Welcome to the August 2008 Issue of Travology TodayWe at Directravel wish everyone a happy and safe Labor Day weekend! In Directravel’s recently released white paper, Travel Management 2.0, we note that “Corporations can improve the quality of their data by taking internal steps to tighten uncontrolled travel policies, address the use of paper-based processes, drive online booking and require the use of a consolidated payment method,” all of which boil down to data integrity, analysis and benchmarking. Manipulating this data is only as easy as the reporting program used to present it, which is why we are pleased to announce our partnership with TRX and the use of their TRAVELTRAX program. TRAVELTRAX offers reporting packages and dashboards that provide clients with the capability to better manage traveler behavior, supplier relationships, and overall travel program policies. Directravel will continue to offer 300 standard reports at no additional charge that provide both detail and summary information. All transactional elements (over 50 fields of information) are collected during each transaction and housed in our warehouse for our client’s reporting needs. Reports can drill down to the transactional level if needed. All TRAVELTRAX reporting is web-based and can be viewed online or downloaded into Excel or Adobe PDF files. Depending on individual client requirements, we can provide detailed information about air, hotel and car based upon daily, weekly, monthly and/or quarterly criteria. For more information about our reporting program, please feel free to contact your account manager or click here. |
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New Study Details Hotel, Car Rental, and Meal Taxes in Top U.S. Markets
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The National Business Travel Association (NBTA) released the findings of a comprehensive study of car rental, hotel and meal taxes in the top 50 U.S. travel destination cities (by number of air travelers), funded in part by the association's research and education foundation, the NBTA Foundation. NBTA President & CEO Kevin Maguire, CCTE, said, "NBTA is pleased to provide this unique and important research to help companies maximize the value of their travel budgets. As travel taxes skyrocket in cities across the country, business travel and meetings decision-makers are increasingly considering the tax burden as a factor in their decision-making. The current economic slump is increasing buyers' cost sensitivity and making taxes a more important factor in travel and meeting purchasing." The research shows the U.S. cities where travelers incur the lowest total tax burden in central city locations, factoring in general sales taxes and discriminatory travel taxes for lodging, car rentals, and meals, are:
The cities that impose the highest total taxes on travelers are:
Discriminatory travel taxes are those imposed specifically on travel services above and beyond general sales taxes. The U.S. cities with the lowest discriminatory travel tax rates for lodging, car rentals, and meals in central city locations are:
The cities that impose the highest discriminatory travel taxes on travelers for lodging, car rentals, and meals are:
Maguire commented, "Local and state officials around the country wondering how to attract more visitors should look at Florida and California, popular destinations for both business and leisure travelers. Fifteen of the top 16 cities imposing the lowest discriminatory tax rates on travelers are in those two states." He continued, "Cities that disproportionately target travelers for revenue are probably losing market share without even knowing it. Travelers who have been burned by taxes start looking for alternatives. That could mean trading down to less expensive hotel, car or meal options; staying with friends; taking shorter trips; or choosing an alternative destination. The lesson here? If you want travelers to come back to your city, you shouldn't hit them with 'travel tax sticker shock.'" For the full report, please click here. |
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Port Authority Takes Legal Action To Block Federal Auction Of Flight Slots
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The Port Authority of New York and New Jersey filed a motion with the U. S. Court of Appeals for the Washington, D.C., Circuit requesting to join a suit that seeks to invalidate a plan by the federal government to auction flight slots at the New York metropolitan region's airports. The Air Transport Association filed the original suit in the same court. The move comes as the Federal Aviation Administration announced an attempt to stop the Port Authority from receiving Airport Improvement Program funds used to enhance safety and security, and increase capacity for more than 100 million passengers, so that the administration can pursue an auction plan opposed by the Port Authority, elected officials, airlines and passenger advocacy groups. This court action by the Port Authority noted that the proposed slot auction by the FAA would result in higher costs for airlines, increased ticket prices for airline passengers, and fewer flights to small communities. Earlier this month, the Port Authority issued a Notice of Proposed Action that would bar flight activity at the Port Authority's airports for aircraft operating under auction-acquired slots. The proposal also would prohibit those aircraft from any other use of the airports, such as the lease of gate space in terminals or parking positions on the airfield, except for emergencies. Public comments on the proposal were overwhelmingly in favor of the Port Authority's position. New York Governor David A. Paterson and New Jersey Governor Jon S. Corzine also lodged their opposition to the auction plan in a letter to U.S. Transportation Secretary Mary Peters, noting that an auction would have a detrimental effect on the economy and do nothing to address the causes of delays and congestion. The governors also called on federal officials to implement the more than 100 recommendations of the Flight Delay Task Force, convened by the Port Authority in 2007, in order to relieve congestion. For more information, click here. |
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TSA Ready for 'Checkpoint Friendly' Laptop Bags
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To help streamline the security process and better protect laptops, effective August 16, the Transportation Security Administration (TSA) will allow passengers to leave their laptop computers in bags that meet new "checkpoint friendly" standards. This public-private collaboration took just five months to go from concept to reality. TSA reached out to manufacturers in March to design bags that will produce a clear and unobstructed image of the laptop when undergoing X-ray screening. Designs meeting this objective will enable TSA to allow laptops to remain in bags for screening. More than 60 manufacturers responded and 40 submitted prototypes for testing. "This is a solid example of government collaborating with the private sector to conceptualize and produce a product that really works to improve and advance the security process," said TSA Administrator Kip Hawley. "We put the challenge out there and bag manufacturers overwhelming responded with innovative products that provide a win-win for travelers and TSA." For a bag to be considered checkpoint friendly it should meet the following standards:
TSA expects the majority of new bags meeting checkpoint friendly standards to be available for purchase in mid-August. There are a small percentage of bags currently on the market that meet the new standards, include sleeve-like carrying cases without pockets or zippers. These bag types have been tested and can produce a clear, unobstructed image as long as nothing else is in the case. TSA is not approving or endorsing any bag design or manufacturer and will only allow laptops to stay in bags through screening if they provide a clear and unobstructed X-ray image of the laptop. For images of checkpoint friendly designs and guidance on use, please visit www.tsa.gov. |
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Despite The Economy, Hotel Customer Satisfaction Improves In First Half Of 2008, Reaching 5-Year High
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Despite the current downturn in the U.S. economy, the hotel industry continues to satisfy customers at near-record levels, according to the most recent results of the Market Metrix Hospitality Index™ (MMHI) for the second quarter of 2008. Customer satisfaction among all hotels is up (+1.0 to 82.7) compared to 2007. This is the highest score for the industry in nearly five years and close to the all time high score of 83 recorded in 2001, just before 9/11. The American Customer Satisfaction Index ™ (ACSI) also reports improved customer satisfaction for hotels in 2008 with the industry reaching record high scores. For the first half of 2008, luxury hotels and midscale without food & beverage hotels showed the most improvement. Luxury brands showing the biggest gains include Intercontinental (+ 3.3), Taj Hotels (+ 2.8), and Ritz-Carlton (+ 2.8). The most improved midscale without food & beverage brands are Howard Johnson (+ 2.7), Ramada (+ 2.2), and Red Lion Hotels (+ 1.9). Customer satisfaction with airlines rebounded slightly (+.5 to 73.8) from last quarter’s all-time record low score. But due to higher fuel prices there is no real improvement in sight. “Airlines continue to reduce flights and staff while raising fares and adding fees,” said said Jonathan Barsky, Ph.D., vice president of research for Market Metrix. “That is not a formula to win consumer sentiment.” Further, according to the MMHI, three-quarters of all airlines have seen their satisfaction scores drop in the first half of 2008. Among the large carriers, United and Southwest show the biggest declines. For more information, click here |
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OAG reports a 7% drop in global airline capacity of 59.7 million seats in 4th quarter
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The world’s airlines will offer 59.7 million fewer seats in the 4th quarter of 2008 than they did a year ago, according to OAG (Official Airline Guide) in its 10 year view of the global aviation industry. The latest figures from OAG's consolidated database reveal a 7% drop both in the number of flights and in seat capacity for October, November and December 2008 compared with the same time last year. The U.S. domestic market will account for just under 20 million of that figure, or 33% of the global decline in capacity. The OAG analysis takes into account all future schedules filed by the airlines to date, to provide a comprehensive snapshot of planned airline activity for October to December 2008 with comparisons tracking back 10 years. The U.S. domestic market has traditionally been the largest theater of airline activity in the world. However, largely due to the growth of low-cost carriers, intra-Europe and intra-Asia air transport markets have been growing quickly in recent years. In the 4th quarter of 2007, seat supply in intra-Asia markets outpaced the U.S. for the first time. However, as with the U.S., both Europe and Asia will see their operations decline in the 4th quarter 2008. Asia is currently showing a 13% decrease in capacity (equivalent to a 3-year setback in growth) although this may not be quite as severe as current figures show as a number of Chinese carriers have not yet filed their full winter schedules. The transatlantic route is showing continued growth, albeit at a much slower rate than a year ago, with flights up by 1% and capacity up by 2%. It is not only passengers who are facing reduced service and choice. Many airports will be severely affected by the announced cuts by airline operations, with 275 airports around the world losing scheduled air service altogether based on current filed schedules. Of these, 32 are in the U.S. while 116 are in the Asia-Pacific region. OAG is able to track these trends using its 30 year repository of future and historic airline schedules that is available to industry analysts around the world. This 10-year view of global frequencies and seat capacity isolates the supply-side of the airline industry to the 4th quarter of each year from 1999 forward. The U.S. appears to be bearing the brunt of the downturn. While there has been intermittent growth since 2001, when seat capacity and volume of flights fell by 13%, it has not been steady, and the U.S. domestic industry is nowhere near the size it was in 2000. Another sharp 9% decline when the winter schedules start will bring the U.S. market to its lowest level in over 10 years. The growth of low-cost competition in local markets forces carriers to look at the potential of long-haul services for higher yields and better revenues. Airlines that have wide-body, long-distance aircraft at their disposal will redeploy these assets from domestic markets to long-haul international markets in an economic downturn. The results of these decisions can be seen in the 4th quarter 2008 capacity growth in transatlantic markets, up 2% from the previous year. Long-haul seat capacity in the Europe-Asia sector however is showing a 3% drop year over year, and there is a marginal decline of 0.2% on transpacific routes. OAG, which also maintains the world’s leading fleet database, has adjusted its 10-year forecast for the global scheduled aircraft fleet to shrink by more than 3,500 aircraft as a result of high jet fuel prices and to reflect the impact of these capacity cuts Deliveries of new aircraft are expected to be reduced by 744 aircraft. Near-term firm orders are expected to be pushed back rather than cancelled. For more information, including 15 illustrative charts showing 10 year trends, click here. |
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Airline on-time performance
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in June '08 decreased to 70.8%, down 2.9 points vs. the running 12 month average of 73.7% and down 8.2 points from May’s 79.0%. To view the USDOT's Bureau of Transportation Statistics' (BTS) Air Travel Consumer Report, click here. |
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Travel Warnings (www.travel.state.gov)
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The United States Government has posted recent travel advisories and warnings for Afghanistan, Algeria, Burundi, Central African Republic, Chad, Colombia, Cote d’lvoire, Democratic Republic of the Congo, East Timor, Eritrea, Georgia, Haiti, Iran, Iraq, Israel, the West Bank and Gaza, Kenya, Lebanon, Nepal, Philippines, Saudi Arabia, Somalia, Sri Lanka, Sudan, Syria, Uzbekistan and Yemen. |
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