ACTA Defends Supplier Partnerships as a Win-Win
by Jill Wykes /ACTA president David McCaig is standing behind the trade association’s partnerships with travel suppliers as being in the best interests of its travel agent members.
While some have questioned the appropriateness of ACTA’s partnership agreements with suppliers, McCaig defended the partnership model as a valuable tool.
In an interview with Travel Market Report, he said the Association of Canadian Travel Agencies has leveraged its partnerships for more than a decade to benefit both its partners and ACTA members. He said that’s how things are done today – both sides expect such arrangements to be mutually beneficial.
For their part, critics say partnerships with travel suppliers set up a potential conflict of interest for ACTA, whose mission centers on creating and maintaining “a healthy business and legislative environment in which the retail travel industry will thrive.”
Overview
ACTA has essentially two types of partnerships.
The first type of partnership, with companies such as SecuTrans, CTS Systems and Canada Post, provides cost-savings and revenue opportunities for ACTA’s agent members. (See sidebar.) These partnerships are not the focus of criticism.
It is ACTA’s second area of partnerships – with traditional travel suppliers, including airlines, tour operators and GDS companies – that have raised eyebrows, given the sometimes contentious relationships between agents and suppliers.
Agent-friendly
ACTA’s relationships with suppliers are always in the best interests of the travel agent, McCaig told Travel Market Report.
“Being agent-friendly is our No. 1 criteria for our partner program, along with the ability to assist ACTA with education and provide us with insight into those sectors of the industry.
“In instances where there is a difference of opinion with partners, we’ve found that some very serious conversations ensue and have often led to great progress.
“Both sides are very comfortable with this approach and have found each other to be a valuable resource to the betterment of our travel trade relations,” McCaig said.
Benefits to members
“Supplier partnerships are relationships that are integral for ACTA, to keep everyone on a level playing field. Our partnerships provide us resources to help keep ACTA updated and informed on the different areas of the industry,” said McCaig.
McCaig gave several examples of how partnerships with suppliers have benefited ACTA and its members.
“Air Canada helped us understand how the IATA airlines were going to handle the commercial implications of NDC [New Distribution Capability] and how they intended to benefit from NDC beyond the technical standard that IATA was limited to discussing.
“Sabre has also been a valuable resource on this topic,” he said.
“Our partnership with Sabre and WestJet was beneficial when the two were having challenges coming to a hosting agreement that, if not resolved, would have seen the airline go black in Sabre. As everyone knows, the outcome of our dialogue was positive for the industry,” McCaig said.
Responding to concerns
McCaig said that the partnership dialogue has avoided standoffs that likely would have happened otherwise.
“There was concern when Regent [Seven Seas Cruises] introduced NCFs shortly after our partnership kicked off. We were required to revisit this partnership and in the course of our discussions, and in consultation with our board, we understood that the fees were reasonable and well within acceptable guidelines.”
He pointed out that ACTA does not get directly involved in the commercial decisions or affairs of its partners, but the relationship helps bring about an understanding of the impact of supplier decisions and actions.
Financial realities
What about accusations that the partnership arrangements are all about the money? Does ACTA depend on partnerships for its financial survival?
“ACTA would survive financially without these partnerships, but we do not hide the fact that their contributions assist ACTA in fulfilling our mandate of providing effective leadership for our members in the areas of advocacy and lobbying, communications and public relations, research and education and training,” McCaig said.
ACTA’s partnership agreements run anywhere from 12 to 36 months.
The association also has an allied membership category to suppliers and other companies. They are non-voting members.