commentary
Business Travel Executive
July 2007
Insight: Registered Traveler
RT 2.0: Yours To Shape
By Kevin Mitchell
Nearly six years after the tragic events of September 11, 2001, the long awaited Registered Traveler (RT) program is beginning to roll out on a national basis, with the oversight of the Transportation Security Administration (TSA). This fledgling industry’s general direction has been established, but substantial work remains regarding the shape of its long-term competitive structure, its final economic model and the types of services offered to RT program members.
It’s time for corporate travel managers (CTMs) to engage!
Thus far, CTMs have only been able to comment on hypothetical RT business models and programs. Now that the TSA pilot programs (what the Business Travel Coalition calls “RT 1.0”) have provided real-world results, CTMs have a true opportunity to drive the final shape and form of this industry and ensure its long-term competitiveness. This is an industry that will no doubt grow in importance to the corporations that field millions of business travelers around the world.
To empower CTMs, and to provide a platform for them to influence this personal credentialing industry, BTC recently conducted research into the kinds of services CTMs would like to see bundled into the next generation of RT programs -- “RT 2.0.” The results of this research will be published in July. To convert this research into industry influence for CTMs, BTC has just launched a nationwide, customer-led RT coalition.
Birth Of The Concept
In the immediate weeks following 9-11, BTC conducted eight regional symposia around the country on behalf of the Association of Corporate Travel Executives (ACTE). The mission was to identify barriers to getting business travelers back on the road and to generate ideas and solutions.
Terms such as “security hassle” and “the new normal” entered the travel industry lexicon. The strong sense was that dramatically expanded airport security protocols were here to stay. During the second of these symposia, the concept of an expedited security process for business travelers emerged and was variously referred to as the “Trusted” or “Known” Traveler Program. It dominated the balance of these industry gatherings.
Soon thereafter, the Department of Homeland Security (DHS) was formed, and the concept, officially known today as Registered Traveler, made it into the press and was debated in Congress, in the travel industry and among privacy groups. Support at the DHS, and subsequently at TSA, waxed and waned largely depending on who was in charge.
Several surveys of CTMs, as well as of individual frequent business travelers, were conducted by BTC. There was a high degree of acceptance of such a program, if not outright enthusiasm. However, CTMs and travelers were being queried about a hypothetical program with little concrete information regarding program cost, privacy protections and effectiveness. So, assumptions had to be made which rendered survey results valuable, but not actionable.
Developing The Fundamentals
Congress eventually mandated RT and the TSA began a 5-airport pilot program (limited in scope and traveler participation) in 2004 to test various technologies, passenger acceptance levels and effectiveness. The airports that partnered with the TSA in the pilot programs were Minneapolis-St. Paul International Airport, Los Angeles International Airport, George Bush Intercontinental Airport/Houston, Ronald Reagan Washington National Airport and Boston Logan International Airport.
During this same period, the outlines of the technical standards for a national RT program began to take shape. Fundamental operating principles emerged such as interoperability, which guarantees that no matter the RT service provider, every card is accepted at every RT-provisioned airport with no additional cost to the cardholder member.
By 2005, RT 1.0 was ready for a more extensive pilot program. Verified Identity Pass Inc. was chosen to implement a privately funded RT pilot program at the Orlando airport. This was important because despite passenger surveys and the results of the TSA's 5-airport pilot program, airports and airlines were still unsure that (a) there was a sufficiently large market willing to pay for RT; (b) that the program would actually work, i.e. that it would increase throughput in RT-dedicated lanes as well as all other security lines at a given airport, and would still improve the quality of the security result; and (c) the TSA was truly committed to RT.
The Orlando pilot satisfactorily addressed these issues.
Today, standards are set, RT has been approved by TSA as a strictly voluntary program for national rollout, some six airports are operational and many more have released (or will shortly) requests-for-proposals including airports in San Francisco, Denver, Washington DC, Atlanta and Miami. All RT costs are borne by individual RT members paying various fees to RT service providers. There are currently five RT providers: FLO Corporation, Unisys, Vigilant Solutions, Verant Identification Systems and Verified Identity Pass, Inc.
Currently, there is no individual company that has all the capabilities to launch RT on its own. As such, the industry is driven by a strategic alliance-based model with technology, customer service and marketing partners forming core teams. A potential problem for later RT industry entrants might be that all best-in-class partners could be committed to other ventures.
FLO Corporation, for example, has entered into commercial agreements with Business Travel Coalition, International RAM Associates, Johnson Controls, JP Morgan Chase, Microsoft and Smiths Detection. Likewise, Verified Identity Pass’ partners include GE Security, Lockheed Martin, Daon and ARINC.
The TSA and the corporations that field millions of business travelers each year as well as airports and airlines all seek (a) a high quality security result in balance with acceptable civil liberties tradeoffs and (b) an efficient airport security process. Indeed, these two goals are in the interest of hotels, rental car companies and virtually the entire travel industry.
We need to prevent attacks on our aviation system that bring harm to travelers and aviation industry employees, destroy property, damage markets and consequently result in a negative impact on travel industry demand. We likewise require a level of efficiency that keeps business travelers, the drivers of our national economy, flowing smoothly throughout the aviation system.
How RT Works
RT membership offers travelers expedited access through security at all airports participating in TSA’s RT program. A participant first completes an online pre-registration form, then visits a RT service provider’s kiosk at an airport or other convenient location and provides personal biometrics and two forms of government-approved identification to complete enrollment. A participant's application is subsequently submitted to what’s called the Transportation Security Clearinghouse (TSC) for a security threat assessment, and the applicant is charged an enrollment fee.
If an applicant is denied membership by TSA, the applicant receives a notification stating such. (An applicant may download redress information from the TSA public Website.) It is anticipated that most RT service providers will refund the enrollment fee, less the $28 TSA security threat assessment fee, in such a case. If approved, an applicant is advised by her RT service provider and receives a RT card in the mail, which can be used immediately at any airport participating in the TSA RT program.
At the airport, the new member is asked to present her biometric at a verification kiosk to ensure it matches the biometric embedded in the RT card. The card is checked to ensure that it is a valid RT card, and then it is checked against the Card Revocation List (CRL) to ensure that it hasn’t been revoked by either the TSA or the member’s service provider. (The CRL is routinely updated with information from the TSA and all participating RT service providers.) If checkpoint approval is granted, the member proceeds through security screening on an expedited basis.
Each member will be continuously vetted by the Clearinghouse and TSA's ongoing security reviews. If a member's security status changes, the membership is immediately deactivated and the member receives notification from her RT service provider of the change in status. Depending on the service provider’s refund policy, the member may receive a refund for the unused portion of the annual enrollment fee.
Problems Solved By RT
The RT program offers several potential advantages, in terms of travel productivity, airlines' bottom lines and airports' safety and efficiency.
For business travelers, RT provides a predictable security experience with respect to the amount of time it takes to be processed through airport security -— usually just a couple of minutes through a RT lane. For a frequent business traveler, this could mean an extra hour of sleep while on the road, or not having to leave a customer’s office 45 minutes early because of not knowing what to expect at an airport on any given day.
A nationwide, successful RT program will help return business travelers who have reduced air travel because of the inconvenience and unpredictability of the security process. The last few passengers who board typically make the difference between profit and loss on a given flight. Recapturing just a modest percentage of these high-yield passengers would conservatively generate some $2 billion in new revenues for the airlines, favorably impacting profits, share prices and market capitalization levels.
Airport authorities are vested in achieving a high quality security result. Having long lines logjam into non-secure areas of the airport, or even outside terminal buildings, is a bad result. After passenger aircraft, airports are the second most desirable target for terrorists, as proven by attacks all over the world during the past 25 years. RT produces an order-of-magnitude improvement in overall passenger throughput without requiring additional scarce airport terminal space or TSA resources. What’s more, passenger traffic at our nation’s airports is anticipated to grow by 3.5 percent to 4 percent annually at a time when TSA staffing levels have been capped by Congress.
New Ideas In RT 2.0
The TSA pilot programs, and early airport RT implementations, were necessarily stripped down initiatives and only envisioned “front-of-the-line” benefits, including, not having to remove shoes, coats and laptops. TSA for some time, however, has encouraged private industry to be creative in developing other value-added RT benefits not related to the checkpoint such as preferred airport parking, concession discounts and global assistance. Indeed, BTC’s research validates that CTMs agree with TSA that this would likely be a more fully-supported RT business model.
Where RT 1.0 focuses exclusively on “lane benefits,” the next generation model, RT 2.0, seeks to add value at points along the door-to-door business travel process. For example, in testing right now in a few Boston hotels is remote airport baggage check-in which means when you arrive at Logan you can go straight to a client meeting and your bags will be delivered to your hotel. Likewise, on the last day of your business trip, you can cab it to a last-minute meeting while your bag is being screened at your hotel and securely transported to the airport.
RT 2.0 also enables an airline to private-label a RT card. An airline can bundle various benefits of its own choosing into its branded card such as club access, preferred seating and additional frequent flyer program features. This is a totally customizable solution that provides an efficient platform for airlines to provide valuable, relationship-strengthening benefits to their very best customers. (Some RT service providers also offer private-labeling to TMCs, hotel companies and charge card companies as well as corporations that enroll 10,000 or more travelers.)
RT is moving forward; strategic decisions are being made by TSA, RT service providers, airports and other participants. The voice of the buyer is now critical to ensuring that RT, destined to be a global industry, is structured to ensure long-term vibrant competition, and with it, new entrants, innovative business models, price competition and superior customer service.
To help corporate travel managers, and their corporations, shape this fledgling RT industry, BTC has formed the RT Customer Coalition with a mission to bring transparency to industry and government RT policies and practices. Much is at stake. The corporate buyer’s voice, as always, is the most influential if it is informed, motivated and organized for action. To join the Coalition, or for additional information, visit http://BusinessTravelCoalition.com.