Last October, corporate travel agencies came perilously close to
being invited to their own funeral with IATA's vote to mandate that
corporate travel agents add a universal corporate ID number to each
passenger name record they process.
We do not want agents to be lulled into the impression that this
rule has been defeated. Although United Airlines and TWA cast
negative votes, other airlines are confident that the compromise
they struck -- carriers can voluntarily begin using the corporate
ID March 1 -- will achieve the same end.
If the airlines require all corporate agencies to add the ID
numbers, what agency can resist? This end run will be as damaging
as the original proposal and few agencies could survive.
European customers should be especially vigilant in opposing
this plan, because it clearly violates the strict privacy
protections in place throughout Europe, such as the Data Protection
Act in the U.K.
At Woodside Travel Trust, the world's largest partnership of
independently owned and operated travel management companies, we
constantly ask ourselves -- where's the outrage? Every corporate
agency worldwide should have been up in arms upon learning of this
plan.
There are compelling arguments against the implementation of
this scheme. In a nutshell, requiring agencies to insert a
universal customer ID code into every PNR is anticompetitive
because it would mandate agencies to disclose all of their
customers to the airlines. Under this system, there is nothing to
prevent airlines from approaching agencies' clients directly with
deals and incentives that agencies will be unable to match.
Combined with a corporate Internet site, the customer ID number
will spell the end to the corporate agency.
Companies also have reason to be concerned. If this proposal
becomes reality, private information can be sold to any airline
without the knowledge or consent of corporate customers. The data
collected from universal ID codes would be available to every
airline that purchased the information from the CRS.
In the end, companies' travel routes, carriers and class of
service are open to any and all airlines.
Woodside has always advocated competition that results in
improved service and lower prices for our customers. But this
proposal effectively removes agents' ability to compete on a level
playing field, since only the airlines will have access to the
information gathered through these new ID codes. Agencies will be
required to collect data for the airlines that is likely to lead to
their own demise.
Thankfully, it's not too late. Key players such as government
regulators, IATA's member airlines, agency associations and,
perhaps most importantly, corporate clients need to be alerted. We
encourage agencies to inform them that agents will vigorously
resist the adding of corporate ID numbers to PNRs.
Swift action by corporate travel agencies around the globe is
essential if we are to defeat this dangerous proposal once and for
all. Agencies must react quickly, directing their concerns to the
appropriate parties. We must educate lawmakers and consumers,
alerting them that this plan poses significant threats to fair
competition and personal privacy.
The very future of corporate travel agencies is at stake. This
battle is one that's definitely worth fighting.
Ivan Michael Schaeffer is president of Woodside Travel
Trust, a Bethesda, Md.-based agency consortium.