Paragon Adds French BTA, ITM Leaves To Merge With ACTE The Paragon Partnership, a global alliance of business travel organizations, last week announced the addition of the French Business Travel Association, or l'Association Française des Chargés de Voyages, to its membership. The Paragon Agreement, signed in 2002 by five founding, buyer-led organizations from the United States, Canada and Europe, has since grown to include 11 members worldwide and represent almost $190 billion in membership buying power. "The French Business Travel Association is pleased to join this international network of professional travel manager organizations," said AFCV president Nicole Lecomte in a statement late last week. "Membership in the Paragon Partnership gives AFCV the ability to better represent its members on international issues and to provide members with global networking opportunities." News of AFCV's alignment with the Paragon Partnership came on the heels of the Association of Corporate Travel Executives' announcement that it intends to merge with the Institute of Travel Management, the United Kingdom's long-independent national business travel organization. ITM chairman Tom Stone said his organization also would withdraw from the Paragon partnership
(BTNonline, Feb. 1). Bill Connors, executive director and chief operating officer of the National Business Travel Association, a Paragon founding member and current alliance Secretariat, noted that AFCV's joining is in no way tied to ITM's Paragon departure. "ITM changed their business plan. They decided they would abandon the buyer-led status that they had always had and, once they did that, they really couldn't be a member of Paragon, so they resigned. They've already done that, they already pulled out," Connors said. "We wish them well, but they made a business decision to change the nature of their association." ACTE president Greeley Koch said the merger—adding ITM's 1,000 members to ACTE's existing 2,500—would give the organization "a stronger voice." The United Kingdom will become a fifth region of ACTE, alongside the United States, Canada, Asia/Pacific and EMEA, and will command a new seat on the board. It will continue to employ its own executive director. ACTE leaders plan to appoint an executive director for the U.S. region for the first time, and expect to name a new global executive director by the end of February.
Northwest, Airplus Co-brand Low-Cost CardNorthwest Airlines and Airplus last week launched a centrally billed payment and reporting tool for corporate customers, mirroring a similar arrangement Airplus fostered with Continental Airlines in 2003. The Northwest Airlines Airplus Company Account gives clients a vehicle to report on and pay for tickets on more than 200 airlines as well as other travel merchants, including agencies and rail operators that accept the Universal Air Travel Plan. Airplus said it also is offering its MasterCard-branded charge card at the option of Northwest account clients. "It's ideal for a company in the $1 million to $10 million range that may have travelers sprinkled all over the world," said Fay Beauchine, vice president of sales and customer care at Northwest. "Just like we did with Continental, with Northwest we will provide a customized Northwest portal that a customer will get access not just to Airplus information and content, but also Northwest corporate information and content," said Airplus president and CEO Richard Crum. Northwest's decision to launch an account with Airplus underscores the emergence of airlines that are looking to undercut merchant fees levied by traditional charge card players. Some travel buyers have been able to secure discounts and rebates with preferred carriers by leveraging lower-cost payment tools
(BTN, Jan. 17). Beauchine said it is not clear whether Northwest will give such incentives as rebates and discounts to corporate clients of the program.
Starwood And Hilton Benefit From Gateway City AssetsStarwood Hotels & Resorts Worldwide and Hilton Hotels Corp.'s 2004 results, announced last week, benefited from the properties these companies own in the gateway cities. While hotel companies generally, including Starwood and Hilton, increasingly have moved from owner to manager, they retain key assets in New York, Boston and other gateway cities that are thriving in the lodging industry rebound. Starwood, for example, derives about 20 percent of its earnings from New York.
Small Troubled Carriers Get LifelinesThanks to a new deal with financial backer GECAS, Independence Air tentatively moved away from a possible Chapter 11 filing. ATA Airlines, already in bankruptcy, recently announced plans to dramatically reduce service in Indianapolis, but is now affiliated with healthy Southwest Airlines.