Ten Predictions for 2005
January 13, 2005
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Be careful what you ask for…..

The recent fare simplification initiated by Delta Airlines and matched by American and others signals a new chapter in corporate travel management. For years carriers have complained about the ineffectiveness of many corporate discount programs. Trade organizations such as ACTE and NBTA have endorsed the concept of fare simplification. Now that we are seeing the first signs of widespread changes in fare stuctures, many corporate travel managers may find their negotiating leverage evaporating. It is essential that corporate travel managers recognize the new game in town: controlling supplier distribution channels. Technology is emerging that will support a corporation’s ability to dictate a specific channel for their travel purchasing (e.g. GDS, GDS alternatives, Direct Links, etc…). Managers must keep abreast of these new technologies in order to regain leverage with airline suppliers.