The Association of Corporate Travel Executives' board on Monday nixed the concept of a merger with the National Business Travel Association and "decided to remain a stand-alone organization to best guarantee the integrity of its programs and the quality of deliverables to its global members," according to an ACTE statement. A spokesman declined to address reports that the board also discussed potential relationships with meeting industry associations, including the Professional Convention Management Association, but said "additional information would be forthcoming."
ACTE board representatives from Asia, Canada and Europe were "strongly opposed" to pursuing the NBTA merger, sources who asked not to be identified told The Transnational.
NBTA on Tuesday issued a statement indicating that "in light of economic pressures currently facing the business," its leaders had "asked ACTE officials to craft a proposal on how the groups might cooperate to leverage their relative strengths." NBTA also confirmed that the two organizations "have recently been in talks about possible opportunities to work together to maximize the value each association delivers to the business travel industry--particularly supplier companies that invest in both organizations."
ACTE claims 2,500 members in 82 countries, with 44 percent in the United States, 23 percent in Europe, 14 percent in Canada, 7 percent in the Middle East-Africa and 5 percent in Latin America. Officials said more than 9,000 people registered for its programs last year. Meanwhile, NBTA claims 4,000 members in 30 nations and regional affiliates in Asia-Pacific, Brazil, Canada and Mexico that serve a total of 15,000 members. Its annual convention is expected to draw more than 5,000 in August.
Citing unnamed sources, The Beatlast week reported that some association officials had revived talks about ACTE merging into NBTA. "The two organizations have talked many, many times," according to NBTA's spokesman, but the past year's sharply increased pressures sponsorship, membership and attendance fueled the latest talks. NBTA didn't make a formal presentation to the ACTE board. Some sources were surprised that discussions advanced to a vote based on concepts and notes instead of formalized strategies. ACTE's board dedicated "a substantial portion of the call Monday on how the ACTE board might transition into the NBTA board," if the concept were advanced, sources noted.
"While the goals are identical--industry advocacy and education--the overlaps in education and resources are not really affordable in the new industry environment," said attorney John Caldwell, who offered to broker talks. "In simple terms, the new economy for business travel cannot afford two organizations. An outright merger makes sense as soon as possible, or an evolution to that through a joint venture on education programs could be a valuable first step."
"The current economic crisis is reshaping the business travel industry in many ways," according to a statement issued by ACTE president and Booz & Co. global sourcing and travel director Doug Weeks after the board rejected the merger discussions. "Change is coming in the way companies conduct business, in the way people travel and in the way professional associations assist them in this endeavor. ACTE's board of directors has concluded that meeting our mission can best be accomplished by following our own course of action."
Exactly how ACTE will fund that course was not addressed, but an ACTE spokesman promised more information about a "more aggressive membership campaign, extensive sponsorship deals and other plans" in coming weeks. The group also needs to find a new treasurer as treasurer-elect Mary Ellen George, Advito general manager, this week resigned from the elected ACTE post, citing business pressures. According to ACTE bylaws, the new treasurer is due to take over in December for current treasurer Brad Seitz, Topaz International president and CEO. The treasurer is a three-year position on the ACTE board. The bylaws state that the "president may fill an officer vacancy for the unexpired term with approval by two-thirds of the voting" board members.
ACTE in April reported lower attendance to its conference in Washington. The association's leadership has held a series of meetings about finances, according to sources. ACTE's most recent Internal Revenue Service Form 990 tax filing (for tax-exempt organizations) showed a net balance of $141,426 as of year-end 2007. NBTA, by contrast, reported a year-end 2007 net balance of $8,769,471. The IRS requires tax-exempt organizations that operate on a calendar year to report key financials by May of the following year, although it also allows up to two 90-day extensions, which most tax-exempt organizations request in order to extend the filing deadline to as late as November. For the 2008 filings, the IRS significantly changed Form 990 to "enhance transparency of an organization's mission, finance information and operations."
Despite economic challenges, both ACTE and NBTA said they are advancing plans for their upcoming meetings, with the next ACTE event 25-27 October in Prague and the next NBTA convention 23-26 August in San Diego.