August 2, 2006
Dear NBTA Members,
As you know, several airlines will soon begin charging fees for booking through non-preferred channels, and several GDS companies will launch “opt-in” programs charging subscribers for protection from airline distribution fees and guarantee access to full content from partner airlines. In light of some NBTA member inquiries on this topic, I thought it would be helpful to tell you what NBTA has done regarding this most recent industry development, to outline what we have been doing generally on the topic of distribution, and to let you know how you can help shape our next steps.
NBTA Actions Regarding Recent Airline Distribution Fee Announcements
Member input is the lifeblood of NBTA, so the first thing we did after American’s announcement of a distribution fee was ask members to give us feedback. Interestingly, only six members wrote in, which seemed to indicate there was not a strong reaction to the move.
I also took the opportunity of the NBTA Convention in Chicago to personally speak with as many of you as possible about the developments. The reactions I heard were mixed. A small number of you are upset and want NBTA to take some sort of action. A larger number see this as a marketplace development to be handled between businesses. Many indicated that this is the latest in a chain of events that should be approached with a long-term view, and travel managers should work closely with supplier partners to drive value on behalf of their companies.
The mixed reaction indicated NBTA should continue to inform, educate, and facilitate dialogue, but should try to be the collective voice of travel managers on this issue. Contrast that with August 2004 when Northwest Airlines announced it would implement a GDS booking fee -- dozens of members wrote and called NBTA, and their views indicated a collective response the move. NBTA then surveyed its members and met with the carrier to share that data. Within two days, the airline announced it had scrapped the fee.
Even with mixed reaction to this summer’s announcements of opt-in programs and preferred airline distribution channels, I wanted to take some action on behalf of those NBTA members who said they were frustrated about the developments. So during the NBTA Convention I met with several airline, GDS, and TMC reps to convey that sentiment.
NBTA Broader Efforts on Distribution
On behalf of the industry, NBTA provides news, information and resources; educates; advocates; and facilitates networking and dialogue. When Direct Member response to an industry development is strong, NBTA steps in to advance industry dialogue on the topic.
With this approach, we have worked to help our members position themselves to manage the changes of the last few years and the changes still to come in the distribution market. We have kept members informed, promoted the importance of the role of travel managers in the changing distribution environment, and provided opportunities for dialogue and networking. NBTA committees have offered papers and seminars on distribution-related topics such as dynamic hotel pricing, hotel rate loading, and GDS alternatives (GNEs). The most recent distribution developments and the long-term view of the changes have been front-and-center at the last three NBTA Conventions and the annual Masters Program. In fact, the distribution-related sessions along with all seminars from the 2006 NBTA Convention will be available online in two weeks.
Next Steps – How You Can Help
NBTA leadership has been discussing the best ways to address these latest developments. While member response has been low, one exception was a letter from a group of nine travel managers sent to NBTA this week encouraging us to take action. The letter was also sent to the trade press. Rather than using your association’s resources to engage in a PR battle, we decided to write this letter directly to you, the members, to let you know what we’re doing and engage you in the planning process.
We are currently weighing our options, including: offering a web-based seminar on the latest distribution developments, conducting a survey to better gauge current member reactions and concerns, and providing written resources to help members better understand the issue at hand. Prior to these developments, we had already decided to add an industry affairs or analyst position on staff -- someone with travel management experience who would spend much of his or her time analyzing member needs in light of current industry developments. Your front-end input on these ideas, any other thoughts on ways NBTA could benefit you, and your opinions on the distribution fees and opt-in GDS programs will help us shape our action plan. Please share your ideas by emailing info@nbta.org with the subject line “distribution fees.”
Thank you for your attention to this matter. Your feedback is greatly appreciated and will be used to help NBTA to determine the best course of action on behalf of members. As always, NBTA looks forward to furthering its role as the leading provider of resources, advocacy, education, news and information to the corporate travel industry.
Sincerely yours,
Suzanne Fletcher
President & CEO
NBTA