| A BUSINESS TRAVEL UPDATE FROM ETHAN ALLEN TRAVEL MANAGEMENT SERVICES |
| DECEMBER 2004 VOL 2.
NO. 11 |
WWW.ETHANALLEN.NET |
(800) 962-3020 |
Despite the continued rise in fuel costs, U.S. companies are seeing
the lowest average airfares paid since 1999 primarily due to low-cost
carrier pressure on popular routes. That’s according to new
data from eCLIPSE Advisors, a subsidiary of American Express Business
Travel, which produces the Business Travel Monitor, a benchmarking
service. Fares are at their lowest since 1999, since the launch
of the BTM in 1999. Increasing competition between legacy and low-cost
carriers is putting downward pressure on fares in a growing number
of markets, according to Michael Boult, COO of eCLIPSE Advisors.
(Source: American Express press release).
Here’s something to make you think twice about having another
cookie or cup of eggnog. Americans gained an average of ten pounds
each in the 1990s, and the Centers for Disease Control estimates
that that extra weight cost U.S. carriers an additional 350 million
gallons of fuel in 2000. In 1995, the Federal Aviation Administration
set the recommended average weight of adult passengers used in calculating
aircraft loads at 180 in summer and 185 in winter. In May 2003,
in response to a January 2003 commuter crash in which passenger
weight and baggage may have been a factor, the FAA ordered airlines
to temporarily add 10 pounds to the assumed average weight of passengers
when calculating aircraft loads. (Source: CDC, American Journal
of Preventative Medicine).
Flight attendants are considering an industry-wide job action that
could affect 26 carriers should carriers now in Chapter 11 abrogate
their collective bargaining agreements with flight attendants. One
of those carriers, US Airways, has asked federal bankruptcy court
for permission to void its contracts with flight attendants and other
unions, reducing retiree health benefits and terminating the retirement
plans of current employees. The Association of Flight Attendants-CWA
has already mailed out 5,000 strike authorization ballots to US Airways
flight attendants and is preparing similar ballots for United Airlines,
ATA and Hawaiian Airlines. The job action would be the AFA’s
CHAOS (Create Havoc Around Our System), surprise work stoppages on
different flights, dates and locations. The AFA hopes to have ballots
back from US Airways attendants by mid-December; what the courts will
rule remains to be seen. (Source: Business Traveler, AFA-CWA).
American Airlines has simplified its South Florida fare structure,
cutting walk-up fares by as much as 85% off previous walk-up fares
with no minimum stay requirement. The highest such fares are $499
to $699, depending on the mileage, and most are far lower. One-way
tickets for non-stop trips to and from Miami are also available; all
Saturday night stay requirements have been eliminated. American has
also halved penalty change fees from $100 to $50. (Source: American
Airlines press release).
In response to high fuel prices, Frontier Airlines is raising its
$299 fare cap –the top price for fully refundable, walk-up
fares—in eight of its markets and in an additional four Florida
markets on a seasonal basis. The revised cap will represent approximately
a 6.7 percent increase in its highest fares. The airline expects
the new cap to affect just three percent of its customers. United
Airlines matched the prices hikes on Denver routes. Additionally,
as of February 1, 2005, Frontier will discontinue service between
its Denver International hub and Washington-Dulles International.
The airline is also dropping its single non-stop Los Angeles Int’l
Airport flights to Philadelphia Int’l Airport as well as Kansas
City International Airport on February 23, 2005, and will serve
those cities with connecting flights. (Source: Frontier Airlines
press releases, USA Today).
Aer Lingus is the latest airline to announce plans to drop its business
class cabin in Europe, and the Irish flag-carrier won't be the last.
In 1991 more than 60 percent of British executives flying to the
Continent traveled business class. But by 2006 British Airways estimates
the figure will drop to 15 percent. Few employees outside the boardroom
can justify spending $1200, the current BA business return fare
to Paris, to sit in front of the curtain. The popularity of these
high-fare tickets has fallen. Most business travelers no longer
perceive these tickets as providing value for money, say researchers
for the Air Transport Group, at Cranfield University. (Source: The
Australian).
Business travelers are starting to fight back against soaring hotel
room rates. Rooms have risen 12 percent in New York; 12 percent
in Detroit; 7 percent in Los Angeles, 6 percent in Houston. Companies
are asking their travelers to downscale. Some are using limited-service
hotels; others ask their travelers to use American Express corporate
rates, senior citizen or other price breaks they may qualify for.
Hotel rates have risen so much that lodging has been singled out
as a key driver of inflation. The Labor Department says lodging
costs jumped 2.7 percent in September, contributing to the largest
monthly increase in core inflation since April. Hotel costs are
expected to rise 7.5 percent next year, vs. 5 percent for business
airfares, a National Business Travel Association survey finds. (Source:
USA Today).
More hotels and resorts are making it possible to lounge by the
pool or even sit on a beach and surf the Web. Among the hotels and
resorts offering such service: Four Seasons resorts in Los Angeles,
Newport Beach, Santa Barbara, Aviara (near San Diego), Punta Mita,
Buenos Aires, Mexico City, Shanghai, Maldives and Singapore; Loews
Santa Monica Beach Hotel, Hilton Hawaii CHECK, the Westin Beach
Resort Key Largo, The Cliffs at Shell Beach, Pismo, CA., Four Points
by Sheraton Destin-Fort Walden Beach, FL., the Lodge at Pebble Beach,
CA., the Marina Beach Marriott, Marina del Rey, CA. (Source: Loews
press release , Four Seasons public relations and EZGoal WiFi Hotspots).
The nation’s busiest airports are offering travelers healthier
dining choices, according to a report by the Physicians Committee
for Responsible Medicine. PCRM nutritionists surveyed 12 of the
busiest U.S. airport, evaluating the availability of healthy entrees.
Three-quarters of the airports have improved their scores over last
year and 85% offered a healthy option (low-fat or vegetarian) in
at least half of their restaurants.
- Miami moved from fifth to first place.
- Detroit placed second with what it calls its “Heart
Smart” plan.
- Denver came in third, Chicago, fourth, New York’s
JFK was fifth and Atlanta placed sixth.
- Las Vegas came in last for the second year in a row.
More travelers are turning to airport restaurants during layovers
or in response to airline cutbacks in onboard meals. The report
described most airlines’ buy-on-board options as high-fat
sandwiches with a cookie. PCRM suggests that travelers look for
non-dairy, vegetarian options, such as veggie burgers or bean burritos.
(Source: PCRM press release).
Ethan Allen Travel is committed to providing
you with useful information on the latest developments in the travel
industry. This information has been compiled from a variety of sources
and is updated monthly.
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