Business Travel News - September 8, 2008 - (Page 26)

NEWS GDSs Continue To Raise Inducements Travel executive vice president of the desire for downward pressure products, technology and supplier on agency incentives, despite the relations Dee Runyan. “All are talklast several years, when there has ing about being global because that been a lot of pressure in this direc- mitigates a risk with airline negotiation, it is still at least a component in tions because those negotiations are agencies’ selection of IT partners.” with global airlines. They want to Sabre Holdings chairman and make sure that they have leverage CEO Sam Gilliland said there was during those discussions.” no spike in inducements, but there The mega TMCs, which use mulhas been an upward historic trend. tiple GDSs, said there have been no “Certainly, we have heard that recent changes in their economic Amadeus is placing some more em- model, as they are in the middle of phasis here,” he said. “Travelport al- multiyear contracts and GDS inready had a large presence in the ducements paid to agencies still are U.S. just by virtue of the combina- an important pillar. tion of Galileo and Worldspan. We “We expect to be paid for the valfeel quite good in terms of our com- ue that we create for the GDSs,” said petitive position and we will com- American Express Business Travel pete aggressively in this marketplace senior vice president of global supto maintain that position.” plier relations Andrew Winterton. Noting Sabre’s North American “Nothing has substantially changed marketshare is at its highest ever, for that dynamic. We don’t anticiSabre senior vice president of North pate any material change in how America Chris Kroeger said, “It’s a much we spend with them and how marketplace where we historically much they spend with us.” have had a leadership position and What has changed are the agreecompetitors both traments surrounding the For on-demand Webcasts, ditional and new have complex integration of see btnonline.com/Webcasts multiple GDSs, techbeen aggressive in trynology products and services, as the ing to tap into the market.” Amadeus’ Urban, however, said GDS providers position themselves inducements are not a magic bullet. as total travel technology suppliers. While many TMC-GDS contracts “While I spend all my time looking at growing in North America, I do have staggered expiration dates, unnot bank on or believe in incentives like the major U.S. airlines, induceas the way to do it. I have to accept ments’ weight in the TMC revenue that they are part of the commer- model differ. Most of those deals cial arena that we operate in, but to range between 1 percent and 3 perme, what else I bring for the longer cent of total revenues. term is much more important. But In the next round of U.S. GDS-airwe will respond in kind and in fact line negotiations and the fallout of we do. That is the absolute truth.” potential GDS deregulation in EuAmadeus isn’t alone in its global rope, a shift in inducements could pursuits. While they’ve been point- see prices rise again for some traved at for North American aggres- el buyers, much like in 2006. sion, other GDSs are working hard“There is more risk related to GDS er to gain share in markets Amadeus economics than there has been in historically dominated. “Beyond the past,” said Carlson Wagonlit North America, I see very competi- Travel executive vice president of tive attitudes with regard to all the global supplier management Mike GDS companies,” Urban said. “There Koetting. “TMC margins are small are very aggressive stances in partic- enough that almost any disruption ular areas on incentives. That’s tied to our revenues ultimately impacts to where companies wish to grow.” our ability to service, or requires a “All of these guys are trying to cost increase to, our customers.” ■ sharris@btnonline.com ■ even out their portfolios,” said BCD Continued from page 25 WASHINGTON WIRE TSA EASES CARRY-ON LAPTOP SCREENING The days of fishing laptops out of carry-on luggage at airport security checkpoints have ended for business travelers who use cases that meet new “checkpoint friendly” standards. The U.S. Transportation Security Administration on Aug. 16 began allowing passengers to leave their laptops in bags that permit a clear and unobstructed image of the laptop when undergoing X-ray screening. In order to qualify, the bag must contain a designated section for laptops that unfolds completely to lie flat on the X-ray belt. It must contain no metal snaps, zippers or buckles inside, underneath or on top of the laptop-only section, contain no pockets and contain nothing other than the laptop. Most qualified bags became available for purchase in mid-August, TSA said. The bags were developed in cooperation with the private sector. More than 40 companies submitted prototypes. “This is a solid example of government collaborating with the private sector to conceptualize and produce a product that really works to improve and advance the security process,” said TSA administrator Kip Hawley. “We put the challenge out there and bag manufacturers overwhelming responded with innovative products that provide a win-win for travelers and TSA.” Examples and images of checkpoint-friendly designs are posted on the TSA Web site at www.tsa.gov. GAO CALLS AIRPORT SCREENING CHECKS WASTE OF MONEY A congressional report has called a program designed to spot gaps in airport screening a “waste of money’’because it doesn’t take the further step of investigating how bombs and weapons breach the checkpoints. A U.S. Government Accountability Office report released Aug. 14 said the Transportation Security Administration performed 20,000 covert tests at 450 airports since 2002 without recording the reason why screeners failed to detect suspicious materials. The TSA disputed the report and said it has deployed new technologies including tougher X-ray machines to examine carry-on baggage and backscatter imaging machines that allow screeners to detect malicious materials hidden under travelers’ clothing. House Homeland Security Chairman Bennie Thompson (D-Miss.) is planning hearings on the subject this month. STATE DEPARTMENT BEGINS PASSPORT CARD PRODUCTION The U.S. State Department has begun producing a new U.S. Passport Card, designed to ease travel between the United States and Mexico, Canada and the Caribbean at land and seaport entries. The card will fulfill requirements under the Western Hemisphere Travel Initiative that travelers present a single identity document that also denotes citizenship that takes effect June 1. The card cannot be used for international air travel, the State Department said, although it otherwise carries the same rights and privileges of a regular passport and is valid for 10 years for an adult and 5 years for children aged 15 or less. Applicants who submitted documents should receive their card by midSeptember, the State Department said. The card costs $45 for adults applying for a passport for the first time and $35 for children. Current passport holders can apply for the card as a renewal and pay only $20. Additional information on applying for the card is available at the State Department Web site at www.travel.state.gov. —Patty Donmoyer 26 Monday, September 8, 2008 www.BTNonline.com Business Travel News http://www.tsa.gov http://btnonline.com/Webcasts http://www.travel.state.gov http://www.BTNonline.com

Table of Contents for the Digital Edition of Business Travel News - September 8, 2008

Business Travel News - September 8, 2008
Contents
Inside Track
Profiles In Travel Management
BTN Research
Aviation
Meetings Today
Lodging
Asia/Pacific
Washington Wire

Business Travel News - September 8, 2008