Inside Track: CTDs, Forming Association, Eye Consortium Buying

Several ARC-accredited Corporate Travel Departments are forming a legal nonprofit association registered in New York they expect to launch before the end of May, said Kathy Hall-Zientek, steering committee chair and Moog manager of travel services. The steering committee consists of 10 Corporate Travel Department buyers, with 75 more CTDs interested in joining the association, she said. The association, an educational and advocacy forum for CTDs and possibly a buying consortium, will have a $150 annual membership fee, said Hall-Zientek. The organization will handle its own marketing and selling efforts in conjunction with ARC. In November, ARC disbanded its CTD advisory group in a push for CTDs to form an independent group, she said. ARC is providing some legal counsel, but the steering committee turned down funding. Margaret Kelly, ARC CTD national accounts manager, is the liaison to the association's board.

Analysts: Hotel Cycle Swing Might Not Help Buyers
Analysts foresee an economic downturn hurting the hotel industry but not in the segments of most interest to travel buyers. PKF Hospitality Research this month lowered its expectations for the lodging industry's growth in revenue per available room in 2008 to below-average levels, calling for growth of only 3 percent rather than 4.5 percent for the year. However, in addressing the National Business Travel Association's Business Travel Financial Forum in New York this month, Smith Travel Research president Mark Lomanno said that, unlike previous shifts in the hotel cycle, higher-tiered properties and those in the top 25 domestic hotel markets would be the least affected. "It's going to affect the most price-sensitive parts of the market first and the secondary and tertiary markets first," Lomanno said. PKF also said the lodging industry slowdown would be short-lived as supply growth slows in the years ahead, and rate growth would be at 4.7 percent this year, above both the 2.7 percent projected inflation rate and the 3.5 percent long-term average increase in room rates.

BCD Shareholder Increases Investment In HRG
A wholly owned subsidiary of Boron, the private investment arm of BCD Holdings shareholder John Fentener van Vlissingen, has increased its stock ownership to more than 10 percent in Hogg Robinson Group, according to Hogg Robinson filings with the London Stock Exchange. Zeist, Netherlands-based Beverweerd Investments transacted the buy of a 4.3 percent ownership stake in Hogg Robinson in mid-December. Boron spokesperson Mario Bruna told BTN the investment is not part of any merger or acquisition plans. Boron is a separate company from BCD Holdings, parent company of BCD Travel.

ResX To Launch Online Booking Tool Partnership
Next month, TRX's ResX Technologies plans to announce a self-booking tool consortium with a partner that primarily has a presence in Asia, said ResX president Shane Hammond, who would not identify the partner, but said it is not Amadeus E-Travel Management, GetThere or Cliqbook. The alliance will have combined agency and corporate contracts and will use a common rules engine, so any self-booking tool provider can implement a corporation's travel policy globally. European online bookings will be shared in Europe, until the consortium finds a Europe-based partner. Meanwhile, ResX is adding direct connects with Southwest Airlines in May and Air Canada early in the third quarter, Hammond said.