Merging Cos. Test Separate Systems

<B> Merging Cos. Test Separate Systems</B>

By Cheryl Rosen

With two huge corporate travel programs that this month will begin forming a single $500 million T&E account, Price Waterhouse and Coopers & Lybrand have kicked off their pending merger by each beginning a beta test of a different automated booking system.

In what may well prove to be the industry's most visible technology shoot-out, Price Waterhouse has opted for Sabre BTS, while its sister Big Six--make that Big Five--accounting firm elected to go with Internet Travel Network.

The U.S. Justice Department approved the merger of the two accounting firms on Friday, and the European Union is expected to announce a decision this week.

At Price Waterhouse, travel systems director Mark Williams said he chose Sabre "because we are a Sabre shop and because I think they have the horsepower to make this work. I think it will allow us to both cut costs and offer better service to our travelers. From where I sit, costs are more important, but for Price Waterhouse, the focus is on service."

Williams is beginning with a beta test group of 30 travelers this week, and will add 30 more in two weeks or so if all goes well. "The cost of getting a ticket out the door is growing so quickly; I don't think this will lower the cost, but it will slow the growth," he said. "The firm is growing and travel is an integral part of our business, so our spend is growing dramatically."

In fact, Price Waterhouse's annual air volume grew about 50 percent last year, from $108 million in 1996 to $159 million, Williams said. The firm has been anxious to try an automated booking solution--and, indeed, an automated expense reporting system as well--for two years, and has been "waiting until the product was ready." While the beta test will take place in the United States, Williams said his "counterparts in the U.K. also use Sabre, and have looked at BTS as well." Having a single integrated booking and expense-reporting system "would be ideal."

At Coopers & Lybrand, meanwhile, travel management director Jim Lennon said he expects the firm's annual air volume to reach $120 million in 1998, and the combined firm's worldwide volume to top $500 million. "We're merging and going global at the same time," he said.

Lennon chose the Internet Travel Network system "because we had already made a commitment and this will allow us to compare the two systems," he said. Coopers also will begin a beta test this month, with 50 users.

Agreed Williams, "It's good that they are looking at ITN--we'll beta test Sabre and they'll beta test ITN and some day we'll cross the bridge and settle on one."

Neither Lennon nor Williams really expects to move huge volume online--at least not this year. "But I think that 30 percent of our transactions will be online in two years," Lennon said. For his part, Lennon is prepared to switch to Sabre if it proves to be the better system.

Merging the two travel programs--especially the choice of travel agency--is "going to be painful, and so we are going to postpone that as much as possible," Lennon said. He and Williams will focus first on developing single firmwide corporate card, airline, hotel and car rental program.

As to their own job security in the travel office, neither seemed unduly concerned. "We've been told there will be plenty of work for both of us," Williams said.