Inside Track: TMCs Resisting IATA Efforts To Speed Settlement

Travel management companies in Europe are fighting a rearguard action against attempts by the International Air Transport Association to reduce the long-standing limit of one month for travel agents settling payments to airlines through national bank settlement plans. They defeated an effort to shorten the settlement period to one week in Scandinavia but have not been able to prevent approval for a similar change in Switzerland and Hungary. Several other smaller European countries also have moved recently to either one or two weeks. An estimated 20 percent to 30 percent of European corporate clients still pay for air tickets through credit arrangements with their TMC. The likely consequence of IATA's strategy is that they will either have to settle up quicker or move to payment via a corporate card. IATA is pursuing its strategy despite a lengthy lobbying campaign in Europe to make its procedures more TMC-friendly. "Everyone has heard IATA say it is going to change things, but nothing has changed," said HRG director of industry affairs Mike Platt. "In fact, with the BSP issue, they are getting worse." No one at IATA was available for comment.

IATA Extends E-Ticket Deadline
The International Air Transport Association this month extended its deadline to make e-ticketing available for 100 percent of flights to May 31, 2008, from its previous target of the end of this year. IATA said that based on the pace of adoption, airlines would be issuing 92 percent of tickets electronically by Dec. 31, but the "five-month, one-time extension helps airlines behind schedule due to late starts, regional differences, system enhancements and regulatory limitations."

Starwood Plans Openings To Double In 2007
Starwood Hotels & Resorts Worldwide announced last week that it expects to open almost twice as many properties this year as last year. Parent to the Sheraton, W, Westin and St. Regis brands, Starwood said it should execute 200 new deals and open 80 new hotels this year. Starwood's total global pipeline is about 420 hotels and more than 100,000 rooms, and is the industry's largest in the upper upscale and luxury segments, according to Smith Travel Research.

Silverjet Seeks Chicago-London Service
Silverjet late last month in a filing with the U.S. Department of Transportation said it is seeking to launch service between Chicago and London in November. The all-business class carrier also announced this month that it intends to acquire two additional Boeing 767s, expecting to take delivery in March of next year. The carrier did not announce which routes it intends to serve with the aircraft, but noted it "has a further 30 routes under consideration." Silverjet plans in late July to introduce its second daily service between Luton and Newark. Meanwhile, in light of the recent U.S.-EU Open Skies treaty, Virgin Atlantic said it plans to launch its own all-business class carrier, connecting passengers between various EU cities and New York within the next year and a half (see story).

BCD Buys Swedish TMC; Partners In Israel, Jordan
Last month, BCD Travel acquired Travelflow, an independent Swedish travel management company with offices in three Swedish cities and 2006 revenues of $40 million. The move doubles BCD's presence in Sweden. The company also announced Middle East partnerships with Business Travel Center in Israel, an agency with $70 million in annual revenue, and TIJWAL Corporate Travel Solutions in Jordan.