PCMA Throws in Towel on ACTE Plans

As trade associations of all kinds look for ways to consolidate to take advantage of economies of scale during the current recession, there is one potential merger of meetings-related groups that had been in the works that will not be taking place now.

After six months of discussion, the Professional Convention Management Assn. has pulled the plug on plans it had for a strategic alliance with the Assn. of Corporate Travel Executives. The decision to drop the proposal to share educational resources and collocate future events came after PCMA officials learned that ACTA officials were pursuing merger with yet a third organization, the Natl. Business Travel Assn.

PCMA President and CEO Deborah Sexton said her group, which had provided some education to ACTE conferences in the past, had hoped the two groups' senior-level members could exchange information and strategy on business travel management and meetings department management.

However, Sexton added, “If (ACTE is) going to pursue a merger or a conversation with NBTA at this point in time, it does not make any sense for PCMA to pursue further strategic alliance until whatever is going to happen between the two somehow surfaces, and we know what that is.”

Several months ago, ACTE and NBTA considered a merger, but ACTE's board rejected the proposal, at which point ACTE and PCMA began discussions. It was not until Aug. 5, when ACTE sent a newly drafted merger proposal to NBTA, that PCMA learned the other two groups still were interested in working together.

As to any future relationship between PCMA and the others, Sexton said, “If there's an opportunity to benefit our respective members, then there's always an opportunity for discussion.”

Assuming the two groups come to an agreement, she added, “As a combined organization, they may not match up as well with us as ACTE did in a smaller version, on a higher level.”

Jack Riepe, ACTE's global communications director, said the alliance with PCMA would have been productive, but those at PCMA “really have to do what's best for them.”

At this point, ACTE's potential merger with NBTA apparently is not a foregone conclusion.

Kevin Maguire, president and CEO of NBTA, said the association's board would not review ACTE's merger proposition until after its annual NBTA Intl. Convention & Exposition Aug. 23-26 at the San Diego Convention Center. The proposal includes a cobranding for two years, then the creation of a new name and the formation of a new interim board of members from both associations.

“The timing is just too tight, and, if we're going to look at it, we need to devote the proper amount of time to analyze it,” Maguire said. “I'm not speaking (on behalf) of the board, but I'm not sure what they want. (ACTE) turned down their own prepared proposal, which was probably the best deal … they could get, and now they're coming back to us with a new program. I'm kind of baffled.”

He added it didn't “sit too well with the board” that NBTA did not receive notice of ACTE's proposal until after it had been released to media outlets.