Welcome to the May 2008 Issue of Travology Today

As we reported last month, rising fuel prices continue to be a factor in the escalating costs of travel and will remain so for the foreseeable future. Yet another airline, Silverjet, has suspended operations effective this morning and IATA is reporting in their latest Economics Briefing that “though fuel prices are already at record high levels, there is little expectation of any major relief in terms of a fall in price in the next 12 months.” In addition, “as the demand environment slows and new capacity deliveries add to competition, any pricing power is expected to weaken over the next 12 months.” While this may seem to hold a glimmer of promise for consumers, it is tempered by the fact that the airlines are increasing fuel surcharges and finding alternate sources for supplemental revenue.

We have found our single greatest resource in combating these increases has been our ability to closely monitor industry variations to ensure we can pursue the best possible pricing structures for our clients. Information is a powerful resource in this volatile time and it is essential to keep abreast of changes, as well as remain flexible in terms of adapting to these changes.

The information we gather during this challenging year allows us to benchmark against a broader range of variables as well as places us in a more competitive position, enabling us to better negotiate on your behalf. Again, knowledge is a powerful tool and applying this data effectively will allow us to help you get the most from your travel program.

The Secretary of Transportation Mary Peters announced three new measures designed to address severe delays at the three major New York area airports while preserving consumer choice, allowing for continued airline competition and keeping fares affordable.

She noted that the Department posted the final order to temporarily cap flights at Newark Liberty Airport at an average of 83 scheduled flights per hour at the airport from June 1 until October 2009. However, she noted that while the measure will spread flight schedules more evenly throughout the day, it still will allow for an additional 30 operations per day than what was offered at the airport last summer.

Secretary Peters announced that the Department of Transportation will invest $2 million for a new study to look at ways to add transit connections to New York’s Stewart Airport, which is located approximately 90 miles north of Manhattan. She noted that the facility has the kind of runways and facilities that could take pressure off the region’s busier airports as long as travelers can easily get there.

The Secretary said these two new measures build on previous steps by the Department to cap JFK and LaGuardia Airports, to improve airspace capacity and to better manage the region’s airspace under a single aviation czar. But she cautions that while “all these measures are significant, no one should consider them sufficient.”

She noted that capping the region’s airport capacity without providing new ways to attract competition “would likely deliver fewer delays, but would certainly bring stagnant service, limited consumer choices and increased fares.” As a result she said the Department was proposing new measures to make available a limited number of take off and landing opportunities, know as slots, for auction at JFK and Newark Airports.

“In order to ensure that airport caps do not become an economic drain on the region and the rest of the country, we need a way to keep aviation competition alive in the free market capital of the world,” Secretary Peters said. “This new proposal will do much to make flying to New York attractive.”

Under the proposal, all airlines operating at Newark and JFK would be given up to 20 slots a day for the 10-year life of the rule. The proposal offers two options for JFK. Under the first, 10 percent of the airline’s slots above the 20-slot baseline would be made available via an auction. The revenue from those auctions would then be invested in congestion and capacity improvements in the region.

Under the second option for JFK, the airlines would auction 20 percent of slots above the 20-slot baseline and keep all of the proceeds. The Secretary noted that, depending on the option, between 91 and 179 slots would be affected out of 1,245 total slots at the airport.

The proposal also calls for auctioning 10 percent of slots at Newark Airport above the baseline annually for the first five years of the rule. As a result, only 96 slots out of a total of 1,219 slots at the airport would be auctioned over the 10-year span of the proposal.

The Secretary noted that airlines operating at the two airports “would receive a 10-year interest in some of the world’s most valuable aviation assets, free of charge, free of question and free of hassle.” She added that other airlines would get a chance to compete in an attractive aviation market, but to do so they would have to make investments that benefit every existing carrier.

She said the Department was making the proposal because economists estimate that caps at airports without competition can increase fares for passengers between 11 to 15 percent over similar flights at other airports. Meanwhile economists estimate that fares drop by over 30 percent when new airlines enter a market.

“Simply put, competition drives down fares,” Secretary Peters said. She added that the Department will accept comments on the new proposal for the next 60 days, which would be thoroughly reviewed and analyzed before any final rule is issued.

For more information about the Secretary’s announcements, please click here.

NOTE: Continental Airlines issued the following statement in response to the U.S. Department of Transportation's (DOT) announcement to implement slot auctions at John F. Kennedy and Newark Liberty Airports:

The DOT proposal to auction off 10 percent, or approximately 95, of the slots at Newark over the next five years is an unlawful taking of property that Continental will vigorously oppose. Moreover, auctioning slots will do nothing to ease congestion, but will raise the cost of air travel to consumers and act as an effective increase in taxes on an industry already known to bear an unreasonably high tax rate. Additionally, the proposal will result in reduced service to various communities and will create unnecessary market uncertainty at a time when the skyrocketing cost of oil and jet fuel has already created an extremely challenging environment for the industry.

The auction proposal does not address the real need to modernize an outdated and inadequate air traffic control system to increase capacity and meet passenger demand.

U.S. business travelers are increasingly making daily choices to reduce their environmental impact, and they have specific expectations about the green practices hotels should be adopting today, according to a recent survey commissioned by Deloitte.

The survey shows business travelers have begun to do some green practices routinely: Nearly seven of 10 business travelers (69 percent) say they always turn off the lights and one out of three (31 percent) always adjusts the heat/air conditioner when leaving the room.

Roughly a third of travelers surveyed are keenly concerned about green travel. Some 34 percent "seek out hotels that are environmentally friendly," just as 38 percent have researched green lodging facilities either online or by asking friends and relatives. Similarly, 28 percent say they would be willing to pay 10 percent more to stay in a green lodging facility.

"Our survey shows that green concerns have made their way on to the business traveler’s agenda," says Adam Weissenberg, the Deloitte Tourism, Hospitality & Leisure leader. "Business travelers understand the issues and are trying to do their part in being more environmentally responsible when they are on the road."

Hotels: True green?

The top five environmental actions business travelers expect lodging facilities to be taking are (in order):

• Recycling (77 percent)
• Using energy-efficient lighting (74 percent)
• Using energy-efficient windows (59 percent)
• Placing cards in rooms to let guests request that sheets/towels not be changed (52 percent)
• Using environmentally safe cleaning products (49 percent)

Clear gender divide

The survey found a significant split along gender lines on some key questions: 72 percent of females say they always turn off the lights when leaving a room vs. 66 percent of males. Similarly, 36 percent of female business travelers always adjust the heat or air conditioner when leaving a room vs. 26 percent of males. More than half of female business travelers say they frequently or always use public transportation or hotel buses (52 percent female vs. 42 percent male).

For more information and complete survey results, click here.

The bane of many east-west long haul and international travelers is jet lag – that fuzzy, disoriented feeling caused by your body clock being out of sync with the destination time and the body’s natural rhythm being upset.

The symptoms of jet lag can be quite varied, though on the whole, travelers may experience the following:

• Loss of appetite
• Nausea and/or upset stomach
• Headaches and/or sinus irritation
• Fatigue
• Disorientation and/or grogginess
• Insomnia and/or highly irregular sleep patterns
• Irritability, irrationality
• Mild depression
• Dehydration

While there are many suggested remedies for jet lag, new research from Harvard Medical School has found that a period of fasting (about 16 hours) may be enough to realign your body clock and reduce the effects of jet lag.

Studies have shown that mice fed only during the time when they normally sleep, shift their body clock to a new schedule. This secondary body clock can then override the body’s natural circadian rhythm which is responsive to light, and thereby more quickly adapt to a new timetable.

More information on the study can be found here.

Implementation to Occur on June 1, 2009

The Department of State and Department of Homeland Security (DHS) announced the final rule for the land and sea portion of the Western Hemisphere Travel Initiative (WHTI), a core 9/11 Commission recommendation. The WHTI final rule requires travelers to present a passport or other approved secure document denoting citizenship and identity for all land and sea travel into the United States. WHTI establishes document requirements for travelers entering the United States who were previously exempt, including citizens of the U.S., Canada and Bermuda. These document requirements will be effective June 1, 2009.

DHS is publishing the WHTI land and sea final rule more than a year in advance of its implementation to give the public ample notice and time to obtain the WHTI-compliant documents they will need to enter or re-enter the United States on or after June 1, 2009.

In addition to the release of the WHTI final rule, DHS is officially designating the Washington State Enhanced Driver’s License (EDL) a WHTI-compliant document.

Many cross-border travelers already have WHTI-compliant documents such as a passport or a trusted traveler card (NEXUS, SENTRI, and FAST), or a Washington State EDL. The Department of State is already accepting applications for the new Passport Card and additional states and Canadian provinces will be issuing EDLs in the next several months—all of which are options specifically designed for land and sea border use.

Beginning June 1, 2009, DHS will institute special provisions that allow school or other organized groups of children ages 18 and under who are U.S. or Canadian citizens to enter the U.S. with proof of citizenship alone.

Over the next 14 months, both Departments will be conducting public information campaigns to inform U.S. and Canadian citizens about the new document requirements. These campaigns will include special outreach to residents of border communities who may be most impacted by the new document requirements. The Department of State and Department of Homeland Security are working with the Canadian government to ensure widespread and consistent communications on both sides of our land borders.

The WHTI land and sea final rule and a notice on the Washington State EDL will be sent to the Federal Register for publication. Specific information on documentation requirements may be found at http://www.cbp.gov/xp/cgov/travel/vacation/ready_set_go/. For general information on WHTI or other travel-related programs, please visit www.dhs.gov or www.travel.state.gov.

74% of U.S. Consumers Say Mobile Phone Usage on Airplanes Should be Restricted to Features that Do Not Require Talking

Nearly three out of four consumers agree that mobile phone usage on airplanes should be restricted to silent features only according to a new survey commissioned by Yahoo! Inc. and conducted by Harris Interactive(R). The survey demonstrates that U.S. consumers today view their mobile phone as more than just a phone, it's a computer in their pocket with a wide variety of features. Consumers surveyed support the ability to access mobile phone features like e-mail, text and IM while in-flight, but made clear their preference for no talking.

"There is an increasing debate about the use of mobile phones on airplanes," said Bruce Stewart, vice president and general manager, Connected Life Americas, Yahoo!. "This new survey overwhelmingly proves the desire of consumers to stay connected to the people, information, interests and passions that are important to them while in-flight, but they don't want to be forced to listen to the conversation of the passenger sitting next to them."

Across the U.S.A., but especially in the West, most consumers agree that mobile phone usage on planes should be restricted to non-talking features. More than half of consumers (60 percent) would want to use silent features while flying on an airplane such as:

• Text message: 38 percent
• Access e-mail: 28 percent
• Play games: 29 percent

If usage of mobile phones was allowed while in-flight, more than two out of three (69 percent) consumers agreed that there should be a designated area of an airplane for passengers who want to talk on their mobile phones. In fact, older consumers (76 percent) and women (73 percent) are more likely to agree than their younger (64 percent) and male (64 percent) counterparts.

For more information, click here.

American Airlines American Airlines announced that it will discontinue service between New York's John F. Kennedy International Airport (JFK) and London's Stansted Airport, effective July 2. American Airlines will continue to offer its full schedule of flights between JFK and London's Heathrow Airport… British Airways will increase its fuel surcharge on all short haul and long haul tickets issued from Tuesday, June 3, 2008. The decision reflects continuing high oil prices…Continental Airlines will launch the first-ever non-stop service between Cleveland Hopkins International Airport (CLE) and Charles de Gaulle Airport (CDG) in Paris, France. …Delta Air Lines was presented an award by the U.S. Environmental Protection Agency's (EPA) Design for the Environment (DfE) program for the airline's use of PreKote, an environmentally friendly, non-chromium surface pretreatment on its aircraft.…United plans to tap into two thriving economies with new daily passenger and cargo service to Dubai and Moscow from its Washington Dulles hub. Pending government approvals, United plans to begin its Dubai and Moscow service October 26… Two airlines that won federal approval to begin highly coveted routes to China are postponing the launch of the new services because of high fuel costs. The affected planned routes are United’s service between San Francisco to Guangzhou, and US Airways’ flights between Philadelphia and Beijing….The Airline Reporting Corporation (ARC) has announced that Qatar Airways and Singapore Airlines will require travel counselors to use only e-tickets when booking for the airlines.

in March '08 increased to 71.6%, down 1.6 points vs. the running 12 month average of 73.2% but up 3 points from February’s 68.6%. To view the USDOT's Bureau of Transportation Statistics' (BTS) Air Travel Consumer Report, click here.

The United States Government has posted recent travel advisories and warnings for Afghanistan, Algeria, Burma (Mynamar), Burundi, Cameroon, Central African Republic, Chad, Colombia, Cote d’lvoire, Democratic Republic of the Congo, East Timor, Eritrea, Haiti, Iran, Israel, the West Bank and Gaza, Kenya, Lebanon, Nepal, Philippines, Saudi Arabia, Serbia, Somalia, Sri Lanka, Sudan, Syria and Yemen.