ASTA Viewpoint--Going Global: What's Stopping Us?

When our industry was in its nascent stages, global travel was considered rarefied, fantastic and extraordinary. Today, global travel is far more conventional, but global travel management has a much higher bar to reach—it's expected to be seamless, dependable and cost-effective, in any country, at any time. Right now, that's more challenging than it should be.

Businesses are going global and they expect travel services to grow and expand with them. Global travel management enables companies to better manage their global travel spend, centralize travel management and procurement, improve efficiency and boost productivity. Ultimately, global travel management allows companies to leverage worldwide purchasing power and promote best practices. The benefits are significant, and increase as companies grow.

So what's stopping—or at least slowing—the globalization of travel management?

The challenges come from two fronts. First, there is the challenge of balancing the demands of global clients with the cultural differences that arise around the globe. Nuances and variations in language, process, approach and perspective can all present potential roadblocks. These range from logistics and a lack of knowledge of international markets to a lack of familiarity with customs and local laws. These challenges might also be shaped by a country's market readiness; for example, not being as facile or efficient with the Internet as clients expect. Our job is to balance these cultural nuances while we get the job done for our clients.

Our industry has already proven it can address these cultural challenges on a global scale with great success, however. We only have to look at the merger of KLM and Air France to see that operations can be integrated with improved services for customers and economic benefits for shareholders, while still retaining the identities unique to each airline. If the acquisition of Alitalia by KLM-Air France Group moves forward—and I think it might, eventually—I'm sure we would see a similar balance that retains the unique Italian touch and gains needed economic benefits.

In other multinational industries, this happens every day. Consider Diageo, one of the world's largest premium beverage companies. One might not think that Sterling Vineyards, Talisker and Guinness have much in common with each other, much less with the Cuervo and Captain Morgan brands. Yet, each brand retains its unique flavor and experience while benefiting from unified operations—which in turn increases the effectiveness of sales, marketing and distribution.

Given the state of the travel industry, we can't delay. Thanks to increasing oil and security costs, loss estimates this year for the airline industry are in the range of $12 billion to $15 billion. We should take every opportunity to strengthen our industry and what we have to offer, but if we are confident that we can successfully manage cultural challenges, what's holding us back?

Global travel management is limited on a second front, by outdated restrictions that prohibit foreign ownership and limit mergers. It's time to move forward. We need to allow the airlines to have antitrust immunity from the U.S. Department of Transportation, and we need to allow mergers like that of Delta and Northwest to proceed. If we do, more will follow. The result is increased economies of scale, improved global resources and connectivity, and greater choices and options for travelers worldwide. Again, we can look to other industries for credible precedents regarding mergers and foreign investment. Consider the financial services industry—also undergoing phenomenal change and challenges, but without the same archaic legislative restrictions against consolidation and foreign investment. From Citi to Merrill Lynch to Fortress, we have seen these and other companies turn to foreign investment to gain access to global markets and shore up operations during tough times. Henry Paulson, U.S. Treasury Secretary, recently said, "The biggest vote of confidence anyone can give to our country is to make a direct investment in our country. We're open for business, we want more investment. We want to compete and when we compete, we're going to win."

ASTA's recent step of accepting international companies into its premium membership is further proof that travel management is going global. We all benefit when we can incorporate a global perspective and global services into our offering. It's time to overcome these challenges and begin to fully recognize and realize the opportunities that lie ahead.