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June 26, 2000

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Travel For Bank Employees: No Ticket Required

By Cheryl Rosen

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As a travel agency executive, Andy Menkes came up with such good ideas that his client, Republic National Bank, hired him as its first-ever VP of global travel management. Now his best idea is the direct purchasing system he put together between the bank and British Airways plc.

Thanks to the program, employees of Republic- and its new parent, HSBC Bank USA-who fly the well-traveled New York-London route just fill out a Lotus Notes travel request, show up at London's Heathrow Airport, slide their BA Executive Club card or credit card into an E-ticket machine, and pick up their boarding pass. Their credit card isn't even charged until they're on the gangway.

As with any trip at HSBC, the authorization form is sent to a traveler's supervisor for approval and to the corporate travel office. But if the order is for a ticket from London to New York or vice versa, an electronic message also is sent directly into BABS, the airline's internal inventory system, where the reservation is booked automatically.

It's a neat solution that meets the needs of all parties. And it fixes a problem that threatened to derail the relationship between the bank and the airline.

About 18 months ago, Menkes began pushing for 100% use of electronic tickets as a way to hold down the bank's ticket-delivery costs and to optimize the travel booking process. There was just one problem: British Airways didn't offer electronic tickets in the United States. As a result, the bank's travel agents shifted business to other airlines. So Menkes came up with an alternative: A system that would require no ticket at all.

"I said that if they could give us a link into their reservation system, I'd be happy to help them see their market share of our business come back," Menkes says. "So they sent over several E-commerce executives, did all the development work, built a passcode-protected Internet link that gives our agents live access to BABS, and trained our agents in BABS formats."

The electronic system cuts processing costs and provides discounts on ticket prices, as well as improving convenience for travelers and strengthening the relationship with the airline. "In the old days, you had to overnight tickets to locations that were removed from you, but physical borders are no longer an issue now that E-ticketing is becoming the standard," Menkes says. The paper-based society that existed in the travel industry for 25 years has been overhauled by technologies ranging from electronic ticketing to direct links with suppliers, says Menkes. "It's an easier environment in which to operate, and it's brought increased efficiency, new service levels, and new opportunities for doing business with suppliers."

Normally, it would taken three months to set up Republic National as a "pseudo-BA office," says British Airways distribution manager Noel Gilmartin. But because the airline was using the Internet, there was no lead time and Menkes' department was online within weeks. "If we hadn't delivered BABS to him in this way, we wouldn't have been able to meet his E-ticketing requirement," Gilmartin says. "But by providing exactly what he wanted, we cemented the client relationship and picked up extra business on the North Atlantic."

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