dresses,strapless wedding dresses,a line wedding dresses,plus size wedding dresses,column wedding dresses,beach wedding dresses,empire wedding dresses,tea length wedding dresses,bridesmaid dresses,cocktail dresses,evening dresses,prom dresses your dream. Get your wedding dress in our bridal shop. Finally,I hope you have a happy wedding.

Anonymous said...

Nike Free Run Cheap shoes to australia,
Nike Free Run Womens Sale shoes store,
Nike Free 3.0 Cheap shoes store,
Nike Free Run 2 Sale online australia,
Nike Frees Cheap shoes to australia,
Nike Free 3.0 womens shoes, many colors,
Nike Free run womens shoes to australia.

Nike Free Cheap free shipping australia
Nike Free Run Womens Cheap shoes store
Nike Free 3.0 sale store free shipping
Nike Free Run 2 Sale shoes store
Nike Free 3.0 womens shoes inline shop
Nike Free run womens shoes to australia

Anonymous said...

Nike Free Run 2 new style running shoes,
Nike Free Run womens running shoes,
Nike Free Run Plus good shoes for running,
Nike lunarglide 2 running shoes,
Nike free run 3.0 for mens,
Nike free 3.0 womens shoes,
Nike Free cheap cheap running shoes for sale.