BTC Poll: Online Agency Clients Highly Satisfied

All of 32 corporations and universities that chose to become clients of the Big Three online-originating agencies said they achieved the savings they expected and would make the same decision again if they had the opportunity, according to a survey released yesterday evening by the Business Travel Coalition. Twenty-five of the 32 said they chose their partner to save on transaction fees. More than 90 percent of the clients--whose annual domestic air volumes ranged between $1 million and $35 million and averaged $6.5 million--said their providers' capabilities meet their companies' needs. However, only 17 of them conduct all of their agency business with the online partner. On scales of one to 10, with 10 the best result, the customers gave the online agencies a 9.1 on traveler acceptance, an 8.8 on management acceptance and a 7.8 on management reports.

"Reporting is one area where, at first, the level of sophistication was not satisfactory," wrote BTC chairman Kevin Mitchell in the 55-page report. "Improvements have been made, and today most customers are satisfied with the reporting capabilities, or augment them with their own reporting systems. BTC believes that Internet travel management companies will continue to win marketshare from TMCs over the next few years until a competitive equilibrium is reached. All customers will likely benefit as costs and prices come down and both segments continue to innovate to retain customers and attract new business. Consolidation in both segments is likely."

The report generated a comment yesterday from American Express. "We're absolutely holding our own, if not doing really well," said Pamela Arway, Amex executive vice president of corporate travel. Amex claimed it has taken 33 accounts from the online agencies since the start of the year, while losing only three to them. "Some clients tried them and didn't like them. Our offering stacks up in terms of price and is better in terms of service levels, expertise, experience and global support."

According to WorldTravel BTI president Danny Hood, "We have lost some to the online travel agencies and won some from them. We have even lost and won the same account back from them. That is pretty much the same highly competitive environment that existed before they entered the business travel market."