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Air Transport Business NewsJanuary 2004 Total sales in 2003 for agents fell by 4 percent over 2002, according to the Airlines Reporting Corporation (ARC), to a total of $61.8 billion. The average weekly sales per location, however, saw a healthy gain of 12 percent to $43,735. While sales declined in the first half of the year, they did pick up in the second half. Sales in December rose 3 percent to $4.5 billion. David Collins, president and CEO of ARC, said sales bounced back more quickly after the war with Iraq began than after the Gulf War in 1991. The number of authorized retail locations fell for the year by 9.9 percent, and ended 2003 at a total of 22,244.
What does Code Orange mean for air travel? Passengers should brace for security related delays during the busy holiday travel season after the Department of Homeland Security (DHS) upped its terror alert from Yellow to Orange. Longer lines are expected at most airports, and traffic leading to the terminals could be slowed by random vehicle checks. DHS Secretary Tom Ridge tried to reassure Americans traveling by plane for the holidays. "Make no mistake about it, aviation is far more secure than it's ever been in the history of the country," he said. But, as a result of the change in threat level, all federal departments and agencies are putting action plans in place and stepping up security at airports, border crossings and ports, Ridge said.
The major U.S. airlines give mixed reviews as to whether December was a good month. Delta saw a disappointing 1.4 percent decline in domestic traffic while its international traffic grew 2.9 percent for a total system decline of 0.5 percent. American also saw an increase in international traffic up 10.2 percent. But domestic traffic was down 4.2 percent for a total system decline of 0.1 percent. Meanwhile Continental reported that its traffic overall jumped 7.6 percent. Its domestic traffic rose 3.9 percent and international leaped 14.1 percent. US Airways saw a 7 percent increase in traffic overall. Domestic was up 2.2 percent and international 10.6 percent.
US Dept. of Transportation released for the first time monthly ontime performance data including the causes of delays. No surprise, weather turned out to be the largest culprit in flight delays in Oct. 2004. Of nearly 550,000 flights operated by 17 reporting carriers, almost 1,700 were delayed by "extreme weather" that interfered with flight operations and more than 13,000 were delayed by weather "that prevented the aviation system from operating at full capacity." Reporting carriers achieved a system average 86.4% ontime performance in October.
- 13.6% flights that were late, 5.43% were affected by "aviation system delays" and more than half of those were owing to weather.
- 3.49% were delayed by airline issues such as maintenance or crew problems.
- 3.29% for follow-on delays caused by earlier delays
- 0.3% for extreme weather.
- 0.05% were attributable to security reasons.
Southwest had the fewest complaints in November of any of the largest U.S. airlines tracked in the DOT's consumer report. Southwest had 0.15 complaints per 100,000 passengers, followed closely by JetBlue, ATA, ExpressJet and American Eagle. US Airways had the most at 1.09. Hawaiian Airlines was the on-time leader with 93.3 percent of all of its flights arriving on time. Second was JetBlue at 88.8 and third was Southwest at 85.5. JetBlue had the fewest mishandled bags in November, and had the fewest denied boardings from July through September. Atlantic Southeast received the most complaints about mishandled bags and bumped the most passengers.
Preliminary traffic figures released by the International Civil Aviation Organization (ICAO) for 2003 show worldwide airline traffic was done slightly over 2002. International traffic was down 3 percent, and total traffic was down almost 1 percent. The number of passengers carried on scheduled flights was just over 1.6 billion. Asia-Pacific airlines were the hardest hit; their traffic was down 10 percent internationally and 6 percent overall. ICAO, however, says it sees signs of impending recovery. North American carriers had a weak year while Middle Eastern carriers saw strong growth.
A recent poll found 65% of travelers think rudeness is a serious problem in travel. And just over half of travel-industry employees say passenger rudeness is a top cause of on-the-job tension. Generally, airlines remind staff to remember the adage about the customer being right, American Airlines spokeswoman Jacquie Young tells The Wall Street Journal.
During the Christmas and New Year travel rush, long-distance travel grows as much as 23% compared with the rest of the year, according to a report from the Department of Transportation's Bureau of Transportation Statistics. One bright note for air passengers, though, is that about nine of 10 holiday travelers use a car or other vehicle to make their trips. Other things you may, or may not, have desperately wanted to know: only 3% of holiday long-distance travel is international; 43% of long-distance trips are to family, against 24% the rest of the year; 50% of holiday travelers make same-day trips without spending a night away, but those who do overnight spend on average four nights away.
Confused about how much carryon luggage you're permitted to take on your flight? You're in good company. Apparently, the airlines, the Federal Aviation Administration and the Transportation Security Administration are also a little confused, says Los Angeles Times columnist Jane Engle. A supposedly firm "one-plus-one" rule was enacted after the 9/11 attacks, allowing fliers one carryon bag plus one personal item. Who's enforcing the rule? "Some airlines say it's the FAA. The FAA says it's the TSA, and the TSA says it's the airlines," Engle reports. Several airlines have recently imposed stricter limits on carryon luggage, citing "the new FAA-mandated carryon policy." The FAA, however, hasn't regulated the number of carry-ons since November 2002 &emdash; it's now the TSA's area of oversight. Good luck packing!
European Parliament overwhelmingly adopted new legislation that substantially boosts passenger compensation levels for flight delays, cancellations and denied boardings and for the first time extends consumer protection rules to the charter segment of the business that accounts for as much as 40% of European air travel. "This is a big step ahead in our effort to put the citizens at the heart of EU policies," said Loyola de Palacio, European Commission VP in charge of transport. "Too many times, air passengers are victims of practices which deserve that they receive a fair treatment and proper compensation." Under the new rules, in situations where a flight is oversold, airlines first will have to ask for volunteers before denying anyone boarding, a procedure that has been required in the US for more than 25 years.
Compensation due for those denied a flight ranges from eur250 ($310) for flights of less than 1,500 km to eur600 for distances beyond 3,500 km. Europe's airlines steadfastly have maintained that the new rules are far from "fair and proper" and will put extra financial burden on their operations. Some industry observers call the regulation, which was reached in the Conciliation Committee of the EP and Council and still must be approved by the Council, an "unworkable document." They also wonder if the description of cancellation, which has eliminated the exemption for extraordinary circumstances, is not contrary to the Warsaw and Montreal conventions. A meeting is planned for today. Some speculate the rules could be vetoed by a large member state with the support of some smaller countries. If not, they will enter into force 12 months after their publication in the Official Journal, probably in early 2005. They will apply to all EU airlines arriving at or departing from an airport in the European Union and also to non-EU airlines flying on certain routes inside the European Community.
Preliminary data released today indicate that U.S. hotel revenue per available room in December rose 3 % to 5 %, compared with the same month a year ago, according to Henderson, Tenn.-based lodging industry consultants Smith Travel Research.COMPANY NEWS Abercrombie & Kent is reporting call volumes that are back to pre-Sept. 11 levels. The 12 percent increase in volume is led by "triple-digit growth" in India and Egypt. FITs are also up 44 percent.
Air Canada is expanding its simplified fare structure (which includes Web-only fares on its low-fare unit Tango) to include travel to and from the U.S., as well as throughout Canada. During this quarter, it will phase in six separate fare types. Available immediately are fares to Newark, New Orleans, Phoenix, Las Vegas, Miami, Fort Lauderdale, Tampa, Orlando, West Palm Beach and Fort Myers. It will provide access to the lowest published fares for all 80 cities in the U.S. that it services by spring, including those served by Air Canada Jazz and code-sharing partner United. The airline also will add more online tools to aircanada.com. The carrier initiated the fare structure last May within Canada, and its online tickets sales have tripled.
Air New Zealand will launch non-stop three times a week service between Auckland and San Francisco on June 30. The service will depart San Francisco international on Wednesdays, Fridays and Sundays. San Francisco joins Honolulu and Los Angeles (which each have 36 flights per week) as major American gateways for the carrier.
A proposed $100 per person head tax for Alaska cruise visitors hit rough seas in its first hearing in the Alaska state legislature. In addition, House Speaker Pete Kott (R-Eagle River) said even a less expensive $5 per day passenger cruise tax proposal by Gov. Frank Murkowski could also face opposition. Rep. Carl Gatto (R-Palmer) had introduced the $100 head tax bill last year, saying cruise lines pay no state income taxes on their cruise profits and could reduce the state's $400 million budget deficit. Testimony before the House Special Committee on Economic Development, International Trade and Tourism was, however, very negative on the idea of a head tax. Both cruise lines and small tourism businesses said the extra cost would discourage cruise tourism, and those who do come will have less money to spend. An estimated 776,000 people cruise to Alaska each year, according to Alaska's Department of Revenue.
After unions called an eight-hour strike, Italy's national carrier Alitalia grounded 364 flights, resulting in 18,000 travelers scrambling for alternative transportation. After union talks fell apart, the airline cancelled 182 domestic flights, 168 flights to other European countries and 14 flights farther afield. On Jan. 8, Italian air traffic controllers went on strike, resulting in 600 total flight cancellations (344 of which were from Alitalia). Alitalia employees are already threatening another walkout on Feb. 9, while the traffic controllers have announced that they will strike again on Feb. 20 2004.
Signature Travel Network, formerly known as Leisure Travel Group, awarded its top honor once again to All-Travel.com. For the second year in a row, All-Travel.com generated the highest percentage of sales increase among preferred vendors. The annual revenue increase places All-Travel.com in the number-three spot of the organization's 2003 Million Dollar Sales Club, based on data reported by preferred suppliers. All-Travel.com also received top awards from individual tour operators, including Apple, Pleasant, Brendan, Club Med and Crystal.
American Express Company reported net income in 2003 of $2.99 billion, a 12 percent increase over 2002. Its revenues totaled $25.9 billion, up 9 percent from a year ago. The overall increase in revenues reflects an 8 percent growth in the Travel Related Services group, while that same group contributed to a 7 percent rise in expenses. Its marketing, promotion, rewards and card member services expenses were up by 25 percent, with Travel Related Services up 26 percent in that category. The unit reported a record net income in 2003 of $2.43 billion, up 14 percent from 2002. Travel commissions and fees grew 7 percent, based mainly on rising travel sales and the acquisition of Rosenbluth International.
American Express announced on Jan. 12 a new program for its cardholders and its American Express Travel Services agents. The "Beyond the Beach" program features 10 Caribbean and Mexico destinations and four exclusive offers. Travelers who book qualifying vacations with American Express Travel using their American Express card can receive a Caribbean Vacation Values card that offers a range of savings on travel services and activities; a full-year subscription to Travel + Leisure magazine; double Membership Rewards points; and up to $150 statement credit when they spend $2,000 more total on their booking. In order to receive these benefits, the packages must be booked through American Express Travel agents. Bookings must be made from Jan. 15 to April 30; travel must be completed by Aug. 31 2004.
American Express has now joined a growing list of loyalty programs that will levy a charge for redeeming frequent-flier points for reward tickets. Beginning March 15, more than 5 million members of its Membership Rewards program will be charged a nominal fee per point &emdash;up to a maximum of $50 &emdash; to transfer points into a frequent-flier program. On the plus side, United will extend the ability for its Mileage Plus members to transfer miles between account through March 31. The opportunity to purchase up to 25,000 miles, enough for a domestic Saver Award, is also extended through March 2004.
America West Airlines will begin new service between its Las Vegas hub and Burbank, Calif., on April 23, 2004. In addition, America West will add new flights between Las Vegas and three existing markets, including Boston and San Francisco, that also will begin on April 23, and Phoenix, which will begin on April 4, 2004. With these new flights, America West will offer 111 daily departures to 48 destinations. America West will operate the roundtrip flight between Las Vegas and Burbank with a 124-seat Airbus A319 configured with 12 first-class and 112 coach seats. Beginning March 1, the carrier will also provide daily nonstop service between Las Vegas and following new cities: Austin, Texas; Cleveland; Edmonton, Alberta, Canada; El Paso, Texas; San Antonio, Texas; and Vancouver, B.C.
American will begin flying nonstop flights to Manchester, England, from Boston on May 15. The seasonal service will end on Oct. 31. The airline will use 188-seat 757s on the route. American said the new flights, which will satisfy leisure demand for now, will allow it to develop the route and possibly replace the flights in the future with larger two- or even three-class aircraft. The fljights depart Boston at 8 p.m. for arrival at 7:25 a.m., and leave Manchester at 11:55 a.m. for arrival at 1:55 p.m.
American Airlines and Continental Airlines announced that they would roll back a $3 increase in fuel surcharges for one-way travel after the hike failed to catch on in the industry. This was the second time in a few weeks that American had tried to increase ticket prices to offset the price of jet fuel.
In an effort to reduce congestion and delays out of Chicago's O'Hare International Airport, both American Airlines and United Airlines have agreed to reduce flights by 5 percent at peak times (between 1 and 8 p.m.). This move comes after pressure from the FAA, which sought a 10 percent reduction. The plan will affect 62 flights from early March through Sept. 1. The two carriers represent about 88 percent of all flights at the airport. Both say that they will reschedule a few of the affected flights but cancel most of them.
The 23rd ASEAN Tourism Forum in the Laotian capital of Vientiane is got underway on January 30 with the Southeast Asian countries of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar (Burma), Singapore, Thailand, Vietnam and the Philippines all sending delegates to confer on regional tourism. David Baffsky, the chairman of ACCOR Asia/Pacific was scheduled to deliver the keynote address, "Making Responsible Tourism Pay." The Forum will include TRAVEX, the ATF trade show as well as the conference.
At an Association of Travel Marketing Executives (ATME) luncheon in New York City on Tuesday, leaders from the airline, cruise, tour, hotel and car rental industries participated in a panel discussion about their 2004 travel outlook. The general consensus was that 2004 should be a strong year, and in some cases, better than the widely accepted benchmark year of 2000. Marshall Calder, senior vice president of Leading Hotels of the World, said, "There is a rising tide and everyone will benefit." Most of the participants&emdash;including USTOA President Bob Whitley, Hertz Corp. Vice President of Marketing Frank Camacho, and CLIA Executive Vice President and Chief Marketing Officer Bob Sharak&emdash;agreed that the travel agent community, though changing, would continue to be one of the key factors in getting business back to pre-9/11 levels.
Atlantic Coast Airlines reported an annual net income of $82.8 million at the end of 2003, up from $39.3 million in 2002. Its fourth quarter net income was $13.7 million, which compares with a loss of $1 million in the previous fourth quarter. The airline, which operates as United Express and Delta Connection, says it is on track to launch Independence Air, an independent low-fare airline to be based at Washington-Dulles Airport. It intends to incur significant expenditures in the first year of the airline's operation due to a comprehensive marketing and advertising campaign.
The 29th Austrian Travel Business show got underway Monday in Vienna with an estimated 1,600 delegates from around the world attending. The show began with a symposium analyzing the impact that the so-called "Eastern Enlargement" will have on Austrian tourism. Some 10 new countries will join the European Union May 1 including such countries as Poland, Hungary, the Czech Republic, Slovenia, Slovakia, the Baltic Republics (Estonia, Latvia and Lithuania) Malta and Cyprus. The enlargement will add some 63 million new citizens to the EU, and most tour operators here believe it will make Vienna into an increasingly important hub for Central European travel.
ARTA will host a three-night visit to Buenos Aires on April 20-22. The trip will include three days of training, focusing on teaching agents practical sales training. Between these sessions, the agents will meet in one-on-one appointments with managers of the participating receptive companies. As part of the trip, participating agents may choose one three-night extension before or after the Buenos Aires meetings to visit popular Argentinean tourism regions, including Iguazu Falls, Formosa, Mendoza, Parana, San Juan, Tucuman, Bariloche, or Camino del Gaucho. The conference rates&emdash;including hotel accommodations, training sessions, and numerous meals and city tours&emdash;start at $819 for ARTA members and $899 for nonmembers. Guaranteed roundtrip air transportation from Miami and New York on Aerolineas Argentinas will begin at $350. To request a complete conference brochure, agents may contact ARTA Headquarters by calling 800-969-6069 or e-mailing [info@artaonline.com]. You can also visit www.artaonline.com/argentina.pdf
Best Western received approval from its hotel members to install high-speed Internet access at all 2,300 properties throughout the U.S., Canada and the Caribbean. Internet access will be free for guests, and installation should be completed by September. Wireless and hard-wired high-speed Internet access will be featured in public areas and at least 15 percent of all guest rooms. Wireless access cards will also be available at front desks.
The Caribbean Tourism Organization (CTO) has announced that it will hold its sixth annual Caribbean Conference on Sustainable Tourism Development in Havana this year. The conference, which will be held at the Habana Libre Hotel April 27-30, will take as its theme "Keeping the Right Balance: Land and Sea Encounters," highlighting the impact of land- and sea-based activities on the sustainability of coastal areas and the necessary resources for sustainable tourism development. Cuba is a member of the CTO and has hosted other events in the past.
Carlson Wagonlit Travel and Holland America Line are teaming up in the month of February to offer savings and upgrades to customers who book select cruises and cruisetour options. Under the partnership, Carlson clients will receive discounts on select Holland America itineraries, as well as a two-category upgrade or up to $200 in shipboard credit. From Feb. 1- 29, clients will receive a two-category upgrade when they book an outside stateroom, or up to $200 in shipboard credit when they book a deluxe stateroom on select Holland America Line cruises and cruisetours. The promotion follows news that 70 percent of Carlson associates say their cruise bookings are up over one year ago. Thirty-four percent of associates say cruise bookings in January increased significantly.
Starting with this year's Alaska cruise season, Carnival Cruise Lines' 2,124-passenger Carnival Spirit will depart from Whittier, Alaska, on its seven-day southbound Alaska itinerary, providing a more convenient embarkation point and saving guests 90 minutes of travel time. Previously, Carnival's southbound Alaska cruises departed from Seward, Alaska, approximately three hours from the Anchorage airport via motorcoach. Using Whittier as an embarkation point for southbound cruises also allows for a longer eight-hour stay in Sitka, the first stop on that itinerary. Seven-day northbound Alaska cruises will continue to depart from Vancouver, B.C. Carnival Spirit's 2004 Alaska season consists of 16 seven-day Glacier Route and three Glacier Bay voyages.
At a press event at the New York Yacht Club, Celebrity Cruises announced the launch of Celebrity Xpeditions, a series of experiences that are designed to combine exotic destinations with luxurious cruising. The first such cruise is scheduled to begin on June 11 with a series of seven- to 10-night journeys to the Galapagos Islands onboard a ship purchased and refurbished by Celebrity, the Celebrity Xpedition. The 296-foot, 2,842-GRT vessel will accommodate 100 guests; 64 crew will be onboard. The ship will offer 47 oceanview staterooms and eight suites, of which the largest will be 396 square feet. There will also be two restaurants, two bars, a library, gift shop and a small spa. Cruises will feature lectures by naturalists, who will double as tour guides for frequent excursions to the islands. Prices for the Galapagos itineraries, which go on sale on Jan. 15, will start at $268 per day. Other Xpeditions expected to be announced later this year include trips to Antarctica, the Arctic, Alaska and Florida.
Putting its separation from Virtuoso and Signature Travel Network behind it, Classic Custom Vacations renewed its contracts as a preferred supplier with Vacation.com, MAST and WESTA. It will also continue of its contract with GIANTS. Said Bob Hohman, president of Classic Custom Vacations: "Our commitment to these agencies includes a strict privacy policy that protects agencies' customer names and provides price equality for the agency channel." Added Dick Knodt, president and CEO of Vacation.com: "The level of service provided by Classic for luxury vacations is well known in the industry, and our members feel comfortable leaving their valued clients in the hands of Classic." Classic has been a preferred supplier for GIANTS for 16 years. In November, Classic was voted the 2003 Top Preferred Supplier for Land Vacations by GIANTS agencies. The 2004 contract with WESTA marks the 14th yearly agreement, and the contract from MAST positions Classic as its official luxury provider.Continental is expanding UATP travel payment options to corporations through its recently formed alliance with AirPlus International, the largest issuer of UATP. AirPlus allows travel managers to access data online to create reports and control travel budgets and policies. And it also gives agencies a way to process airline tickets and incidental charges. Continental also will retain its original UATP account for use by corporate customers if they choose.
Continental Airlines reported fourth quarter net profit of $47 million, compared to the net loss of $109 million the year before. It was helped by the sale of Hotwire last year and the move of Orbitz to go public. Chief Executive Gordon Bethune, who announced his retirement last week, warned that the high price of jet fuel would make 2004 "a struggle to break even this year."
Costa Cruises, owned by Carnival Corp., announced it has signed a letter of intent with Italian shipbuilder Fincantieri to construct a new 112,000-GRT ship to be delivered in summer 2006. Costing 450 million euros, the new ship will be built at Fincantieri's Sestri Ponente shipyard, feature 1,502 staterooms, and accommodate 3,800 guests. It will be the largest passenger ship in the history of Italian cruising, and will be deployed in the Mediterranean year-round.
Petaluma, CA-based luxury tour operator, Creative Leisure International (CLI), has expanded into the Caribbean and other prime leisure areas with its just-announced acquisition of luxury vacation rental firm, Villas of Distinction. Adding in excess of 200 properties to the CLI portfolio, the Villas of Distinction purchase also gives CLI an expanded presence in the eastern U.S., as former Villas president, Robert Eastman, will stay on to manage CLI's east coast activities. The Villas of Distinction purchase is part of CLI's ongoing "horizontal expansion" into a greater depth and breadth of luxury home and condo rentals, according to Jay Risher, a CLI director. Adds CLI chairman, Peter Henze, "Our single biggest niche is families. Not necessarily nuclear families but extended families where grandparents are taking grandkids on vacation, or where affluent couples travel together. This acquisition gives our travel agent distribution network more value to sell to these consumers." Noting that some 98 percent of CLI's bookings come from travel agents, Henze says, "Our future is very focused on being able to increase the product and information options available to travel agents, to enable them to sell."
Club Med's dedicated Web site for agents [www.clubmedta.com], which was launched last February, now offers online price quotes for travel agents. The site also allows agents to send promotions to clients, take virtual tours of Club Med villages, access special offers and order marketing collateral.
According to published reports, Cuba has seen a dramatic drop in U.S. arrivals to the island since the Bush administration decided to eliminate the cultural exchange licenses that had allowed Americans to visit the island under humanitarian auspices. Bob Guild, program director for travel service provider, Marazul Charters, said his company sent 2,500 people to Cuba in January 2003. He estimates that this January, Marazul will do about half that number. There are still a few legal ways to travel from the U.S. to Cuba, but these are restrictive and disallow out most of those who had visited in the past.
Deloitte & Touche LLP and Smith Travel Research announced 2003 performance data for the global hotel industry at the Americas Lodging Investment Summit (ALIS) in Los Angeles on Monday. Looking at the various regions of the world, Europe fared the best in terms of U.S. dollars, with a 10 percent increase in revenue per available room (RevPAR) in 2003. The growth, however, is attributed to an increase in average room rate. Hotels in the Middle East reported a 6 percent increase in RevPAR growth in 2003 compared to the previous year. Growth in average room rates and demand from military, journalists and corporations involved in rebuilding Iraq contributed to a RevPAR increase in the region. Despite the SARS epidemic, Asia hotels reported a 2 percent drop in RevPAR and a 5 percent increase in average room rates. Demand for the region, however, fell by 7 percent. The U.S. market closed 2003 with a 0.4 percent RevPAR increase after being the only region to report RevPAR losses in 2002.
Delta will implement zone boarding on Jan. 21 on domestic flights, including San Juan, Puerto Rico, and St. Thomas. This will replace boarding by rows with boarding by staggered zones, which reduces aisle congestion. Several other airlines use this system, which prints a zone number on the boarding pass. First Class and Medallion customers will continue to receive priority boarding. The system will be used also on international flights that leave from the U.S.
Delta is planning to invest more than $300 million in New York-Kennedy Airport to expand its service there. It is increasing its flights and adding eight new destinations, as well as 14 added frequencies to existing markets. It also will upgrade its terminal by investing in systems and processes that are "behind the scenes." Many of these changes will be made by September, including starting new service to Denver and San Juan, Puerto Rico, in April, to Santo Domingo in June, and to San Diego in July. Song also will begin flying to Fort Myers on May 1. It will add a flight to Los Angeles, San Francisco and Seattle on April 4, and another to Las Vegas on June 1. Delta Connection service also will be expanded at JFK.
A national committee of museum directors and maritime historians has placed the Delta Queen in the National Maritime Hall of Fame at the American Merchant Marine Museum in Kings Point, N.Y. It will be inducted in a ceremony there on Jan. 24. The vessel is the only such honoree still in use, honorees usually have to have sunk or been scrapped for at least five years to be eligible for the award. The Delta Queen is the last operational steam paddlewheeler offering overnight lodging.
Agents say that 2004 is turning out to be a good one for river cruising. With clients increasingly eager to cruise America's rivers, Bruce Nierenberg, Delta Queen Steamboat Company's executive vice president says, "People are taking advantage of our advance purchase offers, and our bookings are double what they were last year at this time." In fact, Delta Queen says its bookings for the entire year are coming in at an accelerated pace, and the line expects a significantly better year than 2003.
Direct Group Connections (DGC), a Web-based advertising/research service, has gone live in 17 cities. The firm profiles key vendors in major convention and resort destination cities, such as Phoenix and Miami, allowing event planners to preview preferred, established suppliers in specific locations via the Internet. Once on the DGC Web site, planners may book directly with vendors. The company says the direct-link option reduces booking fees by roughly 30 percent. DGC plans to extend its content to 50 cities by the middle of the year. International destinations, beginning with London, will debut this fall.
In time for peak booking season, the home page for disneytravelagents.com recently underwent a major overhaul that will streamline online booking and provide enhanced messaging for travel agents in 2004. Improvements to the homepage include: a dedicated "Book Disney" area; a more prominent "Featured Offers" area; expanded "What's New" messaging, offering links to more information on Disney travel products; and a scrolling "Just for You" section. Navigation throughout the site has been re-labeled to include easy-to-understand tags such as "Buy tickets" and booking links on relevant pages have been moved to the top of the page. The redesigned site now offers travel agents more than 450 pages of agent-specific Disney Destinations information and enhanced navigational links to booking opportunities through Disney's Central Reservations and the Walt Disney Travel Company.
Dollar Rent A Car has joined Frontier Airlines' EarlyReturns frequent-flyer program. Members of this program can now earn 50 miles per rental day at participating locations. Through May 31, EarlyReturns members will receive triple miles when they rent any size vehicle for one day or more.
Festival Cruises says it is continuing negotiations with a number of banks in an effort to resolve differences that have arisen with shipbuilder Alstom and bank Credit Agricole and in turn have led to the immobilization of three of the company's ships since Sunday. A statement from Festival says it is "optimistic that an agreement can be reached to the satisfaction of all parties very shortly." In related news, Festival has canceled its Jan. 25 European Vision departure from Santo Domingo and its Jan. 26 European Stars sailing from Genoa.
Festival Cruises has canceled the February 1 sailing of the European Vision from Santo Domingo, Dominican Republic. The line says negotiations regarding options for refinancing the European Vision, European Stars and Mistral are continuing. "We believe that answers and future direction should be coming shortly," says Jim Applebaum, president for First European Cruises, Festival Cruises' North American marketing arm. In a statement, the line said it "remains optimistic about reaching a solution and is working day and night towards that goal."
The state of Florida agreed to spend $11 million as part of a deal to save Cypress Gardens, one of Florida's original tourist attractions. Known for its botanical gardens, water-ski shows and southern belles in hoop skirts, the 70-year-old park in Winter Haven was forced to close in April 2003 due to dwindling attendance. The new state funding paves the way for Cypress Gardens to reopen this spring. Under other parts of the deal, Kent Buescher, who owns Wild Adventures in Valdosta, Ga., will pay $7 million for 130 acres, and Polk County &endash; in which the park is located &endash; will buy the park's historic 30-acre core for $2.5 million. Buescher's firm will operate the park, which could reopen by Memorial Day weekend. Buescher said he also plans to invest $36 million to refurbish the gardens and buildings, to add roller coasters and concerts and to bring back water ski shows.
Frontier Airlines has capped its domestic fares from Denver (does not include flights to Mexico and Alaska) at $299, in an effort to better compete for corporate and leisure traveler business with other low-fare carriers such as Jet Blue. The fare cap represents a 25-50 reduction from its previous caps of $399 and $499. A spokesman for Jet Blue, which also operates flights out of Denver, says the airline "is not surprised" by Frontier's decision, adding that "it is not a serious competitive threat." Jet Blue added that the fare is more in keeping with what today's business and leisure travelers want to pay, pointing out that even American capped walk-up fares on routes where they compete with Jet Blue, such as New York to San Diego.
The new owners of Glacier Bay Cruiseline are Doug Toms, Don Simplot and Bob Brennan, who acquired the assets of the small ship line from Alaska native corporation Goldbelt for an undisclosed amount. The sale included the 87-passenger Wilderness Discoverer, 69-passenger Wilderness Adventurer and 31-passenger Wilderness Explorer. Most recently, Brennan was president of Sunmakers Travel Group and formerly was senior vice president of marketing, sales and administration for Holland America Line-Westours, and president of Princess Tours. Currently, Glacier Bay Cruiseline offers six- to nine-night cruises between May and September featuring Alaska's Inside Passage, with prices starting at $1,390 per person double. Guests can save up to $300 per couple if they book by Feb 28. Beginning in April, the company will offer new seven-night adventure cruises featuring Oregon's Columbia, Willamette and Snake Rivers. Cruises depart in April, May, September and October, with prices starting at $1,200 per person double.
A new rewards program will encourage travel agents to promote Globus, Cosmos and Monograms tour products. The company is sending a group of "mystery shoppers" to some 50 agencies a week for six weeks. If an agent recommends a Globus program to a mystery shopper, the agent will win $50 on the spot. Agents who recommend Globus are then entered into a drawing for a weekly $10,000 cash prize. Globus' bookings are up 114 percent in the early going of 2004, including bookings made in 2003 for 2004. The big destinations are Italy, up 91 percent, and Britain up 104 percent. The statistics represent numbers of bookings.
The Great Canadian Railtour Company says it will launch a new tourist train that will follow the Skeena River all the way to British Columbia's Prince Rupert Island. The three-hour trip will serve as a potential excursion for the average 60,000 passengers who cruise in Alaska annually.
In a move to enhance its guest experience, Hampton unveiled 60 new product and service standards in a program called "Make it Hampton." More than $80 million will be invested over the next several months, with a majority of the enhancements to be implemented in the brand's 1,250 hotels by the end of the year. The program is currently operating at 120 hotels, with another 120 coming online per month. Four areas of improvement include the welcome, breakfast, guest room and bathroom first impression, and the chain's 100 percent satisfaction guarantee program.
In her annual state of the state address before Hawaii lawmakers, Hawaii Gov. Linda Lingle noted that growth in Hawaii travel and new travel security requirements have led her office to seek approval to spend federal funds to improve the airports in Honolulu and in Kahului on the island of Maui. In addition, Lingle asked legislators to support funding to upgrade the state's harbors to accommodate additional cruise-ship passengers. She also pointed out that her cabinet-level tourism liaison, Marsha Wienert, "is working effectively with industry leaders, legislators and the community to develop a comprehensive strategy to remain competitive in the years ahead. At the same time, she is working effectively with her fellow cabinet members to make certain that state parks, airports, harbors and other infrastructure is in place to sustain a healthy visitor industry."
Hawaiian Airlines [www.hawaiianair.com] plans a May 17 launch of non-stop Honolulu-Sydney service pending governmental approval from Australia and the U.S. The carrier says it will offer four flights a week using Boeing 767-300ER aircraft capable of holding 18 passengers in first class and 234 in coach. The flight time is approximately 10 hours.
On Tuesday, Joshua Gotbaum, the trustee leading Hawaiian Airlines through Chapter 11 reorganization, presented a business plan that would expand the carrier's transpacific service and maintain inter-island flights. Among the key elements are reducing costs by renegotiating aircraft leases and labor agreements. Although the carrier announced that it has logged record profits during the past nine months, most industry analysts foresee increased competition from other carriers that have reduced costs within the last year. Gotbaum's plan examines continued growth while controlling costs so that the carrier can remain profitable despite increased competition. According to Gotbaum, Hawaiian hopes to negotiate changes within the next two months, and follow up with a formal reorganization plan this summer so the airline could receive court approval to exit bankruptcy in September.
Hawaii hotels posted an overall occupancy of 79.1 percent for the week ended Jan. 17, an increase of 11.3 percent from the same week a year earlier, according to Hospitality Advisors' latest weekly snapshot of the industry. The average daily rate statewide climbed by 8.3 percent, to $162.37. Both tallies surpassed national performance, as well as the numbers posted in Los Angeles, Orlando and San Diego. For the week, Maui led all islands in occupancy at 81.4 percent, an 11.1 percent boost over year-earlier tallies. This gain was counterbalanced, however, by a 5.2 percent dip in room rates to $177.41. Oahu posted the second-highest occupancy last week&emdash;80.2 percent&emdash;an increase of 12 percent. Average daily rate at Oahu hotels also was up by 10.2 percent to $123.39. These increases were thanks in part to the presence of several large corporate groups.
Hertz and Air France signed a global agreement that will supply exclusive benefits and preferential car rental rates to Air France passengers, and to members of Fréquence Plus, the carrier's frequent traveler program. Hertz has been the global car rental partner to Air France since 1989, and the new agreement is valid through Dec. 31 2005. All Air France passengers will be offered free enrollment into Hertz' expedited rental service, Hertz #1 Club Gold. Hertz #1 Club Gold is a premium rental program designed to provide a higher level of service and convenience. Fréquence Plus members will also receive a newly structured mileage program, which offers up to 600 Fréquence Plus miles per each Hertz rental of three days or more.
Hilton will launch on Jan. 22 2004 a new Web site, called MyLeisureTrip.com, offering a portal for consumers to access information on travel, entertainment and hospitality. Users can access details on outdoor activities, festivals and museums in specific cities throughout the U.S. and Canada. The site will also offer booking capabilities for any Hilton hotel as well as access to special offers, an e-newsletter and Hilton HHonors enrollment.
Hilton's upscale mid-priced brand, Hilton Garden Inn, is launching a new travel agent code and reservations number. Starting Feb. 5, agents can use the new "GI" chain code and toll-free number at 877-STAY-HGI to book more than 180 Hilton Garden Inn hotels in the U.S., Canada and Mexico. Prior to the new code, Hilton Garden Inn properties could be booked under the Hilton full-service chain code "HH."
iJET Travel Risk Management, which delivers real-time travel and security information to corporate travel managers and travelers, is now giving customers mobile access to its emergency response center. Travelers can use the system "virtually" anywhere on the planet via satellite networks, or in more than 150 countries through a cell phone. iJET is using Roadpost Inc. to preprogram each phone to receive itinerary-specific intelligence and to open a direct line, if needed, with iJET's 24-hour response center. Cell phone users will see travel alerts and be able to communicate in the event of an emergency.Independence Air, the new carrier that Atlantic Coast Airlines wishes to launch out of Washington-Dulles Airport, has selected the Spectrum seat by B/E Aerospace for use on all of its Airbus's and Canadair Regional Jet aircraft. The all-leather seats will not only be installed on new Airbus's, but the CRJ's also will be completely retrofitted. The airline said the seats provide one extra inch of legroom. Atlantic Coast is still waiting to be released from its United Express contract so that it may proceed with launch plans.
A new survey conducted by San Diego-based Innovation Analysis Group finds that nearly one-third (31 percent) of airline travelers say they switched airlines in the past year. IAG surveyed 600 travelers to obtain data on brand switching choices in the past 12 months. That is more than the number of people who switched their ISP, cell phone provider, bank or credit card. The biggest reason for switching airline brands (10.2 percent), according to the survey, is that travelers found a lower fare on another airline. Another 5.9 percent said it was because they were flying to a different place than before; 5.2 percent listed the reason as "other"; and 4 percent said they were unhappy with customer service.
InterContinental Hotels Group is adding a new premium status to its guest loyalty program, Priority Club Rewards. Its Six Continents Club will now become InterContinental Ambassador as a new status within Priority Club Rewards. The status will offer the benefits of the former Six Continents Club and offer points and a broad range of reward choices from the Priority Club Rewards program. InterContinental Hotels Group had been operating two loyalty programs&emdash;Six Continents Club and Priority Club Rewards&emdash;each of which had different benefits. To simplify the programs, the company decided to merge the best of each program. As a result, InterContinental Ambassador members will receive such added perks as a complimentary weekend night stay certificate upon renewal of membership or enrollment, guaranteed upgrades to superior rooms, a dedicated reservations line and check-in area, VIP greeting and welcome gift, and a late check-out. In addition, members will receive the full benefits of Priority Club members, including 2,000 points for each stay. The initial enrollment fee for InterContinental Ambassador is $150 with a $100 annual renewal fee. Customers can sign up online at www.priorityclub.com/ambassador
InterContinental Hotels Group (IHG) announced that high-speed Internet access would be standard and available in all five brands in North America by early 2005. This includes 2,500 InterContinental Hotels and Resorts, Crowne Plaza, Holiday Inn and Holiday Inn Express hotels. High-speed Internet access has been a brand standard at Staybridge Suites hotels since the brand launched in 1998. Crowne Plaza hotels will implement the service by the end of the year along with Holiday Inn and Holiday Inn Express, which will offer the access for free. InterContinental Hotels and Resorts will complete high-speed Internet access worldwide by the end of the first quarter of 2005.
St. Louis-based INTRAV is offering shorter itineraries in its new 2004 product line. The shorter programs are called the 101 Series and they include vacations to Europe, Central and South America ranging from seven to nine days in length. Priced lower than INTRAV's other programs, the 101s, as the name indicates, are being used to introduce travelers to the luxury operator's products. Germany, Hungary, the Czech Republic, Guatemala, Italy, Holland and the Galapagos Islands are all featured, with tours that offer sightseeing, deluxe accommodations, all meals and dine-around options.
Island Expeditions, an adventure tour operator serving Belize, has created a new Web site [www.belizetours.info] for travel agents and their clients. The site is an information resource to learn about the company's product line, but does not include any company contact information &endash; a move designed to prevent agency customers from making supplier direct bookings. Island Expeditions says its marketing efforts this year will more directly target the travel agent community.
Le Meridien has four properties in the pipeline in the Asia Pacific region. Look for Le Meridien Cyberport to open April 15 in Hong Kong with 173 rooms and suites featuring Le Meridien's Art + Tech design concept. The 258-room Le Meridien Khao Lak Beach Resort is scheduled to open during the second quarter on Thailand's Khao Lak Beach in Phang Nga Province while Le Meridien Kuala Lumpur is set to open in the third quarter with 422 rooms and suites. On the horizon for 2005 is Le Royal Meridien Shanghai, a 722-room deluxe property set to open in the third quarter.
Lufthansa will begin charging a $20 fee to convert an electronic ticket to paper on Feb. 1. All customers purchasing paper tickets in the U.S., Puerto Rico or U.S. Virgin Islands when an e-ticket is available will be charged. The fee must be collected on a miscellaneous charge order (MCO) document, and is non-refundable and non-commissionable. Virtuoso sent a note to its members that if Virtuoso Air is issuing the paper ticket, it will require the agent to advise who is paying the fee and Virtuoso Air will issue the MCO.
Holland America Line's Maasdam docked for the first time at the Port of Norfolk's Nauticus Pier. The 1,258-passenger vessel will homeport there for 15 eastern and southern Caribbean cruises through April and again from October through December.
Marriott International will offer free high-speed Internet access in guest rooms at its Residence Inn, TownePlace Suites and SpringHill Suites brands. In all, a total of 600 hotels in North America will offer free access. The company's Courtyard brand began offering free high-speed Internet access last September, and Fairfield Inn hopes to offer access in about 500 hotels by the end of 2004. By the end of the year, Marriott expects more than 1,700 select service and extended-stay properties will offer free Internet access to guests.
Marriott ExecuStay, Marriott's corporate housing division, announced a new 11-market franchise agreement with Suite Options of Wichita, Kan. Effective Feb. 1, the new agreement will double Marriott ExecuStay's franchised markets from 11 to 22. Suite Options will operate corporate housing in Wichita; Tulsa and Oklahoma City, Okla.; Kansas City, Mo.; Little Rock, Ark.; Des Moines, Iowa; Dallas, Houston, San Antonio and Austin, Texas; and Jacksonville, Fla. Marriott ExecuStay also opened its first high-rise building and its second fixed corporate housing property in New York. The Aurora, located at 556 Third Ave., features 126 units with doorman service, catering to travelers staying a minimum of 30 days. Studio and one-bedroom apartments are available.
Halifax, Nova Scotia-based Maritime Travel, one of the largest privately owned travel companies in Canada, has joined GlobalStar Travel Management. Maritime generates sales in excess of $ 140 million annually and employs roughly 300 people. New Jersey-based GlobalStar is a worldwide joint-venture partnership of travel management companies with combined sales in excess of $5 billion annually. The organization is structured into four regions, including North America, Latin America, Europe (comprising the Middle East and Africa) and Asia/Pacific.
Mobile Travel Guide released its first publication rating hotel and resort spas in the U.S. and Canada. America's Best Hotel & Resort Spas features 48 hotel and resort spas that received three- and four-star ratings from Mobile. Approximately 150 properties were inspected; however, no property received a five-star rating. Winners include Alvadora Spa at Royal Palms Resort & Spa in Phoenix; Bernardus Lodge Spa at Bernardus Lodge in Carmel Valley, Calif.; Spa Montage at Montage Resort & Spa in Carlsbad, Calif.; Spa at Four Seasons Resort Aviara in Carlsbad; The Bachelor Gulch Spa at the Ritz-Carlton in Avon, Colo.; The Spa Mandarin Oriental in Miami; The Spa at the Ritz-Carlton Lodge, Reynolds Plantation in Greensboro, Ga.; Spa Grande at Grand Wailea Resort in Maui; The Spa at Four Seasons Hotel in Chicago; Canyon Ranch SpaClub at The Venetian in Las Vegas; Woodlands Spa at Nemacolin Woodlands Resort in Farmington, Penn.; and Trellis, The Spa at The Houstonian in Houston. The guide is available in bookstores and at [www.mobiletravelguide.com].
Citing a strengthened economy, the National Business Travel Association (NBTA) says corporate travel is headed for a rebound later this year and on into 2005. In a survey of corporate travel managers, more than 70 percent of respondents said they believe business travel will rebound significantly this year. "The economy and business travel are closely related, as one helps drive the other," said Carol Devine, the NBTA's president and CEO. "While the challenges of the past few years have taught us to be cautious, economic trends and travel purchase indicators bode well for an increase in business travel &endash; with the possibility of significant volume increases at the end of the year and into 2005." Travel managers report a growing commitment to the purchase of mid-priced hotel accommodations and airfares from discount airlines.
After a preliminary inspection of the Pride of America, the new NCL America ship seriously damaged during a storm at a German shipyard last week, NCL has decided to replace the Pride of America's scheduled Hawaii cruises starting July 4 with the early introduction of the Pride of Aloha, currently sailing as the Norwegian Sky. The Norwegian Sky will undergo a multimillion-dollar remodeling in May and reflag to U.S. registry early to assume Pride of America's itinerary. Agents can expect to see the Pride of Aloha begin California sailings in early June. The ship will be christened July 4 in Hawaii and then launch seven-day inter-island cruises. Originally, the Pride of Aloha was slated to begin operating three and four-day Hawaii service in October. NCL said it is still too early to pinpoint the new delivery date for Pride of America, but it expects a substantial delay&emdash;months rather than weeks. Passengers booked on Pride of America will be rebooked on Pride of Aloha, with details to follow from NCL this week. Passengers on the Pride of America's originally scheduled cruises will be given incentives to shift to the new program, and Norwegian Sky passengers booked in Alaska will be similarly accommodated, said NCL.
The Lord of the Rings movie trilogy helped push New Zealand arrivals to record levels in 2003, and nowhere was that effect more evident than in the U.S. market. According to Regional Director of Tourism Gregg Anderson, "[2003] was a record year for New Zealand, with arrivals up approximately 5 percent from North America." Tourism New Zealand is expecting that trend to grow, due in part to "the Kiwi Invasion" of this year's Academy Awards. Films with ties to New Zealand &endash; including The Last Samurai, Whale Rider, and Master and Commander &endash; are all up for Oscars. Of the 2 million-plus visitors to New Zealand last year, Anderson says roughly 11 percent came from the U.S., adding that travel agents were responsible for as much as 60 percent of those bookings. With arrivals from the U.S. and Canada on the rise, Anderson says New Zealand's tourism product is shifting noticeably toward the affluent end of the spectrum. Evidence of this can be found in the increased number of five-star lodges and boutique hotels popping up there, including the new luxury golf lodge, Cape Kidnapper's at Hawk's Bay. Anderson says that even traditional motorcoach tour operators are now modifying their product to appeal to high-end travelers. Increased air capacity, including Air New Zealand's San Francisco flights (see item in "Airlines"), as well as new Qantas flights out of New York rumored to be starting in April, are helping make the destination more accessible than ever.
Norwegian Cruise Line's new Pride of America, the first of three U.S. flagged cruise ships planned for the new NCL America brand, was damaged during a strong storm with gale-force winds at the Lloyd Werft shipyard in Bremerhaven, Germany on Wednesday. Workers were evacuated, two people were slightly injured, and the ship is currently grounded along the pier, listing at 15 degrees and with three decks and engine spaces apparently submerged under water. The ship was slated for delivery in April, and the line plans its first NCL America cruises in Hawaii on July 4. NCL in a statement said the ship is resting on the bottom of the channel, "is secure" and will be refloated in the next few days. Until then "Lloyd Werft will not be able to assess the extent of the damage or any potential delay in the delivery schedule" the statement said. Investigations into the accident are under way, and divers are inspecting the hull, but German waterways police reportedly cannot provide any reason for the accident at this point.
A Miami judge has dismissed a lawsuit against Norwegian Cruise Line filed by the families of crewmembers killed in an explosion last year on the Norway. Six Filipino workers were killed and four injured when a boiler exploded. NCL collected $350,000 in donations for the families, but the money has not yet been disbursed. The families sued NCL to get the money released, but the court found for NCL in its decision.
NYC & Company is launching its first Mobile Visitor Information Center (Mo-VIC). At scheduled stops, the car will offer information at top attractions and special events throughout the five boroughs. The schedule will soon be posted at [www.nycvisit.com]. Mo-VIC is part of NYC & Company's annual Paint the Town winter promotion.
Orbitz for Business is offering corporate customers discounted rates on car rentals through a new agreement with Avis, Budget and Hertz. Customers can register for access to discounted rates on a collection of cars, from compact through full-size, at a range of pricing options that are lower than published retail rates. Orbitz continues to offer a full selection of car rental options. Orbitz for Business displays corporate discount rates alongside published rates in a single display for all car, hotel and air bookings. To enroll in Orbitz for Business or for additional information, visit www.orbitzforbusiness.com.
Orbitz and Worldspan have resolved their contract dispute over the levels of service Orbitz is using in Worldspan. The online travel portal had threatened to end its partnership with the GDS. Orbitz Chairman, President and CEO Jeff Katz said, "Worldspan has been and continues to be an outstanding service provider. We are pleased that our dispute is now resolved and we look forward to maintaining our successful technology partnership with Worldspan as Orbitz continues to grow its business in online travel."
Peter de Jong, chairman of the Pacific Asia Travel Association (PATA), revealed in Seoul that a PATA delegation went to North Korea this past September to visit potential tourist destinations and assess what their best options would be to attract foreign visitors. A report on their visit to the North and the assessment of the country's tourism industry will be published next month. De Jong said that PATA will encourage its members to visit North Korea during its 2004 PATA Annual Conference on Cheju Island, South Korea, slated for April 18-22 2004.
Payless Car Rental has entered into an affiliate agreement with Network Car & Truck Rentals Australia to expand its brand throughout Australia and New Zealand. The new partnership brings 90 new locations to Payless' portfolio. Reciprocal reservation systems and Internet links will exist between the two companies, offering car rental reservations through [www.paylesscarrental.com]. This move, combined with Payless' recent affiliation with Sixt Rent A Car in Europe, means that the company has a presence in 60 countries with more than 1,400 locations.
Priceline.com and National Leisure Group (NLG) announced a multi-year renewal of their partnership under which NLG provides cruise inventory to Priceline Cruises. Financial terms were not disclosed. The new deal includes a best price guarantee for Priceline.com customers. If a customer purchases a cruise and finds a better price online within 48 hours for the same cruise and accommodations, the two companies will refund 100 percent of the difference.
Bookings are now open for Pride of Aloha's new seven-day Hawaii cruises. The ship, which currently sails as Norwegian Sky, will take over the damaged Pride of America's previously scheduled cruises beginning July 4. Pride of America received significant damage in a shipyard accident last week, and NCL says the repairs will take months, not weeks. NCL is contacting travel agents with clients booked on Pride of America to try and move those passengers to the Pride of Aloha. If the client is rebooked on an equivalent or superior cabin on Pride of Aloha, the line will protect the client's rate, and in some cases, even reduce it if a passenger is moved to an equivalent or superior cabin. If a similar category is not available, NCL will offer a new price, a future cruise credit certificate and an air discount for air/sea customers. Guests who cannot be accommodated on the same date in any category may change their sail date, and NCL will pay for the air change fee. Passengers who choose not to transfer to Pride of Aloha will receive a full refund. Pride of Aloha will be christened on July 4 in Honolulu. As soon as Pride of America's new delivery date is known, NCL will announce the combined schedule of cruises for the two NCL America ships. Details about alternative arrangements for Norwegian Sky passengers booked in Alaska will be announced sometime this week.
According to PricewaterhouseCoopers U.S. lodging industry research, Internet bookings are expected to nearly double in share in 2005, growing from 13 percent in 2003 to 24 percent. Net revenue is expected to increase slightly from 2003 (approximately $400 million) to $1.66 billion. PwC also forecasts that in 2005 the Internet will contribute incremental gains of 45,000 rooms per night, and $1.24 billion for the year. In 2003, the Internet contributed 26,000 rooms per night and $715 million of incremental revenue. PwC says the boost in Internet business can be attributed to drastic industry change over the past three years, an expected upswing in 2004-2005, and recent decisions by lodging companies to use the Internet for yield and inventory management.
Qatar Airways will be adding Luxor, Istanbul, Zurich and Kabul to its list of destinations this summer. It currently serves 48 destinations after adding 10 last year, and wants to hit 60 by the end of 2005. In June it will begin flying to Luxor, Egypt and to Istanbul. In July Qatar will add Zurich, followed by Kabul, Afghanistan in November. Separately, the government of Qatar has awarded Bechtel Corporation a contract to develop the new Doha International Airport at a cost of $2.5 billion for phase one. The new airport will be located four kilometers east of the existing facility. When it opens, the new airport will be able to handle 12 million passengers a year through 24 gates. Phase one is scheduled to be completed by late 2008.
With record bookings nearing $21 million for the second week of January, Radisson Seven Seas Cruises (RSSC) says it's bullish on 2004. RSSC's call volumes are up almost 50 percent from last year. Not only is consumer interest in the line's cruises at a high, but revenue is 30 percent ahead of last year, according to Mark Conroy, RSSC's president and CEO. Says Conroy: "Though we are still getting many close-in bookings, we are also seeing a surge in activity for the summer programs in Europe, Alaska and Bermuda." Due to the record call volumes at RSSC's reservations center in Omaha, Conroy asked that travel agents be patient when they call, as it may take slightly longer to connect with reservations agents, even though the line has increased staffing levels.
The U.S. Bankruptcy Court for the Southern District of Florida has granted partial summary judgment to travel agency Accent On Travel in its attempt to recover commissions paid on un-sailed Renaissance Cruises. On the first count, the court ruled that Renaissance's creditors couldn't take back commissions paid on un-sailed cruises. On the remaining three counts, however, the court left the door open for Renaissance's trustee to prove that certain other commissions are subject to recall. On Sept. 25, 2001, Renaissance Cruises, Inc. filed for Chapter 11 bankruptcy, and Accent on Travel (an ASTA member) was one of hundreds of small travel agencies later sued by the Renaissance trustee, which is seeking to collect an average of roughly $2,000 in commissions from each agency named in the filing. Renaissance has since liquidated, and ASTA has been working with member agencies to fight the commission recalls.
Robin Farley, a leisure analyst from UBS Warburg in New York, says cruise Wave Season 2004 is shaping up even better than expected. Major cruise line yields in the first quarter are poised to increase 5 to 7 percent, and rise above that level in the second quarter&endash;much higher than UBS' previous projections. European cruise load factors are up 15-18 points year over year, Farley reports. She adds that 30 percent of travel agents are now booking Royal Caribbean brands through automated channels, helping to reduce the company's distribution expenses. Looking ahead, Farley has increased her yield and earnings expectations for both Royal Caribbean Cruises Ltd. and Carnival Corp.
Cape Liberty Cruise Port is the name chosen by Royal Caribbean Cruises Ltd. (RCCL) for its newly acquired port facility in Bayonne, New Jersey. From May through October, Cape Liberty will serve as a seasonal homeport to Royal Caribbean International's Nordic Empress and Voyager of the Seas. Last December, Royal Caribbean signed a letter of agreement with the Bayonne Local Redevelopment Authority (BLRA) to construct and operate a new cruise port facility at the former Bayonne Military Ocean Terminal peninsula, now called The Peninsula at Bayonne Harbor. Sister brand Celebrity Cruises will continue to sail from Manhattan's west cruise pier.
Royal Caribbean Cruises Ltd. (RCCL) reported 2003 net income of $280.7 million, down from 2002's net income of $351.3 million. However, the 2003 earnings were well within the range anticipated by analysts, given world events earlier in the year. For 2003 revenues increased 10.2 percent to $3.8 billion from 2002 revenues of $3.4 billion. The revenue jump was primarily due to the company's ability to sell more cruise berths as RCCL took delivery of new ships, as well as more guest shipboard spending. RCCL says its bookings and pricing levels are rising, noting that it has posted several booking records during the initial stages of Wave Season.
Royal Olympic Cruise Lines said it and two subsidiary companies, Olympic World Cruises and Royal World Cruises, which own the cruise ships Olympia Voyager and Olympia Explorer, have reached a new agreement with German lending institutions. The companies remain subject to a Chapter 11 reorganization in Hawaii. Both ships remain in U.S. waters, as ordered by the bankruptcy court, and are not operating cruises at this time. In a statement, ROC said that a new announcement on the terms of the agreement will be made shortly, and that "this agreement represents a major step forward for resolution of the present impasse facing the company." Authorities in South Africa arrested another of the company's ships, the Olympia Countess, last week, but ROC says it is in discussion with that ship's creditors.
Royal Olympia Cruises (ROC) has advised the U.S. Federal Maritime Commission (FMC) that it has begun to refund fares on cancelled cruises of the Olympia Voyager and Olympia Explorer. The line says checks are being sent to customers who paid by cash, and credits are going out to those who paid by credit cards. Refunds are being processed in the order that cruises were scheduled to commence. ROC has told the FMC that clients do not need to do anything, as the refunds are being processed automatically. The FMC stresses that its rules only provide protection for the cruise fare, not air fare or excursions.
Sabre Travel Network will charge airlines an average of 2.3 percent higher fees beginning Feb. 1, with the exception of bookings covered under the DCA Three-Year Option discount program, which has two dozen participants. Meanwhile, a Worldspan spokesperson said the company has not and does not plan to announce its pricing.
Sabre agents in the U.S. and Canada, excluding Quebec, who are 25 years old or older, can participate in a Fast Track promotion with four drawings for the prize of $500 and a three-day weekend car rental from the Hertz Prestige Collection. The contest runs from Jan. 19 through Feb. 27. Agents sign up at https://eservices.sabre.com. For each new completed Hertz booking they make, agents will double their entries in the contest. The reserved vehicles must be picked up between Jan. 19 and March 8. The random drawings will be held on or around March 19 2004.Sabre Holdings posted a $14 million net loss for the fourth quarter of 2003, compared to $1 million profit for the fourth quarter of 2002. The company increased revenue 3.2 percent over the forth quarter of 2002 to $467 million. Sabre's reported $83 million net income for the entire year, a loss of $131 million compared to the full year 2002. Fourth-quarter revenue from the Sabre Travel Network totaled $345 million, down 3.3 percent. Fees for travel bookings processed through the Sabre GDS and its distribution partners totaled $366 million, an 8 percent decline over 2002. Meanwhile, fourth-quarter revenue for Sabre-owned Travelocity increased 17.4 percent to $97 million. Transaction revenue increased roughly 50 percent to $75 million. Travelocity's gross bookings totaled $3.9 billion in 2003 overall, an 11 percent increase over 2002.
Sabre's new Jurni Network, the offline leisure agency consortium, has released the list of its initial 33 preferred suppliers. Jurni says it has signed deals with Celebrity Cruises, Norwegian Cruise Line, Oceania Cruises, Orient Lines, Royal Caribbean, The Delta Queen Steamboat Company and Viking River Cruises. Some of the largest tour operator partners include Club Med, Cosmos, Funjet Vacations, Globus, The Mark Travel Corp., Pleasant Holidays, United Vacations, US Airways Vacations and Southwest Airlines Vacations. It has three car rental companies &endash; Avis, Budget and Auto Europe &endash; and it has Sabre Exclusives merchant hotels with over 1,600 properties. The full list can be found at www.jurni.com.
In a press conference at Sandals Montego Bay on Jamaica, Sandals Chairman Gordon "Butch" Stewart" announced the new "Sandals and Beaches Resorts Best Price Guarantee." Effective immediately, travel agents selling Beaches or Sandals properties will have access to the lowest price available. If another retailer suddenly discounts one of the company's products, a travel agent can call 800-SANDALS, and the resort company will match the price for that agent. ASTA issued a statement lauding the move.
A report released Jan. 29 by Shelley Taylor & Associates, a London-based research firm, concluded there would be a major shake-out among online travel sites, as leisure and business travelers look for more personalized service. The report, conducted October-December 2003, evaluates 46 online travel sites&emdash;22 North American, 17 UK, 6 European and 1 Other&emdash;representing a cross-industry sample including: 11 travel agencies, 13 airlines, 10 car rentals and 12 hotels. The report ranked Expedia, Travelocity, Hilton, Orbitz and Continental Airlines as the top five sites overall. The report concluded that: "All online travel sites are guilty of failing to deliver satisfying travel experiences. It is not sufficient to simply allow travelers to book and pay for travel services. Travel sites should offer the same level of service and support as their land-based equivalents." For example, only 13 of 46 sites offer language choices on their home pages, and while 18 sites provide international sites in addition to their primary site, only nine offer users the option of choosing a country (for either country of residence, departure, or other).
Silversea Cruises says it posted its best booking week ever last week, with net passenger gain almost 20 percent higher than the previous benchmark, set in July 2003. This record tally caps a 12-week period during which the line has posted an increase in average weekly reservations of about 40 percent compared with year-earlier tallies. In tandem with this growth, the company's net revenue build for the year is up almost 30 percent from the previous year. "We're seeing the greatest demand in the Mediterranean," says Albert Peter, Silversea CEO, "but our new summer cruises to Alaska have exceeded all expectations and are already beginning to sell out."
For the week of Jan. 4, Smith Travel Research reported increases in average daily rate (ADR) and revenue per available room (RevPAR) for the U.S. lodging industry, but a slight decline in occupancy. Occupancy dropped 0.9 percent to 46.4 percent, while ADR increased 2.5 percent to $82.11 compared to the same week in 2003. RevPAR rose 1.8 percent to $38.13.
Smith Travel Research's 2003 results for the U.S. lodging industry reveal a 0.2 percent increase in occupancy to 59.2 percent compared to 2002. Average room rates dropped 0.1 percent to $83.28, while revenue per available room increased 0.2 percent to $49.34. Room supply increased 1.3 percent, and demand rose 1.6 percent. Overall room revenue grew 1.5 percent to $79.9 billion. According to Mark Lomanno, president of Smith Travel Research, industry operating performance rose in the second half of the 2003, and that momentum is expected to continue into 2004.
Many attendees at the Society for Accessible Travel & Hospitality (SATH) World Congress in Miami on Wednesday attended a session by Anna Fesmire, CTC, director of travel educator partnerships, the Travel Institute, and got a sneak peak at The Travel Institute's new Lifestyle Specialist course entitled Selling To Travelers with Disabilities. Fesmire put on an abbreviated version of the course, which will be available as a self-study textbook this spring. Fesmire says the course materials are still in development, and told SATH conference attendees that those people wanting to qualify for the new designation will have to pass a test and complete "an experiential requirement" that is still being determined. The new course will cost $89 for TTI members, $99 for nonmembers.
Southwest Airlines continued almost by itself on the road to profitability in the fourth quarter. The carrier reported a quarterly profit of $66 million, up from $42 million the year before. America West Holdings Corp., the parent company of America West Airlines, reported a net income of $6.8 million in the same quarter, compared with a net loss of $52 million last year. Northwest reported a profit for the fourth quarter due to the sell off of assets and other one-time gains. The carrier reported income of $370 million, compared to a loss of $488 million in 2002's fourth quarter. Without its unusual gains (including the sale of Pinnacle Airlines Corp.), Northwest lost $129 million for the quarter, compared to the loss of $178 million the year before.
Starwood Hotels & Resorts Worldwide signed an agreement with Intrawest Corp. to operate its new 222-suite luxury condominium-hotel in Ontario, Canada. The Westin Trillium House will be located in a newly developed resort called the Village at Blue Mountain. Scheduled to open summer 2005, the ski-in/ski-out hotel will also feature 10,000 square feet of meeting space and access to an indoor/outdoor aquatic center.
TIA's National Chair Bruce Wolff told a record crowd (about 400) attending TIA's Annual State of the Industry luncheon on Tuesday that the industry has many battles to fight this year. But he also said the unity seen in 2003 by many different segments of the industry bodes well for 2004. The main priority, he said, is fighting for U.S. tourism dollars. And that does not just mean securing funding for promoting U.S. travel and tourism. It also means helping the government to decide what is realistic when it comes to improving security at our nation's borders. TIA President and CEO Bill Norman said the TIA and the Travel Business Roundtable are in discussions to further their partnership to lobby on these issues.
Some 800 delegates to Tourcom, the first world conference on tourism and public relations, were told that tourism's significance would now be treated as equally important as such lofty U.N. activities as global industry, education, agriculture and health. At Tourcom, Geoffrey Lipman, Special Advisor to The World Tourism Organization (WTO), said tourism is an industry that stimulates other sectors of the economy, bringing social benefits that other sectors do not deliver. The WTO became a U.N. agency in 2003, and has since achieved equal status with other U.N. organizations such as UNESCO and the World Health Organization. For example, the WTO will now have a full role in the operations of the U.N. General Assembly and Security Council, which puts tourism at the top of the U.N. agenda in terms of economic aid to developing countries. Tourcom, which was held in Madrid, brought together heads of tourism companies, national tourist organizations with journalists and media companies.
The House Transportation and Infrastructure Committee had intended to vote on a $375 billion funding bill for highways and mass transit on Feb. 3, but it has decided to postpone that vote indefinitely. Chairman Don Young (R-Alaska) said he is waiting to hear from a number of other committee chairman on how to pay for improvements to the nation's transportation system that are proposed in the bill, H.R.3550.
The Travel Industry Association of America (TIA) says bookings on the Internet for travel continue to grow, but at a slower pace than in the past. More than 64 million online travelers used the Internet last year to get information on destinations or to check prices. Of those, 42.2 million booked their travel online, which is an 8 percent increase over 2002. Online bookers that do all of their travel booking online has grown to 29 percent, up from 23 percent. Airline tickets are still the most popular travel product to book (75 percent of all online travel bookers) followed by hotel accommodations (at 71 percent) and rental cars (43 percent).
The Travelers Conservation Foundation announced that on Feb. 27, following Mardi Gras, more than 400 members of the tourism industry will "give back" to their country by helping to preserve St. Louis Cemetery No. 1 in New Orleans, a historical landmark. They will lime-wash tombs, paint and clean up as part of the second annual national effort of the foundation's Tourism - Caring for America program, which was founded to preserve, conserve and protect America's tourism-related sites. Tourism industry volunteers who participated in June 2003's inaugural project at Ellis Island performed an estimated $300,000 worth of work at the National Park site. St. Louis Cemetery No. 1, near the French Quarter, was consecrated in 1789 and is the oldest of 31 existing cemeteries in New Orleans, which are popular tourist attractions. Unfortunately, many of the tombs have fallen into disrepair and are not being maintained as descendants cannot be identified or have moved out of the region.
Travelocity Business, the business travel portion of the online travel agency that launched last summer, tomorrow will begin providing access to rates at Utell hotels. Discounts are expected to be 20 percent off rack rate. By contrast, large corporate buyers often can negotiate rate discounts of up to 40 percent off rack.
Travelocity Business finalized an agreement with worldwide hotel provider Pegasus and its Utell representation service to offer its customers access to discounted rates at more than 4,300 Utell member hotels across the globe. Customers can now receive savings of up to 20 percent off regular published rates on Utell properties.
Travelport Gets First Fulfillment Client. Nextel Partners last month became the first of several corporate clients to select self-booking, global distribution and fulfillment services from Cendant Corp.'s Travelport, launched at the National Business Travel Association convention last summer.
Travel management firm TQ3 Travel Solutions found a 2.6 percent decrease in average domestic ticket prices ($491 down to $478) in the fourth quarter of 2003, compared with the same period a year ago. International ticket prices for the same period increased 3.5 percent, from $2,186 to $2,262. TQ3 cited low fare carriers as the force that drove domestic ticket costs down, and predicted that such competition will have a similar impact in 2004. The company found domestic hotel rates increased 1.8 percent year on year from $113 to $115, while international room rates increased 17.9 percent from $156 to $184. TQ3 cited the mass distribution of hotel rooms over the Internet and the subsequent negative impact on yield as a reason for the increase.Travelweb LLC has been chosen by Online Travel Corporation (OTC) to be a preferred supplier of net-rate inventories for online distribution. OTC, the U.K.'s largest online supplier/retailer, owns and powers Web sites. The first OTC Web site to offer Travelweb's inventory will be All-Hotels.com, featuring more than 12,000 hotels and resorts. Additional sites powered by OTC will also offer Travelweb inventory, including Onlinetravel.com and Bargainholidays.com, as well as partner sites Thomascook.com and Freeserve.co.uk.
United Vacations has added Cancun and the Riviera Maya to its Mexico and Caribbean destinations. Vacations are now available from Feb. 21 to Dec. 21. United Vacations already serves Grand Cayman, St. Thomas, Aruba and Puerto Rico in the region.
United has launched a new dedicated Web site for its low-fare arm Ted, which will begin flying in February, at www.flyted.com. It also has opened a new dedicated reservation line at 800-CALL-TED. The new Web site allows users to check on their frequent flyer accounts, order Ted merchandise and book hotels and rental cars. Ted will initially fly from Denver to Reno, Las Vegas, Phoenix, New Orleans, Tampa, Orlando, Ontario (Calif.), and Fort Lauderdale. It also will fly from Las Vegas to San Francisco and Los Angeles, and between San Francisco and Phoenix.
US Airways has accepted the resignations of four executives. They are Jennifer McGarey, VP and deputy general counsel and corporate secretary, who is leaving to join MCI, effective Jan. 23; Jeffery McDougle, VP of fleet, effective Feb. 2, who is joining Laidlaw International; Daniel McDonald, VP of planning and scheduling, effective Jan. 28, who is joining DHL; and Douglas McKeen, VP of labor relations and benefits, who will remain through the end of the quarter and then return to Minneapolis to pursue labor consulting. US Airways has promoted several of its officers. David Davis is now senior VP of finance; Andrew Nocella is now VP of network and revenue management; and Elizabeth Lanier, who is executive VP of corporate affairs and general counsel, will assume the role of corporate secretary.
US Airways has contracted with Verizon Airfone JetConnect to provide in-flight access to e-mail, instant messaging, text messaging, games, news, sports and other information on domestic flights beginning Feb. 1. JetConnect with e-mail costs $15.95 per flight, plus another 10 cents for large data downloads. Without the e-mail feature, the system costs $5.99 per flight. The airline will offer it on more than 80 of its Airbus aircraft that are equipped with an Airfone.
Vacation.com has expanded its relationship with Classic Custom Vacations. Virtuoso earlier this month severed ties with Classic, citing concerns over the company's ownership by InteractiveCorp, the parent company of Expedia and other major online travel brands. Signature followed suit a few days later, although it cited the need to make room for its new wholesale division. With Virtuoso and Signature no longer in the picture, Vacation.com moved up to first place among Classic's top selling agency partners. Vacation.com will integrate Classic's online initiatives into its PowerAgentNet selling system, making the wholesaler's products available for resource and sale by Vacation.com agencies and to consumers who shop via Vacation.com member agency's Web sites. In return, Classic will provide Vacation.com members using Power AgentNet with the best pricing. Vacation.com agents will always have the same pricing as what is available through any direct consumer channel, if not better&emdash;including Expedia.
Vacation.com is allowing its member agencies to earn commission on shore excursions by booking them in advance under the Preferred Supplier Port Promotions program. V-Com says this will save clients money as well as time standing in lines while onboard. Shore excursions can be booked in Alaska, Europe, Scandinavia and the Caribbean. Dick Knodt, president and CEO of Vacation.com, said, "Shore excursions are an integral part of the cruise experience. Why shouldn't our travel agents earn commission on them?"
Three aviation consulting firms have merged to create The Velocity Group, which will focus on next-generation airline business models. AvStat Associates, the regional airline consultantcy, Miller Air Group, an aviation communications consultancy, and Potomac Aviation, an airline finance and technology consultancy, have now