Tough TSA Security Checks

January 18, 2010 By

TSA Toughens Security for Passengers from Nations Sponsoring Terrorism
In the wake of a failed bombing attempt on a flight into the United States on Christmas, U.S. Transportation Security Administration has mandated anyone flying into the U.S. from anywhere in the world who is coming from or through nations that are state sponsors of terrorism or other countries of interest must undergo a tougher security check, including the use of enhanced screening technologies.

That means increased gate screening, including pat-downs and bag searches. Passengers will be told to stow personal items, turning off electronics and stay seated for certain parts of the flight.

Additionally, the Canadian Air Transportation Security Authority (CATSA) has disallowed carry-on bags for those passengers originating in Canada and traveling to the United States. Air Canada is waiving excess baggage fees, letting customers check up to three additional bags at no extra charge. For details on the Canadian policy, visit http://www.tc.gc.ca/eng/mediaroom/backgrounders-menu-5781.htm. (Source: CTSA, TSA directives and press releases).

Business Travel Advocates Propose Aviation Security Systems Improvements
The business travel community has been pinpointing gaps in aviation security and ways to improve it. Kevin Mitchell, chairman of the Business Travel Coalition, pointed out that the accused terrorist´s own father notified U.S. officials of his son’s extreme religious views and that the suspect had been placed in the Terrorist Identities Datamart Environment database but not on the terrorist selectee list or no-fly list.

Mitchell said that Britain had refused the suspect´s visa request, according to the London Daily Mail. Mitchell said the U.S. should focus on questioning passengers and better screening instead of restricting passenger movement in flight. The U.S. Travel Association recommended that the government use screening techniques that strengthen security, balance travelers' privacy needs and improve traveler facilitation.

It highlighted whole body imaging (WBI) and using more security dogs both security measures that it believes should be looked at more carefully. The National Business Travel Association urged aviation and homeland security officials to consider risk-management security programs when reviewing current and future airline passenger protection regulations. (Source: BTC, TA, NBTA press releases).

DOT Limits Tarmac Delays to Three Hour Travelers did get some good news. The Department of Transportation limited the amount of time domestic flights can sit on the tarmac to three hours, unless security concerns or safety deem otherwise.

After two hours, carriers have to give passengers food and drink. The rule goes into effect 120 days after it is published in the Federal Register. Source: (DOT press release.)

Airline Numbers Showing Improvement
The failed terrorist attempt came just as aviation numbers were improving. November´s international traffic was up 2.8% over November 2008, according to the International Air Traffic Association.

Passenger demand was up 6.4% from its lows of 2008 but still below the peaks of early 2008. And OAG, which tracks airline supply worldwide, said that global capacity was up 4% in December 2009 over December 2008, although North American flight frequencies declined 2%. And, the Airline Reporting Corp., which processes airline ticket purchases, reported that for the first time since September 2008, total sales in November were up--by 6.72% over November 2008. (Source: IATA, OAG, and ARC press releases.)

New US-Japan Open Skies Agreement Liberalizes Air Service on Pacific
A new Open Skies agreement between the U.S. and Japan means that airlines from both countries can select routes and destinations based on consumer demand for both passenger and cargo services, without limitations on the number of U.S. or Japanese carriers that can fly between the two countries or the number of flights they can operate. 

It will remove restrictions on capacity and pricing, and provide unlimited opportunities for cooperative marketing arrangements, including code sharing, between U.S. and Japanese carriers.  The agreement also would provide opportunities for growth of U.S. carrier operations at Tokyo´s Narita Airport. (Source: DOT press release).

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Filed Under: Airline News Tagged With: ,

Positive Signs for Business Travel

January 11, 2010 By
Sandos Hotel

Report Sees Brighter Outlook for U.S. Hotels
A mid-December PKF Hospitality Research report says that the pace of recovery for U.S. hotels has accelerated. PKF’s Hotel Horizons cities improving occupancy, RevPAR, and demand, suggesting that that the recovery will arrive a full quarter earlier than the firm forecast in the fall.

PKF said that the decline in average daily room rates (ADR) reached its cyclical low point in the third quarter of 2009.

However, the magnitude of the ADR decline at its turning point was lower than anticipated. At the same time slight near-term improvement in Moody's Economy.com's view on employment recovery translates into an increase in the projected number of hotel rooms occupied in 2010.

PKF-HR now projects that lodging demand will post a quarterly year-over-year increase during the first quarter of 2010, thus ending eight consecutive quarters of declines. (Source: PKF press release).

Customers Happier About Hotel Service
Lodging Interactive´s monthly benchmarking report showed that hotels were headed into the holidays with improved customer satisfaction ratings.

Although mid-scale limited service and extended stay segments struggled, other categories did well. Guest ratings on facilities increased 3.9% to a 4.04 rating, with 5 being tops. Housekeeping increased 5.52% to 3.63 and satisfaction with staff increased slightly, by .26%.

The only areas of decline were a 1.69% decline in dining and a more substantial 5.64% slip in value to 4.18. (Source: Lodging Interactive press release).

Positive Signs for Business Travel

The American Express Business Travel Monitor is reported a glimmer of hope as travelers move to the front of the plane and fares rise modestly, indicating that some companies may be feeling more optimistic about the economy.

  • International and domestic fares were still down year over year but up slightly quarter over quarter. Average domestic and international fares increased 2% quarter over quarter.
  • Overall, hotel rates decreased both internationally and domestically, but there were rate increases among budget, economy and mid-tier hotels.
  • Average domestic hotel rates decreased 2% year over year, but budget hotels increased 7% quarter over quarter. This is a good sign, reflecting a pickup in demand that is starting at the bottom.
  • Averaged international booked hotel rates decreased 10% year over year.
  • Car rental rates increased 5% in the third quarter of 2009 but were flat year over year.

(Source: American Express press release).

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Filed Under: Hotel & Car

2010 Business Travel Forecast

January 4, 2010 By
Business travel forcast 2010

Following this weakened demand in 2009, American Express Business Travel expects a pent up need for travel and meetings to be unleashed in 2010. Fuel prices, along with sustained signs of a restarting economy, could also generate slight up-ticks in travel category prices worldwide, particularly in Asia Pacific.

"As the world begins to show signs of emerging from the recession, businesses are adapting to a fundamental shift in thinking focused on proving the value of travel and every employee connection," said Hervé Sedky, vice president and general manager, American Express Business Travel. "Heading into 2010, companies will need to consider the impact of these changes in mindset, particularly as projected rate increases in key travel categories gain momentum."

North America – Air - Hotel - Car Forecast and Trends

Overall, business travel growth is predicted to be up one percent for the U.S. and 15 percent for Canada in 2010. Airline routes and capacity reductions made in the region in an effort to equalize the decrease in demand in 2009 are expected to force prices up in North America in 2010, higher than most other global regions. Hotel rates are expected to remain on the decline in North America as a whole as hoteliers fight to attract both business and consumer travelers back. Car rental rates will likely increase slightly as the cost of vehicles is expected to rise following decreases in capacity in 2009 and car manufacturing consolidation driving up the cost of replacing relatively old fleets.

Europe – Air Hotel Car Forecast and Trends

As companies looked for ways to curb travel costs, many companies in Europe trading down from traditional airlines to low cost carriers. Overall airlines in Europe saw declines in volume and while demand is expected to grow in 2010, fares are expected to decline in the first half of the year as airlines compete for market-share. While hotel rate changes will likely vary by country, it is expected that rates will only increase modestly at best in Europe in 2010. Opposite the trend in the U.S. to unbundle services however, European hotels are giving travelers additional amenities as a means to attract their business and loyalty and retain price levels.

Latin America & Air Hotel Forecast and Trends

In Latin America there has been upward pressure on rates as some carriers reduced the number and size of aircrafts servicing some routes and consolidated others. Increases that may have been possible through these measures are challenged, though, as capacity at less expensive airports increased, online travel agencies entered the market, and business travelers increased usage of car rental or bus. This will likely continue to have an impact in 2010, with projected airfare changes ranging from negative three percent up to two percent. Hotel rates are expected to continue to decline, similar to North America hotels having a more difficult time with managing capacity. “The 2010 Forecast clearly underscores that the complexity of managing business travel and understanding the underlying dynamics of the industry and supply base only becomes more challenging as economic conditions change and business opportunity is global,” said Christa Degnan Manning, director, eXpert insights research for American Express Business Travel Global Advisory Services. The forecasts and projections provided in this report are based on information gathered from American Express Business Travel believes to be reliable, no representation or warranty is made as to the accuracy of the forecasts or projections made herein. In addition, actual changes in business travel costs could vary significantly from forecasted data, particularly as a result of unforeseen future political, economic and/or environmental events.
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