Saturday, April 23, 2005

Saudi Arabian Airlines to buy 15 new aircraft




State-owned Saudi Arabian Airlines said yesterday that it will buy 15 new aircraft to fly domestic and regional routes and boost its 139-strong fleet.
A company official said all 15 planes will be the same 66-seat model but declined to give further details.


Analysts say the deal could be worth up to $450 million at catalogue prices and would likely go to Brazil’s Embraer, Canada’s Bombardier or ATR, a unit of Airbus parent EADS.


The official said the purchase is the first since Saudi Arabian Airlines bought 61 Boeing and McDonnell Douglas planes — including 747-400s, 777-200s, MD11s and MD-90s — which were delivered between 1997 and 2001.


Director general Khaled Ben-Bakr said in a statement Saudi Arabian Airlines “is the first airline to purchase this type of aircraft in the Middle East”. The purchase is fully self-financed by the airline, he added.
Industry sources said the cost of each plane was likely to be between $20 million and $30 million, excluding maintenance and other costs.

The purchase was approved by the airline board of directors headed by Saudi Arabia’s Defence Minister Prince Sultan bin Abdul-Aziz. Saudi Arabia has for years said it plans to open up its aviation sector to competition and privatise Saudi Arabian Airlines, which remains the sole domestic carrier for now. .

Source: http://www.khaleejtimes.com/index00.asp (Reuters)




More than 3,400 people cancel bookings for trips to China (Kyodo News International, Tokyo)

More than 3,400 Japanese people have canceled tours to China since recent violent anti-Japan protests in that country, according to data from eight major travel agencies compiled Thursday.

JTB Corp., Japan's largest travel agency, said its cancellations totaled 590 as of Tuesday.

Tokyu Tourist Corp. said that although it had received reservations from about 4,000 people for trips to China in April and May, about 1,000 of them have canceled their orders.

New bookings of tours to China are also decreasing sharply. In the week through Wednesday, for example, Jalpak Co. received 60 percent fewer reservations than usual.

Tours to China have been in strong demand over the past few years as they no longer require visas while major airlines have increased flights to China.

JTB earlier forecast that a record 95,000 Japanese tourists would visit China during this year's long Golden Week holidays in Japan from late April to early May.

But in view of accelerating cancellations, the number of tourists to China appears likely to fall short of the projection.

Japan Airlines, All Nippon Airways and 11 Japanese domestic airlines have received cancellations of some 5,000 bookings of flights from Japan to China during the Golden Week period.

Source: Kyodo News International, TokyoKnight Ridder/Tribune Business News

Cruise Ship Hits Mexico Pier; No Injuries




A cruise ship hit a pier while docking in Mexico, cutting a 42-foot gash in the ship's side and delaying its return to New Orleans. Nobody was hurt, but the 2,030 passengers will have to either fly back on chartered flights or wait until the repairs are done, said Michael Sheehan, a spokesman for Royal Caribbean International Ltd. The crash happened Wednesday as the ship called the Grandeur of the Seas tried to dock in 17 mph wind and a 3 mph current, the cruise line said Thursday. The football-shaped gash in the starboard bow is about 5 feet above the water line, and 5 feet wide at its widest point.

The Miami-based company said the U.S. Coast Guard is investigating.
The ship is now expected to leave Costa Maya, Mexico on Saturday and arrive in New Orleans at midday Monday, the cruise line said. It had been scheduled to return to the city Saturday.

The next cruise on the Grandeur of the Seas will be shortened because of the crash. It was to leave New Orleans on Saturday for a seven-day trip. Passengers booked for the cruise are being notified that it will now leave Monday for a five-day trip. Those on the current cruise were being offered credits. Those booked on next week's shortened trip either will get a credit or will be able to cancel and receive a full refund, the cruise line said.

It was the second mishap on a cruise ship in less than a week. On Saturday, a freak seven-story wave damaged the Norwegian Cruise Line's Norwegian Dawn ship as it returned to New York from the Bahamas. It was forced to dock at Charleston, S.C., for repairs, and then returned to New York on Monday.

Source: http://www.heraldsun.com/service/




Port of Vancouver Launches "U.S. Direct" Program for American Cruise Ship Passengers

In an effort to increase business andmaintain a leadership position in the Alaska cruise market, the Vancouver PortAuthority, in partnership with the Vancouver International Airport Authority(YVR), has launched a new "U.S. Direct" strategic initiative for the start ofthe 2005 cruise season. The initiative streamlines passenger processing andimproves transit times through Vancouver. "U.S.

Direct strengthens our competitive position by making Vancouver amore attractive departure point for passengers travelling to Alaska anddemonstrates the value of working with our partners at YVR and governmentagencies," said Gordon Houston, President and CEO of the Vancouver PortAuthority. "This initiative would not have succeeded without the support ofCanada Border Services Agency and U.S. Customs and Border Protection."


The U.S. Direct initiative allows passengers arriving at YVR to transferdirectly to a same-day-departing cruise ship without clearing customs, andU.S. Direct also works in reverse. Passengers arriving on a cruise and flyingout of YVR on the same day disembark the ship and are transferred to YVRwithout passing through Canada Border Services Agency and immigration at thecruise terminal. Upon arrival at YVR, these passengers enter the airportthrough a designated cruise ship facility. Procedures are in place to ensure apassenger can be seen by either government authority should the need arise. "The cruise business is a vital part of our economy directly generating$566 million in economic output and 13,000 jobs each year. We must worktogether to develop ways to maintain and grow our business," said Houston."This includes the Cruise BC initiative, a collaborative effort betweencoastal communities and ports to transform Canada's Inside Passage into a new,world-class destination in its own right."

Enhanced marketing efforts to the travel industry are also part of thelong-term strategy employed by the VPA and its partners Tourism Vancouver,Tourism British Columbia and the Vancouver International Airport Authority.

Stephen Pearce, Vice President, Leisure Travel and DestinationManagement, Tourism Vancouver, states that future success will involvepositioning Vancouver as an essential part of the overall cruise experience."Vancouver is far more than just a port. As a vibrant cosmopolitan city, weoffer a breadth of tremendous experiences in a spectacular natural setting. Wewant our customers to know that their once in a lifetime experience startswith a visit to Vancouver."






Vancouver's 2005 cruise season begins Sunday, April 24, with the arrival of Holland America's Statendam. Two hundred and seventy-three sailings aboard 30 ships are expected this year, affirming Vancouver as a leader in the Alaska cruise market. The Port of Vancouver is Canada's largest and most diversified port, trading $29 billion in goods with more than 90 trading economies each year. Port activities generate 62,000 jobs in total with $1.6 billion in Gross Domestic Product and $3.5 billion in economic output.

Source: http://www.newswire.ca/en/

Friday, April 22, 2005

U.S. hotels face bed bug problem




Bedbugs are staging a comeback, mostly targeting U.S. hotels, the Wall Street Journal reported Thursday.

The return of the common variety has been blamed in part on the phasing out of some of the pesticides that had kept them in check.

Hotels in particular are vulnerable because the bugs travel in luggage and clothing and because hotels have so many different people sleeping in their beds, the report said.

A survey of insect-control companies in 2004 by Pest Control Technology magazine found that hotels account for the biggest proportion of all reported bedbug infestations.

The good news is that bedbugs are not known to transmit diseases.

Charles Kelley, a physician and an executive at a company which owns or manages 46 hotels, said hotels can avert lawsuits by being forthright with guests. But, he says, No hotel chain wants to talk about this.

Thomas Jones at the University of Nevada Las Vegas's hotel school says bedbug claims are among the top frauds perpetrated against hotels.

Source: Big News Network




Foreign airlines may have to disclose names of passengers

The Bush administration is considering requiring foreign airlines to check the names of passengers on all flights over the United States against government watch lists.

The proposal would most affect airlines in Mexico and Canada because the majority of the hundreds of flights each day come from those countries.

Currently, foreign airlines planning to land in the United States must submit passenger and crew lists to the government within 15 minutes of departure. The names are checked against lists of people considered terrorists or who otherwise could present a danger.

Airlines must do the same for crew members on flights over the United States. Now the Transportation Security Administration is considering requiring airlines to check the names of passengers, spokesman Mark Hatfield said.

The goal would be to add one more layer of protection against hijackings.

Cliff Mackay, president of the Air Transport Association of Canada, said Canadian and U.S. officials are discussing the idea.

One question, Mackay said, would be whether U.S. authorities would want passengers checked on east-west flights that might skirt U.S. airspace or only on those flights that significantly go into U.S. territory.

Source: LESLIE MILLER
Associated Press

Business travelers dream - of a good night's sleep

Business traveler Sherry Lucas doesn't trust hotels' wake-up calls or their clock radios. The result: She wakes up every hour or two during nights she spends on the road, depriving her of much-needed rest.

"I never oversleep, because I haven't really gotten to sleep in the first place," says the New Jersey financial services consultant who spent about 85 nights in hotels last year.

Two new surveys confirm that road warriors are getting insufficient sleep. More than a third of adult travelers say they rarely get a good night's sleep while on the road, according to a survey by Radisson Hotels & Resorts and Select Comfort, a bed company.



A British Airways-sponsored survey found nearly a quarter of business travelers have fallen asleep in a meeting. Nearly one in five said they had a presentation go badly or lost business because air travel deprived them of sleep.

But it isn't just the marketing-inspired studies of the travel industry drawing attention to the special problems of road warriors in need of better rest.

"Business travelers experience greater sleep deprivation than the general population," says Darrel Drobnich of the nonprofit National Sleep Foundation.

Adding to woes

Some causes of road warriors' sleep deprivation are chronic: jet lag, stress and anxiety of doing business on the road, hotel rooms that are too noisy or not dark enough, sleeping in a strange bed.

But Drobnich and others cite two relatively new contributors to the road warriors' restiveness:


• Tight corporate budgets. "Companies are looking to keep costs down, and business trips have quicker turnaround times than in the past," Drobnich says.

There was a time when a business traveler might have taken a day or two to unwind after a trip, but no longer.


• Post-Sept. 11 security. Earlier check-in times and long security lines add to travel times and tend to wear a traveler down quicker.

The National Sleep Foundation says adults should get seven to nine hours of sleep daily. Research suggests that getting fewer hours on a regular basis can lead to cardiovascular and gastrointestinal problems, Drobnich says. Lack of sufficient sleep affects one's mood, temper, performance and hand-and-eye coordination, he says.

For Art Meripol, a magazine travel photographer in Birmingham, Ala., the first night of a business trip is usually the hardest.

Says Meripol: "Maybe that's work anxiety, anticipating the days ahead; maybe just the different bed. Most often I end up with a remote in my hand watching TV later than I ever would at home."

Jeanne Bear, vice president of an Arizona vision care company, says lack of sleep and tiredness make her less productive. The problem is especially acute after arriving for meetings in Europe from the United States, she says.

"At various functions, I have found myself nodding off," she says.

But adequate sleep isn't just a matter of keeping road warriors at their peak. Drowsy travelers can endanger others when they get behind the wheel of a rental car, Drobnich says.

Frequent business travelers interviewed by USA TODAY acknowledge the sleep problem, and have no shortage of suggestions on ways airlines and hotels could improve things.

"There is absolutely zero reason to vacuum hallways before 8 a.m.," says Eric Thompson, the CEO of a Seattle-based scientific instrument company.

"The only thing that keeps me from running out into the hallway naked, ranting and armed with a pair of wire cutters to snip the power cord, is the Transportation Security Administration's insistence that I not travel with snips in my carry-on luggage," Thompson says.

Another of Thompson's sleep strategies: He carries binder clips in his shaving kit to close the "inevitable gap" in the drapes that let light through.

Other suggestions from business travelers: Flight attendants should stop asking questions of passengers who say they want no food.

Airlines should widen seats, provide earplugs, lower the volume of the public-address system and provide more heat in the cabin.

Hotels, frequent travelers suggest, should provide instructions for clock radios, curtains that block out light, thicker pillows, high-quality linens, free bottled water for hydration, better thermostats, quieter air conditioning systems and soundproofing against other rooms' plumbing systems.

Road warriors' lack of sleep might continue if they immediately return to work and tackle a busy schedule after a business trip, says David Dinges, a University of Pennsylvania professor and sleep-deprivation expert.

"Travel is wear and tear - it's hazard pay," he says. "People need time to recover - a day or two off to decompress - when they get back."

Source: Gary Stoller USA Today

New airport's long haul flights


Robin Hood Airport terminal
The first flight will depart on 28 April
Yorkshire's newest airport, which is due to start operating next week, has announced new long haul destinations.

Holiday group Thomson has announced it will operate transatlantic flights from the summer of 2006 from Robin Hood Airport, near Doncaster.

Passengers will be able to travel to the Caribbean, Florida and Mexico when the new routes begin.

The first scheduled Thomsonfly flight is due to take off from the former RAF Finningley base on 28 April.


Source: http://news.bbc.co.uk/2/hi/default.stm

World's most expensive hotels 2005

The most expensive hotels in the world cater to a tough, albeit well-heeled,
crowd.

Rap stars, tycoons, royalty and CEOs know the difference between the sublime
and the merely impressive. What's more, if the champagne is not properly chilled,
the thread count on the sheets inadequate, the luggage not brought up with alacrity
or the morning coffee served anything less than piping hot, they may take their
Black cards and Gucci shoes elsewhere





At a certain level--and price point--a hotel room ceases to be simply
a place to sleep and shower in a strange city and, instead, becomes a
physical manifestation of one's status and power. Like buying a $100,000
wristwatch, the point is not to tell time better but to show the world
you can afford it. Nevertheless, as with a pricey watch, if you are going
to be shelling out that kind of coin for the best, you expect your money's
worth.

When a hotel charges four-figures per night, it is acutely aware of the
inherent quid pro quo involved: Excellent service in exchange for exorbitant
rates. They know that pampering at the highest level is what keeps the
VIPs coming back. But what most non-VIPs don't know is that all too often
the supermodels, Hollywood producers or Saudi princes in the best suites
aren't paying the full rate--if they're paying anything at all.

Why is that? Richard Engle, a travel consultant at luxury-travel

company TravelWizard.com in California, compares it with the airlines, which
through different discount offers and affinity groups can often give the best
customers lower rates. "When we're thinking about what we can get the hotel
for, we never think in terms of rack rate since we almost never have to pay
it," he says.

It is also possible that a hotel's management will upgrade celebrities or other luminaries at their own discretion--sometimes even waiving all charges completely. "In the world of big, high-profile stars, money doesn't apply because they bring publicity to the hotel," says Engle. "I wouldn't be surprised if Oprah didn't pay anything" when she travels.

But one doesn't need to be a billionaire or a talk show host to get the star
treatment. In Las Vegas, for example, at The Mansion at The MGM Grand, a subsidiary
of Kirk Kerkorian's MGM Mirage, most guests may never know that the official
rack rate starts at $5,000 per night because rooms are almost exclusively reserved
for the casino's highest rollers, who stay for free.

Yet, it is possible to be an ordinary mortal and still get a great room for
less. Thanks to affinity cards, corporate discounts, airline miles and other
programs, there are many ways to shave hundreds of dollars per night off the
cost of even the most expensive rooms. Of course, not every hotel offers such
discounts. But, depending on who you are, you or your personal assistant may
be able to work out a more favorable rate. One thing that doesn't change, thank
goodness--even if the price does come down--is the quality of the service.

Source: Sophia Banay - Fobes.com

Marriott profits up 27%

Marriott International Inc. reports first quarter net income of $145 million, up 27 percent from the same quarter last year.

Revenues rose 13 percent. Lodging operation income surged 34 percent.

"The favorable demand momentum that we saw building in 2004 has continued into 2005," CEO J.W. Marriott Jr. said. "Demand for our hotels is strong in most markets around the world."

First quarter at a glance:

  • Revenue: $2.5 billion. Year before: $2.2 billion.
  • Net income: $145 million. Year before: $114 million.
  • Per share: 61 cents. Year before: 47 cents.

Synthetic fuel operations contributed approximately $18 million in the first quarter versus $11 million a year earlier.

Same-store revpars -- revenues per available room -- rose 9.2 percent from the same quarter last year, driven mostly by rate increases. Marriott now expects 8 percent to 10 percent growth this year.
Marriott (NYSE: MAR) hotels under development or awaiting conversion: 350 hotels and more than 55,000 rooms

Source: http://www.bizjournals.com/pacific/

Singapore resort draws bids (The Orlando Sentinel, Fla.)

Universal Parks & Resorts, the Orlando-based theme-park unit of media titan NBC Universal, is competing against other companies worldwide to help launch a multibillion-dollar casino resort in Singapore.

Parks & Resorts Chairman Tom Williams confirmed this week that Universal has put in a bid for a project on the island of Sentosa. "It's five minutes from the mainland," said Williams, and would include hotels and a theme park that would be owned by the island-nation.

Williams said that, if it's successful in winning rights to at least part of the massive project, Universal would derive revenue from royalties on licensing rather than any ownership stake. The company already has a licensing arrangement with a theme park in Spain.

The company also owns 24 percent of a park in Japan and had worked for more than three years on a proposal for a tourist park in Shanghai, China, before that project was scuttled last year.

Williams said the Chinese government actually pulled the plug on the Shanghai project as part of a redirection of resources in the past year, as the country undergoes an unprecedented building boom. A shortage of steel, concrete and energy played a role in China's State Council decision to allow an approval deadline to lapse last July, Williams said.




Singapore, by contrast, recently dropped its ban on casinos in an effort to reinvigorate its tourism industry with a project that could draw from China, Malaysia and Indonesia.

Singapore Prime Minister Lee Hsien Loong told Parliament on Monday that preliminary proposals for projects at two locations have already been received from 19 companies.

The bidders include gambling giants Harrah's Entertainment, the Las Vegas Sands, Wynn Resorts, Australia-based Tabcorp Holdings, Hong-Kong-based Melco International, and Malaysia's Ghenting Bhd., which is teaming with its Star Cruises Ltd. Unit and Universal's theme-park unit.

If Universal wins a bid, it would be a smart business move on its part to keep it as a licensing arrangement rather than an equity, or ownership, stake, which carries more risks, said Abe Pizam, dean of the Rosen College of Hospitality Management at the University of Central Florida.

Pizam, one of the nation's top experts on theme parks and resorts, said he has traveled to Singapore dozens of times through the years and is familiar with the opportunities and challenges of the island city-state.

"They have been losing their competitiveness to not only Hong Kong but Korea and Indonesia," Pizam said. "They are now looking for an infusion of tourists with a big attraction."

Singapore decades ago was a leader in attracting tourists for tax-free shopping, Pizam said, and dabbled in other tourist ventures on a small scale. It has smaller parks and attractions, similar to the former Splendid China park near Kissimmee. But no major theme parks




In recent years, Singapore has been known more for its tightly controlled society, with its ban on chewing gum and regimented lifestyles. But the atmosphere has relaxed a bit recently, Pizam said.
"The younger generation wants to go in that direction," he said.

Singapore already has state-controlled lotteries, horse racing and soccer matches that generate gambling receipts. But casinos could draw public opposition in a nation where films are censored and drug dealers are executed.

Manufacturers have been leaving Singapore for lower-cost countries such as China and India, and Singapore's leaders now are looking to make up for that loss by tripling tourism revenue, to $18 billion, by 2015.

Source: By Jerry W. Jackson, The Orlando Sentinel, Fla.Knight Ridder/Tribune Business News

Thursday, April 21, 2005

About 1,000 Japanese to travel to N.Y. for nuclear conference

About 1,000 Japanese, including atomic-bomb survivors from Hiroshima and Nagasaki, plan to travel to New York, which hosts a major conference on a nuclear nonproliferation treaty from early May, to make their case against nuclear arms.

The Japan Confederation of A- and H- Bomb Sufferers Organizations is planning to send in concert with several other civic groups around 90 people, including 30 A-bomb survivors.

Source: (Kyodo News)




Chinese airlines signed orders worth about $3.2 billion (1.7 billion pounds) for 30 Airbus aircraft on Thursday, including five A380 superjumbos for China Southern Airlines, as the European EADS affiliate made further inroads into the booming market.

The remaining aircraft, for Shenzhen Airlines and China Eastern, were all from Airbus's hot-selling A320 family of narrow-body planes.

The deals were confirmed in a joint agreement at a signing ceremony attended by Premier Wen Jiabao and French Prime Minister Jean-Pierre Raffarin in Beijing.

Some of the orders, including that for the A380s, had been announced previously.

Airbus is 80 percent owned by European Aeronautic Defence & Space Co. N.V. of Germany and France and 20 percent by Britain's BAE Systems Plc.

Source: http://www.reuters.co.uk/




Companies cash in on pet travel boom

From portable potty turf to disposable kitty litter boxes and pet passports, the growing number of travelling pets - estimated at 20 million last year - has spawned an industry dedicated to making the lives of road-weary animals a little easier.

People are constantly bringing their pets with them," said Gregg Oehler, publisher of New York Dog Magazine. "I get calls every day from advertisers who have travel as part of their pet product mix."

The pet travel craze has prompted hotels to offer pet-friendly perks like menus, daycare and playgrounds, the way hotels became kid-friendly a generation ago, Oehler said.

Ever since Midwest Airlines introduced a frequent flier pet programme in January, pet travel at the company is up 25 per cent, said Susan Kerwin-Hagen, a Midwest marketing manager.

Owner-accompanied pets get a free round-trip ticket after their third domestic round-trip flight. Pets pay a flat fee of $US150 per round-trip to Midwest destinations throughout the United States, a price in line with other airlines.

United Airlines also offers pet miles, where for a limited time, Mileage Plus members can earn 1200 bonus miles when travelling with pets.

The new airline programmes were good news for Chuck Bessant, who lives in Colorado Springs, Colorado and takes frequent trips with his three small show dogs. Rules vary on how many pets are allowed in each cabin, and in cargo pets are charged based on their weight.

"We are typically treated as if we are carrying a leaky quart of Ebola-tainted blood on a plane," said Bessant, who transports his Australian terriers in the popular Sherpa brand carrier.

Experts point to several factors leading to the pet travel boom, among them childless couples who take pets on vacation the same way parents bring the kids.

In 2004, pet travel rose 33 per cent to 20 million - 80 per cent of them dogs, according to a survey by the association.

Among the other companies capitalizing on pet travel accessories are JoBananas Club, the makers of disposable kitty litter boxes. WalkyDog USA makes a spillproof water device and a hands-free dog carrying pouch.

Petco Animal Supplies and PetsMart are also taking note, expanding their offering of travel-related products. A travel centre on Petco's website lists products like the Outward Hound Pet booster seat and pet ramps for sport utility vehicles.

And the products keep getting more advanced.

Hochman, the owner of PetaPotty, is making an odour-free version of his portable turf, called Smell-U-Lator.

"Every month my business is growing and it's not just travelling families buying the product," Hochman said. "Doggie day-care centres and even dog psychics are using it."

Source: http://www.stuff.co.nz/

Agents revoke A-I ticket sale suspension




Overseas holidayers can finally breathe easy. Travel agents across the country have called off their 19-day agitation against Air-India and a couple of European carriers after getting an assurance from the A-I brass that their grievances would be looked into.

“Travel agents across the country have decided to take back the decision of suspending ticket sales of Air-India and other European airlines after getting an assurance from the management that our problems pertaining to commission cuts would be considered,” Travel Agents Association of India president Balbir S Mayal said.

A-I, along with European carriers, Singapore Airlines and Asiana Airlines, had decided to cut agents’ commission from 7% to 5% with effect from May 1 in line with the global practice of cutting distribution costs, forcing the agents to suspend sale of A-I tickets from April 1.

The agents had even observed a one-day bandh to protest against the reduction of agency commissions. But the strike had very little impact as the carriers started using their offices across the country as points of sale for airline tickets at competitive rates

“We have received a letter from the A-I management inviting us for discussions on the issue. We are planning to meet them next week to sort out our differences and find an amicable solution which would avoid loss of business to both the affected parties,” Mayal said.

“We realise that the 2% commission cut is here to stay. However, we want an assurance from the airlines that the commission is not eliminated totally,” he added.

Airlines have already started moving into a zero-commission regime the world over. Western airlines had last year mooted plans to start dropping agent commissions, a move that had attracted the ire of the agent community forcing the carriers to withdraw the reductions




Source: http://economictimes.indiatimes.com/

Wednesday, April 20, 2005

Travel agents end ban against Air-India




Travel agents across the country have called off their 19-day agitation against Air-India and European carriers after getting an assurance from the A-I top brass that their grievances would be looked into.

"Travel agents across the country have decided to take back the decision of suspending ticket sales of Air-India and other European Airliners after getting an assurance from the management that our problems pertaining to commission cuts would be considered," president of Travel Agents Association of India (TAAI), Balbir Mayal said today.

The strike had little impact on the carriers as they had kept open their reservation offices and sold tickets at "competitive fares". A-I along with European carriers, Singapore Airlines and Asiana Airlines has decided to cut agents’ commission from seven to five per cent with effect from May 1 in line with the global practice of cutting distribution costs due to which agents had decided to ban sale of A-I tickets from April.

Source: PTI




How long can the big airlines survive

NEW YORK The once-friendly skies of the nation's major airlines have gotten a little reserved, even irascible of late. And six months from now, the atmosphere at 30,000 feet could deteriorate even further.

Air travel has been undergoing a steady metamorphosis since 9/11, with carriers shrinking legroom, pulling free meals, and even eliminating complimentary pillows. And thanks to high oil prices and intense competition from upstarts like Jet Blue and Southwest, the process is only accelerating.

"It's good news for the airlines that they've been able to accomplish what they have in terms of cost-cutting," says Kevin Mitchell, president of the Business Travel Coalition, which represents corporate travel executives. "But the long-term trend is still declining yields, so it's not a pretty picture."

Since deregulation in 1978, the nation's major airlines have thrived in a boom-and-bust cycle, economizing during recessions only to rake in money once economic indicators started looking up again. But in this last economic upturn, the majors continued to lose money. Because of high fuel prices, they're on track to lose an estimated $5.5 billion this year.

That means, as Dave Swierenga of AeroEcon Consulting puts it, "They have not filled up their barns, they haven't prepared themselves to weather the next downturn."

As the economy slows, it's going to become even more difficult for them to borrow money. Without good credit, the legacy carriers will find it difficult to buy the new planes needed to meet growing passenger demand. And because they're not rebuilding their fleets with more efficient planes, they also won't be able to bring their costs down as fast as they need to in order to keep up with the low-cost carriers.

"I see that as a serious threat to the future of the industry, at least when you're talking about the next 10 years or so," says Mr. Swierenga.

But Swierenga isn't ready to write off the majors yet. He contends that they've proved to be "vigorous competitors" by pioneering such cost-saving innovations as check-in kiosks. Some majors are also picking up on the cost-saving strategies employed by the low-cost carriers.

For instance, JetBlue and Southwest fly primarily point to point, in other words, direct from one destination to another. As soon as their planes land, they clean them and fill them back up again. The legacy carriers operate in what's called the hub-and-spoke system. They bring in as many planes from different locations as possible into a central hub location and give them an hour or more to unload so people can make connections. That's good for the consumer who doesn't have to wait around too long to catch a connecting flight, and it gives the airlines a much bigger network and geographic reach. But the downside is that it's inefficient: The planes sit on the tarmac unused, and crews have longer waits between flights.

The legacy carriers premised their hub-and-spoke systems on the notion that business passengers would pay a premium for the convenience of more connecting flights. Some, like Delta, are now scheduling their flights to use their aircraft and personnel more efficiently.

That brings up yet another issue for the large, older carriers - changing expectations. For decades they've focused their advertising on their great service and frequent-flier benefits. Now, the low-cost carriers are touting low prices rather than perks. As the big carriers have had to cut back, service is suffering and passengers can't help noticing, says Clint Oster, an aviation economist at Indiana University in Bloomington.

"You have some nervous and unhappy people on the front lines for the legacy carriers," says Professor Oster. "If your carrier is bankrupt, you've probably already given back wages and benefits and so many people have been laid off that those who are left are the more senior, those who remember the good old days. So it's not too surprising that you see some discontent."

At the same time, more people are flying JetBlue and SouthWest and realizing that in addition to offering lower fares, the low-cost carriers also have cheerful employees and great on-time performance, to say nothing of the free TV on JetBlue.

Indeed, for the first time, five of the top six carriers rated by the annual Airline Quality Rating survey were low-cost carriers.

"The big problem for the legacy carriers is still trying to get their overall costs in line, without sacrificing the quality," says Richard Gritta, an aviation economist at the University of Portland in Oregon. "That's really, really tough when you're inefficient to start with and then you throw in the price of oil, which has pushed $60 a barrel."

In addition, more people are flying now than pre-9/11, but they are also paying far less to do so. According to the Air Transport Association (ATA), the lobbying arm for the nation's largest carriers, passenger revenues used to make up between 0.95 and 1 percent of gross domestic product. This year, they accounted for 0.7 percent. This means that $29.3 billion that used to be spent on airlines, no longer is.

The result is that the nation's aviation system will look very different in five years.

"I see convergence. The low-cost carriers are becoming more like network carriers, and network carriers are becoming more like low-cost carriers," says John Heimlich, an economist at the ATA. "Something that's the best of both worlds is emerging. The real question is how many of each do we end up with?"

Groups oppose passport ID chips

Two national business travel organizations are joining privacy groups in opposing a federal plan to embed radio frequency identification chips in passports.
The Business Travel Coalition and the Association of Corporate Travel Executives say the chips could jeopardize the safety of Americans in foreign countries.

The groups suggest the plan would risk the identities of those traveling abroad and could result in physical harm. The chips would be able to be read by anyone with a powerful reader from up to 60 feet away in airports or hotels, said Kevin Mitchell, chairman of the Pennsylvania-based Business Travel Coalition, which represents large buyers of business travel services such as DaimlerChrysler and Black and Decker.

"You don’t have to read the information as much as you need to identify the person is an American," Mitchell said. "We’re really creating a market by putting this in place. You’re giving a whole new opportunity to the bad guys, whether it’s grabbing U.S. passports and selling them for a couple grand or kidnapping the CEO of Cigna. This is not a stable, dynamic kind of environment. The technology continues to improve and you’re giving an incentive to bad guys to find work-arounds or to find stronger readers."

The Virginia-based Association of Corporate Travel Executives calls the chips electronic identification "bugs."

"More of a computer chip than an actual transmitter, the device may be capable of identifying the presence of U.S. citizens in crowds, in hotel lobbies, on trains, or even on the street to those in possession of a fairly unsophisticated receiver," the group said in a statement. "The signal can be detected up to dozens of feet to tens of yards. It may also be capable of transmitting personal data, such as your name, passport number, and photograph."

A spokeswoman said the U.S. State Department is in the midst of several tests to reduce the risk of skimming, or the unauthorized reading of the chips.

"They’re going to involve incorporating technology into the passport book cover that will address the risk of skimming when the passport book is mostly closed," said Kelly Shannon, adding international standards require that chip readers read no farther than 10 centimeters, or about 4 inches away.

Shannon said 62 million valid passports are in the hands of American citizens. Last year, the State Department issued 8.8 million. Mitchell said 15 percent to 20 percent of all U.S. originating traffic is headed to international destinations.

In government tests last summer, the readers, initially developed to track inventory in department stores and warehouses, could be described "as no more than breadboard prototypes," Shannon said.

"There were situations where communications between the chip and reader could be detected from a distance considerably more than 10 centimeters," she said, adding the communication was detected but no data could be intercepted.

"Now we see readers that are encased and tweaked for better specifications such as the 10 centimeter read rate," Shannon said. "We’re seeing obviously this is not going to be an issue."

Mitchell said his research shows radio frequency identification chips were used first during World War II to tell German and American aircraft apart.

"It had nothing to do with understanding what the message is or signals were, just a different type of signal, an encrypted one that could with confidence tell us that’s German aircraft," Mitchell said. "That’s the same way this could be hijacked today."

Source: John Yantis, Tribune

Travel ban on Vanunu extended

Nuclear scientist Mordechai Vanunu, convicted for revealing Israel's secret nuclear program, has been banned for another year from traveling outside Israel.

Israeli interior ministry officials said the travel ban on Vanunu has been extended until April 19, 2006, the BBC reported Tuesday.

Vanunu served 18 years in jail, most of it in solitary confinement. He was released in April 2004 under strict conditions.

Israel insists Vanunu still poses a security threat, the BBC said.

Vanunu has said his disclosure about Israel's nuclear secrets was aimed at averting a nuclear holocaust in the region. Many Israelis view him as a traitor, the report said.

Source: Big News Network

Tuesday, April 19, 2005

Room at the Top for Hotels

Major hotel companies should check in with strong first-quarter earnings, reflecting continued strength in the cyclical lodging recovery.

Businesses continue to loosen travel purse strings, while leisure travel demand remains firm. Both trends are allowing hotels to boost room rates, driving increases in revenue per available room, a key industry metric known as revpar.

"What's different in the lodging industry now from a year or two ago is the way business travel is booming, which shows up in midweek results," said Thomas Graves, equity analyst at Standard & Poor's. "In connection with the strength of business travel, this is one of the best environments for raising room rates in some time." (Graves has no ownership interest or business relationship with the companies he covers, although other parts of S&P may have relationships with them.)

Increased pricing power helped cause revpar to grow more than expected in the latest quarter. At U.S. hotels in general, revpar was up about 9% year over year, noted Robert LaFleur, an analyst at Susquehanna Financial Group. It gained even more -- around 10% -- at urban hotels. "Those numbers are very strong, if you look at the guidance the major companies gave," said LaFleur, who owns no shares of companies he covers and whose firm does no investment banking business.

Both Marriott International (MAR:NYSE) and Starwood Hotels & Resorts (HOT:NYSE) predicted North American revpar would rise only 6% to 8% in the first quarter.

In particular markets, though, the unit revenue measure has grown more strongly, and that bodes particularly well for Marriott, Starwood and Hilton Hotels (HLT:NYSE). In New York, where all three operate large hotels, revpar is up more than 20%. In Marriott's home turf of Washington, D.C., it increased about 15%, while it swelled above 15% in Hawaii, an important Hilton market.

Against that backdrop, the companies are likely to improve their forecasts and could beat Wall Street estimates, said LaFleur.

"I think the recovery continues to unfold more strongly than people expected," he said. "I expect you're going to see another round of guidance increases this quarter by everybody."

Marriott earnings are up first, before the bell April 21. On average, analysts surveyed by Thomson First Call expect the company to report EPS of 56 cents, above Marriott's own forecast for 52 cents to 54 cents. The company logged first-quarter 2004 earnings of $114 million, or 46 cents a share.

Hilton follows on April 26, and the analyst consensus calls for EPS of 12 cents, compared with earnings of $37 million, or 10 cents a share, for last year's first quarter.

Starwood plans to report two days later, and analysts expect EPS of 31 cents a share, a penny higher than the company's own guidance. A year ago, Starwood earned $34 million, or 16 cents a share.

Analysts said they will be paying close attention to the companies' margins to see how strong revpar gains are offset by expenses.

"There will be a continued focus on margin flow-through," said LaFleur. "In a 10% revpar environment, is the operating leverage still there in the model? Does that revpar equate to 10% profit growth or 20% profit growth? Margins are one of the nagging issues related to the downturn that followed 9/11. They haven't come back as fast as some people might have expected."

Factors that could squeeze margins include employment costs, particularly health benefits, along with higher energy prices and the expense of outfitting hotel rooms with stylish new amenities like beds, duvets and pillows -- one of the latest trends.

A question about Starwood this time around is the impact expensing employee stock options will have on guidance. Marriott and Hilton have already rejigged guidance to account for options expensing, which is required under new accounting rules, but Starwood has not.

Companies must comply with the new rules by July 1, and Starwood executives have said the company will provide guidance for the change when it reports its first quarter.

The bottom-line impact is likely to be significant. In its latest annual regulatory filing, Starwood said 2004 EPS would have been $1.59 -- 25 cents less than the $1.84 it reported -- had it expensed options according to the new rules.

Last, investors and analysts will want more details about what the companies intend to do with the free cash flow they're generating. Fresh acquisitions are unlikely because hotel properties are far from cheap in the current market, says LaFleur. Another option would be paying down debt, but that's unlikely to be a top priority because major hoteliers spent the downturn that followed the Sept. 11 terrorist attacks firming up their balance sheets. That leaves companies the option of returning cash back to shareholders in the form of dividends or stock buybacks, moves that investors would welcome.
Source: Ross Snel, TheStreet.com Staff Reporter

Tourism spurred by e-commerce

Two industry leaders, Abacus and Hi-tek, are now pursuing ambitious programmes to offer both travel agencies and tourists across Vietnam new travel information services from next year. After operating for 10 years in Vietnam, Abacus Distribution Systems is studying the feasibility of its plan to help travel agents transition to internet protocol-based systems, as well as implementing a national IP solutions strategy by late 2006.

Abacus Distribution Systems managing director, Nguyen Thuong Thuyet, said the company would also unveil its HotelSmart product this quarter that lists hotels in 55 cities across Asia Pacific to allow travel agents to search and book rooms for clients. Thuyet said the product was capable of turning ticket brokers into travel consultant.



He said currently many domestic travel agents were unable
to deal with inbound foreign tourists before they reached Vietnam, and
had to leave many bookings in the hands of overseas-based travel agents.
Abacus would promote its network to domestic travel agents, along with
current clients including luxury hotels and airlines.


Thuyet said Vietnamese people were also increasing travelling overseas
and “with the IP systems, those agents could promote their outbound
business too.”


The US-based Hi-Tek is also eyeing the outbound travel business to provide
information for Vietnamese travel agents, hotels and restaurants and foreign
customers at its website: www.hotels.com.vn.


Hi-tek eventually plans to upgrade the site to enable users to book online
services including hotels, restaurants and other entertainment services,
and two weeks ago started offering information about domestic travel agents
on the site.


Project manager Nguyen Thanh Tung said the website currently offered
foreign tourists bookings at 204 hotels in Vietnam ranging from three
to five stars and services of seven travel agents


“The hotels would not face risks in this business,” said
Tung, explaining that Hi-tek would be responsible for paying hotels for
credit card bookings made by tourists.


The travel data providers also planned to offer internet-based services
when Vietnam’s internet connections are adapted for these requirements.
Major constraints to internet-based services in Vietnam included lack
of high bandwidth, low penetration and the high costs of high-speed connections.





Thuyet said Abacus intended to install a virtual private network to launch the service.

According to a World Travel and Tourism Council (WTTC) forecast, revenue from Vietnamese tourists holidaying at home and overseas could reach $6.4 billion per annum by 2014, consisting of 11.3 per cent of their total individual spending.

The WTTC ranked Vietnam fifth on the list of travel spending growth for the next 10 years, while the country was positioned 56th in its list of travel spending per individual, and 68th in terms of percentage of income spent on travel.

The country welcomed 525,000 overseas tourists in the first quarter of this year, a 37.2 per cent increase on the same period in 2004

Source: VNECONOMY

Holiday Inn in Mesa, Ariz., under new ownership, to get facelift (The Tribune, Mesa, Ariz.)

The Holiday Inn Phoenix-Mesa has a new owner, and soon it will have a new look.
A Southern California-based investment group, which owns several hotels with brand names ranging from Doubletrees to Hiltons, bought the 246-room Holiday Inn at 1600 S. Country Club Drive and a Doubletree in Carson, Calif. for a combined $26.1 million.
Look for a major makeover of the Mesa hotel that will touch everything from the front entrance to the banquet room, said Michael Udayan, general manager. He said plans are being finalized and work should begin in a few weeks and finish before the year end of the year.Nearly a year ago, another Mesa inn, the former Mesa Sheraton, got a $7 million makeover and a new name -- the Marriott Phoenix Mesa -- after new owners bought it the place.



"It's really exciting news," Udayan said. "You won't recognize
the building when it's done." The sale of the Holiday Inn marks former
owner Sunstone Hotel Investors' exit from the East Valley -- and Arizona.

In December, Sunstone sold the San Marcos Golf Resort and Conference
Center in Chandler to another investment group for $13.6 million.


In the past, the group has owned and sold shed several smaller local
hotels.


It's not a snub of the Valley, said Bryan Giglia, Sunstone's director
of finance.


"We are migrating our portfolio to full-service, upper-upscale hotels
-- Marriotts, Hyatts, Hiltons," Giglia said.


Sunstone may buy back into the East Valley market at some point.


"We are constantly looking at hotels. We have looked in Scottsdale,"
he said.


Giglia said, however, there are no pending deals for a local property.


Udayan didn't divulge a tab for the planned "multimillion-dollar"
re-do of the Mesa hotel, but he said it comes on the heels of an extensive
refurbishing of guest room decor that included adding high-speed Internet
access and the same pillow-top mattresses that guests sleep on at the
tony Bellagio in Las Vegas.


Upcoming plans include changing the hotel's front entrance, complete
makeovers of the lobby and banquet room, and re-landscaping the whole
property, Udayan said.


When a hotel changes hands, it usually leads to significant investment
by the new owners.


The U.S. tourism industry is finally in rapid recovery mode after a four-year slump, and that is spurring activity in the hotel marketplace, Giglia said.

"There are lots of hotels for sale because of the anticipation that the next couple of years will be good for the industry," he said.

Two Scottsdale hotels -- a Holiday Inn and a Radisson -- were purchased recently and are pegged to be converted to condos.

Amstar, owner of the Sunburst Resort in Scottsdale, took that property off the market a couple of years ago, electing instead to give it a $9 million makeover and a new name, Caleo Resort & Spa.


Source: Donna Hogan, The Tribune, Mesa, Ariz. - Knight Ridder/Tribune Business News

Sunday, April 17, 2005

Huge wave forces cruise ship to divert to S.C.

Launch
Rough seas
April 17: Huge waves damaged a cruise ship returning from the Bahamas, injuring some passengers and forcing the ship to divert to Charleston, S.C.

4 passengers hurt; ship was traveling from Bahamas to N.Y.
The Associated Press
Updated: 11:09 a.m. ET April 17, 2005

CHARLESTON, S.C. - A huge wave damaged a cruise ship returning from the Bahamas over the weekend, smashing windows, flooding more than 60 cabins and injuring four passengers.

The Norwegian Dawn was diverted from its route when the ship ran into rough weather on the way back to New York. The 965-foot-long vessel was docked in the Charleston harbor by late Saturday afternoon for repairs, officials said.

“The ship was hit by a freak wave that caused two windows to break in two different cabins,” Norwegian Cruise Line said in a statement. It said 62 cabins flooded and four passengers had cuts and bruises.

The ship’s hull was damaged but the vessel was not taking on water, said Keith Moore of the Coast Guard Group Charleston.

“All the passengers had donned personal flotation devices as a precaution,” Moore told The (Charleston) Post and Courier.

The cruise line said passengers whose cabins were flooded were being flown home from Charleston and the safety of the ship “was in no way compromised by this incident.”

The ship left New York last Sunday with 2,500 passengers aboard. It was expected to arrive in New York on Monday.

Source: The Associated Press.

US airlines look to Asian routes

New York, April 16 (Reuters): Large US airlines, haemorrhaging from competition at home, are looking at routes halfway around the world to stop the bleeding.

As the industry struggles with its worst crisis in years, US carriers are focusing on Asia — mainly China and India — to make up for ballooning losses on the domestic front.

American Airlines and Continental Airlines earlier this year won federal approval to begin direct flights to China. They join ranks with United Airlines and Northwest Airlines — the only two US carriers that have served China for the last two decades.

The US airline industry has lost more than $36 billion since 2001, the year of the September 11 attacks on the World Trade Centre, as growing domestic competition has pushed fares lower amid rising fuel prices.

US carriers, which lost $10 billion in 2004 alone, are battling for new flights to China as they aim to tap rising demand for travel to the world’s fastest-growing major economy.

Agreements between the United States and China that limit the number of flights between the two countries give carriers the advantage of knowing who their rivals are, while also keeping the level of competition in check, Continental Airlines spokesman Dave Messing said.

On the flip side, the tight regulations limit carriers’ access to those routes.

“Whatever any US airline can get of this fast-growing Asian market is great and will help substantially, but there isn’t enough of it to stave off imminent bankruptcies or liquidation,” Morningstar analyst Chris Lozier said. “And the regulations mean that it will be a period of years before certain carriers will benefit at all."

Lozier is one of several analysts to express concern about some large companies, particularly US Airways, which is in Chapter 11 protection, and Delta Air Lines, which has been teetering on the verge of bankruptcy.

One airline analyst, who requested anonymity, said the new, profitable routes to India and China would “just not help those two carriers fast enough”"

China, whose increasingly affluent populace is taking to the skies for business and leisure, is emerging as a strong travel market. As many as 100 million Chinese could be flying abroad every year by 2020, up from 20 million in 2003, according to the World Tourism Organisation.

Source: http://www.telegraphindia.com/