Association expresses concerns regarding elimination of bias rules, sale of data
CONTACT
Alexandria, VA (January 6, 2004) -- The National Business Travel Association (NBTA) today reacted to the U.S. Department of Transportation’s (DOT) announced changes to the current rules governing Computer Reservation Systems (CRSs). NBTA agrees that the current rules and any future detailed regulations would impose significant burdens on the systems and interfere with legitimate business practices in the travel industry. The industry has changed since the CRS rules were first established: the major airlines no longer have a stake in the CRS business and the Internet has made airline pricing more transparent.
Ending the broad regulation of the CRS business will enable each CRS and each airline to bargain over the terms on which services should be provided. The emergence of reciprocal benefits obtained in recent marketing and selling agreements between the CRSs and the carriers have allowed travel agents to gain access to greater airline inventory while reducing the carriers' distribution costs. NBTA recognizes that these changes hold great promise for all parties, particularly carriers, and that there is opportunity for future growth in the industry, which is dependent on supporting technology and a redistribution of costs. However, the industry will need to adapt to this dismantling of the way travel has been distributed for over 40 years in order to make the most of these changes.
NBTA does have some immediate concerns regarding the DOT's decision to eliminate the display bias rules and to retreat from forbidding the sale of airline marketing and booking data, despite DOT’s recognition that these two practices could be used in anti-competitive ways. NBTA will monitor developments in the industry as the CRS rule changes occur. The Association encourages the DOT to use individual enforcement actions when addressing any airline's anti-competitive usage of display bias and marketing and booking data.
The National Business Travel Association, established in 1968, represents over 2,400 corporate travel managers and travel service providers. NBTA members manage and direct more than $170 billion of expenditures within the business travel industry. NBTA is committed to the professional development of its members and offers educational and training opportunities. It is the source for critical information on the business travel industry.
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