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).

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).

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)

Hotel and Car Rental April Update

Hotel Prices Fall 12 Percent Worldwide
 Hotel prices are falling, according to Hotels.com’s Hotel Price Index. Rates for hotels in December 2008 were more than one tenth lower than they had been a year earlier and just one percent above their level in January 2004.

 
North American rates fell the most, down 12 percent in the fourth quarter of  2008.
(Source: HPI, STR Global press releases).

Omni Hotels Offers Triple Miles with American, United
 Omni Hotels is offering members of its Select Guest program the opportunity to earn unlimited triple miles in the American AAdvantage and United Mileage Plus programs.

Guest Select members also get complimentary Wi-Fi, morning beverages, pressing,  newspapers and online check-in and express checkout. To take advantage of the triple miles offer, visit SelectGuestProgram/ .
(Source: Omni Hotels).

Car Rental

Hertz Offers Summer Specials
 Hertz is offering 50 percent off weekend rentals through June 30 at participating airports in the U.S. and Puerto Rico. It’s also offering a Weekender, that includes an attractive rate, free child’s seat, no drop-off fee for one-way rentals and up to three days of Hertz NeverLost service. (Source: Hertz).

Travel Back Lash

Concerned by public perception of meetings and events as frivolous, some corporations are opting to meet in places that may look like a bargain but actually cost more.

An Association of Corporate Travel Executives survey of business managers found companies are factoring political correctness into their calculations.

1. Sixty percent would avoid a “resort” destination like Las Vegas even if the resort city were a better deal than a non-leisure destination.
2. Thirty-eight percent said public perception is now a key factor in choosing a meeting site.
3. Sixty-two percent said it would take a dramatic increase in their own business or an increase in projects that required meetings for them to increase the number of meetings and conferences they attend.

Source: Association of Corporate Travel Executives press release.

Hotel News updates for Carlson Hotels and Hilton HHonors

Travel News
How the New Age of Austerity Impacts Your Use of Hotels

You’ll probably make fewer, shorter and cheaper business trips this year and opt for basic efficiency and good service from the hotels you do stay in, according to a report by travel technology company Amadeus for the Economist Intelligence Unit.

Increased scrutiny of how business—any business, not just those using TARP
money—spends money means companies want to make business trips as productive as possible.

Gyms and restaurants count for little. Fast internet access is the most important  amenity;  efficient check-in is also key. The report predicts a “flight to trusted brands” and expectations of a certain level of good service no matter where you are in the world. (Source: Amadeus press release).

Hotels Make Loyalty Programs More Attractive
Hotel companies are enhancing their loyalty programs. Hilton HHonors has launched a new premium credit card, the Hilton HHonors Surpass Card from America Express, and enhanced the existing Hilton HHonors Card from American Express. Both cards let you earn points fast and offer generous awards.

The new Surpass card awards 9 points for every eligible $1 spent at Hilton Family hotels; complimentary standard membership in Priority Pass, which gives card members access to more than 500 airport lounges worldwide; and the ability to earn Hilton HHonors’ Diamond VIP status with an annual spend of $40,000, Hilton HHonors Card enhancements include upping bonus points (6 up from 5) for spending in an expanded list of double point categories, and special perks such as discounted and upgraded chauffeured car service.

Carlson Hotels Worldwide is offering its guests “3 for 3” – an additional 3,000 bonus Gold Points for members of its goldpoints plus loyalty program who stay three nights at any global Carlson Hotels from now through April 30. (Source: Hilton, Carlson press releases).

PKF Forecasts Declining Room Rates

Drawing on data that it’s collected since 1937, PKF Hospitality Research says that the U.S. has experienced 11 economic recessions since 1937; they lasted anywhere from six to 16 months. Some of the results were obvious, but there were some surprises, too.

As expected, during nine of the 11 downturns, occupancies fell, but that did not automatically mean average daily rates (ADR) fell. In fact, in eight of 11 recessions, they increased. For example, in the 1973-75 and 1980-82 recession, caused mainly by inflation, rates increased and hotels still were able to make some minor profit gains.

This time around, however,

1. PKF expects ADRs to fall. PKR forecasts that lodging demand will decline a cumulative 4.2 percent from 2007 through 2009
2. That, coupled with a 5.6 percent increase in supply, will produce 9.1 percent decline in occupancy to 57.2 percent,
3. The result: a 4.6 percent drop in ADR, continuing the discounting that began in the fourth quarter of 2008. Source: PKF press release

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Hotels and Car Rentals

Hotel Occupancy Rates Drop, Putting Pressure on Room rates
There’s more room at the inn for U.S. travelers, with the U.S. hotel industry finishing 2009 with an occupancy rate that was 4.2 percent lower than at the end of 2007, according to hotel consulting company STR.

The industry saw a decent start to the year, but became extremely negative during the past four months. Although occupancies fell, average daily room rtes actually increased by 2.4 percent. STR says the hotel industry will stay at this level for the next few months, but will see some improvements in the second half of the year.

Only two cities saw occupancy go up—New Orleans (8.6 percent) and Houston (2.6 percent). Rates actually went up in many major cities, including Houston (9.4 percent), Denver (6.3 percent), San Francisco (5.4 percent). Ultimately, however, declining occupancies are going to put considerable pressure on hotels to lower their room rates, according to Lodging Econometrics, which covers hotels.
(Source: STR Global press, Lodging Econometrics press release).

Starwood, Hilton Add Bonuses to Loyalty Programs
Starwood is celebrating the tenth anniversary of its Starwood Preferred Guest
program and Hilton is kicking off the 22nd year of Hilton’s HHonors loyalty program. Both are offering bonuses until spring. Starwood is offering members 10,000 bonus Starpoints for every 10 nights stayed now through April 30. Hilton HHonors, whose members can earn points and miles for the same say is offering double base points at the more than 2,400 participating Hilton family hotels through April 6. Register for the program at HiltonHHonors.com/globaldoublepoints.com
(Source: Hilton, Starwood press releases).

Car Rental Avis Budget Introduces Satellite TV in cars You can keep backseat drivers occupied with ATT CruiseCast, a new satellite television service that brings news, family, sports, comedy and music channels to the back seat of your car. Starting later this year, the service will cost $8.95 per day or $62.65 per week. It stores p to there minutes of content so obstructions such as overpasses or tall buildings will not interrupt a program. Channels include MSNBC, CNN Mobile Live, the Disney Channel, Comedy Central and many others.
(Source: Avis Budget press release).

Expense Management in Tough Times

A recent American Express study of Fortune 500 companies and their expense management practices found one of the most effective strategies—and the least expensive to implement—was holding employees accountable for their corporate spending. There were three simple ways,

1. Communicate: make sure employees know what a company’s spending policies are.
2. Educate: tell employees the financial implications, for both employees and the company, for disregarding those policies.
3. Enforce: offer carrots and sticks to encourage employees to adhere to policy.

Source: American Express press release

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