Hotels

Slow Hotel Recovery Keeps Rates Flat in U.S.
The U.S. hotel industry ended 2010 with occupancy increasing, but with average daily rates staying flat, the latter being good news for budget-conscious business travelers.

While the number of people booking hotel rooms matched or sometimes even exceeded pre-recession levels, rates stayed flat because people were booking later and group business has yet to return. However, that probably will change in the second half of 2011, according to STR, a major hotel research company. (Source: STR press release).

Car Rental and Rail

Amtrak Offers Free Wi-Fi on Cascades Trains
Passengers on Amtrak Cascades routes traveling between Vancouver, B.C., and Eugene, Ore., can now use Amtrak Connect Wi-Fi Service. More than 838,000 travelers rode Amtrak Cascades in 2010.

Wi-Fi service on Amtrak Cascades trains is during the introductory period, after which the policy will be reviewed based on customer demand and system performance. Amtrak also offers free Wi-Fi on all Acela trains and is considering adding it on other routes. (Source: Amtrak press release).

Enterprise, Hertz Add Volts to Fleets
Enterprise Rent-A-Car and Hertz have added Chevrolet Volt extended-range electric vehicles to their fleets. Hertz rented its first Volt in Manhattan; Enterprise rented its first Volt in southern California. Enterprise has been installing charger stations at select locations in Southern California. (Source: Enterprise, Hertz press releases).

Business Travel

Business travel spending, a key indicator for the overall health of the U.S. economy, is expected to grow this year, according to the latest Business Travel Quarterly Outlook - U.S., according to the National Business Travel Association Foundation.

• Overall business travel spending should increase by 5 percent in 2011
• It grew an estimated 2.3 percent in 2010, after plummeting 14.1 percent in 2009
• International travel should surge by 16.9 percent, driven by exports
• Group business spending, which is recovering slowly, should increase 3.2 percent
• Total trips for 2011 are projected to be 109.9 million, 8.6 percent higher than in 2010.

Volcano´s Impact on Hotels Balances Out
The Iceland volcano´s impact on European hotels wasn´t all bad, according to Trust International, a major hotel reservations company.

Cancellations increased to a peak on Monday, April 19, to reach more than 50 percent over normal levels. But new reservations also curved upward by more than 25 percent, suggesting travelers were postponing rather than canceling trips altogether.

Hotels witnessed increased levels of guests extending their stays and walk-in bookings as travelers booked hotels after their flights were cancelled, which helped mitigate the effect of the cancellations.

Richard Wiegmann, manager director of Trust International, said that the international hotel industry is in recovery and the outlook for the rest of the year remains promising. (Source Travel Trust press release).

U.S. Hotel Industry Recovery Looks Stronger Than expected
The U.S. hotel industry should do better than initially expected this year, with occupancy increasing by 1.9 percent to 55.8 percent, according to Smith Travel Research.

Next year, STR says occupancy will increase 1.9 percent to a still relatively low 56.8 percent and average daily rates will increase 3.5 percent. The industry won´t be back to levels of 2007 or 2008, but the industry should see 2 good years in a row, said Mark Lomanno, President of STR. (Source: STR press release).

Car & Rail

Avis Tries to Block Hertz-Thrifty Deal
A suitor may throw a wrench into Hertz´ plans to buy Dollar Thrifty Automotive Group.

Avis Budget Group told the Dollar Thrifty board that it is prepared to make a substantially higher offer, saying that Avis had several times expressed interest in acquiring Thrifty.

Avis said that the heads of the two companies had had a date to discuss the matter, but Thrifty canceled it when it announced the Hertz deal.

Acquiring Thrifty would move up Hertz by about 300 domestic corporate locations and 1,250 international franchises. (Source: Hertz and Avis press releases).

Airline Security Vs. Privacy

A recent study found Americans are willing to put up with some loss of privacy in return for greater air security.

• 93 percent said they are willing to sacrifice some privacy.
• 65 percent said they would put with full electronic scans
• 57 percent would go through biometric security checks such as iris scans or fingerprints
• 72 percent said they would provide personal data in advance

Source: Unisys Security Index press release.

 
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.

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)