Be Proactive In Data Ownership Debate

<B>Be Proactive In Data Ownership Debate</B>

Information is power. That's been true in our industry for a long time, and over the years we have developed innovative ways to collect and leverage data.

But there are new concerns inherent to this freer flow of information, and it's time for travel managers and their suppliers to apply more discipline to data management so the industry is clear on what information should be shared, what must be protected and, most importantly, who is controlling the process.

Corporate travel data management used to be pretty simple: Reams of paper reports were sent by travel management companies to travel managers. In response to customer demand and technology advances, MIS became more sophisticated, offering online information, and multi-agency data consolidation became a possibility rather than a long-term vision. Third-party data management became a cottage industry, as information grew richer and suppliers sought new ways to know their customers.

All of these trends have put enormous pressure on travel managers, as they are faced with decisions on what data should be shared and with whom. Without question, individuals expect their corporations to be diligent in safeguarding their travel data. And, although travel information represents a potent tool for controlling costs, there are some risks in using this weapon. Companies could lose their negotiating leverage, or even contracts, should they share certain information, such as pricing, with any of their suppliers.

For all of these reasons, data security has become an increasingly important and loudly debated issue. Every day there are new proposals for legislation governing data privacy. The European Union, a fierce advocate of data protection, has laws in place that have strict definitions of what can and cannot happen with corporate and personal data. The U.S. government, while somewhat behind Europe, is also sounding alarms, evaluating many pieces of legislation related to data privacy.

Meanwhile, our own industry is evaluating the pros and cons of such initiatives as airline Corporate ID numbers and pre-trip MIDT usage. We are discussing what data points need to be "masked" in sharing certain data with suppliers. And travel managers are forced to decide whether to comply with a supplier's request for information that could violate agreements with other suppliers. What's more, there are new "escape hatches" that have been opened as a result of information exchange with third-party consolidators and e-booking tools.

Clearly, if data were not so strategically important in today's marketplace, none of these initiatives would exist. In the very near future, we may need to analyze in a whole new light something as basic as data stored in a traveler profile.

So, what can we do? Keep talking is one answer. Open debate on data privacy is critical. Because opinions vary greatly as to who actually owns the data and how it should be used, we need to continue debating these issues until we reach some consensus. Each of us, in whatever sector we represent, must determine what our responsibility is with respect to data protection. Travel managers can lead the way by setting the standards, re-examining their travel programs and ensuring that their programs are compliant not only with their own internal corporate policy but with all the laws related to privacy.

At American Express, we recommend developing a data management policy that addresses two areas: individual/corporate data privacy protection and overall data usage. We suggest that you:

<li>Develop a process map of your travel data. Learn its flow and especially its exit points. Work with your current travel management company or data supplier to understand the data life cycle.

<li>Consult your CIO or chief privacy officer for internal policies concerning sensitive information and make sure you're in compliance with existing corporate policy.

<li>Consider data from a security angle; the more sensitive and detailed the data is, the more valuable it becomes to whomever is asking for it.

<li>Ensure that your data providers (agency, card companies, third parties) are fully committed to protecting the security of that information.

<li>Global companies should work with their international counterparts, sharing best practices and aligning strategies.

<li>Create a policy on the approved use of corporate travel data. A broader exchange of data, if handled responsibly, can result in stronger supplier partnerships, advances and efficiencies in travel programs and, in some cases, better pricing. By taking a balanced approach, travel managers can ensure that they will not be out-leveraged or disadvantaged when working with their partners.

Ultimately, the creation and execution of a solid, strategic data management plan rests with the true owners of the data--travel managers. By being aware of the threat, engaging in open debate and applying strict data guidelines, all travel professionals can be at the forefront on this issue--protecting our customers by protecting information.

<I>Pamela Arway is executive vice president and general manager for American Express Corporate Travel.