Business Travel News - October 12, 2009 - (Page 10)

FORUM BTNonline.com OP-ED Don’t Surcharge, Share Card Costs As the managing director for a leading tomer in the form of rewards, rebates corporate payment provider, I have an and incentives. What’s not always clearopinion about credit card economics ly understood in the industry is that not that might surprise you. Most of the disall card companies are alike. Their fees cussion in the media and among corpoare different, their level of rewards and rate customers today focuses on what incentives are different and importantthe airlines are doing to pass along card ly, their technological capabilities and fees. However, a fair debate on this subcomprehensive offerings are different. ject would require an understanding of So why should cards all be treated alike? why. Now more than ever, airlines are The new reality is taking shape as I looking for areas to save costs. So it’s write. In parts of Europe and Asia/Palogical that distribution and payment cific—Hong Kong and Australia, for exwould be a part of this savings equation. ample—credit card surcharging is alWhile I understand the somewhat inready in place. In fact, GDSs in the equitable card economics, there are smarter ways to Netherlands are now technically prepared to handle leverage the playing field than blanketed surcharging. and display the surcharge fees. This is not simply reI believe the genesis of the merchants’ frustration is lated to major airlines worldwide, but merchants of that the level of fees charged by most cards exceeds every size and category, from low-cost carriers to ferries! the perceived value. It is one of the economic realities What does this mean for the end user, the cardholdthat the merchants pay the bill: er or corporate customer? CertainTheir proportion is nearly 90 perly regression if they demand that cent of the total credit card cost. their agencies revert to paper inManaging director and chairman In fact, the cardholder only pays voices and manual processes. Cus10 percent. This revenue genertomers would then be required to of the executive board ated is usually used to fund stratework without the benefits of a AirPlus International gic loyalty building with the cuscredit-card-based payment solu- DAVID MEYER Editor-in-Chief (646) 654-4431 (dmeyer@btnonline.com) CHRIS DAVIS Executive Managing Editor (646) 654-4437 (cdavis@btnonline.com) JAY BOEHMER Airline Editor (646) 654-4434 (jboehmer@btnonline.com) MICHAEL B. BAKER Hotel, Expense/Payment Editor (646) 654-4433 (mbaker@btnonline.com) SETH HARRIS Travel Management Editor (646) 654-5716 (sharris@btnonline.com) ERIC WONG Art Director (646) 654-4439 (ewong@btnonline.com) • CONTRIBUTING EDITOR AMON COHEN +44 (0) 1963-351-219 We welcome your letters, comments and feedback. Please contact the editor at dmeyer@btnonline.com. For breaking news and original research, and to search articles since 1996, visit BTNonline.com. Follow Business Travel News on Twitter at twitter.com/BTNonline Patrick W. Diemer BTNonline.com Highlights PREMIUM RESEARCH BUSINESS TRAVEL SURVEY Travel supplier performance in 2008 and how it was prologue for today 2009 BUSINESS TRAVEL BUYER’S HANDBOOK Everything your organization needs to know in order to set up and manage a corporate travel program LATEST RESEARCH >>The 22nd annual accounting of the Corporate Travel 100 shows a decline in the group’s spending on air tickets bought at the U.S. point of sale to $10.3 billion in 2008 from $11.2 billion in 2007. The issue features the 2008 list of the 100 biggest U.S. business travel buyers, detailing preferred vendors, program accomplishments and goals and policy changes. BTN also recognizes here three buyers as the 2009 Best Practitioners for their efforts to improve automated meetings reporting, ensure hotel rates are accurately loaded into global distribution systems and use mobile devices to drive travel policy compliance. :T l e 847-559-7533 SUBSCRIPTION SERVICES 800-697-8859 Toll Free Fax: (847) 291-4816 Business Travel News PO Box 3601 Northbrook, IL 60065-3601 (nbtn@omeda.com) LIST RENTAL/POSTAL INFORMATION JULIUS SINGLE (845) 731-2731 E-MAIL INFORMATION WAYNE NAGROWSKI (845) 731-3854 CUSTOM REPRINTS OF 500 PIECES OR MORE: KRISTI FULKERSON, The YGS Group (800) 290-5460, ext. 144 (BTN@TheYGSgroup.com) BTN EDITORIAL & SALES OFFICES 770 Broadway New York, NY 10003-9595 Editorial Fax: (646) 654-4455 All Rights Reserved SILVER REFLECTION BTN looks at the lessons of the past 25 years, challenges of the present and possibilities of the future. FREE NEWSLETTERS Buyers can subscribe free to BTN's e-mailed newsletters. >> EuroBTN Weekly: Get breaking news and updates about managed travel for companies buying business travel in Europe by subscribing to this BTN weekly news product. Monday, October 12, 2009 www.BTNonline.com Business Travel News http://www.BTNonline.com http://www.BTNonline.com http://www.twitter.com/BTNonline http://www.BTNonline.com

Table of Contents for the Digital Edition of Business Travel News - October 12, 2009

Business Travel News - October 12, 2009
Contents
Inside Track
Profiles in Travel Mgmt.
Forum
Aviation
Lodging
Payment & Expense
Travel Management

Business Travel News - October 12, 2009