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).

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!

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

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

Hotels and Car Rental Updates for Oct 2008

Hotels

Choice Hotels, American Express Offer
Double Rewards for European Stays
Members of Choice Privileges, Choice Hotels International’s loyalty program who use their American Express card when they stay at Choice Hotels International in Europe will earn 10 bonus points per $1 spent, in addition to the base 10 points (a total of 20 points per $1 spent).

The offer is good through Nov. 30 and includes Comfort, Quality and Clarion brand hotels. Travelers can register at choicehotels.com/axp. (Source: Choice press release).

Car and Rail

Dollar, Thrifty Offer American Express
Cardholders Special Rates in Florida
Dollar Rent A Car and Thrifty Car Rental, are including Pass24 Prepaid Toll Service with select car rental rates at participating Florida locations when customers use any American Express Card with Promo Code AX13.

This offer is valid at participating location in Florida through Dec. 15. Ordinarily, Pass24 pre-paid toll service costs $5.95 per day or $27.95 per week in Florida.

Enterprise Makes Car Sharing
Program Available Nationwide
WeCar, Enterprise Rent-A-Car’s business-to-business sharing program, is now available nationwide.

It provides hourly car rentals for corporate campuses, government installations, and colleges and universities. After enrolling in the program, members can reserve a vehicle online for all transportation needs, 24 hours a day, seven days a week.

The cars are strategically placed in designated, easy-to-find parking spaces. (Source: Enterprise press release).

You and your PDA

Eighty-seven percent of workplace professionals take their PDAs to bed, according to a work-life study commissioned by Sheraton Hotels & Resorts, but believe it enables them to spend more time away from the office and with family and friends. lounge. lounge. (Source: Sheraton press release)

1. 85 percent say technology makes them feel compelled to be connected to work 24/7
2. 84% check their PDA-s just before going to bed and as soon as they wake up.
3. 85% say that PDAs and cell phones let them spend more time out of the office
4. 84% say it gives them more quality time and flexibility with family and friends

Sheraton commissioned the study as part of its launch of its “Link-Sheraton experienced with Microsoft,” lobby lounge that helps travelers stay connected on the road. (Source: Sheraton press release).

Hotel Car & Record Airfare Updates for Sept 2008

Hotels
Sheraton Opens at JFK
The Sheraton JFK Hotel, a new build, has opened at New York´s John F. Kennedy International Airport. The 150-room hotel is a full-service hotel with meeting facilities, complimentary shuttle service to and from the airport, a restaurant, indoor pool, business center, fitness center and Club floor. (Source: Starwood Hotels Resorts press release).

Marriott Raleigh City Center Opens The 400-room Raleigh Marriott City Center has opened next to the new 500,000-square-foot Raleigh Convention Center. The 16-story hotel is attached to the convention center and has more than 15,000 square feet of meeting space, a business center, swimming pool and fitness center. It has two Italian restaurants and a 1,400 square foot Starbucks. (Source: Marriott press release).
Cars
Avis and Budget Offer Flicks to Go
Avis Rent A Car and Budget Rent A Car are introducing Flicks-To-Go, portable DVD players that attach
to the back of a car’s headrest. They include a choice of speakers for multiple viewers or two high-quality headphones which customers can keep. (Source: Avis press release).
Record Airfares
If it feels as though you’re paying more for airfare, there´s a reason. The latest American Express Business Travel Monitor reports that domestic and international airfares hit record levels in the second quarter of 2008. The good new is that companies can save money by emphasizing travel policy compliance.

Among the study’s findings:

• The average one-way domestic fare was $260, up $24 from the same period last year, a 10 percent increase, and up $27 from the first quarter, a 12 percent increase.
• The average one-way international fare hit its highest level since the inception of the Business Travel Monitor in 1999. These fares increased 11 percent over the same period last year, averaging $1,080.
• The percentage of international business class tickets dropped to their lowest level since 2004. Increases in the percentage of tickets purchased for the back of the plane indicate that travelers are trading down.

(Source: American Express press release).

June Footnotes for Hotels & Car Rentals

Hotels

Loews Hotels Introduces Baggage Buy Back Program

In the wake of American Airlines’ new $15 fee for checking bags, , Loews Hotels has introduced a new “Baggage Buy Back” incentive that will reimburse guests for their $15 checked baggage fee.

Arriving guests simply present any airline bag fee receipt at the front desk to receive the rebate, which will be issued in the form of a credit to their bill at checkout. The Baggage Buy Back rebate is available at Loews’ 18 properties in the U.S. and Canada, from June 15 through Labor Day, Sept. 1.

Loews Hotels will offer credit for up to two bags for a maximum of $30 per occupied room per stay. (Source: Loews press release).

Cars

Airline Loyalty Programs Offering Savings, Bonus Miles to Car Renters Airlines are giving their frequent flyer members a chance to earn more miles or get discounts when they rent cars.

Delta Air Lines and Advantage Rent A Car are partnering to allow SkyMiles members
to earn 200 miles per day on any class of vehicle rental through Advantage. with a maximum of 2,000 miles per rental. Additionally, SkyMiles members may earn up to 6,000 miles for rentals completed through July 13.

Northwest Airlines is partnering with Hertz to allow WorldPerks members to save 50 percent and earning double miles on weekend rentals in the U.S., Canada and Puerto Rico through June 30. WorldPerks members can earn 50 WorldPerks miles per day for Hertz rentals of one to four days, and 500 WorldPerks miles for Hertz rentals of five days or more.(Source: Advantage, Northwest press releases).

Spotlight On…..What You Really Dislike About Flying

It’s not the individual airlines that so frustrate air travelers, according to a new Travel Industry Association survey of air travelers. What irritates you most is the air travel process.

The TIA survey of more than 1,000 air travelers found that the more you fly, the more frustrated you get.

• Seventy-eight percent of air travelers believe the air travel system is either broken or in need of moderate correction
• Sixty-two percent believe the air travel system is deteriorating
• Thirty-three percent of air travelers are dissatisfied with the air travel system and 48 percent of frequent air travelers (those who do five trips or more per year) are dissatisfied
• Thirty-nine percent feel their time is not respected in the air travel process and that increases to 51 percent among frequent travelers.

The TIA is blaming flight delays caused by an outdated air traffic control system as a fundamental cause of the aviation industry’s problems and is holding a summit later this money to push Congress to address the problem.

Hotel Information May 2008

Avenue Hotel Opens in Chicago
The Avenue, a contemporary, post-modern hotel, has opened just a half block east of Chicago´s Michigan Avenue.

It has 150 one-bedroom and junior suites and 200 guest rooms. It has Special Tech rooms with iMac, dedicated T-1 Internet connection and color printer for business travelers and kid-friendly rooms with games and child-oriented décor.

It has more than 18,000 square feet of meeting space. It also has Stay for the Cure packages; ten percent of proceeds go to the Chicago Affiliate of Susan G. Komen for the Cure and an Eco Avenue program supporting environmental and conservation initiatives. (Source: Avenue press release).

Aloft Hotel to Open at Dulles Next Spring
Starwood Hotels & Resorts has broken ground on the aloft Dulles South, which will open near Dulles International Airport next spring. It will be in the heart of the technology corridor and close to corporate offices in aerospace, technology and telecommunications as well as Westfields business park.

Aloft hotel rooms have loft-like, nine-foot ceilings, over sized windows, wireless internet, one-stop connectivity solutions for multiple electronics including PDAs, cell phones, mp3 players and laptops. (Source: Starwood press release).

What You Paid to Travel in 2007

American Express has analyzed North America-based domestic and international air, hotel and car rental rates for 2007 and found that international rates saw increases across the board, while domestic fares and rates were stable.

• Average international fares increased a record 8 percent
• Since 2004, the average international airfare has increased by 21 percent
• Domestic fares stabilized-but that was after a 7 percent jump from 2005 to 2006
• The expansion of low fare carriers and passengers booking farther in advance helped domestic fares
• International hotel rates increased, domestic rates flattened
• Car rental rates increased 4.4 percent-firms re dealing with high operating costs

Companies can achieve savings in this kind of environment with a well-managed, dynamic travel program and by clearly communicating policy changes with travelers, according to Hervé Sedky, vice president and general manager for American Express Business Travel. (Source: American Express)

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