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Tough TSA Security Checks

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).

An Exciting New Year For Travel

Dear Valued Clients,

The New Year is here and it promises to be an exciting year for the travel industry.

New security procedures are in effect, especially for International Travel, so make sure that you allow extra time for enhanced security screening. You will see many more full body scanners being installed in the major airports over the next few months along with several other enhancements to TSA processing.

The good news from the Airline Industry is dramatically improved on-time performance. The average ticket price for our clients declined almost 10% year over year and should remain at that level for most of this year.

Average hotel rates for our clients also declined by over 15% year over year. The experts predict another very challenging year for the hotel industry so hotels should continue to be an excellent value. This may be a great time to have that Company Conference or special Incentive Trip to reward your top producing employees.

Car Rental rates have remained stable, but many Car Rental Companies have much smaller fleets than in past years, so availability can be an issue in peak travel times.

Cruise Vacations are another excellent value along with All-Inclusive Resort Vacations. Several new ships joined the fleets last year, including the world’s largest cruise ship, the Oasis of the Seas. She is the most amazing ship afloat with numerous firsts for cruise industry. One of my favorite new ships is the new Seabourn Odyssey, an all-suite, all inclusive ultra-luxury ship accommodating just 450 passengers in absolute luxury.

We greatly appreciate you business in 2009, and look forward to helping you make 2010 a fantastic year.

Sincerely,

Terry W. Brennan
President

Positive Signs for Business Travel

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).

2010 Business Travel Forecast

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.

Updates For Hotels Rail & Car

Hotels

Hotel Industry Index Shows Small Gain
Economic research firm e-forecasting.com, in conjunction with Smith Travel Research, reported that the Hotel Industry’s Pulse (HIP) index edged back up in October after hitting a snag the previous month.

After stalling in September with a decline of 0.7 percent, the HIP went up 0.2 percent in October. HIP is essentially a gross domestic product measure for the hotel industry and has historically signaled turning points for the U.S. hotel business. (Source: STR press release).

Corporate Hotel Bookings Start to Increase
Hotel technology provider Pegasus Solutions reports in its October Pegasus View, which analyzes booking data from more than 90,000 hotels worldwide, that bookings and net revenue figures are climbing back to 2008 levels, with positive movement in North America.

The region’s corporate bookings jumped +3.5% in volume in October 2009 compared to October 2008, and +21% in leisure bookings volume for the same period. Pegasus projects that these numbers presage similar recoveries in other parts of the world. (Source: Pegasus press release).

Rail

Amtrak Extends Holiday Fare Sale into the New Year
Amtrak has extended discounts of up to 25 percent on its Northeast Regional service between Washington, D.C., New York and Boston through March 31. Fares are as low as $49 each way between Washington and New York or New York and Boston. Reservations must be made 14 days in advance. Seats are limited and he fares are not available Dec.17-23, 26-30, Jan 3-4, Feb. 12 and 15. (Source: Amtrak press release).

Car Rental Satisfaction

After declining for two years, customer satisfaction with car rentals has stabilized, according to J.D. Power and Associate’s latest U.S. Rental Car Satisfaction Study.

• Overall satisfaction is 733 points on a 1,000-point scale, down just one point from last year. In the previous two years it declined by 16 points and 17 points respectively.
• The biggest reason for the improved rating is that the economic crisis forced car rental companies to downsize their fleets and use cars longer. That allowed many of them to lower their rental rates.
• One problem: increasing local taxes are often offsetting those price reductions.
• Enterprise ranked highest, for the sixth year in a row, followed by National and Hertz. National improved considerably from 2008, by 15 index points.

(Source: J.D. Power press release)

WE WISH YOU A SAFE AND HAPPY HOLIDAY SEASON!

Airlines News Travel Up For November

Global Air Capacity Up Slightly Last Month
Global air capacity was up three percent for November 2009 over November 2008, according to OAG, the aviation data company. Global frequencies are up 1% compared to November 2008, with a total of 2.3 million flights for November 2009, despite an average North American frequency decline of 2%.

Worldwide, frequencies and capacity in the low-cost sector are both up by 8%, compared to a year ago.

Transatlantic capacity between North America and Western Europe decreased 8% year on year; frequencies were down 10%, (Source: OAG press release).

Aviation Group Reports Uptick in Demand, But Airlines Still Have Lost Two Years of Growth
The International Air Transport Association (IATA) reported international scheduled traffic results for October 2009 showed passenger demand was up 0.5% compared to October 2008. That was much better than the 5.4% drop IATA reported in September and marks a return to a trend of gradual improvement that began in March.

Still, the crisis has cost the industry two years of growth, according to IATA, which credited much of the improvement to careful capacity management. (Source: IATA press release).

JetBlue Relaunches TrueBlue Loyalty Program
JetBlue Airways has relaunched TrueBlue, its’ customer loyalty program. The program now has no blackout dates; every seat on every JetBlue flight is now available for redemption. Membership account numbers remain unchanged, and previously issued TrueBlue points and Awards remain intact and available for redemption based on their original terms.

TrueBlue Points are earned based on dollars spent with JetBlue or charged on a member's JetBlue Card from American Express. For every eligible dollar spent with JetBlue, members will earn 3 TrueBlue points. Customers who carry the JetBlue Card from American Express will earn 1 TrueBlue point for every $1 of eligible spending, with double points awarded for purchases made at www.jetblue.com.

JetBlue is also offering bonuses for frequent travelers. (Source: JetBlue press release).

Continental, United Upgrade Services for Their Most Loyal Customers
United Airlines and Continental Airlines have announced that members of each carrier’s frequent flyer program who have earned elite status will receive unlimited, complimentary domestic upgrades on flights operated by both airlines when space is available.

Members of each airline’s loyalty club will have access to premium seating—United’s Economy Plus and Continental’s Premium Seating. These new benefits will begin to roll out in mid-2010. (Source: Continental and United press release).

International Registered Traveler Program Expands
The Department of Homeland Security (DHS) is expanding and making permanent its Global Entry international registered traveler program.

Global Entry—currently available as a pilot program at 20 U.S. international airports—allows pre-approved members a streamlined, automated alternative to regular passport processing lines.

The proposed rule would make Global Entry permanent and expand it to more international airports. The program currently reduces average wait times by more than 70 percent, with more than 75 percent of travelers using Global Entry processed in under five minutes. (Source: DHS press release).

Flyers Interest in Flying Green
American consumers seem eco-friendly with 28% saying that they would be more likely to fly a certain airline if it introduced more "green" practices.

When asked which domestic airlines operate in the most "green" manner, JetBlue, Southwest, Virgin America, Continental and Delta, in order, landed the top five positions. Also important to airline consumers: direct routes and reasonable prices. (Source: Zagat press release).

Business Travel Airlines News

Holiday Travel Gets Even Pricier
Flying on peak travel dates has always cost more, but this year it’s more expensive than ever, thanks to $10 surcharges several carriers are levying each way on certain dates.

Peak travel surcharge dates, according the fare monitoring site FareCompare.com, are Nov. 29 and 30, Dec. 19, 26 and 27, Jan 2 and 3, March 14, 20, 21 and 28, April 11 and May 28. American Airlines introduced the surcharge, US Airways followed and several others matched. (Source: FareCompare.com.)

Budding Corporate Travel Demand Sparks Airline Optimism
Corporate travel demand is improving, according to executives of the major legacy airlines.

They say corporate clients are taking to the skies in greater numbers, companies are easing restrictions and travelers in some cases are booking closer in to travel dates and increasingly selecting full fares.

"A lot of our corporate accounts are starting to hit the road again," said Delta Air Lines President Ed Bastian, adding that corporate fliers are "starting to move up the price point." Analysts sounded a similar theme throughout the industry's earnings calls. "There is evidence of improving travel demand, including from corporations," said Kevin Crissey of UBS. "All of the companies that have reported have cited this to one extent or another." Source: BTN Online

New Air-Traffic-Control Systems Offer Improved Communications Air-traffic controllers in the U.S., Europe, Canada, Australia, and New Zealand now have modern satellite-based systems that operate over oceans.

With frequent automatic position reporting from airplanes and email-like communications between pilots and controllers, these new systems are designed to fill the kind of communication void that occurred after Air France Flight 447 crashed in the Atlantic Ocean last June.

The new systems offer many other benefits as well. The FAA’s NextGen program is aiming at extending these satellite benefits over land as well as over oceans, replacing the current ground-based communication system. (Source: The Wall Street Journal)

United Offers One-Year, $249 Baggage Fee
United Airlines has put a new twist on baggage fees with Premier Baggage, charging customers a flat price that allows them to check two standard bags at no additional cost every time they fly on a United or United Express operated flight in a year. Customers can purchase a subscription for an introductory price of $249, entitling them to check two standard bags on United and United Express operated flights domestically and internationally, where applicable, rather than paying to check bags each trip.

The annual subscription also covers the standard checked baggage charge for up to eight companions traveling under the same confirmation number as the subscriber.

Mileage Plus Premier members are exempt from first and second bag fees on standard bags. (Source: United press release).

Track Flights on Your iPhone
FlightAware, which has more than two million monthly users using it for flight tracking, has released an application for the Apple iPhone and iPod Touch.

Users can download the free app from the Apple App Store, allowing them to track the real-time status and position of airline and private flights in the United States on their iPhones. (Source: FlightAware press release).

High-Speed Rail Could Ease Air Gridlock
A Brookings Institution study finds that air corridors of 500 miles or less between metropolitan hubs —distances at which trains can compete with planes—are the source of an increasing number of air delays. One reason for the congestion — no alternative transportation.

The delays can be so onerous that they discourage some would be travelers, who opt to stay home. The government is investing billions to improve rail options in some of these markets, but it will be years before they’re ready for consumers to ride. (Sources: Brookings Institution press release).

Hotel Forecast & Amtrak Improvements

Hotels

Hotel Outlook Brightens for Next Year, but Rate Expected to Decrease
The hotel forecasting firm Smith Travel Research says that next year will be better for the hotel industry, but that the industry will continue to see decreases in key metrics.

Of most interest to travelers: the average daily rate, which is expected to decline 3.4 percent to $93.16. Occupancy is also project to drop, but only slightly, by .6 percent. and RevPAR (revenue per available room) is expected to drop 4 percent to $51.29. (Source: Smith Travel Research).

Hotel Rates in Major U.S. Markets Continue to Drop
Average daily rates for hotels in the top 25 markets continue to decline, with the exception of Norfolk/Virginia Beach. The Twin Cities reported the largest ADR drop, 23 percent, to $92.15, in September, the latest month for which data is available.

New York followed with a 23 percent decline to $249. Some markets did see occupancy increases in September: Anaheim-Santa Ana, 3.4 percent to 61 percent occupancy; New York, 1 percent to 85 percent occupancy, and Tampa-St. Petersburg, 1 percent to 43.9 percent. (Source: Smith Travel Research).

Car and Rail

Amtrak Accelerates Improvements
Amtrak, using $25 million in funding from the American Recovery and Reinvestment Act, is replacing pre-World Word II electrical equipment on the Northeast Corridor.

Amtrak began to upgrade 82 outdated substations in 2002; the ARRA funding means that work that was scheduled to start in 2013 is starting now. Transformers that are as old as 75 years are being replaced with more efficient models that have less environmental impact. (Source: Amtrak press release)

The National Business Travel Association's 2010 U.S. Business Travel Forecast predicts that air and car rental costs will be flat and hotel rates will decline between two and eight percent, so businesses will travel more.

• Nearly 7 in 10 of travel managers responding to an NBTA survey expect travel spending to increase
• Fifty-six percent expect their total travel spending to increase next year, 31 percent expect it to stay flat
• Compared to the previous year, many expect to see far fewer spending cuts for conference and event travel

In this new environment, corporate travel managers expect good values from their travel suppliers. Seventy percent of buyers expect to negotiate better hotel discounts next year. More than 30 percent forecast better discounts from airlines. (Source: NBTA press release)

Reservations and Frequent Flier Program Charts

Reservations
Airline	Book round-trip ticket by phone	Preferred seat	Ticket change fee: Domestic-International	Fee to change flight to same destination on day of departure1
AirTran	$15	$6 or $20	$75-Not applicable	$75
Alaska	$15	Not available	$75 online; $100 on phone; $125 at travel agency-$100	0
Allegiant	$23.50 per one-way flight; $33.50 for roundtrip	$5-$25	$50 per one-way flight-Not applicable	Not allowed to change ticket within 24 hours of departure
American	$20	Not applicable	$150-$150-$250	$50
Continental	$15	Not available	$150-$150-$250	$50
Delta	$20	Not available on Delta; $5-$35 on domestic flights, $15-$75 Northwest international flights	$150-$250	$50
Frontier	$25	Not available	$50 or $150-$150	$75 or $150
Hawaiian	$10-$25	Not available	$150 or $200 per flight-$150 or $200 per flight	$150 or $200 per flight
JetBlue	$15	$10-$40	$100-$100	$40
Midwest	$25	$20-$50	$100-$100	$50
Southwest	0	priority-boarding fee $10	0-Not applicable	0
Spirit	0	$7-$20	$100 online; $110 on telephone-$100 online; $110 on telephone	$100 online; $110 on telephone
United	$25	$14-$119	$150-$150-$250	$75
US Airways	$25 domestic ticket; $35 international ticket	$5-$30	$150-$250	$50
For confirmed seat; difference in fare may also be charged.

 

Frequent Flier Programs
Airline	Book free ticket: on phone-online2	Change free ticket's origin-destination: domestic-international	Buying miles-credits
AirTran	0-0	$75- Not applicable	$39.50-credit
Alaska	$15-0	$75 online; $100 on phone; $125 at travel agency-$100	$25-1,000 miles when buying a ticket online; $27.50-1,000 miles when redeeming miles
Allegiant	Not applicable- Not applicable	Not applicable- Not applicable	Not applicable- Not applicable
American	$20-0	$150-$150	$27.50-1,000 miles
Continental	$25-0	$150-$150	$32-1,000 miles
Delta	$20-0	$100-$100	$27.50-1,000 miles
Frontier	$25-0	$75-$75	$28-1,000 miles
Hawaiian	$10 or $20-0	$30 or $50-$50	$30-1,000 miles
JetBlue	$15-0	$100-$100	$5-point, plus $20 fee
Midwest	$25-0	$50-$50	$25-1,000 miles, plus $20 processing fee
Southwest	0-0	0-Not applicable	0-Not applicable
Spirit	0-Not available	$70-$70	not available
United	$25-0	$150-$250	$32.25-1,000 miles, plus $35 processing fee
US Airways	$55 domestic flight; $70-$95 international-$25-$50	$150-$250	$25-1,000 miles, plus $30 processing fee
A fee may apply or could be higher if booking is made close to departure.

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