Agencies Provide The Best Data Channel
<B>Agencies Provide The Best Data Channel</B>
By AUTH
The use of proper travel agency data by airlines to measure corporate contracted deals should be applauded, not criticized. It is the best channel for data transfer. This is the true value that the travel agency provides to its corporate client. It makes good business sense to use data that is the most reliable for managing deal performance and measuring agency performance. Use of travel agency transactional data is not a new concept and has been done for some time.
The Travel Management Alliance took the travel industry lead in opposing the International Air Transportation Association's Corporate Identification Code. Use of travel agency data is directly opposite that of the Corporate ID. The Corporate ID was buried in a U.S. Department of Transportation docket hidden from public scrutiny and bypassed the travel agency. Continental Airlines was forthright about its intent, and uses the best possible data, data obtained directly from actual travel agency performance.
Travel agency data is masked, respects privacy, has specified use and is confidential. It is an important service that the travel agency provides to the corporation. The Corporate ID relied on inaccurate global distribution system data, which lacks pertinent information. Use of Corporate ID data would have hurt corporations by using bad data.
Agencies for years have been deprived of revenue by airlines using Marketing Data Information Tapes data. This is a serious problem for travel agencies as, each year, large agencies lose millions of dollars that they earned, but are not paid because of the use of the inaccurate MIDT data. Agency compensation is based on the airlines' own bad data purchased from the GDS. It lacks refunds, exchanges and voids--sometimes in excess of 20 percent, but agencies have had no alternative until now. Most readers will be surprised to learn that airlines usually apply arbitrary numbers to adjust MIDT data results, making the data even more inaccurate. Airlines should use travel agency transactional detail to measure performance. This data is the best source of all.
Airlines easily can find out their competitors deals via lifted and exchanged coupons, tariff publishing and UATP information. Continental Airlines' system of agency data, sent the following month, and masked, does not undermine the confidentiality of deals. Market- share agreements are common throughout many industries, especially health care and advertising. Third-party aggregators provide these services in other industries.
Use of transactional data gives confidence to corporations, agencies and airlines through use of accurate data. Continental Airlines should be viewed as an innovator in helping the industry move toward results based on performance and information that all parties can trust.
<I>Larry Austin is chairman of Melville, N.Y.-based Austin Travel and chairman of the four-year-old, nine-member Travel Management Alliance.