<B>InsideTrack</B>
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EC Weighs In With Client Code Concerns</B>
The European Commission has stepped into the International Air Transport Association client codes controversy with a letter expressing concern over the proposed scheme. Saying it was "rather surprised" that the proposal to allocate identification codes on flight reservations had been developed without consultation with the Commission, the letter goes on to note that the scheme may conflict with European Union law concerning privacy of information and that it could compromise the confidentiality of corporate data. The Commission is examining the question of whether data tapes marketed by GDSs also give away too much information. IATA is confident that it can prove to the Commission that its voluntary scheme would not breach any European data protection laws. Meanwhile, corporate supporters of the codes are beginning to emerge, including Michael Kirnberger, president of the German Business Travel Association and travel manager for Merck Germany. "This is absolutely a good idea," he said. "The consolidation of data under one system will allow us to use the information as a negotiating tool with airlines. It is something we have requested for six years. I would even extend the system to hotel and car." Kirnberger is in favor of both airline and corporate having completely transparent access to purchasing data. "I prefer to deal openly with everybody," he said. "It is not a problem to show the airline how much my company is spending on flights from Frankfurt to London."
<B><A NAME="2">E-Travel Supports IATA, Sets Fee, Plans Pre-Trip</B>
E-Travel spokesman Rob Wald revealed his company's opinion on the IATA Corporate ID program (see Point-Counterpoint, page 20). "We think the global IATA ID is a great thing for the corporate travel industry," he said. "It provides a level playing field for both sides of the table. Until now, suppliers had great information. Now, corporations will have access to the same. People are opposed because they fear the suppliers having access to this info while their current tech providers can't provide a solution to give them access. We feel perfectly capable to be able to pull that info." E-Travel last week said it would charge corporations a transaction fee as low as $16.95 for travel planning, purchasing, tickets and e-mailed itineraries, but would not reveal which agencies it would use for fulfillment. Wald also said pre-trip approval using Oracle Workflow would be available in a matter of weeks.
<B><A NAME="3">Worldspan Cuts Airline Fees For Bookings</B>
Worldspan is blanketing the NBTA Convention with announcements, most notably a lower segment fee for airlines that sell its Trip Manager booking product. Worldspan said airlines participating in its CorporateDIRECT program that sell Trip Manager to new clients would be qualified to pay total GDS segment fees of less than $1.50 for each booking made in Trip Manager by a new corporation. Other airlines that participate in the Worldspan GDS also would qualify for a discounted fee for segments booked by a new corporation in Trip Manager, but not as low as $1.50. Sabre charges airlines about $2 for bookings in BTS. The company also revealed a new version of Trip Manager and a new tool to automate the creation of traveler profiles in it.
<B><A NAME="4">Amex: HOTEL RATES TO RISE Again in 2001</B>
Preliminary data assembled by American Express Corporate Services indicate an across-the-board increase in U.S. hotel rates for 2001 of 4 percent to 6 percent. While steep, the increases were less than the 2000 projected rate hikes of 5 percent to 7 percent. American Express said travel managers were expecting increases in 2001, the only question being how big. Some markets such as Chicago, Dallas, Seattle and Phoenix are seeing a convergence of supply and demand growth, but others such as New York, San Francisco and Boston will not see supply keep pace with demand, American Express said.
<B><A NAME="5">Andersen's Via To Remarket Direct Connections</B>
Andersen Consulting's Via World Network later this year will market to travel management companies, booking vendors and the very largest corporate accounts its direct connections to six major airlines--American, Continental, Northwest, TWA, United and US Airways (BTN, Jan. 24)--and its automated refunds and exchanges capabilities. The only current user of the Via booking tool is the $325 million Andersen Consulting account, which reported an adoption rate of more than 50 percent. Via is processing more than 20,000 tickets per month for Andersen, 80 percent of which are through direct connections. Via uses Worldspan for nondirect transactions.
About 20 percent of tickets involve an automated refund or exchange, with no agent involvement. Transaction costs in the first quarter dropped from over $50 per ticket to about $8, said Matt Duffy, Via vice president of sales and marketing. "Direct transactions offered an increase in agent productivity of up to 90 percent. Since we do all the fulfillment and ticketing, most transactions have no agent involvement front to back," he added.