Business travel begins a strong climb back into relevancy in 2010 after the decimation of the global banking and pursuant economic crisis of 2007 and 2008 begins to recede into the distance. Business travel demand returns to the airlines by the third quarter and the travel industry sees both airfares and hotel rates rise on stronger load factors and occupancy that would prove durable through 2011.
What's clear in the pages of BTN by 2010 is the emergence of modern business travel as we know it.
While it is arguable that business travel is on the cusp of another revolution today -- thanks to technology advancement and particularly artificial intelligence -- the drivers of modern business travel concerns are falling into place by the end of the millennium's first decade. And these concerns of would remain solidly in place at least until the Covid-19 pandemic in 2020 would screech the industry to a halt, after which the concept of AI and true personalization and loyalty truly begin to take hold.
But that's the future. Let's look at the pillars emerging in 2010 that changed the industry:
By July 2010, a group of six airlines -- Air Canada, American Airlines, Continental Airlines, Delta Air Lines, United Airlines and US Airways -- along with fare filing entity ATPCo form an industry working and advocacy group called Open Axis. Within a week, the airlines are joined by a spate of "allied" members: AOI Marketing, reservations software provider Datalex, payment processing firm eNett International, middleware provider LUTE Technologies AG, mobile app developer Mobiata, travel IT consultancy PASS Consulting Group and airline reservations provider Radixx International. All of these providers had skin in the game to create a new distribution ecosystem that, as the group stated in a November positioning paper, would "ensure all parties have detailed and timely data regarding ancillary services without dependency on full-scale ARC/IATA production rollouts." Basically, a 'new distribution system.'
Open Axis would be active at least through 2011, advocating for new distribution schema that would dispense with the GDS standard EDIFACT and move toward an XML standard as put forth by Farelogix. Open Axis joined forces early on with an older industry group OpenTravel Alliance to ensure their efforts were aligned. Capital-letter New Distribution Capability as defined and rolled out by IATA (around which industry dialog would be very much driven by then-ARC CEO Michael Premo) wouldn't emerge until 2012, also pushing for an XML standard. At which point the efforts for the XML standard were largely shifted to that international airline body.
No global distribution systems or travel management companies were involved in OpenAxis. Noting Sabre's own work in pursuing standards to support ancillary air services distribution, Sabre vice president of marketing at the time optimistically said, "we think it's great news that the airlines, along with ATPCo, have been working on this too, and frankly we think it is possible that we could converge to a single standard without too much difficulty."
A grimly hilarious opinion in retrospect.
On another front pushing toward better merchandizing, AA began a big distribution battle in November 2010, which would prove to be a precursor of many of that airline's future efforts to move the needle for better control over its retailing destiny. Earlier in the year, the airline had rolled out a direct-connect option under which partners would be able to access what it called the "Your Choice Suite" -- the airline's collection of ancillary services that it would only offer through the direct connect. Major agencies and GDSs rejected the option, but in November AA removed its content from Orbitz under the auspices of the booking site not adopting the direct connect that would power AA's merchandizing strategy.
The move would cascade into a number of lawsuits -- including antitrust suits against Travelport and Sabre -- court issued stays, appeals and ultimately reinstating content, but it would take until 2013 for all those to resolve. AA would again pull its content from Orbitz consumer sites in 2014, but it did not impact Orbitz for Business customers. We'll look more at the 2011 machinations in next week's timeline.
While distribution sagas were playing out, mobile travel technology was revving up. BTN ran a series of articles penned by Michael B. Baker, Jay Boehmer and David Meyer under the umbrella title: Killer Apps & Mobile Menaces, reviewing some of the pros and cons of adopting mobile apps -- particularly those from travel suppliers -- and how they could both support travelers while on the road but also pull decision-making out of the managed travel program.
Hotels in 2011 had already rolled out apps that enabled room service ordering and delivery, the ability to make spa appointments and at least one -- Omni -- was piloting technology to allow users to check in remotely. IHG at the time was testing mobile keys.
Ground transportation apps like Taxi Magic integrated taxi dispatch services. This was pre-Uber. Some buyers advocated for airport way-finding apps that would guide travelers to healthy eateries. Of course, mobile navigation from Google Maps and Waze were pretty well established by 2010.
For the most part, the industry was just coming to terms with mobile. There was broad agreement, however, that while most apps were providing access only to information, the industry would see widespread mobile booking and mobile travel assistants in the near future.
Concur had launched limited mobile booking and expense in 2009. But itinerary managers like TripCase and WorldMate were gaining ground among business travelers, so much so that CWT would contract with WorldMate in 2010. It would acquire WorldMate in 2012 (it was discontinued in 2017 as players like Google integrated travel reminders in their own mobile platforms). The race for mobile booking technology across Concur and TMC mobile apps would continue for a few more years, particularly as it concerned air bookings.
One app called ConTGo headed by former Sabre sales exec Johnny Thorsen presented a two-way mobile messaging platform for business travel reminders and push-alert policy information and was gaining traction in 2010. CWT rolled it out to customers as did American Express through its first mobile app MobileXtend.
ConTgo would go on to get a big shot in the arm with mobile risk management messaging and traveler location tracking due to a major push towards duty of care and risk management procedures in 2010. That was thanks to the eruption of Icelandic volcano Eyjafjallajökull that began on March 20, 2010, after 187 years of quiet. On April 14, it began emitting plumes of ash that would disrupt airspace over western and northern Europe for the better part of a week, leaving travelers stranded. It would continue to disrupt pockets of flights for at least three more weeks. The magnitude of stranded travelers -- and their respective companies' ability to provide duty of care -- highlighted the possibilities for mobile communications to bridge a critical gap.
ConTgo wasn't the only beneficiary of the new focus. Duty of care providers like iJet and International SOS plus an abundance of mobile traveler tracker apps gained momentum. Companies that had not put in duty of care and risk management policies and procedures after 9/11 rushed to do so.
Finally, data privacy, which had reared its head in acute circumstances in previous years -- remember the agency backlash in 2003 against PRISM's corporate benchmarking scheme? -- began its entrance into common parlance in the business travel industry. Traveler tracking technologies posed one vector of concern. But a larger one -- and one that would persist as an ongoing contrast between data privacy regulation in the U.S. versus that in Europe -- was predicated on the U.S. approach to airline security and immigration policy, and was beginning to lose acceptance with EU regulators.
An EU watchdog reviewing proposed standards under which European countries would be required to transmit all PNR details of all travelers entering the United States from the EU was deeply criticized, citing the overreach of subjecting "innocent people" to such deep risk assessment that it raised "serious proportionality issues." The opinion also argued that just because government agencies can now analyze PNR data does not mean they should be allowed to do so. "The fact that recent technological developments currently render wide access and analysis possible ... is not in itself a justification for the development of a system aimed at the screening of all travelers," it said. "In other words: the availability of means should not justify the end."
With additional advances -- especially with the advances in artificial intelligence we see today -- those are big questions we will continue to deal with in travel management and in society at large.
[Editor's Note: There were no January or December BTN issues in 2010.]
Boeing Travel Management becomes an ARC-accredited Corporate Travel Department and wants to phase out services for external clients, with 80 percent of its business coming from its parent company Boeing and its subsidiaries.
Travel buyers succeed in reducing global hotel rates and upping inclusive amenities for 2010. This year, many buyers choose dynamically priced base rates or tiers of rates within a certain property.
Antitrust-immune joint ventures like 2008's U.S.-EU Open Skies have become critical to U.S. carriers' international growth. It would allow airlines to expand their networks and share resources, amid legal and economic barriers to traditional mergers and market entry.
Transatlantic joint ventures reshape business travel procurement. Government approvals for antitrust immunity are turning almost a dozen individual transatlantic competitors into three dominant entities. This would offer broader networks and improved pricing, but also reduced negotiating power and options for buyers.
Corporate travelers gradually return to premium cabins for long-haul flights after a big decline in 2009. However, passenger volumes and yields are still below pre-crisis levels, with airlines expecting a slow recovery.
American Express Global Travel Services president Charles Petruccelli sees travel volumes rising and eventually plateauing in 2010. This would be driven by pent-up demand rather than a full recovery. Meetings spending and the small and midmarket segments are potential areas of growth.
Ritz-Carlton Hotel Co. president and COO Simon Cooper speaks with BTN about corporate travel's role in the luxury tier and updates within its parent company Marriott International. He predicts a steady return of business and group travel.
Business Travel News is acquired by Northstar Travel Media. The deal also includes MeetingNews, Successful Meetings, Incentive and the MiMegasite online meetings industry portal.
CyberShift and Concur have created alliances with online booking suppliers NuTravel andAmadeus, respectively, to integrate technologies like travel booking, expense reporting, and employee reimbursement.
Travel buyers continue to struggle with tracking and managing baggage and other a la carte fees. So far, they've only heard promises of future solutions and have relied on their own makeshift workarounds.
As U.S. carriers approach peak summer travel season, they keep tight control over domestic seat supply. Large airlines focus on capacity discipline and avoiding significant growth, while new entrants and low-cost carriers are also limiting expansion.
A new provision in the U.S.-EU Open Skies deal will lift some government contractors from the Fly America Act restrictions, which would let EU airlines compete for transatlantic business with U.S. contractors. But the impact may be limited by current transatlantic joint ventures and a loophole that already lets contractors fly foreign carriers under codeshares with U.S. partners.
Concur and TRX have adapted their travel management tools for the Google Apps Marketplace. Concur recently launched its cloud-based expense management tool, Concur Breeze for small businesses in the U.S., and targets global expansion by year-end.
U.S. corporate car rental rates remain stable. Yet buyers may soon deal with more challenging negotiations and the presence of no-show fees, as rental companies like Avis Budget Group start testing penalties for canceled bookings.
Buyers have mixed views on the impact of the planned United-Continental merger on their travel programs, but a majority that was surveyed support U.S. regulatory approval. Their concerns include higher fares, less competition, and service degradation, while others recognize benefits like a broader network and improved corporate deals.
Avis Budget Group seeks to outbidHertz for Dollar Thrifty Automotive Group. In a letter to Dollar Thrifty's chairman and CEO Scott Thompson, Avis Budget's Ronald Nelson said his company intends to bid significantly more than Hertz's $41 per share offer.
Cory Garner, American Airlines director of merchandising strategy, shares an overview on AA's direct-connect strategy for selling ancillary services, its dissatisfaction with its global distribution deals and its plan not to charge users for content.
Travelport's Gordon Wilson discusses the company's upcoming Universal Desktop launch, as well as its Traversa booking tool for large corporations, new booking tool partnerships, and goals to revive its abandoned stock market flotation.
Control, cost savings, and transparency have motivated companies like Moog, WellPoint, and Wal-Mart to become ARC-designated Corporate Travel Departments. These factors remain compelling as more businesses explore this option for managing travel.
Some European travel managers reject Lufthansa's new corporate contracts that withhold rebates for missed targets. The contracts also require refunds of upfront discounts, include potentially sensitive data on marketing tapes the carrier gets from GDS, and lack last-seat availability for negotiated fares.
Despite efforts from buyers and hoteliers, hotel rate accuracy in global distribution systems hasn't improved much. Another issue, the drop in those negotiated rates, has become more problematic in a buyer's hotel market.
Fly540, a low-cost airline operating in East Africa, joins other carriers in embracing GDS distribution. Thanks to lowered distribution costs, it is offering its fares via corporate channels for the first time and hopes to attract higher-yielding passengers.
Chris Crowley, the Association of Corporate Travel Executives' first European president in 20 years, talks about the challenges in the industry and his plans for ACTE. He also acknowledges the volcano eruptions in Iceland ongoing at the time.
Carlson Wagonlit Travel estimates that the energy sector spends $4.3 billion a year on air travel, prompting the company to create its Global Energy Services Group. It is CWT's first global division dedicated to the travel needs of one industry segment.
American Express Business Travel introduces a mobile travel solution based on proprietary and third-party technology that would enable travelers to manage itineraries and bookings through mobile devices, regardless of channel used.
A recent BTN survey reveals that despite the popularity of wireless Internet access on U.S. flights, most companies do not reimburse travelers who log on in the air.
American Airlines' new "Boarding and Flexibility Package," its first a la carte offering available only via direct channels at booking, excludes corporate travelers unless their agencies adopt the controversial American Airlines Direct Connect.
Air Canada, American Airlines, Continental Airlines, Delta Air Lines, United Airlines, and US Airways form Open Axis -- an industry group to promote airline distribution technology that will support sales of unbundled ancillary services.
JetBlue Airways has quickly grown its presence at Boston Logan International Airport. It now offers more service than its competitors and has positioned itself as a primary domestic carrier for some companies, especially in the corporate travel sector.
Major domestic airlines and global distribution system providers disagree on whether full content agreements include ancillary services. This creates issues for offering a la carte airline services through corporate and agency channels.
BCD Travel appoints Mike Janssen as its president of the Americas, replacing industry veteran Danny Hood.
Many airlines warn travel agents that failure to properly submit data for the U.S. Transportation Security Administration's Secure Flight program could result in canceled passenger name records or agency debits.
Delta Air Lines' upward revision of its capacity plans for the second quarter upsets investors. Worries subsided as other carriers maintained modest growth, with the airline industry overall expected to grow full-year capacity by 1.1 percent in 2010.
Kevin Austin, TRX's executive vice president, becomes the largest stockholder on the management team. He took control of 15.2 percent of the company, after reinvesting capital from the acquisition of his previous company, Hi-Mark Software.
Southwest Airlines CEO Gary Kelly says the carrier could capitalize on opportunities from industry mergers, like the proposed United and Continental deal. Southwest recently announced a lease agreement with Continental for slots and facilities at Newark for 18 daily roundtrip flights.
Carey International tests a lower-cost version of its chauffeured transportation service with its Embarque subsidiary, offering chauffeur-driven Ford Fusion and Toyota Camry cars at 30 percent lower prices. After quietly being set up in Chicago and Newark in 2009, Embarque plans to expand to 10 more cities, including New York, Los Angeles, and London.
Sabre Travel Network and Cisco are working together to develop a vendor-agnostic distribution system for booking telepresence suites. Through it, users would be able to compare rates and availability across multiple providers.
Hewlett-Packard has consolidated its travel operations into two global call centers, implemented advanced travel automation, and unified various payment systems. These efforts have lowered travel spending by 40 percent and staff and program costs by 50 percent, while maintaining customer satisfaction levels at over 92 percent.
After cutting capacity in 2009 for the first time in its history, Southwest proposes the $1.4 billion acquisition AirTran Holdings that would bring it entry to Atlanta and international markets and reignite growth.
Following Dollar Thrifty Automotive Group shareholders' Sept. 30 rejection of Hertz's acquisition offer, Avis Budget Group pushes ahead in is efforts to buy DTAG as Hertz turns its attention to its low-cost Advantage Rent-a-Car brand. Sabre Rolls Out Total Air Pricing Worldwide
A brief proposal on GDS fee transparency, part of a Department of Transportation drive to bolster air traveler protections, weighs in at just a few sentences and no more than 200 words, yet has elicits hundreds of public comments in the docket. Airlines oppose what they see as interference in their commercial relationships. Travel buyers, business travel groups support the move.
The U.S. DOT is expected to finalize the tentative approval of two antitrust-immune joint ventures competing between Japan and the United States: American Airlines and its Oneworld partner Japan Airlines, for one, and Star Alliance members All Nippon and the recently merged United Airlines and Continental Airlines as the other. The move advances the tentative Open Skies agreement, but it does not lift Japan's restrictions on point-of-sale discounts in the country, leaving it as one of the few markets in the developed world in which carriers are required to structure deals almost solely through back-end rebates.
American Express fights a U.S. Department of Justice antitrust lawsuit filed early this month that claims the card company, along with rivals Visa and MasterCard, prohibits merchants from offering incentives to use cheaper forms of payment. Visa and MasterCard agreed to a settlement that allowed merchants to steer buyers to less expensive forms of payment. The case ultimately goes to the Supreme Court, which rules in favor of Amex in 2018.
U.S. corporate card issuers Bank of America Merrill Lynch, Citibank, JPMorgan Chase and U.S. Bank increase their global scope based on demand from travel buyers to support global travel and entertainment needs from a single payment platform.
Carriers report double-digit percentage increases in corporate-specific revenue for 2010 third quarter versus a year earlier. Delta Air Lines claimed 35 percent growth and US Airways claiming 23 percent growth. Both carriers noted that corporate revenue is growing at a much faster rate than overall passenger revenue.
Open Axis advocates for XML -- not EDIFACT -- as the primary language of indirect distribution and for expanded electronic miscellaneous document transaction reporting "to ensure all parties have detailed and timely data regarding ancillary services without dependency on full-scale ARC/IATA production rollouts."
European Data Protection Supervisor Peter Hustinx found indiscriminate transfer of PNRs to government agencies incompatible with EU principles on data protection. It read: "The EDPS considers that the bulk transfer of data about innocent people for risk assessment purposes raises serious proportionality issues.
A Cook County, Ill., circuit judge on Nov. 20 approved a temporary restraining order preventing American Airlines from terminating deals with Orbitz Worldwide on Dec. 1. The ruling, however, only temporarily delayed AA's move, which served as the beginning of a battle that extended into 2011, saw AA pull content from Orbitz and would not be fully settled until 2013.
Public furor over the U.S. Transportation Security Administration's expanded full-body scans and enhanced pat-downs for individual who decline to use new scanner technologies at airport security left travel managers about balancing traveler security and comfort and led some to consider duty-of-care policies to address traveler concerns.
Hotel projects under construction in the United States falls to the lowest level that Lodging Econometrics has ever recorded, with hotel companies looking to the Middle East, China and India for growth.
Timeline produced this week by AI and BTN editorial content and engagement manager Gianna Song
_______________________________________________________________________