The National Business Travel Association (NBTA) asked the U.S. Department of Transportation (DOT) to reconsider its proposed changes to…
The National Business Travel Association (NBTA) asked the U.S. Department of Transportation (DOT) to reconsider its proposed changes to the rules governing Computer Reservation Systems (CRS), in comments submitted this week.
Specifically, the Association is concerned about removing the mandatory participation rules and eliminating the controls on systems that are financially tied to or maintain preferential agreements with the airlines. NBTA believes the proposed changes will restrict consumers` access to information and fares and significantly increase consumer costs, harming recovery in the business travel industry.
American corporations are already tightening budgets and re-examining their relationships with airlines and other travel suppliers in the face of higher travel costs, said NBTA President Kevin Iwamoto. The DOT must ensure that consumers have a wide array of fare information in order to truly achieve the full benefits of deregulation and competition.
In its comments, NBTA suggests that while eliminating mandatory participation of all airlines in all systems will eliminate some costs currently borne by suppliers, the lack of availability of all fares in all systems could hurt consumers.
In a survey of NBTA`s corporate travel manager members, 51% concluded that fare and fare information would be less transparent because carriers may not participate in all systems.
In addition, NBTA is concerned that non-mandatory participation will require travel agencies to subscribe to multiple reservation systems in order to provide customers with competitive and current information, ultimately forcing their corporate clients to bare the costs of the changes through higher agency fees.
NBTA also disagrees with the DOT`s opinion that the airlines` growing use of the Internet for selling tickets has weakened their dependence on the CRSs. Internet-based travel purchasing still provides incomplete options for corporations, making the CRS the preferred channel of distribution for most corporations.
In particular, online resources do not allow corporations to collect and manage corporate data, or to provide efficient service to travelers in a crisis.
It is costly and inefficient to make travelers chase down all available fares, Iwamoto concluded. Without the ability to compare fares from all distribution channels, consumers will be faced with higher costs and fewer choices.
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 70% 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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