2010 May

U.S. Carriers Report Double-Digit Increases in March Passenger Revenues
Airlines, struggling with another crisis, the cloud of ash from Iceland's Eyjafjallajokull volcano, which shut down European skies, did have some good news.

The Air Transport Association reported passenger revenues, based on data from nine major U.S. carriers, were up 15 percent in March, the third consecutive month of revenue growth.

International markets: passenger revenues were up 19.6 percent. The number of passengers was up slightly, 1.4 percent. Separately, the International Air Transport Association showed that international air traffic demand was up in March by 10.9 percent. (Source: ATA, IATA press releases).

Premium Travel Up Again in February
The front of the plane is filling up again, according to the International Air Transport Association's latest figures.

February saw a 5.9 percent increase in premium travel and a 6.9 percent increase in economy travel, IATA said.

The level of economy travel is close to recovering to early 2008 levels, but premium travel is still 16 percent down on previous highs. Still, as world trade increases, so does premium travel. The Far East, South American and Middle East did the best; Europe, the North Atlantic, the Pacific and Africa were weakest.

Europe Institutes Post-Volcano Relief Plan for Airlines
The volcanic ash that shut down the skies over Europe cost airlines, which already expected to lose $2.8 billion this year, another $1.7 billion, according to the International Air Transport Association.

The five-day shutdown, canceled 100,000 flights and left 10 million passengers stranded. However, the European Commission was asking member nations to provide airlines immediate relief with measures such as making market-rate loans and deferring payments for air traffic control services.

Under normal circumstances, that would be considered illegal aid under EU rules. The crisis also appeared to give impetus to move to create a single European Sky. (Source: IATA, news reports).

Gogo Inflight WiFi Introduces Monthly Subscription Good on Multiple Airlines
Aircell, a major provider of inflight WiFi, has introduced the Gogo Monthly Subscription, which you can use on any airline whose fleet uses Gogo's inflight WiFi service.

Previously such monthly subscriptions had only been good on one carrier-fine for a frequently flyer who always flies the same carrier, but not for those who fly different airlines in a single month.

It can be redeemed on any carrier using Gogo, but initially will be available for purchase only on AirTran Airways, American Airlines, Delta Air Lines and Virgin America; all airlines that have equipped a high percentage of their fleet with Gogo. (Source: Gogo press release).

Germany, Netherlands Integrate Trusted Traveler Programs With U.S.
The United States is integrating its biometric-based trusted traveler programs with those of the Netherlands and German.

These programs expedite pre-approved, low-risk travelers members' trips through Customs upon arriving in the country. Under these partnerships, travelers can apply for both the U.S. Global Entry and the German Automated and Biometric Border Control or the Netherlands Privium programs simultaneously. (Source: Department of Homeland Security).

Hotel Industry Recovery Looks Stronger

Volcano´s Impact on Hotels Balances Out
The Iceland volcano´s impact on European hotels wasn´t all bad, according to Trust International, a major hotel reservations company.

Cancellations increased to a peak on Monday, April 19, to reach more than 50 percent over normal levels. But new reservations also curved upward by more than 25 percent, suggesting travelers were postponing rather than canceling trips altogether.

Hotels witnessed increased levels of guests extending their stays and walk-in bookings as travelers booked hotels after their flights were cancelled, which helped mitigate the effect of the cancellations.

Richard Wiegmann, manager director of Trust International, said that the international hotel industry is in recovery and the outlook for the rest of the year remains promising. (Source Travel Trust press release).

U.S. Hotel Industry Recovery Looks Stronger Than expected
The U.S. hotel industry should do better than initially expected this year, with occupancy increasing by 1.9 percent to 55.8 percent, according to Smith Travel Research.

Next year, STR says occupancy will increase 1.9 percent to a still relatively low 56.8 percent and average daily rates will increase 3.5 percent. The industry won´t be back to levels of 2007 or 2008, but the industry should see 2 good years in a row, said Mark Lomanno, President of STR. (Source: STR press release).

Car & Rail

Avis Tries to Block Hertz-Thrifty Deal
A suitor may throw a wrench into Hertz´ plans to buy Dollar Thrifty Automotive Group.

Avis Budget Group told the Dollar Thrifty board that it is prepared to make a substantially higher offer, saying that Avis had several times expressed interest in acquiring Thrifty.

Avis said that the heads of the two companies had had a date to discuss the matter, but Thrifty canceled it when it announced the Hertz deal.

Acquiring Thrifty would move up Hertz by about 300 domestic corporate locations and 1,250 international franchises. (Source: Hertz and Avis press releases).

Airline Security Vs. Privacy

A recent study found Americans are willing to put up with some loss of privacy in return for greater air security.

93 percent said they are willing to sacrifice some privacy.
65 percent said they would put with full electronic scans
57 percent would go through biometric security checks such as iris scans or fingerprints
72 percent said they would provide personal data in advance

Source: Unisys Security Index press release.