|
Industry
News ~
Snapshot
---
ECONOMIC INSIGHTS ---
SMITH TRAVEL
SEES DEMAND FLATTENING:
The increases in demand in the first half of 2004 appear
to have flattened in July and August. While demand grew
at approximately 4% in quarters 1 and 2 according to
Smith Travel Research, the gains in REVPAR in July and
August to date have come from increases in ADR. This
is in alignment with a slowing of economic growth in
the country in the third quarter.
MULTICULTURAL
TRAVELERS GROWING SAYS YPB&R SURVEY:
The number of trips taken by multicultural travelers
is currently growing at the rate of 11% annually, approximately
seven times faster than the rate for the general leisure
travel market according to a recent report issued by
the Travel Industry Association. Much of this increase
is being driven by the sustained growth in the size
of the multicultural population which today represents
an estimated 30% of all U.S. adults. Decidedly family-centric,
multicultural travelers are significantly more likely
to be family travelers than their white counterparts,
with "family reunions" frequently stated as
a primary motivation for leisure travel. Not surprisingly,
60% of multicultural travelers express interest in organized
kids clubs and/or family activities when on vacation
(compared to 37% of whites). Multicultural travelers
also have a significantly higher degree of interest
in a number of vacation attributes than their white
counterparts. These include: an opportunity to try different
and unusual cuisine (75%), nightlife and entertainment
(66%), staying in hotels and resorts that have a distinctive
theme or atmosphere (61%), going to theme parks (58%)
and shopping (56%). They are also significantly more
interested in owning vacation time. -- YPB&R/Yankelovich
Partners 2004 Multicultural Traveler report at www.ypbri.com.
PWC HOTEL
RECOVERY SEEN AS SHORT-LIVED:
Hospitality industry guru Bjorn Hanson delivered good
news and bad news to meeting planners--and vice versa
to hoteliers--in his keynote speech to attendees at
Meeting World, the annual conference and trade show
sponsored by Meeting News and Successful Meetings. First
the bad news: The market shift toward sellers will continue
through next year. The good news: The market shift may
prove short-lived, possibly only through next year or
not much beyond. "We're in a truncated recovery
cycle," said Hanson, global hospitality industry
leader for PricewaterhouseCoopers. In a normal hotel-industry
recovery, Hanson explained, revenue per available room,
or RevPAR, is initially driven by increased occupancy
and then by increased rates, with a few years for each.
But in the current hotel recovery cycle, which really
took off only this year, rates will drive RevPAR as
soon as next year, he said. In addition, lodging demand,
or room nights sold, continues to lag behind economic
growth at historic lows despite the hotel recovery that
is now underway, according to Hanson. - Meeting News
--- HOTEL
HIGHLIGHTS ---
HOTELS
GETTING MORE AGGRESSIVE WITH YIELD MANAGEMENT:
"Hotels are going back to aggressive yield management,"
said Bjorn Hanson, global hospitality industry leader
for PricewaterhouseCoopers. To comply with the demand
of hotel owners to get more profit while the getting
is good, hotel managers are bringing back surcharges
in a big way, according to Hanson. Among the more, perhaps
unexpected, surcharges that may turn up on the final
bill, according to Hanson, are the following: fees for
in-room safes, whether or not the guest uses the safe;
mini-bar restocking charges; a fee to check into the
hotel and another one to check out; handling charges
for delivery of packages; and fees for housekeepers,
porters and doormen, regardless of whether any service
is rendered. --Meeting News
J.D. POWER
RANKS FOUR SEASONS HOTELS AND RESORTS HIGHEST:
Four Seasons Hotels and Resorts received the top ranking
in the luxury hotel segment in the J.D. Power and Associates
2004 Domestic Hotel Guest Satisfaction Index Study.
In addition to scoring highest in annual guest satisfaction,
Four Seasons also led in another key measure of guest
loyalty.
HOTEL RATINGS
CONSIDERED BY TRAVELERS:
More and more travelers are considering hotel ratings
when selecting a hotel or resort, according to the annual
National Leisure Travel Monitor by Yesawich, Pepperdine,
Brown & Russell/Yankelovich Partners (YPB&R).
Over half of the active leisure travelers in America
consider hotel or resort ratings very important in selecting
lodging accommodations. This is an increase of 20% over
2003 figures. Mobile Travel Guide and AAA are trusted
as independent sources of information on hotels and
resorts. --Tourism Intelligence International
--- INTERNATIONAL
INFO ---
CARIBBEAN
GETS MORE TAX BREAKS FOR MEETINGS:
A report issued by the U.S. Treasury Dept. lists 14
Caribbean nations, plus Puerto Rico and the U.S. Virgin
Islands, as tax-deductible meetings destinations under
the U.S. Tax Information Exchange Agreement. The tax
deduction is a result of the Caribbean Basin Initiative
(CBI) Convention Tourism Tax Credit that enables U.S.
companies to hold business meetings in eligible Caribbean
countries or territories and to take applicable expenditures
as a tax write-off. The countries are: Aruba; Antigua
& Barbuda; the Bahamas; Barbados; Bermuda; the British
Virgin Islands; the Cayman Islands; Dominica; the Dominican
Republic; Grenada; Guyana; Jamaica; St. Lucia, and Trinidad
& Tobago.
--- BIZ/LEISURE TRAVEL
---
CORPORATE
TRAVEL BUDGETS RISING:
Travel budgets at more than 60 percent of U.S. companies
have increased this year over last year, according to
the National Business Travel Association's mid-year
survey of corporate travel managers. The increased spending
amounts to no more than 10 percent for about three-quarters
of those companies that are spending more on travel
this year, the survey found. More than 70 percent of
corporate travel managers expect their companies to
book more hotel room nights in 2004 than last year,
and nearly one in five said their companies are holding
more meetings that involve travel, according to the
survey. Travel managers expect prices in each segment
of the industry to rise slightly for the remainder of
2004. Nearly 70 percent of respondents foresaw increases
in air travel prices; nearly three quarters said that
hotel rates will rise; and almost 60 percent expected
increases in car rental prices. More than 65 percent
of respondents said meetings costs will also grow. -
Meeting News
REGISTERED
TRAVELER PROGRAM AN INITIAL SUCCESS:
USA Today reports that the TSA's "Registered Traveler"
program is enjoying significant initial success and
is meeting its goal of speeding participating frequent
flyers through the airport security process, prompting
officials to suggest that the program may be expanded
soon.
--- CRUISE NEWS ---
BALTIMORE
PORT LOSES CRUISES:
Carnival Cruise Lines says it will not be sailing out
of Baltimore's port next year, as it originally intended.
Norwegian Cruise Lines is also eliminating Baltimore
as a departure point next year, as well. But Royal Caribbean,
one of the most popular cruise lines sailing from the
port, plans to increase its number of Baltimore cruises.
About 30 cruises are confirmed out of Baltimore for
2005 - about half this year's number - but the port
is working to bring additional departures, McCabe said.
--USA Today
--- ONLINE ISSUES
---
New in HSMAI's searchable online research
and resource clearinghouse,
information on research from:
» Forrester Research - Best Practices in Travel
CRM
» Market Research - The State Of Marketing 2004:
Recovery In Q2
» First Research - Hotel and Motel - Lodging
And new supplier links to:
» Blizzard Internet Marketing
» Resort Data Processing, Inc.
Click Here to go to eConnect, log in, and connect today. The first-ever, all-encompassing, online
source for information, research, contacts and best
practices, eConnect is an HSMAI Foundation program hosted
by the University of Houston's Conrad N. Hilton College.
INTERCONTINENTAL
GETS TOUGH WITH 3RD PARTY WEB SITES:
Intercontinental Hotels Group took its first action
to enforce an online distribution standard unveiled
in April, vowing to cease selling all inventory, whether
merchant or agency, through Expedia and sister company
Hotels.com in 30 to 90 days. At the same time, InterContinental,
which has InterContinental, Holiday Inn and Holiday
Inn Express among the brands in its portfolio, embraced
and "certified" Travelocity as an online agency
whose business practices mesh with its core values.
The hotel chain gets about 2% of its room revenue from
online distributors and about half of that, about $100
million annually, comes from Expedia and Hotels.com.
Until now, InterContinental had an umbrella contract
with Expedia, and InterContinental franchisees were
free to negotiate their own merchant agreements with
the online agency. That kind of freelancing led to widespread
discounting and a lack of pricing control for InterContinental.
The chain intends to kill these side agreements. - Travel
Weekly
NBTA PREDICTS
ONLINE AGENCIES WILL SIPHON CLIENTS AWAY:
Corporate-travel Web sites were a big topic at the National
Business Travel Association Convention where NBTA published
a report predicting Web sites such as Orbitz, Expedia
and Travelocity would continue to siphon clients from
conventional agencies. Soon, booking trips online "will
become as traditional a method of procuring business
travel" as calling a travel agent was a few years
ago, the report predicted. Online corporate-travel management
companies didn't exist a few years ago, but Orbitz and
other consumer sites are now trying to expand by reaching
out to business travelers. Besides making it easy for
travelers to book trips, the Web sites offer businesses
special features so that managers can track spending
and keep up with employees. Consulting firm PhoCusWright
Inc. predicts that online corporate-travel bookings
will climb from $18.8 billion in 2003 to $36.5 billion
in 2006. Cost is a big reason that companies are going
online.
SATISFACTION
HIGHEST WITH GUESTS WHO BOOK ON A HOTEL'S SITE:
Guests who book directly on a hotel chain's Web site
report significantly higher satisfaction with their
stay than those who make their reservations through
an independent travel site, according to the J.D. Power
and Associates 2004 North America Hotel Guest Satisfaction
Index Study. The study finds that the number of consumers
who booked a hotel reservation online has increased
more than 50 percent over 2003 among those who have
Internet access. More than one in three (36%) guests
booked their hotel reservations using the Internet in
2004 -- up from 20 percent in 2003. Guests at extended
stay hotels are the most likely to book online (43%),
while economy/budget guests are least likely (33%).
Overall, guests are more likely to book through the
hotel's Web site than an independent travel site.
>
Top
|