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

Travel reviews by JD Power and IBM

Hotels

Hospitality Industry Confronts Impact of Economic Downturn
Occupancy and revPAR levels for U.S. hotels continue to decline through the first week of November (latest available data) though ten top markets posted brisk growth in occupancy levels, room rates and revPAR through October.

Hotels in the United Kingdom as well as in Europe overall registered revPAR declines based on sliding occupancy levels.

The hotel construction pipeline grew 28% worldwide at the mid-year point (latest available data) although signs point to a developing fall-off and in the U.S., the number of guestrooms under
construction decreased by 5% in October.
Car Rental
Car Rental Customer Satisfaction Continues to Decline Customer satisfaction with renting cars at airports has declined considerably for a second consecutive year, according to the J.D. Power and Associates 2008 Rental Car Satisfaction Study.

The study looks at six factors: costs and fees, pick-up process, rental car, return process, reservation process and shuttle bus/van.

Overall satisfaction declines significantly from 750 points on a 1,000-point scale in 2007 to 734 in 2008. Staffing and operational cuts are hurting service, according to the study. Enterprise ranked highest for the fifth year in a row, followed by Hertz and Alamo. (Source: J.D. Power press release).

Avis Budget Ups Rates $3 Per Day
Avis Budget Group said it is upping its retail car rental rates by $3 per day and $20 per week at all airport and selected off-airport locations.

The company said the rate increase was a response to escalating costs affecting the car rental industry. Hertz raised its rates in the U.S. and Europe at the end of October. (Source: Avis Budget Press release)

High Lights

Airline baggage fees bug air travelers the most, but many consider general cabin ticket prices and fuel surcharge reasonable, according to a survey by the IBM Institute of Business Value.

• Seventy-eight percent of travelers consider airline baggage fees the biggest rip-off.
• Seventy-six percent considered additional charges to redeem miles another major rip-off.
• But 70 percent called general cabin ticket prices reasonable.
• Half considered fuel surcharges valid.
• Fifty-eight percent prefer to pay the lowest possible ticket price, sacrificing all amenities, including food.

(Source: IBM 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).

Avis Chauffeur

Avis Rent A Car System, LLC today announced a new premium service called Avis Chauffeur Drive through which Avis customers can rent a car and hire a professional driver at the same time.

Avis Chauffeur Drive is the product of a new alliance between Avis and WeDriveU, Inc. WeDriveU provides fully insured and certified chauffeurs who provide professional driving services to customers using the customer’s vehicle.

Customers enrolled in Avis Preferred or other Avis loyalty programs will be able to rent a WeDriveU chauffeur to operate the Avis vehicle of the customer’s choice, adding a new level of convenience and productivity to both business and leisure travel.

“Avis Preferred members can now let a locally-based professional driver worry about traffic, directions, parking and the bags, and the customer can sit back and relax if they’re on vacation, or make the most of their business travel time to get their work done,” said Michael Caron, vice president of product and program development for Avis Budget Group, parent of Avis. “And using Avis Chauffeur Drive can also cost less than hiring a sedan from a limousine service, so it saves the customer money, too.”

Avis Chauffeur Drive costs $30 per hour with a three-hour minimum, plus standard rental car charges. Customers can rent the vehicle and use a WeDriveU chauffeur during the entire rental period or as needed.

If a driver is used intermittently during a rental period, the three-hour minimum applies each time.

The chauffeur can pick up the Avis rental car for the customer and meet the customer wherever desired, including airline baggage claim or curbside loading zones for airport arrivals, or at a hotel or business meeting location. The driver can also handle the return of the vehicle.

Avis Preferred members can reserve their chauffeur by calling 800-272-5839 at least 24 hours prior to rental pickup time. Customers using Avis Chauffeur Drive will be billed separately for the driver charges by WeDriveU.

Avis Chauffeur Drive service is available in Boston, Chicago, Dallas, Detroit, Los Angeles, Miami, New York, Phoenix, San Francisco and Washington, D.C. for Avis customers enrolled in Avis Preferred, as well as members of the Avis Chairman’s Club, Avis First and Avis President’s Club programs.
The service is available at major airports and within a 60-mile radius of these city centers.

WeDriveU is popular with busy executives and individuals who place a premium on productivity, convenience and value, and we’re delighted to now extend our services to Avis Preferred customers, said Dennis Carlson, president and CEO of WeDriveU.

Whether they’re juggling back-to-back business meetings or a non-stop leisure itinerary, customers now have the best of both worlds: the convenience and value of renting from Avis, plus the professionalism and outstanding service from our chauffeurs to make travel more effortless and enjoyable.

For more information or to enroll in Avis Preferred, visit www.avis.com/driver.

About WeDriveU, Inc.

WeDriveU provides fully insured and certified chauffeurs who drive for you in YOUR car. Since 1988, WeDriveU chauffeurs have set the industry benchmark for quality and professionalism throughout the United States by passing a rigorous certification process.

WeDriveU has served a range of corporate and individual clients and events, including:

• General Motors R*Works
• Fairmont Hotel
• U.S. Conference of Mayors
• American Hospital Association
• Mercedes-Benz of North America
• British Consulate
• Charles Schwab & Co.
• Democratic National Convention
• PGA Tour Championship
• Argonaut Securities
• Princess Cruises
• NAACP Image Awards
• Republican National Convention
• Women´s World Cup among others

WeDriveU, “Your Source for Professional Chauffeurs,” is headquartered in San Mateo, CA with offices throughout the U.S. Visit www.wedriveu.com or call 800-77DRIVE (800-773-7483).

About Avis

Avis Rent A Car System, LLC and its subsidiaries operate one of the world´s leading car rental brands, providing business and leisure customers with a wide range of services at more than 2,100 locations in the United States, Canada, Australia, New Zealand and the Latin American / Caribbean region.

Avis is one of the world´s top brands for customer loyalty, ranking as the number one car rental company in the 2007 Brand Keys(R) Customer Loyalty Index. The company is a wholly owned subsidiary of Avis Budget Group, Inc.

For more information, visit www.avis.com.