Small travel agencies complain about eTravel system

As federal agencies award contracts under the new eTravel program, some executives of small travel agencies are arguing that the new system won't give them enough business.

Several owners said that federal travel business is being funneled to three "mega" travel agencies through the eTravel contracts, and that small travel agencies are being left behind.

Under the Federal Travel Regulation, federal agencies must select one of three General Services Administration-approved contractors to provide an electronic travel system by the end of the year. These contractors are aligned with a Travel Management Center, or a travel agency, that is built into its eTravel system.

Northrop Grumman Corp.'s GovTrip is aligned with American Express Travel-Related Services Company Inc., EDS' FedTraveler.com is aligned with Navigant Sato Travel, and CW Government Travel Inc.'s E2 Solutions is aligned with Carlson Wagonlit Government Travel.

Agencies are required to finish deployment of eTravel systems by Sept. 30, 2006.

Federal agencies are allowed to select a different TMC from the one built into a vendor's eTravel system, but some small-business travel agency executives said they do not believe this fact is being clearly communicated to the federal agencies and believe the new system will shut them out of the government travel agency business.

"I think this is a travesty for the travel industry," said Alvin Chisik, president of the Topanga, Calif.-based small business group Merritt Chisik Management Consulting. "When the government makes change, there is a cost involved, and it looks like the cost in this is the disenfranchisement of literally the entire travel agent community."

Another option for travel agencies not connected directly with an eTravel system is the Travel Services Solutions multiple award schedule, which federal agencies can use as an alternative to the eTravel system. Owners of small travel agencies said they have tried this option, but federal agencies are only choosing eTravel vendors.

GSA's eTravel Service program manager Timothy Burke was unavailable for comment, but a GSA spokeswoman said, "GSA will continue to work collaboratively to address TMC concerns."

Marc Stec, president of the Society of Government Travel Professionals, said the travel industry trade organization is working with Burke to give federal agencies guidance for structuring procurement of travel services to fulfill small business goals. The governmentwide goal for federal agencies' small business contracts is 23 percent.

Small businesses "are looking to see if eTravel can … design set-asides, but the system isn't set up to do that," said Stec, vice president for contracts and proposals at Navigant Sato Travel. "GSA has certainly been willing to meet to discuss the issue; we don't know what the resolution will be at this point."

Stec, in a Nov. 1 letter to Burke, said GSA has not provided federal agencies with the proper guidance that would allow them to fairly evaluate the cost differences between the eTravel systems and Travel Services Solution contract.

"Many federal agencies are still of the belief that they must switch all travel services to the [eTravel Services] vendor. In part, this erroneous viewpoint may be reinforced by some of the materials GSA itself has published," Stec wrote in his letter.

Michael Kennedy, CEO of Atlanta-based Managed Air Inc., said that about 50 percent of federal agencies are aware they can choose their own TMC. He said the agencies that had a representative at GSA's September travel forum in Dallas understood that they could choose their own travel agency, but "the agencies or procurement officials who did not attend are going 'Wow, we were told that we had to go with the imbedded travel provider.' "

Representatives of the eTravel service providers said they think small businesses are complaining too quickly.

"If you look at the overall implementation of eTravel, there's going to be more small business than there was previously," said Leo Hergenroeder, GovTrip program manager. "I think that people may see that while individual small businesses travel agencies will be hurt, the overall amount of business going to small business travel agencies will be larger."