With Volume Down, UATP Seeks Low-Cost Members

Total worldwide sales dropped 10 percent year over year in 2001 for Universal Air Travel Plan, the Washington, D.C.-based airline-owned payment network. President and chairman Richard Crum today told UATP's card-issuing airlines that the company "remains guarded" about the 2002 outlook as "business travelers slowly rebound to the levels we saw in early 2001."

During its three-day annual conference in Washington, D.C., UATP also said airlines that do not participate in airline clearinghouses--including many small, low-cost and/or point-to-point carriers--told UATP they would be interested in membership if it were cheaper for them. In response, UATP has initiated an unnamed program to open membership to such carriers. "We're creating an alternative settlement system that's lower cost," Crum said.

Meanwhile, UATP also said it will commence a pilot program to improve the processing of agency service fees using UATP cards. "Corporate travel agencies are looking for a better, less costly way to process fees," Crum said. "Also, corporate customers want to manage the service fee down to the cost center or individual level." He said one goal of UATP's first-ever Travel Agent Symposium, to be held Thursday, will be to obtain feedback and possibly participants in the pilot program.