Mitchell Folds BTCC's Tent

<B> Mitchell Folds BTCC's Tent</B>

By Jay Campbell

<i>King of Prussia, Pa.</i> - The long, strange trip has come to an end and finally it can be accurately said: BTCC is dead.

The Business Travel Contractors Corp., whose name alone seemed to scare the flaps off airline executives' wings when BTCC president Kevin Mitchell first announced the venture at the National Business Travel Association convention in 1994, has closed its doors due to lack of funding.

Some member companies were scheduled for renewal and declined to re-up. Others did not, but Mitchell felt for various reasons that it was not appropriate to take their money any more. "Back in 1994, a handful of companies were willing to fund the BTCC," Mitchell said. "Through 1995, more companies were benefiting without having to jump in as net fares proliferated. That was okay because the participating companies would still have received immediate benefits if our proposals were accepted by the airlines."

By early 1997, Mitchell had moved on to the role of advocate, not negotiator--no longer offering immediate, but rather merely indirect, benefits to the dues-paying members of the Business Travel Contractors Corp.

"In the fall, I began exploring the possibilities of a different financial structure for the advocacy group, thinking with the commission cuts that agencies might be interested," he said. "During all that time I didn't invoice anyone."

By year-end, Mitchell's attempts to bring together a broader form of the Business Travel Coalition advocacy arm had not succeeded and while October's airline competition summit was a success, there was not enough interest in funding such efforts, other than from two major travel management companies. Meanwhile, contracts ran out in December and Mitchell did not seek payment from corporate members, despite continued interest from some.

"You can't add value only in your own mind," he said. "The test is whether the marketplace can afford it."

Still, though, Mitchell said he believes the concept of strategic group purchasing in the travel industry is not dead. "There is a lot of evidence that companies are interested, and I believe there will be continued exploration of it through 1998. If we had signed airline deals, there were zillions of companies lined up to join. To me, the threshold is about a 70 percent load factor. If that drops, the airlines will be more open to working with groups."

Indeed, a recent survey by the NBTA indicated that 32 percent of the 400 direct members responding had a strong desire to join other companies in directing their travel to specific airlines.

As for the Business Travel Coalition and the advocacy role, Mitchell said it will not continue unless some company decides BTC is worth funding, perhaps hiring Mitchell along the way.

Much of the corporate travel industry--BTCC members and non-members alike--greeted the news of the group's demise with sadness. Noting he was "sad and disappointed," Tom McCabe, travel management director for EG&G in Wellesley, Mass., said, "It is without question in my mind that whatever reforms or changes have been achieved with our 'airline partners,' that Kevin Mitchell was the prime mover."

"I'm definitely disappointed," agreed Clive Armitage, travel and transportation manager for Zeneca Pharmaceuticals in Wilmington, Del. "Kevin did an outstanding job and he's been humble and kind all the way. He certainly contributed significantly."

Mitchell's longtime customer and friend, Peter Buchheit, was particularly supportive. "The BTCC initiative was always about identifying and removing waste from the airline distribution system and sharing the savings among all involved parties," said Buchheit, who is director of travel and meeting services for Black & Decker in Towson, Md. "Those who have characterized the effort as just another squeeze play by corporations to get lower fares from carriers apparently never took the time to thoroughly understand BTCC's proposals."

Over the last several years, Buchheit said, "the BTCC initiative and mission evolved to become the only truly independent advocate representing the corporations' perspectives and best interests in travel related issues. Its demise leaves a major void, and represents a victory for those who think reduced competition and a lack of customer appreciation in the business travel community are positive developments."

Others who perhaps were less directly affected were still quick to give Mitchell credit for making an impact. Said Judie Shyman, manager of training and employee services at Hazeltine Corp. in Greenlawn, N.Y., who as former president of NBTA gave Mitchell the platform on which he first announced the BTCC, "When he started, I didn't think BTCC would end up the way Kevin saw it, but I did think he would impact the industry. He made everyone take a second look at things, and was very successful in helping to create change. We're now dealing more directly with the airlines, and the Business Travel Contractors Corp. helped paved the path for that."

But many sources, including Mitchell himself, were optimistic that the ball on the competition debate is rolling and that someone will pick it up and run. Perhaps it will be Congress, which already has five pending bills designed to open barriers to competition.

"That debate may not be as visible with Kevin's departure, but it seemed to gain a following, particularly among smaller airports and communities," said Mark Sylvestre, employee transportation manager at Merck & Co. in White House Station, N.J.

Said Brad Seitz, formerly a consultant with the Xerox travel department, "I'm sorry to hear this journey is over, but I'm sure there is another about to begin."

Actually, Mitchell already has drawn up a proposal entitled "Influencing the Future of Healthcare--Leveraging Customer Leadership.