Industry News ~ Snapshot

Holiday Travelers To Book Late, Spend Less
Travelers waiting to book holiday travel later this year could be in for a nasty surprise, according to discount travel site Hotwire. Nearly 80 percent of respondents have yet to book December holiday travel, with 61 percent planning to put off the task until at least November. Additionally, nearly a quarter of holiday travelers -- 23 percent -- plan to wait until the last minute, saying they won't book December travel until after Thanksgiving.

At the same time, 57 percent of those planning to purchase December holiday travel say they want to be careful about how much they spend on holiday travel this year, citing concerns about the economy as the reason they plan to spend less. But with U.S. flying capacity down at least 10% from last year, airlines are flying with fewer open seats and thus availability will be tight closer to the holidays and fares will be higher. > Top

Reliance On Web Pricing Questioned
Airline reliance on Web bookings may be costing them more in revenue than it saves in distribution costs, according to J.P. Morgan analyst jamie Baker. He estimates U.S. airline Internet revenue likely surpassed 20% in the third quarter. "We believe the industry is fast approaching the point where the pricing transparency inherent to the Internet will cost carriers more in lost average fare than it otherwise saves in distribution," Baker said. "Near-perfect pricing knowledge no longer belongs to just a handful of malleable corporate travel managers -- the huddled masses have it, too. ... For anyone anticipating a return to the yield levels of 1999 and 2000, we would suggest you've underestimated the role of the Internet." America West and Northwest in July openly acknowledged their concerns that an overabundance of Web fares was hurting revenue by directing customers to the lowest-yielding tickets. Most airlines, however, seem to be continuing to push more business to the Web. > Top

International Business Travelers Optimistic
American Express International Business Traveler Survey of 1,400 business travelers from 14 countries shows that most globe-trotting business travelers harbor no fears about travel safety, although many report a decline in service in air travel over the past few years. Despite continued economic slowdown, 91% of travelers expect to maintain or increase the pace of travel next year; only 9% see a drop. A year after Sept. 11th terror attacks, 88% feel safe flying, yet many say airline service has declined. The global survey of corporate travelers reveals that technology plays an important role in staying productive on the road. On average, the respondents took 8.5 trips within the past year. More than half of Latin American business travelers (51%) are confident that their travel will increase, followed by 39% of North Americans, 33% of Asian/Australian respondents and 29% of Europeans.

The Cruise Industry Has Rebounded
The cruise industry has rebounded dramatically since last September, according to the Cruise Lines International Association (CLIA). The association, which represents 23 North American cruise lines and 17,000 affiliated travel agencies, reported a 3.8% increase in the number of cruisers in the first half of 2002 compared with the same period in 2001. It said more than 3.6 million North American vacationers have taken cruises so far in 2002, compared with nearly 2.5 million in the first half of last year. CLIA said the cruise industry is on track to meet its target of a record 7.4 million North American passengers this year. > Top

Location Still Tops Loyalty
Americans with an annual income of $75,000 or higher take more business trips, are more likely to pair personal and business stays and are most likely to stay in a large hotel chain. Marriott enjoys the highest degree of loyalty among hotel chains from this demographic with 15% saying they stayed at a Marriott hotel the last time they traveled. Holiday Inn was the overall favorite, with 10% of all respondents claiming to have stayed there on their most recent trip. "But regardless of brand loyalty, location was the primary reason to choose a hotel for 44% of those surveyed," said Herbert. > Top

Restaurant/Food Service Has Growth Potential For Hotels
American Hotel & Lodging Association says that the hotel industry is headed to growth in the restaurant/food service areas with casual dining, delivery services, carryout, quick-service or fast food, and the newer hybrid quick-casual, which provides more variety in food choices at the speed of fastfood service. In a 2001 National Restaurant Association survey, 40% of all adults said they'd use a drive-through option at their favorite restaurant; for those ages 18-24, the figure was even higher at 56%. This indicates a good market opportunity to meet consumer demand for typical table service offerings delivered in a more convenient way. the hotel and lodging industry if focusing on promotions such as room and menu discounts and joint promotional ventures with travel-related businesses, including fastfood restaurants and service stations.> Top

National Events & News

HSMAI Travel Awards Night Dinner > Read More...
January 28, 2003 ~ New York

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Selling Tips 4 Ways to Start a Sales Letter by Kevin Nunley www.drnunley.com (888) 429-6203

Over the years, writers have found that there are certain types of openings in direct mail that are more effective than others. These work just as well for email letters and for web sites.

Here are some of these ideas to keep in mind when you are trying to structure your opening.

1. State the offer. This is so simple many people never think of it. Put the offer right at the top of your page in a headline or bold type. The offer includes the product that is for sale, its price, the terms of the sale, and the guarantee.
2. Announce it! If you have something new, start your letter with this important information. Nothing gets attention and builds excitement like the word NEW. I always put it in all capitals to give it added excitement.
3. Flatter the reader. There is nothing a customer likes more than to feel as though they are set apart from "the crowd". Describe the type of person who would probably be one of your best customers. Tell why the way they feel, work, think, or play is important and deserves attention. Use the word "YOU" as often as you can.
4. Use a provocative quote. Quote a famous person or a customer. The quote should arouse curiosity. It should make the reader want to find out more about your product.

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