Where in the world is group travel going?

Industry executives see technology written all over the future of meetings and travel.

T o discover where all the new whiz-bang technology is taking associations and their meetings, ASSOCIATION MANAGEMENT recently asked travel and technology industry experts to take us on a tour of the future - as they see it, anyway.

Leading this technology trip were Jack Alexander, chief executive officer, WorldTravel Partners, Atlanta; Gregory A. Conley, general manager, travel and transportation industry, IBM Corporation, Denver; John Neilson, vice president, information products, Microsoft Corporation, Redmond, Washington; and Jose Ofman, former corporate vice president and group executive, travel and transportation group, EDS, Plano, Texas. These four voices were among a larger technology panel of corporate executives at the 1996 Masters Program, an annual convergence of some of the most important voices in hospitality.

ASSOCIATION MANAGEMENT: What's the next wave of technology that will influence group travel and association meetings?

Ofman: Technologies that can customize travel for groups down to individual preferences. By that I mean looking not only at the group as a customer but at the individual people within the group as distinct customers, too. With new database marketing technologies, customers can interact individually to take advantage of unique products and travel experiences in conjunction with group activities.

With in-room technologies, we can make sure individual preferences for dining, entertainment, excursions, and so forth can be met. These technologies will allow individual data on personal preferences, allowing travel providers to market new products and services specifically to individuals.

ASSOCIATION MANAGEMENT: What else should we prepare for?

Neilson: Microsoft has been transformed and refocused by the emergence of the Internet and the opportunities it presents. We believe the travel planning and purchase process will likewise be transformed in the coming years. Travelers and travel managers connected to the Internet will be empowered to take direct control of the purchase process. I head up a group that is focusing on building a broad set of compelling and practical Internet applications that help people make better decisions about where to go, what to buy, and how to spend their time.

Conley: Smart cards, electronic ticketing, and direct corporate travel-management tools will be the technologies that begin to leave their fingerprints in 1997. The combination of these three will have a significant impact on travel users. For instance, a smart card can perform a wide range of functions. It can serve as a payment device or an identification device. It can hold information that will serve as your boarding pass or be the repository for your expenses, your frequent flyer information, and your passport. It's truly a multifunction device. Right now, we're involved in pilot activities using smart cards with American Airlines and Hilton Hotels, in cooperation with American Express.

ASSOCIATION MANAGEMENT: You mentioned travel-management tools. What are they?

Conley: They provide employees the ability to directly manage their travel end to end. This means not just making the reservations but also making sure that the travel complies with their organization's travel policies and doing the back-end expenses - reconciliation and accounting - as well.

ASSOCIATION MANAGEMENT: Where will this technology leave association meetings?

Alexander: With greater power in the hands of the attendees and with improved efficiency in service. We've got to get the cost of transactions down.

I see growth in a few key areas. Highly functional relational databases that are adaptable to each group's needs will become more accessible. Travelers will pull information from these systems on event programs and hotel availability before booking their own airline reservations, meeting registrations, and housing reservations. Planners will dial into these systems for 24-hour access to housing pickup and registration reports.

Next comes improvement in the chain of distribution. Technology must streamline the process of transferring data from third-party reservation systems directly to the hotels. If trends in leisure travel and corporate travel are any precursor, the Internet will increasingly outpace other booking methods.

ASSOCIATION MANAGEMENT: Right now, associations often negotiate group travel discounts with travel suppliers such as hotels, airlines, and car rental companies. How will these relationships change?

Alexander: The state of the nation in group travel and association meetings is now at a crossroads. Technology and the chain of distribution are not smoothly integrated. Developing technologies that improve efficiency and are valued by our customers and industry partners are critically important to the future success of the industry.

In determining our own direction, I've spent time with customers, competitors, and other industry players. Few of them seem to be spending time talking to each other. For instance, many hoteliers don't seem to understand the contribution that housing companies make to the success of association meetings, such as providing citywide housing information.

The planners of multihotel and citywide programs need the services that housing and registration companies provide. They need powerful databases that give them reports, manage sub-blocks, and interface accurately and efficiently with hotel reservation systems. Hoteliers, housing company representatives, and association executives need to figure out a realistic way to pay for these services - whether that is through commissions or, more likely, through fees.

I'm hopeful that in the coming months our industry forums will offer the chance for more meaningful dialogue that would benefit the entire community.

ASSOCIATION MANAGEMENT: Do you think associations will continue to receive group travel discounts for member travel to meetings?

Neilson: We don't anticipate the negotiated rate-acquisition process to change too much. The key will be accessing negotiated rates using new interactive travel products such as "Rome," which Microsoft and American Express will be releasing this summer. Rome - a code name - is an electronic travel planner that will allow corporate travelers to sit at their desks and purchase airline tickets, hotel reservations, car rentals, and so forth.

Conley: Group travel discounts will not be as automatic as they are today. Travel suppliers are getting much more sophisticated about yield-management systems. This means they're going to make knowledgeable decisions in real time about whether or not it's in their best interests to give a group travel discount. Yield-management tools will allow all types of travel suppliers - not just airlines - to better manage their inventory and sell it to the most profitable consumer.

Driving costs lower is at the top of the travel supplier's mind. But it's also on the travel consumer's mind. So whatever technology is embraced by travel suppliers or end users, it has to produce cost savings, over and above the traditional methods of negotiating these discounts or making travel arrangements. It has to pay off for both the supplier and the user. I believe that can happen.

ASSOCIATION MANAGEMENT: A number of associations are experimenting with online meetings. Any predictions on where this is going?

Ofman: Online meetings are a great idea. Currently, they are cumbersome at best, irritating at worst. This is one of those areas where the technology is certainly available and quite capable, but the human factors haven't been well worked out. I predict that online meetings will grow in sophistication and acceptance to become a normal part of our business relations.

Neilson: Online meetings are a particularly interesting result of the rise of the Internet. Will they eliminate the need for face-to-face contact? No. However, as the technology and bandwidth - or the amount of information that can be carried on the Internet - increase, the quality of virtual contacts will drastically improve.

Currently, text-to-text interaction is rather limited. In the future, we will be able to visit with each other in virtual environments that have some atmosphere, be able to see each other's expressions, hear each other's voices, and have meaningful personal interactions.

ASSOCIATION MANAGEMENT: So we don't have to worry about annual meetings becoming passe?

Conley: The more information people have, the more they want to travel to see something rather than just experience it electronically or remotely. You still have the indispensable requirement of social interaction that is a part of annual meetings. That's not going to be eliminated by more powerful electronic collaboration tools. I don't think you'll ever see human interaction become passe.

ASSOCIATION MANAGEMENT: What skills will meeting planners need to stay at the top of their fields in the future?

Neilson: Comfort with PCs and Internet technologies will be a big advantage.

Conley: Meeting planners will need, like many of us, to exploit the information that's available on the Internet and [make use of] the business-interaction tools that are available. My advice: Get connected. Become an active participant in what's happening with network computing and the Internet. Figure out ways to take the information and other capabilities that are available today to make your activities more productive, more creative.

ASSOCIATION MANAGEMENT: What will meeting planners find most shocking about future technologies as they relate to meetings?

Ofman: Three things: One, their jobs, as we know them today, will become easier. Two, more people will be able to perform the "do" part of their jobs without the title "meeting planner."

Three, the content of their jobs will change; they will become strategists and consultants in more of the human interaction, technologies, and content of meetings, rather than focusing on location and setup.

I think all these things bode very well for the profession. This will raise the level of creativity and respect for meeting planners around the world.

Neilson: Most shocking will be how powerful the PC-based planning, reservation, and tracking tools will be. They will greatly increase the impact a skilled planner can have.

Conley: What will surprise them - maybe not shock them - is how quickly changes occur. We have a whole new generation of people coming up through the ranks. They are going to operate in ways that are much different than we've learned to operate. They will embrace technological change and accelerate it.

ASSOCIATION MANAGEMENT: What's your best advice for association executives who want to take advantage of the next technology wave?

Conley: Similar to the advice I gave to meeting planners - get connected. Explore what's available on the Internet. We're embarking on the most exciting period of time in technology. Network computing will change the way we work, change the way we live, change the way we access entertainment. It will change virtually every aspect of our lives.

Many people are fearful of what's ahead. Rather than fear, they should feel excitement. Network computing can have a positive impact in all these areas of our lives. But you have to get connected. Don't wait to see what these changes will do to you. Understand what the changes are, and put them to work for you.

Margo Vanover Porter is a freelance writer based in Locust Grove, Virginia.