Williamsburg-American Express» Hotels

An Exciting New Year For Travel

Jack Kennard — Wed, 05 Jan 2011 14:10:55 +0000

Dear Valued Clients,

On behalf of all of us at Williamsburg Travel Management – American Express, we wish you a Very Happy New Year and a very successful 2011. It will be a very exciting year for the travel industry with many opportunities to travel to new and exotic destinations by air and by sea.

The Allure of the Seas has joined her sister ship, the Oasis of the Seas as the 2 largest cruise ships in the world. Both sail alternating Eastern and Western Caribbean Itineraries from Port Everglades and feature an amazing array of dining and entertainment venues. Azamara Club Cruises is Royal Caribbean’s boutique brand and has just added numerous service enhancements such as complimentary wine with lunch and dinner, a gratuities inclusive pricing structure, and new port intensive itineraries. They feature smaller ships with a more upscale, intimate and relaxed feel. Both ships have a capacity of approximately 700 guests and will sail longer, more exotic journeys to the Mediterranean and to South America.

This year there will be more cruise capacity in the Mediterranean than ever before. Royal Caribbean, Celebrity and Azamara will have 12 ships sailing in the Mediterranean and in European waters this year. Cruising is a great way to see Europe since you may pay for the cruise and shore excursions in U. S. Dollars.

Delta Air Lines has continued a major expansion of International routes to new destinations in Africa and across the Pacific. We look forward to their new terminal facilities at New York’s JFK International Airport and the completing of major construction projects at CDG International Airport in Paris.

We greatly appreciate your business and if any of us can ever be of special assistance, please do not hesitate to call.

Sincerely,

Terry W. Brennan
President

Hotel Updates and a Spotlight on Airports

Jack Kennard — Mon, 15 Mar 2010 17:00:39 +0000

Global Hoteliers Say Worst is Over
The Global Hotel Market Survey shows hotel operators believe that the worst of the crisis is behind them and 2010 will be the beginning of the recovery. Six months ago, the majority of hoteliers were pessimistic, predicting that conditions would get worse.

Hoteliers in regions that are seeing stronger recoveries are the most positive. Asia and the Oceania moved from scores of -41 and -48 six months ago, to +47 and +42 now. Europe, which was the most pessimistic region at the time of the last survey, is now entering positive territory.

Hoteliers in America, which has been possibly the hardest hit region in the world over the last 18 months, now feel more positive about the coming year than in the middle of last year.

Most of the participants expect average room rates to stay more or less the same in 2010, with weak corporate and leisure group business demand, but expect a slight improvement in occupancy, driven by individual leisure travelers. (Source: Horwath HTL press release).

Hotels in the Americas Still See Rates, Occupancies Decline
Despite optimism about the future, the present remains tough for hotels in the Americas, according to the latest STR Global monthly numbers.

In January 2010, the region’s occupancy ended the month virtually flat with a 0.7-percent decrease to 45.5 percent, average daily rate (ADR) fell 6.0 percent to $96.68, and revenue per available room dropped 6.7 percent to $43.98. Boston, Mass., reported the largest occupancy increase, jumping 18.3 percent to 48.9 percent.

Two other markets reported double-digit occupancy increases:

Miami, Fla. (up 10.6 percent to 74.6 percent)
Rio de Janeiro, Brazil (up 10.4 percent to 76.4 percent)
Alberta, Canada, posted the largest occupancy decrease, falling 9.9 percent to 46.9 percent.

Three markets reported double-digit ADR decreases:

Washington, D.C. (down 27.2 percent to $132.65)
Chicago, Ill. (down 14.5 percent to $85.99)
San Juan, Puerto Rico (down 10.8 percent to US$190.01)

(Source: STR Global press release)

Spotlight... on Airports

Travelers continue to be dissatisfied with airports, according to the J.D. Power and Associates 2010 North America Airport Satisfaction Study. Airports continue to struggle with delivering baggage promptly, providing a comfortable atmosphere and making airports easy to navigate. The study found that airports need to consistently deliver on three things:

Clear signage
Delivering baggage quickly and accurately
Partnering with the Transportation Security Administration (TSA) to reduce security wait times.

A few airports are doing better than others. Detroit, Denver and Minneapolis St. Paul were the top three among large airports (Denver and Minneapolis/St. Paul tied for second place). Kansas City, Portland and Tampa were the top three medium sized airports. And Indianapolis, Fort Myers/Southwest Florida and Tucson were the top three small airports. (Source: J.D. Power’s press release).

2010 Business Travel Forecast

Jack Kennard — Mon, 04 Jan 2010 15:49:58 +0000

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.

Hotel News updates for Carlson Hotels and Hilton HHonors

Jack Kennard — Wed, 11 Mar 2009 17:20:14 +0000

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,

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