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Carlson Wagonlit boss says BA review signals industry change
Jim Tweedie (pictured), Carlson Wagonlit Travel’s Executive Vice President, North Europe, said that BA’s ‘Future Size and Shape’ review confirms a significant change in the industry.
Mr Tweedie said: “The recent announcement by British Airways’ underlines the need for everyone involved in the travel industry to face a basic fact. The way we all do business has changed forever. We are facing a climate of change and BA’s response was necessary and understandable.
“The need to find a new way forward became evident a couple of years or so back. The start of an economic downturn last year, followed by the events of September 11, has escalated the pace and extent of those changes.”
Mr Tweedie said that Carlson Wagonlit sees the BA changes announced this week as mainly positive. He said: “The move away from commissions, emphasised particularly again by BA’s announcement, enables the industry to operate in an all together more transparent way.”
However, Mr Tweedie said that Carlson Wagonlit do have concerns about one aspect of the new plans. He said: “British Airways is no longer prepared to absorb the charge paid to the credit card companies on net fares – they are the negotiated discount fares made available to major companies. This could mean a significant increase in charges for big business.
“However, today businesses are getting, or should be, a proper management service from their business travel agents. And our role is to offer our clients the best value available. If airlines are acting quickly to reduce costs and respond to market needs then that can, in the main, only be good for the consumer.”
Tweedie appealed to companies to recognise that “cost was not the only consideration” when buying travel. He said: “Buying travel today is not like purchasing nuts and bolts or steel. It has now become much easier to provide a proper service, matched precisely to a company’s needs. It is not all about the price of a ticket.”
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