Julio Bruno, Cendant's director general west continental Europe told the ACTE Forum in Madrid that the travel landscape in Europe is fundamentally changing.
There were new entrants, like low cost carriers, online booking for hotels and car rental, suppliers going direct to buyers, more use of self booking tools and airlines moving towards zero commission and e-ticketing, Mr Bruno said.
He told more than 60 delegates at Madrid's Sol Melia Princessa Hotel there were also a move to online agencies and the likely EC de-regulation of the GDSs.
He said travel managers must see seek integrated solutions and treat travel as a complex procurement where deals were maximised, process costs minimised and travel seen both strategically and in the long term.
Mr Bruno whose company owns Galileo, one of the leading GDSs, said there were three reasons for the likely de-regulation of GDSs in Europe in 2005:
* the internet had changed business travel
* Fewer airlines now owned GDSs
* There were alternative distribution systems to the travel agencies and GDSs.
He warned such was the current situation that the industry had to ask itself: “Who's the supplier these days? Who's the competitor? Who's the distributor? Who's the customer?”
He also highlighted the growing move to online agencies which now handled 52% of US business travel bookings.
“A fundamental change in booking methods in the European business travel market is now underway,” Mr Bruno said.
He said Europe was moving to a point where 90% of corporate travel managers planned to automate their processes and 45% were planning to outsource some aspect of travel management.
Online agencies, like Expedia and Travelocity were also beginning to compete with traditional TMCs.
In Western Europe, the online market, worth 15bn in 2004, will go up to 21bn by 2006. In Spain, he said there is likely to be a growth of 263% in the value of online bookings between 2002 and 2005.
After Mr Bruno's speech, a round talk, moderated by Saskia van de Kamp, relations
manager, American Express Travel, discussed how Spanish airlines were faring in the face increased competition from low costs and rising fuel prices.