First Quarter Outlook for Hotels is Bullish
The hotel industry should see a strong first quarter, according to the Hotel Industry Leading Indicators. Seven of the forward looking indicators of business activity that comprise the HIL were positive in November. They included hotel worker hours, hotel profitability, foreign demand, yield curve, oil prices, housing activity and vacation travel.
Two indicators were negative or zero: the jobs market and new orders. "Although we are still in an unhealthy jobs market, US consumers, lower energy costs and a reviving housing sector are working together to build strength back to the demand for hotels," said Ms. Simos Sogard, CEO of e-forecasting.com, an economic research and consulting firm which produces the HIL. (Source: e-forecasting press release).
Avis Gets Into the Car-Sharing Market
Avis will buy Zipcar, the top car-sharing business. It has more than 760,000 members and operates in 20 cities and in more than 300 college campuses in North America and the U.K. Other car rental companies are already in the car-sharing business: Hertz with its OnDemand division and Enterprise´s CarShare unit. (Source: industry press releases).
Amtrak Introduces New Tier to Loyalty Program
Amtrak has introduced a new tier, Select Executive, to Amtrak Guest Rewards, its loyalty program. It is for members who earn 20,000 or more tier qualifying points in a calendar year. It´s designed to give higher recognition to Amtrak´s most frequent travelers with bonus points, special offers and special perks and services. (Source: Amtrak press release).
CFOs Business Travel Outlook
A Survey of 200 US CFOS and senior finance executives finds them optimistic about their own prospects but concerned about sluggish economic growth in the U.S. and in key regions around the world, including the U.K. and Europe. Three in five senior finance executives are prioritizing investments in growth and that includes business travel.
- 61% anticipate spending the same or more on business travel
- The most important reason for travel is to build new business, 37% and to retain current business 35%.
- At the same time, most senior finance executives 64% do not expect corporate travel policies to loosen this year as companies continue to maintain a disciplined approach to controlling spending.
Source: press release