Airline “Direct Connects” Equal Dramatic Concerns for Business Travel Buyers
NBTA Foundation Survey Finds an Overwhelming Majority of Business Travel Buyers Project a “Direct Connect” Distribution Strategy Will Result in Higher Costs and Negative Impacts on the Industry
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A new survey of 244 business travel buyers released today by the National Business Travel Association (NBTA) Foundation has revealed that a vast majority of respondents (89%) expect an increase in travel costs if the airline industry moves to a "Direct Connect" model that bypasses the existing travel distribution system. Almost three-quarters (72%) believe a shift to a Direct Connect-type system would have a negative impact on the business travel industry, and over half (59%) of travel managers said they would be "very concerned" if other airlines pursue similar distribution strategies.
"Business travel buyers have spoken and they overwhelmingly indicate that the "direct connect" approach for airfare distribution is a pricey strategy that will result in higher costs for companies and negatively impact the business travel industry as a whole," said Mike McCormick, executive director and COO, NBTA.
"Since this issue began, we have focused on ensuring that the voice of the business travel buyer is heard and included in this discussion. These findings underscore the gravity of the issue for travel buyers and the need to push for the values most important to NBTA members and fundamental to the business travel marketplace: transparency and competition," continued McCormick. "NBTA will continue to listen to our membership and advocate for travel buyers on this issue."
The survey also found that nine in ten travel managers (90%) are aware of the dispute between American Airlines and Travelport regarding American's use of the Direct Connect booking system. Highlighting travel managers' concerns about the dispute, less than half of respondents (48%) feel it is likely that American and Travelport will be able to resolve this friction and retain a working relationship.
The online survey of travel managers in the U.S. was conducted on January 25-26, 2011.
About the Global Business Travel Association
The Global Business Travel Association (GBTA) is the world's premier business travel and meetings trade organization headquartered in the Washington, D.C. area with operations on six continents. GBTA's members manage more than $345 billion of global business travel and meetings expenditures annually. GBTA delivers world-class education, events, research, advocacy, and media to a growing global network of more than 28,000 travel professionals and 125,000 active contacts.
About the GBTA Foundation
The mission of the GBTA Foundation, the US 501c3 charitable arm of GBTA, is to help the global business travel industry create a positive impact and a better future for people and the planet. The GBTA Foundation focuses on the strategy and execution of GBTA's global sustainability programs, supporting initiatives related to climate action; diversity, equity and inclusion; and other talent-related topics via education, research and advocacy.
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Global Business Travel Association (GBTA)
www.gbta.org/
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Jamie Colunga
Sloane PR for NBTA
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Email: jcolunga@sloanepr.com