InsideTrack - 2002-09-23

U.K. Carriers Cut Commissions

The United Kingdom's second-largest mainstream short-haul carrier, BMI British Midland, will announce a major cut to its travel agency commission structure this week. Mike Platt, managing director of BTI UK, the U.K.'s largest travel management company, told a client conference last Wednesday that he expects BMI to halve its current rate of 7 percent and that Air France also will act soon on commissions for British agents. British Airways moved to zero commission in April 2001, but until now its competitors have retained a commission level between 7 percent and 9 percent. Platt believes they now will move to match BA. "Your income from commission is likely to fall 50 percent in the next year and to zero the year after," he said.



Expedia Provides Online Exchanges

Expedia, the Bellevue, Wash.-based online travel agency that is planning later this year to launch a managed business travel product, late last week announced that users could go online to exchange domestic e-tickets. Called Online Exchange Wizard, the new tool is the first of its kind for an online travel agency; Northwest Airlines in June announced similar functionality on its Web site. Both companies use the automated reissues functionality from Atlanta-based Worldspan, which backs their reservation systems. Expedia's service alerts travelers to change fees and allows them to compare the existing and new fares before completing the exchange.

"We did some work to interface with the Worldspan technology, as well as to create a user interface," said David Beitel, Expedia vice president of product development. He said it's too early to assess the potential for cost savings. Asked what percentage of Expedia tickets require changes, he said: "It ends up being a pretty small number."



NBTA Partners With TSA For Security Education

Last week, the National Business Travel Association announced a partnership with the Transportation Security Administration to educate business travelers on changes in airport security. The goal of the Prepare for Takeoff campaign is to apprise travelers of the rapidly changing landscape of air travel security, said an NBTA spokesperson.

"We're planning a joint communication effort so travelers know what to expect and how to prepare for their trips," the spokesperson said. "We may place TSA information on the NBTA Web site, and we hope to bring some TSA experts in to present at NBTA seminars." NBTA will help TSA assess the impact of security decisions on business travelers. Work on the partnership is beginning immediately.



BA To Can Transatlantic Route

British Airways on Oct. 27 will suspend daily service between Charlotte, N.C., and London, a route it has served for eight years. "The suspension of the Charlotte/London route was a decision based on commercial reasons and continuation of the service could not be justified in the current economic climate," said David Noyes, BA executive vice president of sales and marketing in North America. BA's Charlotte-London service has been stopping in Baltimore. Baltimore-London flights will continue. Some U.S. carriers also are cutting international routes as they adjust capacity for the coming fall and winter (see story).



ACTE To Select New Brass

Members of the Association of Corporate Travel Executives in October will elect a new member to the association's board of 14, which, in turn, will choose a new president-elect and a new treasurer at ACTE's Global Conference in Munich on Oct. 20-22. Also in Munich, the association will release a white paper on the changing role of corporate travel managers, according to president Cheryl Hutchinson. ACTE's current president-elect, Mark Williams, Tampa-based director of Americas travel and meeting management for PricewaterhouseCoopers, will assume the presidency from Hutchinson on Jan. 1, 2003.



Carriers Seek DCA Slots

Both America West and United airlines last week petitioned the U.S. Department of Transportation to reallocate Las Vegas-based National Airlines' unused slots at Ronald Reagan Washington National Airport. United said it would use the slots to begin daily roundtrip service to its Los Angeles hub. The carrier, citing the large passenger market to Washington, said the new flights would aid in financial recovery. America West said it would use the slots to add service immediately to and from its growing Las Vegas hub.