Airlines

International Holiday Business Fares Plummet

Some airlines have quietly cut their international business class fares over Thanksgiving and Christmas. Sample roundtrip Asian fares from Northwest: $1,658, Los Angeles –Seoul; $2,018 Chicago-Shanghai. Continental has cut its European fares--$1,550 roundtrip for Cleveland-London or Shannon, Ireland, or Houston-Paris. (Source: Airline Reporting Corps).

Air Travel Costs Keep Getting Lower

While the price of air travel can vary throughout the year, rising during the peak months of July and August and again over the Christmas and New Year’s holidays, then dropping in the winter, the overall trend for the past 25 years has been downward. Global airline real yields, measured in U.S. cents per revenue passenger kilometer, declined from more than 13 cents in 1978 to about 7 cents by last year, according to the International Civil Aviation Organization. Recent U.K. inflation figures for September, issued yesterday, show the price of air travel dropping by 21.3 percent from the month of August and 6.9 percent from the same month a year ago. In July, the price of air travel jumped by 22 percent from the previous month, but was also down by 2 percent from July 2003. Pricing pressure has become particularly acute in the last couple of years. (Source: Financial Times).

Consumer Protection from Bankrupt Airlines Due to Expire

Congress recessed last month leaving air passengers up in the air over a soon-to-expire law that protects travelers if their airline goes out of business. The three-year old law, which requires healthier airlines to honor passage if travelers find themselves stuck with worthless tickets, expires November 19. With the precarious state of the airline industry today, passengers could be in a quandary about whether and how to buy tickets, especially before the busy holiday travel period. The Senate moved this month to extend it, but the House failed to, leaving the hoped-for extension in legislative limbo. Lawmakers will return on November 16 for a post-election session and could resume work on the issue then, but may face industry opposition. (Source: Wall Street Journal)

United Launches p.s. Service

United has introduced p.s., Premium Service on flights between JFK and Los Angeles or San Francisco. It is reconfiguring 13 planes with three-class service with more space in all classes. All passengers have access to phone, e-mail and power outlets, food service is the same as on international flights and the entire coach cabin is Economy Plus. (Source: United Airlines Public Relations).

JetBlue Joins American Express Membership Rewards

JetBlue Airways has joined the American Express Membership Rewards program. Beginning December 8, 2004, American Express Cardmembers enrolled in the Membership Rewards program will be able to transfer points directly into TrueBlue, JetBlue's Flight Gratitude program, for travel with the airline. American Express is JetBlue's first TrueBlue program partner. (Source: Travel Commerce Report).

Cars

Hertz Enhances #1 Club

Hertz has revamped its #1 Club. One major innovation: customers can select and reserve brands and models of specific cars and SUVs at 23 major airports across the nation. The “brand and model” program will initially launch in 12 vacation destinations in Florida and California, with 11 additional airports coast to coast to be added in 2005. (Source: Hertz press release)

Technology

Verizon Wireless Expands Broadband Access

Verizon Wireless has expanded its broadband access network to 14 major metropolitan areas and more than 20 major airports. The difference between this and WiFi hotspots is that the broadband service covers a wide area—no need to find a hotspot, the entire metropolitan area is covered. Originally designed for enterprise customers for their mobile employees, it has become popular with business travelers as well. Users’ laptops must be equipped with Broadband Access PC 5220 cards. More cities will be added throughout 2005. The service is powered an Evolution-Data Optimized (EVDO) third generation (3G) wide area network. (Verizon Wireless press release, EVDO-Coverage.com)

Wireless Cabins

The airline industry continues to explore bringing wireless high-speed Internet access to its passengers. (See Business Travel Footnotes, June 2004). Airbus has conducted test flights allowing passengers to use GSM mobile phones in flight. It’s also completed trials testing in-flight Web browsing, e-mail and virtual private networks (VPN). Airbus expects to have personal mobile phones capabilities in its aircraft by 2006, complementing the e-mail and text messaging services already available on its aircraft. (Source: Airbus press release)

Holiday Gifts

Holiday Gift for Employees and Family

American Express® Gift Cheques are better than gift certificates because they can be used to buy virtually anything. Gift Cheques are good at stores, movie theaters, sporting events, restaurants, hotels, museums, and more. Call or stop by Ethan Allen Travel today and purchase yours.

Spotlight

American Express Global Business Travel Forecast 2005…. The Rebound Continues

The American Express Global Business Travel Forecast for 2005 indicates a continued steady revival of the global business travel industry. Although the pace varies significantly by region and country, published air and hotel prices are expected to rise incrementally next year as business travel demand recovers, outpacing the growth of supply in several markets. At the same time, increased competition - particularly in the airline sector in several regional markets - is likely to dampen any significant increases in business travel costs. The car rental industry is experiencing a turnaround and American Express expects the domestic average daily car rental costs to increase 0-2%

American Express Regional Forecast for Global Business Travel Prices 2005

Ethan Allen Travel is committed to providing you with useful information on the latest developments in the travel industry. The following information has been compiled from a variety of sources and is updated monthly.

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