Inside Track - 1999-05-17
<B> Inside Track</B>
<B>American Reduces European Commissions</B>
American Airlines on Aug. 1 will cut commission rates in the United Kingdom and Switzerland to 7 percent, and in Spain to 7.5 percent. Beyond announcing the cuts, American refused to divulge further details. In the United Kingdom, all other U.S. airlines remain at the 9 percent level. Delta Air Lines and Northwest Airlines told BTN they had no plans to cut commission, but United Airlines refused to comment. Its Star Alliance partners Lufthansa and SAS on April 1 reduced commissions to 7 percent.
<a name="2"><B>Cook To Mean Business, Again </B>
Thomas Cook is preparing to re-enter business travel, though it will not target large clients as it did before selling its corporate travel division to American Express in 1994. This is partly so as to not tread on the toes of Carlson Wagonlit Travel, whose parent Carlson Cos. now owns 25 percent of Cook. Having completed four years of non-competing under the terms of its contract with Amex, Thomas Cook now plans to launch a service aimed at small to medium enterprises, to be handled through its global traveler services division (<I>BTN,</I> Feb. 22). This likely will be offered in conjunction with a travel booking facility through low-cost call centers. Intriguingly, another 25 percent of Thomas Cook is owned by German travel giant Preussag AG--a stake that will rise to 50.1 percent in September. Internal sources deny there is a connection between Cook's return to business travel and Preussag's interests in Hapag-Lloyd and the First network.
<a name="3"><B>A German Invasion?</B>
Preussag AG is mulling an entry into the U.S. travel management arena following the approval of its acquisition of the German division of First Travel Management International by the German monopoly commission. Under discussion, insiders said, is a proposal that Preussag take an ownership position in First Americas and then begin an expansion program by acquiring agencies across the United States. "It should be good coverage of the U.S. in terms of major cities and so on," said FTMI director of technology and board member Ingo Brandes. He noted that Hickory Travel Systems, First's U.S. affiliate, now holds shares in FTMI, and that First would like shares in Hickory.
<a name="4"><B>Making Travel Management Mobile</B>
Amadeus Global Travel Distribution earlier this month announced a partnership with Ericcson to launch Wireless Travel Management by year-end. In a pilot run in conjunction with SAS, frequent fliers can check timetables and availability and book and cancel flights. American Express hopes to make its AXI automated booking product through mobile phone networks in North America and northern Europe within six to 12 months. Director of interactive services James Power, acknowledging partnerships talks are in progress, said, ''We are within touching distance now of delivering information such as the status of itineraries to travelers, but further ahead we are looking to deliver the whole service via mobile telephones.''
<a name="5"><B>ACTE Heads For Spain, Changes Election Procedures</B>
The Association of Corporate Travel Executives last week announced that its Nov. 14-16 ACTE Global 99 conference will be held in Torremolinos, on the Spanish Costa del Sol. Originally scheduled for Istanbul, the conference was relocated due to concerns that the elaborate security preparations for a European Community security summit being held at the site would "distract members or significantly change the agenda," said conference manager Rachel Svec. ACTE also is changing the way it puts together its slate of officers, and from now on will allow the president to gather a slate and bring it to the board for approval, rather than having the board choose the officers. The new procedure will begin with next year's presidential election.