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Archives for June 2010

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North American Travel Industry Unites to Forge Recovery Plans

Leading industry experts from Expedia, Google, Marriott International, United Airlines, IHG, Orbitz Worldwide and Continental Airlines are set to address North America’s online travel industry and discuss key growth strategies for the upturn.

Now in it’s 11th successful year, EyeforTravel’s Travel Distribution Summit North America will bring together the most successful travel brands from North America, Latin America and the Caribbean to Chicago, October 13-14. The event will gather over 750 senior travel professionals, 70+ expert speakers for 2 days of insightful presentations, vigorous debate and powerful networking opportunities to arm online travel professionals with essential strategic tools and insider’s knowledge for a prosperous 2010.

A Transformed Online Landscape

With travel industry still reeling and in strategic disarray after the chaos of last year, the summit will seek to bring together the foremost brands from across the hospitality, airline, OTA, metasearch and GDS sectors to review the current industry state of play and reveal how they plan to capitalize on improving market conditions. Top on the agenda will be how to harness emergent trends and technologies, understand changing consumer behaviors and capitalize on the mobile and social media phenomena.

‘We know that maintaining a ‘business as usual’ approach to markets and consumers that have transformed almost beyond recognition is not an option’ Reports Event Director Marco Saio. ’What we’re seeing now is that those companies who proactively anticipate and react to disruptive change will undoubtedly be the same companies that will emerge in the strongest position competitively and financially as momentum builds for economic recovery.’

Over 70 Expert Speakers Confirmed from the Most Successful Travel Brands in the World, Including:

Glenn Fogel – EVP, Priceline.com
Ronnie Gurion - President, Orbitz Worldwide Distribution
Travis Christ - President of the Americas, Travelport
Robert McDowell, Managing Director Distribution & E Commerce, United Airlines
Noreen Courtney-Wilds - VP Sales & Distribution, JetBlue Airways
Sunil Bhatt - VP & GM, Expedia Affiliate Network Americas
Doug Miller - Global Vice President, Media Solutions, Expedia Inc
Matthew Petitjean - Director of Ecommerce & Online Marketing, Wyndham Hotel Group
Dr. Peter Belobaba, Principal Research Scientist, Massachusetts Institute of Technology (MIT)
Andrew Donkin, SVP Global Marketing and Media, Travelocity
Rob Torres, Managing Director of Travel Vertical, Google Inc
Krista Pappas – Global Director & Head of Business Development Bing Travel at Microsoft
Melissa Skluzacek - Director - Pricing & Revenue Management, Midwest Airlines
Bruce Poon Tip – Founder, Gap Adventures
James Bell - Commercial Vice President, STA Travel
Chinmai Sharma - Vice President Revenue Management, Wyndham Worldwide Hotels and Resorts
Chris Amenechi Senior Director - International eCommerce & Distribution Planning, Continental Airlines
Kyle Moore - Vice President Product Marketing, Sabre Travel Network
Sheryl Freedman - Director, International Revenue Management & Talent Development, Marriott International
Gregg Brockway - CEO, Tripit
Max Starkov – Chief eBusiness Strategist, Hospitality eBusiness Strategies
Tony D’Astolfo -  Vice President for Worldwide Sales and Travel, Rearden Commerce
Chris Brown - Vice President of Product Strategy, Orbitz Worldwide
Jared Miller - Sr. Director, Customer Self-Service Continental Airlines
Bill Keen – Director of Product Management, InterContinental Hotels Group
Mike Putnam - Senior Product Manager, Mobile, TripAdvisor
Will Pinnell - Director of Mobile Strategy, Sabre Holdings
Audrey Cornu - Development Internet Director, Walt Disney World Swan & Dolphin Resorts
Robert Patterson - Director of Social Media and Web Analytics, MMG Worldwide
Jill Fletcher - Social Media and Communications Manager, Virgin America

View the Full Speaker Line-up Here

Heading up the debate will be industry veteran Glenn Fogel – EVP, Priceline.com, Ronnie Gurion - President, Distribution, Orbitz Worldwide and Google’s Managing Director of Travel, Rob Torres will be coming all the way from Mountain View, California to share his unique visions for the future of online travel.

This year a large emphasis has been focused on gaining insights and practical case studies from leading airline carriers including United Airlines, Continental Airlines, Midwest-Frontier, Lufthansa, Virgin America and JetBlue amongst others.

See the Full Summit Agenda Here

With Essential Growth Strategies for a Changing Travel Market as the central theme of the summit, the stage is set in Chicago for cutting-edge industry analysis, fresh thinking and new ways to drive your business forward in 2010 and beyond.

‘This event comes at an opportune moment. Packed full of insightful case studies from top travel brands as well as ample time to network and secure successful partnerships, TDS North America 2010 is an essential date for every North American travel professionals diary’ says Saio.

For all event enquiries contact the Event Directors:

Marco Saio                                                 Rosie Akenhead
marco@eyefortravel.com                             rosie@eyefortravel.com
+44(0)20 7375 7219                                   +44(0)20 7375 7229

Follow EyeforTravel on Twitter

Or join the Travel Industry Professionals North America Group on LinkedIn to stay up-to-date

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Virgin America talks Social Media: This weeks featured content on the Eyefortravel knowledge box

For this week only access free video footage of Porter Gale the VP Marketing for Virgin America as she analyzes the advancing social media landscape, looks at how to stay ahead of key developments in e-communications, social media and customer behavior.- the video is from our recent Social Media for Travel Strategies USA 2010

To access the video content go to www.eyefortravel.com and click on Research and Reports

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Channel Management – Yesterday, Today And Tomorrow

If you run an accommodation business then it is highly likely you are using a channel management tool of some description or are at least planning to in the near future. If it is not on your immediate radar then you should consider putting it front and centre of your online distribution strategy.

Simply put, a channel manager is internet based software that allows accommodation providers to manage availability and rates across a multitude of online channels from a single easy to use web page. The real benefits to the accommodation business are many, and significantly outweigh the investment requirements to get up and running on this vital piece of software. As an Accommodation Provider, the major business benefits accruing to you include:

• More accurate availability and price parity on online booking channels – by making a single change, your staff can update multitudes of websites immediately. This means availability and pricing across sites will be current, accurate and require minimal staff training to maintain.

• The capability to list on many more online booking channels with little or no additional effort for each channel you add. The result is increased distribution without increased cost and you are able to put your rooms in front of millions of consumers around the globe.

• Free and easy marketing for your property – the major booking site players have the money and the will to market your property effectively online, so let them!

• Increased accuracy with your availability and rates, coupled with increased exposure to local and international online booking channels means INCREASED BOOKINGS REVENUE AND MORE DOLLARS TO YOUR BOTTOM LINE.

• Elimination of double bookings. Any channel manager worth its salt will automatically adjust inventory across all sites when a booking occurs on any site. This means you can have all your availability on all sites all the time and feel secure. This is known as the Pooled Inventory Model and it means you can maximize your chance of being booked without being overbooked.

So, we’ve established that a channel manager will increase your online bookings,  but what should an accommodation provider look for when selecting amongst the multitude of offerings on the market?  Look for:

• A product that is based on the pooled inventory model, where the tool automatically adjusts inventory across all sites as soon as a booking occurs on any site – this will maximize your inventory and reduce double bookings.

• A product with no transaction fees. Channel managers that work on a flat monthly fee are the best value for money

• A product that allows you to manage inventory on your own website’s booking engine as well as on the third party booking sites.

• A product without lock-in contracts. A channel manager with no lock-in contracts has confidence in their ability to service your business and backs their own product – this is a GOOD sign.  Rapid changes in technology you could be left behind if  you are locked in to a sub par product.

• A product that does all their own product development in-house – they are more likely to be able to respond to the changes your business needs, and adapt their product to a changing online distribution landscape.

• Ensure that you select a channel manager that is backed by a significant support team that can ensure all your needs are taken care of under one roof.

• Ensure your channel manager updates all the major international bookings sites. The local sites are not enough, and the international majors are spending up BIG on marketing your property to the world. Remember, you have to be in it to win it!

Last but not least, it is advisable to pay your channel manager a visit and view their operation first hand. Many accommodation businesses are doing more than 40% of their business online. You cannot afford to put this business with a fly by night company. Remember, you are choosing a long term business partner, not just a product.

So What Does The Future Hold For Channel Management?

Channel managers are rapidly evolving as the one-stop shop for all your online distribution needs, dis-intermediating some of the more traditional electronic distribution channels. Channel managers are already connecting to Online Booking Sites, Wholesalers, Traditional Travel Agents, GDS and Inbound Tour Operators. Many additional channel options will be connected in the future and booking channels not connected to a reputable channel manager risk being left out in the cold.

The future will see the leading channel managers increasingly connected to more property and central reservation systems, providing seamless connectivity between the property management system and the online bookings channels. Facilitation of automatic delivery of all reservations from online channels directly into the property management systems, is an important capability of the future channel manager. Such a solution completely eliminates the need for the property to recapture online booking channel reservation emails into the property system,

With the proliferation of channel managers and similar distribution switch networks of the future, distribution and acquisition costs to accommodation providers will be dramatically reduced. Channel managers are a far more cost effective option than older distribution systems and these systems are already finding their market challenged with the new kids on the block.

The accommodation providers that embrace the right channel management technology today will have reap the benefits of increased online bookings, lower acquisition costs, increased business efficiency and ultimately, higher profit margins.

Can you afford not to?

About SiteMinder
SiteMinder is a global leader in channel integration for property management system vendors and has been seamlessly integrating property management systems to online booking distribution channels since 2006. Over 3000 accommodation providers in more than 20 countries now use SiteMinder as a booking site channel manager. SiteMinder offers the most flexible and stable platform available to PMS vendors in the market today, SiteMinder PMS connections include Opera, Opera ORS, CMS Guest Centrix, RMS, Roonsoft, roomMaster EzyRez, Maxial, Satin, Resbook/Availability, MotelMate and Callista.

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US airlines collected $769 million in baggage fees in Q1

Low-cost and regional airline groups reported operating profits in the first quarter of 2010 while the network airline group posted a second consecutive quarterly loss, according to data released by the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS).

From January to March, the airlines collected $769 million in baggage fees and $554 million from reservation change fees. 

Airlines also reported revenue of $534 million from other ancillary revenue, from passengers and from other sources. This revenue category includes revenue from frequent flyer award programme mileage sales and pet transportation fees. 

Total first quarter 2010 airline revenue from all ancillary sources was $1,857 million, with Delta reporting the most, $592 million. 

The combined passenger fees and ancillary revenue from other sources constituted 6.2 percent of the total revenue of the 28 carriers that reported receiving ancillary revenue. 

Spirit Airlines’ reported the largest percent of operating revenue from ancillary revenue of any carrier, 21.7 percent.

Operating margin

The six network carriers posted a loss margin of 0.7 percent in the first quarter with a combined operating loss of $163 million (Table 2). In the first quarter of 2009, these carriers reported a loss margin of 4.0 percent with a loss of $867 million. 

The seven low-cost carriers reported a 2.4 percent profit margin with profits of $115 million. The six reporting regional carriers posted a 3.9 percent profit margin of $60 million.

The top three operating profit margins were reported by low-cost carriers Allegiant Air and Spirit and regional carrier Comair. Low-cost carrier Virgin America reported the largest loss margin. The only other operating losses were reported by network carriers American Airlines, US Airways and Continental Airlines, low-cost carrier Frontier Airlines and regional carrier ExpressJet Airlines.

Baggage Fee Collections
Ranked by 1st Quarter 2010 Baggage Fee Revenue
Dollars in Millions (000,000)

Source: Bureau of Transportation Statistics

** 20 carriers reported baggage fee revenue in 1Q 2010

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Google to take on Facebook: reports

Google is reportedly working secretly on Google Me, a product that is being dubbed as a Facebook competitor.

The rumoured new site is expected to move beyond Google Buzz, a Twitter competitor recently launched as an add-on to Gmail that allows users to share links, photos, video and status messages.

Adam D’Angelo, founder of the social networking site Quora, and a former senior manager at Facebook, reportedly said “This is not a rumour. This is a real project. There are a large number of people working on it.”

“They realised that Buzz wasn’t enough and that they need to build out a full, first-class social network. They are modelling it off of Facebook," wrote D’Angelo, describing it as a “high priority project”. “They had assumed that Facebook’s growth would slow as it grew, and that Facebook wouldn’t be able to have too much leverage over them, but then it just didn’t stop, and now they are really scared.”

Meanwhile, it has emerged that private equity firm Elevation Partners has invested $120 million in Facebook Inc by buying shares of the social networking site. 

The Wall Street Journal reported: Elevation Partners has acquired an additional five million shares in Facebook Inc for $120 million. The firm had bought 2.5 million shares of Facebook for $90 million in November last year, the report added. The number of Facebook users have grown to about 500 million from 325 million when the PE firm had first invested in it.

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Webjet forms JV with Westminster Travel

Online travel company Webjet has formed a joint venture with Hong Kong-based Westminster Travel.

Webjet managing director David Clarke said, “In our view, Asia represents a significant international growth region.” 

Operations under the Webjet brand, and utilising Webjet’s technology, will commence later this year initially in Hong Kong and Singapore.

“Westminster Travel, with its vast experience in the region, will provide local management and multilingual customer service facilities and as a result will provide substantial economy of scale during the initial stages of development along with a deep understanding of the local markets and opportunities,” Clarke said.

Initial operations will focus on leisure and SME business in flights, and hotels through Stay n Pay.

David Clarke will be chairman of the joint venture company and Larry Lo, Managing Director and Henry Chu, Finance Director both of Westminster Travel will be the local directors. Final board appointments will be advised in due course.

For Webjet, the move follows the commencement of its operations in North America.

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Travelzest delivers a record first half performance

Travelzest has delivered a record first half performance following the restructuring of both the UK and North American operations which commenced in September 2009.

Group transaction value for the six months to 30 April 2010 increased by 14 percent to £118.7 million (2009: £104.0 million) and revenue increased by 9 percent to £18.9 million.  

Gross profit increased by 7 percent to £12.3 million with gross profit margins on total transactions value dropping slightly to 10.4 percent from 11.1 percent.  

As a result of the restructuring of operations and the implementation of centralised shared services, the more efficient operating structure has contributed to an improvement in underlying operating profit by 32 percent to £3.1 million (25 percent margin on gross profit) from £2.3 million (20 percent margin on gross profit). 

Profit before depreciation and amortisation margins for the period have also improved in both divisions due to the restructuring activities with Merchant operations improving from (18 percent) to (16 percent) and Agency operations improving from 34 percent to 36 percent.

The booking trends in both the UK and North America remain robust, stated the company. 

Strategy  

The Group has continued to implement revenue growth strategies, and to rationalise and unify operations.  

In the future, the group will maintain a focus on the expansion of its Merchant operations and will expand its distribution capabilities, product suite, and destinations serviced.  Travelzest will be developing new destinations on a select basis to ensure it enters markets that are attractive to its current customer base as well as to destinations where the Group is able to continue to operate in a low risk environment.  

The expansion of Travelzest’s retail capabilities is a core area for development that it believes offers significant growth potential.  The unification of all the UK brands under a single luxury retail brand, using a single back office system with both online and call centre distribution capability is set to launch in September.  

This unified brand, supported by Travelzest’s global operations and systems, will have the ability to distribute product to new regions such as North America where the Group can cross sell its products to its extensive current customer base. 

Travelzest is also reviewing the integration of a third party package product to broaden its winter and summer programmes.  

The Group’s North American operations continue to expand into related regional markets. Using new online and offline marketing initiatives, Travelzest’s Canadian brand itravel2000 will be able to enhance and expand its consumer awareness and cross promote other brands such as The Cruise Professionals.

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TravelMuse ties up with VisitBritain

Los Altos, California-based TravelMuse has joined forces with VisitBritain, the national tourism agency responsible for promoting Britain, to feature top trip plans for UK-bound travellers.

This partnership with destination marketing organisation offers travellers direct access to “expertly-crafted itineraries”, stated TravelMuse.

TravelMuse will feature top trips created by the experts at VisitBritain.com on TravelMuse.com’s home page, within the “Destinations” pages, and also on relevant “Trip” pages. Travellers planning to travel to England, Scotland, Wales and Northern Ireland can use these trip plans as the basis for their trip. 

Travellers can also use the TravelMuse travel planner to add content and information–such as attractions, hotels, restaurants, and more–to further customise their itinerary based on their personal travel preferences.

TravelMuse’s enhanced travel planner, unveiled in May 2010, integrates mapping technology with organisation, scheduling and collaboration tools so individuals and groups can plan trips easily and efficiently.

Americans made three million visits to the UK in 2008 and spent US$3.3 billion.

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Virgin Atlantic opts for ITA Software’s pricing and shopping engine

Virgin Atlantic Airways has deployed Cambridge, Massachusetts-based ITA Software’s pricing and shopping engine. The airline has chosen QPX for its website, www.virgin-atlantic.com.

Virgin Atlantic intends to take advantage of the advanced shopping features and flexibility of QPX. 

The airline’s website will now feature fixed and flexible date shopping including a 7X7 calendar display of available fares. Also, it will enable upselling to Virgin Atlantic’s premium cabins. 

 “As we continue to expand ITA’s international presence, we are proud to add Virgin Atlantic as the most recent European airline to take advantage of QPX,” said David Peller, regional vice president, EMEA and India, ITA Software.

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ITA Software attracts “several” potential buyers: report

It has emerged that several potential buyers are considering buying ITA Software.

According to a report filed by the Wall Street Journal, ITA has been in exclusive discussions with Google. Other potential bidders include Expedia, Kayak.com and Travelport, the WSJ reported.

Some of these bidders have made unsolicited offers of cash and stock for Cambridge, Massachusetts-based ITA, but have not been given access to its financial information since it is in exclusive discussions with another buyer. ITA had sought $1 billion from Google, but the search firm's offer was closer to about $700 million, the Journal reported.

It first emerged in April this year that Google is in talks to acquire ITA. Founded in the mid 90’s by a group of computer scientists from the Massachusetts Institute of Technology, the company is an airline IT and services provider.

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