Icelandic Ash Cloud Hangs Over Chicago Meeting

Chicago—As Iceland's Eyjafjallajokull volcano continued to pump flight-halting ash into European airspace, travel buyers and suppliers attending the Association of Corporate Travel Executives Global Education Conference brainstormed strategies to manage travel in the face of unprecedented disruptions.

"We've had several wars, massive terrorist threats, diseases and all kinds of things, but none of them even came close to the effect of a 3,000-year-old volcano," incoming ACTE president Chris Crowley said. "If it continues to grow, we will see a major effect on the cost of the airlines and the ability of the airlines to maintain certain routes."

During a press briefing at the conference, Crowley said the organization is preparing a white paper to "crystallize lessons learned" from the eruption. The research will look at ways travel managers can react to airport closings, methods of communicating with stranded travelers, criteria for when to open airspace and how to work as an industry to cover cost in such disruptions.

Recognized for her efforts in enhancing hotel rate-loading accuracy and using a mobile platform for traveler communications with ACTE's Advancing the Industry Award during the conference, Maria Chevalier, Johnson & Johnson's global director of travel and meetings services, led an interactive session on lessons learned in the aftermath of Eyjafjallajokull's ash, which will be used by ACTE and International SOS Assistance to create the white paper and a LinkedIn forum on the topic.

Chevalier noted that J&J had 1,100 stranded travelers during the April eruption, with a financial impact in the millions, while industry estimates put the cost of the first six days of the shutdown at $1.9 billion.

Sifting through the ashes of the disaster, session attendees talked about what worked when the skies didn't. Meeting at tables designated for discussing specific aspects of the crisis management process, there was a great deal of consensus. Preferred suppliers generally came through. While there were hotels that gouged, many others accommodated their guests beyond their original reservations. Credit card issuers raised limits to accommodate longer-than-usual stays. Security firms and travel management companies helped identify employee whereabouts and communicate the most effective strategies for addressing the situation.

Many companies found that the best strategy was to tell travelers to stay put, ensuring their safety and shelter. Many also found that frequent communications and multiple contact points were essential.

Of the things participants said didn't work, some cited gaps in TMC reporting and a high level of no-shows at airlines. Many cited call lines that couldn't support the volume, less visibility into the impact on their travelers over time and the fact that not every traveler carries communications devices with international capabilities.

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ACTE concluded its conference by announcing that it appointed as its executive director industry veteran Ron DiLeo, whose three-year contract will begin July 1.

DiLeo's more than 30 years' experience as a corporate travel management executive includes 25 years with the former Philadelphia-based travel management company Rosenbluth International, five years with American Express Business Travel as head of its London-based European sales organization and three years as head of independent consulting company In The Black. DiLeo said he would close that business and move to head the association's Alexandria, Va.-based headquarters.

AirPlus International president Richard Crum, immediate past president of ACTE, cited DiLeo's "multinational experience, industry tenure and passion to take the association where we want it to go." Crum announced the appointment as his last official act as ACTE president. Chris Crowley, who not only became ACTE president at the conclusion of the conference but also was recently promoted to head global accounts for BCD Travel, said he has known DiLeo for many years and that he was the man for the job because of "his energy, his intelligence and his vision."

Greeley Koch, whose extended service on the ACTE board—including a stint as president and most recently as treasurer—ended with the conference, said DiLeo's "meshing of global travel and customer service experience is the perfect match for what we need now, and will bring high energy, creativity and innovation."

Taking on the office of ACTE treasurer is Reed Elsevier travel procurement executive Angela Naegele.

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A straw poll of more than a dozen travel buyers from companies with midmarket and large business travel volumes indicated that travel spending generally has regained some of the ground lost last year, but still is well below 2008 levels. While some buyers said their companies' volumes still are down more than 20 percent from 2008 levels, and others said they had never cut, most said their 2010 spending at this point was down about 10 percent from 2008. Several said they expected such spending to further increase in the coming months. Several also said that policies they have implemented to restrict premium class use were likely to remain in place, preventing a complete return to 2008 levels anytime soon.

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ACTE is calling for Congress to launch a thorough review of travel security measures and appealing by letter to Homeland Security Secretary Janet Napolitano, Transportation Secretary Ray LaHood and Rep. Peter King (R-N.Y.) for a comprehensive assessment, outgoing president Crum said at the conference.

Crum said ACTE was inspired to act due to an influx of requests from members, buyers in particular, requesting action. They were concerned about near-misses such as the attempted Christmas Day airline bombing attempt and the near-escape of the suspect accused of the failed Times Square bombing last month, he said.

"If we can drag baseball players to Congress because we're worried about steroids, we certainly can put this issue on the national level in that kind of forum," Crum said. "We're at a point where the U.S. government needs to conduct a detailed look at the airport and transportation security in place."

Though Congress has already discussed issues around both events, Crum said the organization wanted hearings less focused on trying to pinpoint blame for particular incidents and more focused on creating a comprehensive security plan. The organization also wants Congress to keep efficiency in mind.

"Business travel is one of the major tiers of commerce, and there needs to be an efficient system for its ability to flow somewhat freely across borders," Crum said. "This is an election year, and we're hopeful this will fall on the ears of people who are concerned about this."

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A.T. Kearney managing officer and chairman of the board Paul Laudicina told ACTE attendees that his firm will achieve its 2010 goal of attaining carbon neutrality. Travel by the consulting company's 3,000 employees in 57 countries accounted for 80 percent of its total carbon emissions, he said. Reducing those emissions "not only reduces costs, but also contributes to our communities and engages employees more effectively," he said.

"We are consuming resources at a rate that takes 1.5 Planet Earths" to fulfill them, Laudicina said, adding that a focus on sustainability is at "the intersection of doing good versus doing well like never before."