Industry News ~ Snapshot

Consumer Confidence Rises In May
U.S. consumer confidence rose in May to its highest level in five months as Americans' expectations for the future soared, aided by cheaper energy and a rising stock market. The New York-based Conference Board's consumer confidence index rose to 83.8 from 81 in April, the second consecutive monthly increase. The index measuring consumers' attitudes about conditions six months from now rose to 94.4, the highest since September, from 84.8. Rising optimism and the lowest mortgage rates on record are helping power sales of new and previously owned homes, separate reports shown.
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CVBs See Signs Of Recovery
The International Association of Convention & Visitor Bureaus said yesterday that a recent survey of its members shows signs of recovery in the meetings industry. More than 60 percent of convention bureaus reported that sales leads and definite bookings have remained stable or have increased for the first quarter of 2003 as compared with the same quarter in 2002, according to IACVB's Business Barometer. Other survey findings included the following: 43 percent of respondents cited higher numbers of leads from associations than the same period last year; 33 percent reported higher citywide leads; and 22 percent reported higher corporate leads. The survey blamed the economy as the number one reason for holding back business. Nearly two-thirds of respondents rated the current economic climate as having a high or very high impact on business. For more detailed information from the survey, visit www.iacvb.com.
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Corporate Travel Managers Want To Travel Again
Having weathered the worst of the SARS virus outbreak, corporate travel managers gathered at the ACTE Forum discussed the costs of not traveling. "A lot of companies have relaxed their travel restrictions," said one forum speaker, Bradley Prentice, head of strategic relationships, American Express Corporate Services. "At AMEX, we've adjusted our travel bans to reflect the current situation." Prentice asked if the cost savings from not traveling are worth the business lost from not traveling.
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Domestic Travel Intentions High
The third wave of the War Impact Survey produced by the Travel Industry Association of America (TIA) shows that while domestic travel intentions continue to be high, many Americans have still not started planning their summer trips. Results from the May 1-6 survey show that 83 percent of past-year travelers plan on taking at least one leisure trip this summer, but 41 percent of travelers have not made any plans. On a brighter note, 20 percent have finalized their plans or booked their trips, up from 16 percent in the last survey, conducted April 10-15.
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Online Sellers Are Making A Profit
Hotels.com, meanwhile, is demonstrating that there may be more money in making reservations than in running the hotels. The Expedia affiliate reported a 44% increase in quarterly net earnings, to $18.6 million. The number of room-nights sold, net of cancellations, grew 63%, to 2.3 million. Other big travel sellers, for the most part, are weathering the storm or even prospering. Expedia quadrupled its quarterly earnings, reporting a net profit of $26.9 million, up from $6.7 million. Gross booking grew 63%, to $1.8 billion. Travelocity and GetThere, now wholly owned by Sabre, no longer report their earnings, but Sabre said the two unites contributed $92 million in revenue.
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Top 10 Web Sites For Third Part Hotel Bookings Are
The top ten third-party Web sites for hotel booking to bran CROs were, in order: Priceline, Expedia, Travelocity, Orbitz (which moved from #7 to #4 since 2001), Lodging.com, TravelNow, Hotwire, WorldRes, TravelHero and USA Hotelguide. Some well-known third-party Web distributors, such as Hotels.com, did not place in the top ten on this list because these sites usually obtain rates and inventory directly from individual properties rather than from a brand or chain CRO.
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National Events & News

   • St. Louis - Sept. 9, 2003 ~ Millennium Hotel
   • Boston - Sept. 30, 2003 ~ Sheraton Boston
   • Atlanta - Oct. 7, 2003 ~ Hyatt Regency
   • Chicago - Oct. 30, 2003 ~ Holiday Inn O'Hare
   • Minneapolis - Oct. 23, 2003 ~ Millennium Hotel
   • Dallas - Nov. 6, 2003 ~ Hotel InterContinental
   • Washington, DC - Nov. 25, 2003 ~ Hilton Washington & Towers
   • Anaheim - Dec. 11, 2003 ~ Paradise Pier

Contact: HSMAI Meetings Quest
c/o JTDunn Enterprises, 513 Commerce Drive, Upper Marlboro, MD 20774
(301) 249-4600, Email: meetingsquest@jtdunninc.com; www.meetingsquest.com

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Selling Tips Spend Less and Make More by Kevin Nunley www.drnunley.com (888) 429-6203

Studies show that the cost of getting a new customer is around 10 times that of holding onto an existing customer, and a five percent improvement in customer retention can lead to an 85% increase in profits. It's time to maximize the lifetime potential of your existing customers!

How do you keep customers coming back to your for a lifetime? You have to keep yourself in their "Top of Mind Awareness" by keeping in touch with them and showing them how much you value their patronage.

Here are a few ways you can continuously communicate with existing customers without becoming a stalker:

• Send Thank You letters every time they buy from you. And don't wait a few weeks until they forgot they purchased anything from you. Send the letter the very same day they made the purchase.
• Send discount coupons and certificates with their name printed on it so they know you didn't just send out a mass mailing to everyone in the city.
• Keep a list of customers' birthdays and send out a Happy Birthday card or email with a special discount.
• Send customer comment cards or emails, and ask them to tell you how you're doing. Remember, you'll be more likely to get a response if you offer something in return, like a discount or two-for-one deal.

Don't bombard your existing customers with too much mail, but send them something at least once a month to remind them that you're still out there ready to provide them with the same great products and service.

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