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Have questions about the International Terminal? We’ll have no fear! This is the basic orientation video produced by the Airport to train hundreds of airport, airline, federal and concessions employees about the general use and operation of the Maynard H. Jackson Jr. International Terminal.
PKF Hospitality Predicts Hotel Rates Will Rise
PKF Hospitality Research predicts that hotel room rates for U.S. hotels will increase 4.6% this year, a healthy development for the industry because it will push room revenue up 5.8%.
A 1.6% increase in occupancy is also helping. Improved profitability means a better guest experience because hotels can afford to invest in their properties. Ever since the first quarter of 2010, growth in hotel demand has exceeded the increase in supply, according to R. Mark Woodworth, president of PKF HR.
According to Smith Travel Research, U.S. hotels last year rented out more guest rooms than ever before. And on a local level, PKF said that 30 out of 50 markets PKF covers in its Hotel Horizons industry reports set new records in metro-level lodging demand. (PKF press release).
Amtrak Measures Carbon Footprint
Amtrak has achieved Climate Registered status by measuring its carbon footprint. This is a major first step in Amtrak´s efforts to reduce its energy consumption and spending and carbon emissions. It is working with the Climate Registry, a non-profit that sets standards for government and business.
Amtrak’s goal is to attract more auto and airline passengers, improve its own efficiency and reduce fossil fuel consumption. (Amtrak press release).
Enterprise Revamps Enterprise Plus Loyalty Program
Enterprise Rent A Car, which has more locations than any other car rental company, has revamped its Enterprise Plus loyalty program. Members can redeem their points at any North American locations. As long as you rent at least once every two years, points do not expire.
Frequent renters qualify for Silver, Gold or Platinum status. Each level comes with its own set of benefits, such as bonus points and upgrades. (Enterprise press release).
Flying is becoming a more pleasant experience, according to the latest Air Quality Rating survey, a joint research project by Wichita State University and Purdue University. The 22nd annual national survey found that flyers are paying more, but having a better experience.
Data from the last 12 years show that whenever there are more planes in the sky and ore passengers, airline performance suffers. Today, airlines have increasing demand, limited capacity and are managing themselves more carefully. The results of the survey:
Source: AQR press release.
Hartsfield Jackson Atlanta Airport is opening a new front door to the world! The International Terminal will welcome millions of world travelers for decades to come when it opens in spring 2012.
The international terminal and its new concourse will connect with Concourse E to create a 40 gate international air travel complex. This cutting-edge facility will be the new global gateway through which travelers from throughout the world will connect with more than 150 U.S. cities.
For those traveling from the United States, the international terminal will be the gateway to nearly 80 destinations in more than 50 countries.
Rising Oil Prices Hurt Airlines’ Financial Outlook
International Air Transport Association is downgrading its outlook for the aviation industry by half a billion dollars this year because of high fuel prices.
It estimates that the world´s airlines will see a global profit of $3 billion this year for a .5 % margin, a $500 million downgrade from its December forecast. That´s due to the increase in expected oil prices to $115 per barrel instead of the $99 per barrel originally forecast.
The outlook would be more dire if the Eurozone crisis worsened. An improving U.S. economy also is helping. Capacity is expected to grow by 3.2%, while demand is expected to grow by 3.6%. Both passenger load factors and aircraft utilization are back to pre-recession levels. Political tensions in the Gulf could make oil go higher; that could push airlines into the red. (Source: IATA press release).
Airline On-Time Performance Improves
Airline on-time performance was much better in January, the latest figures available, than it had been a year earlier, going up to an on-time arrival rate of 83.7% from 76.3% in January 2011. It was the best January for on time performance in 18 years, according to the Department of Transportation.
Cancellations were down, too, with airlines cancelling just 1.5% of flights, down from 3.9% in January 2011. And, airlines reported no tarmac delays of more than three hours on domestic or international flights. (DOT press release).
TSA Expands Pre Program to More Than 20 Airports
The Transportation Security Administration expects to have its Pre✓ program in place at many of the nation´s major airports by the end of the year. It expects to have it operating in more than 20 airports by June.
Right now the expedited screening program for passengers who provide information about themselves in advance is in place at nearly a dozen airports. Airports that should have it in place by June include Boston Logan, New York LaGuardia, Newark Liberty, Orlando, Portland International and Seattle-Tacoma.
Participating airlines are Delta Air Lines, United Airlines, Alaska Airlines, American Airlines and US Airways.
Participants go through a separate security lane and some times do not have to remove shoes, coats and sweaters or take a laptop out of its bag. This is part of a risk-based security programs; program participants are not guaranteed expedited screening.
The TSA still conducts random and unpredictable security checks. The TSA is adding other risk-based security procedures, including expanded behavior detection techniques and modified screening procedures for those 75 years old or older. (TSA press release).
Four Airlines Change Terminals at LAX as Airport Updrades
Four airlines have or are about to change terminals at Los Angeles International this month as part of the airport’s capital improvement program.
Spirit Airlines, Great Lakes and Alaska Airlines have already moved terminals; later this month, AirTran Airways will also move to a different terminal. Spirit and Great Lakes have moved from Terminal 6 to Terminals 3 and 7 respectively. Alaska is now in Terminal 6, which has expanded lobby space, check-in kiosks, bag-check stations and a new baggage community screening system. (LAX press release).
Premium Travel Starting to Trend Downward
You might be seeing more room in the front of the plane, premium travel is trending downward, according to the International Air Transport Association’s latest figures.
The numbers in business and first class ticked up slightly .06% in November, the latest figures available. But that´s down from earlier highs at the beginning of the year. And given the slowdown in the growth of world trade and the resulting fall in business confidence, two factors that are reliable leading indicators for first and business class travel, those numbers are not going to be any better.
Economy class, on the other hand, is doing better. Just as premium travel started sliding, economy travel began growing. Compared to the start of 2011, economy traffic has grown by 3.8%, while premium traffic contracted 0.1%. (Source: IATA report)
Airfares Might Be Up, But Their Increases Still Lag Inflation
Average domestic airfares rose to $361 in the third quarter of 2011, up 6.2% from the average fare of $340 in the third quarter of 2010, according to the latest figures from the Department of Transportation. But fares are still a good deal. Airfares in the third quarter of 2011 increased 7.1% from the third quarter of 2000, not adjusted for inflation, compared to an overall increase in consumer prices of 30.6 percent during that period. In the 16 years since 1995, when the DOT began tracking fares, airfares rose 25.5% compared to a 48.1% inflation rate. The average inflation-adjusted third-quarter 2011 fare in 1995 dollars was $244 compared to $288 in 1995 and $297 in 2000. (Source: DOT)
Spirit Airlines Campaigns against New Consumer Protection Rules
Not everyone’s happy about the new Department of Transportation consumer protection rules that went into effect late last month. Spirit Airlines has launched major attacks on two of the new rules. The first is against the rule that requires airlines to display the price of the fare including taxes and fees. Spirit says that the DOT is making airlines hide those taxes and fees.
The DOT denies that, saying airlines are free to say that a fare is $399 and that that price includes $21.80 in taxes and fees—as some airlines do already. In a second attack Spirit has now tacked on a $2 fee because of the rule that requires airlines to give customers 24 hours to change their minds on an otherwise nonrefundable fare. (This rule does not apply if the ticket is booked within a week of the flight’s departure).
Legacy carriers have offered this option for a decade. Spirit says this rule means airline inventory will be held by people who don´t really intend to buy a flight, keeping other flyers from booking those seats. That means the airline has to spread its costs over fewer customers, thus raising prices for all customers, rationalizes Ben Baldanza, president and CEO of Spirit. Some industry observers believe the no-refund policy actually has a chilling effect and keeps consumers from booking tickets because of the all or nothing nature of such transactions. (Source: Spirit press release, industry interviews)
Airlines Lobby Government to Back Development of Commercially Viable Bio-Fuel
With fuel expenses increasing more than 30% for most airlines in the fourth quarter, it’s no surprise the industry is lobbying for the development of a commercially viable bio fuel.
Airlines 4 America, which represents major U.S. airlines and Boeing, have made a series of recommendations to the U.S. Department of Agriculture to speed the development of bio-fuel. These include using grants to jumpstart development and reauthorizing the 2008 Farm Bill, which included more than $100 million to invest in researching and developing bio-fuel. (Source A4A press release)
Hotel Guests Love Free Wi-Fi, Don’t Care About Turn-Down Service
Two recent surveys show that wifi is what counts for travelers. A Hotels.com survey found that free wifi is a major factor when choosing a room. And a Trip Advisor survey found that wifi and breakfast included in the rate are the top two amenities guests look for when choosing a room.
Guest loyalty plans were a third factor. Loyalty programs are very important for those who travel 25 times a year or more, according to a Starwood Preferred Guest survey. Nearly three-quarters of these travelers said that they have taken extra trips to maintain their status in such programs. Losing their status scares more of them (65%) than the thought of losing their luggage (12%) or missing a flight (11%). (Source: press releases)
Business Travel Group Lobbies against Unfair Car Rental Taxes
So-called inhospitality taxes continue to rankle business travelers and the head of the Global Business Travel Association recently testified before a House Judiciary hearing in support of a bill that would end discriminatory taxes on rental cars.
The bill says that excise taxes on car rental consumers are unwarranted and would enforce a permanent halt on any new taxes. Michael McCormick, the GBTA’s executive director and COO, said that such taxes impose a burden on travel services that are more than a general sales tax. Congress has enacted similar protections against such taxes on airlines, trains and buses. (Source: GBTA press release)
Business travel appears poised to continue to grow despite economic uncertainty, according to the latest Business Travel Quarterly Outlook for the United States from the Global Business Travel Association. The report found that business travel was stronger than expected last year, and that growth should continue.
Hotel Revenues Expected to Go Up
Projections for U.S. hotels for the next several months are downright perky when compared to economic news overall.
Committed occupancy is up 4.8% and average daily rates are up 4%. That´s according to TravelClick´s October 2011 North American Hospitality Review. TravelClick is a technology provider for hotels worldwide.
Cities showing the most growth in occupancy this year are: Detroit, Charlotte, Houston, Seattle and Philadelphia. Those with declining occupancies are: Minneapolis-St. Paul, Denver, Dallas, Honolulu and Phoenix. Hotel demand for the first quarter of 2012 is up 15 percent. Markets showing strong first quarter growth are Indianapolis, Detroit and Chicago. (Source: TravelClick press release).
Rail Amtrak Adds Free WiFi to 12 More Trains
Amtrak has added free AmtrakConnect wifi service to 12 East Coast trains. Trains that carry nearly 60% of all Amtrak passengers now have free wifi. These routes include trains running between Virginia and Boston; New York, Albany and Buffalo and between New York, Philadelphia and Harrisburg.
Other routes that now have free wifi: New York-Charlotte; Boston-Portland; New York-Rutland, Vt.; the New Haven-Springfield shuttle and Washington-St. Albans, Vt. wifi is now also available on cars with hotspot window stickers on Adirondack, Maple Leaf, Palmetto and Pennsylvanian routes.
Wifi was already available on Acela Express trains and on Cascades service in the Pacific Northwest. (Source: Amtrak press release).
Business Travel Cost
Business travel costs will inch up next year because of the demand for face-to-face business contacts and a shrinking supply of airline seats, hotel rooms and other travel products, according to the annual American Express Global Business Travel Forecast. Travel is essential to business, but companies are being more cost conscious than ever.
The travel industry is trying to regain pre-recession pricing and profitability in the face of economic anxiety, says Christa Degnan Manning, director of Expert Insights Research for American Express Global Business Travel. (Source: American Express press release).
TSA Tries Using Pre Screening to Make Security Process Faster
Sick of airport security screening process? You´re not alone.
The aviation industry recognizes that and is trying a variety of short term and long term changes that are designed to make airport security faster and more pleasant. One short-term initiative is the Transportation Security Administration´s PreCheck experiment at four U.S. airports.
Airline customers volunteer information about themselves in the hopes that it will speed their trip through security. Eligible travelers go through a lane with expedited screening. Passengers participating in the program are certain frequent flyers from American Airlines and Delta Air Lines’ frequent flyer programs as well as participants in the Customs and Border Protection Trusted Traveler programs.
The TSA is testing PreCheck at Hartsfield-Jackson Atlanta International, Detroit Metropolitan Wayne County, Dallas/Fort Worth International and Miami International airports. (Source: TSA press release).
Airlines, Consumer Groups Lobby Against New Taxes
Airlines, pilot, flight attendant and other airline unions and consumer groups are fighting proposed tax increases on airlines and their passengers, saying the new taxes will cost jobs.
The first tax would add a $100 departure fee to all flights. The second would double the existing passenger security tax to $5 per one-way trip in 2012, and triple the taxes to $7.50 by 2017. It is currently $2.50 per flight segment per one-way trip, maxing out at $5.
The coalition says that nearly 120 members of the House of Representatives have told congressional leaders that the $100 departure tax would cost airlines $1 billion a year. The coalition has launched a website, www.stopairtaxnow.com. (Source: Air Transport Association press release).
Airline CFOs and Cargo Heads Glum About the Next Year
A monthly survey of airline CFOs and cargo heads, which has been a fairly accurate economic predictor, finds that their expectations for profitability for the next 12 months is down significantly.
It’s down more for cargo, in particular; airlines are seeing sharp drops in this area. However, even though confidence has fallen to levels seen in the first half of 2009, airlines say they are continuing to hire new employees. (Source: International Air Transport Association October Airline Business Confidence Survey).
Airlines Take in $1.5 Billion in Baggage Fees and Reservation Change Fees
Airlines collected $1.5 billion in baggage fees and change fees in the second quarter, according to the Department of Transportation. Airlines took in $887 million in baggage fees and $612 million from reservation change fees. Delta Air Lines topped the list, collecting $392,000 in fees, followed by American Airlines, $249,936 and United Airlines, $164,767. So far, the DOT tracks only baggage and change fees, but it has proposed requiring airlines to report a total of 16 different fees.
Separately, travel technology company Amadeus estimates that airline ancillary revenue will total $32.5 billion worldwide in 2011. It projects that ancillary revenues for major U.S. airlines will increase to $12.5 billion this year from $6.7 billion last year. That is 38 percent of the global total and represents seven airlines: Alaska, American, Continental, Delta, Hawaiian and U.S. Airways.
Amadeus partnered with Ideaworks, a consulting company, on the projections. Ideaworks believes the majority of ancillary revenue for US major airlines comes from selling frequent flier miles. Baggage fees account for 20%.
The rest comes from a la carte items such as selling food and beverages wifi, early boarding and other benefits. US-based airlines have readily adapted to an a la carte world, but they also benefit from consumers who are keen to get frequent flier miles. (Source: DOT, Amadeus press releases).
Aeromexico
Travel Industry Opposes New Aviation Taxes
Both the aviation industry and travel and tourism industries are opposing the President Obama’s plan to impose $3.5 billion annually in new taxes on airlines and their passengers to help pay off the country’s budget deficit. A major bone of contention: an increase in the Aviation Passenger Security Fee.
The proposal would up it to $5 per flight. It had been $2.50 per flight segment, for a maximum of $5 per one-way trip. The fee would then increase by 50 cents each year through 2017, maxing out at $7.50. Fifteen billion dollars of the new taxes would go into the General Fund for debt reduction, with any money beyond that going toward the Transportation Security Administration´s (TSA) discretionary appropriations.
The Air Transport Association says fee increases will force airlines to raise fares or reduce service, which will mean fewer jobs. According to the ATA, federal taxes and fees in the United States account for $61, or 20%, of the cost of a typical $300 domestic round-trip ticket.
The U.S. Travel Association, a travel industry advocacy group, also opposed the tax, saying that any increase in travel fees should be invested directly into the national travel system and infrastructure. The travel industry in general has taken the position that governments are responsible for national security costs, not specific industries. (Source: ATA and USTA press releases).
Airlines Lose Bid to Delay Implementation of New Consumer Protection Rules
Three low-cost carriers lost their legal challenge of new Department of Transportation consumer protection rules scheduled to go into effect Jan. 24.
The U.S. Court of Appeals in the District of Columbia denied Southwest Airlines, Spirit Airines and Allegiant Airlines’ attempt to block a rule that would require them to include all taxes and fees in the fares they advertise instead of breaking them out separately. The airlines say that they differentiate themselves with low fares and want consumers to know how much of what they pay goes to taxes.
Airlines also asked the court to review a ban on raising airline prices after consumers buy their ticket. And they protested the new rule requiring airlines to let consumers cancel a flight without penalty within 24 hours of booking that flight.
Many airlines, already do this; including American Airlines, Continental Airlines, Delta Air Lines, Frontier Airlines and US Airways. But Spirit says that consumers will abuse this and the result will be higher ticket prices. The court denied the airlines´ challenge, saying that they had not met stringent requirements for such as stay. (Source: court documents).
Airlines Lose Bid to Delay Implementation of New Consumer Protection RulesAirlines Lose Bid to Delay Implementation of New Consumer Protection Rules
One in five users of Gogo inflight internet service say that they’ve switched carriers because they´d rather be on flights with inflight internet service, according to a survey of 7,000 Gogo users. Inflight Wifi is particularly important to business travelers, according to Gogo, which provides inflight Wifi to eight airlines. Three airlines have Wifi on their entire domestic fleet: AirTran Airways, Delta Air Lines and Virgin America. Five more have it on select aircraft; they are: Air Canada, Alaska Airlines, American Airlines, United Airlines and US Airways. (Source: Gogo press release).
Pace of Air Travel Growth Starts to Slow
As expected, passenger air travel growth began to slow in August, according to numbers just released by the International Air Traffic Association. Passenger demand was up 4.5%, less than the 6% July increase.
North American carriers reported the weakest performance with growth of just 2.9%, which was partly a result of equally slow growth in capacity. This is a sharp downturn from stronger growth earlier in the year, as reflected in the 5.6% year-to-date demand expansion. However, North American carriers had the highest load factor at 86.1%. (Source: IATA press release).
Bar at the Maritim Park Hotel
PKF is Bullish On Hotels Despite Economic Gloom
Hotel demand growth over the past two years has been surprisingly strong, according to PKF Hospitality Reseach, which is forecasting that room revenue for hotels will grow 7.2 percent this year, more optimisitc than forecasts earlier in the year.
The reason for this optimism, PKF says, is that 91 percent of the people in the workforce have jobs, the unemployment rate among educated workers, who make up the largest majority of the travelling public, is under 5 percent and corporate profits are soaring to new highs. All these factors are why the hotel inudstry has seen a growth in demand despite the weak economy.
Demand is growing faster than the supply of hotel rooms is growing. PKF says this means hoteliers can start to raise rates—average daily rates thus far have lagged other major indicators for hotels. (Source: PKF press release).
New Try to Expand High-Speed Rail
A new report says that high-speed rail can work in the U.S. but that it will take a fresh appraoch that focuses on public-private partnerships that supplement state and federal funding with private funding. It woud mean prioritizing high-speed rail in areas such as California, where work on a high-speed line is moving forward, and the northeast, where the Acela already competes well with airlines.
The recommendations are in a report by the Lincoln Institute, which has worked on high-speed rail internationally for decades. It points to the example set by Asian and European countries whose trains go 185 mph or faster.
It recommends putting high speed stations in city centers with lots of connections to buses, subways and commuter rail. (Source: Lincoln Institute press release).
Global corporate travel booking grew by more than 10.2% in August 2011 over August 2010, accroding to Pegasus Solutions, a global hotel reservation processing company. August improved over July, when the pace of growth flagged in the face of mounting financial market tensions.
Pegasus noted other trends showing that companies are trying shave travel costs but not eliminate travel.
Source: The Pegasus View report
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