Business Travel News - November 19, 2007 - (Page 3)

NEWS Newsmaker Blackstone Deal Done, Hilton Names Host’s Nassetta CEO Despite an earlier announcement of plans to promote from within, Hilton Hotels Corp. has named Christopher Nassetta, CEO of Bethesda, Md.-based real estate investment trust Host Hotels & Resorts, as its new CEO. Nassetta will take the reins of the international hotel giant following his departure from Host at the end of this month. Hilton announced the appointment less than a week after it completed its merger with The Blackstone Group (BTNonline, Oct. 24). The $26 billion deal, the largest in hotel industry history, rolls Hilton’s 2,896 properties worldwide into Blackstone’s hotel portfolio. “We are confident that Chris will be a superb addition to the already strong Hilton team,” Blackstone senior managing director Jonathan Gray said in a statement. “Given his background overseeing the world’s largest hotel ownership company, Chris understands the needs of hotel owners and is uniquely qualified to lead Hilton.” Nassetta succeeds Hilton CEO Stephen Bollenbach, who retired upon completion of the Blackstone deal. He is one of only four men to hold the title of Hilton CEO since the company’s founding in 1919, the others being founder Conrad Hilton and his son, Barron Hilton. In May, before the Blackstone merger had been announced, Hilton reported intentions to promote president and COO Matthew Hart to CEO upon Bollenbach’s departure (BTNonline, May 24). Hart now is stepping down from those positions but will serve on Hilton’s board of directors, according to the company. As CEO, Nassetta will carry out Blackstone’s plan of continued growth of the Hilton brands. Blackstone particularly plans to focus on international growth, expanding on opportunities created by Hilton’s merger with Hilton International last year (BTN, Jan. 23, 2006). Blackstone also plans to move several of its luxury resorts and hotels to the Hilton platform. Alongside Nassetta’s appointment, Blackstone also reiterated that it does not intend to sell any of Hilton’s current brands or major assets. Host, meanwhile, announced that it has appointed its CFO, Ed Walker, to succeed Nassetta, who has been with Host for 12 years. Harry Curtis, an analyst with JPMorgan’s hotel and gaming segment, said in a research note that Nassetta’s departure did not signify “any meaningful shift in either strategy or execution at Host.” —Michael B. Baker Avis Budget’s Carey Investment Presages Synergy BY MICHAEL B. BAKER Avis Budget Group furthered its move into the chauffeured transportation realm with a $60 million investment in Carey International. The investment, announced last month, gives Avis 45 percent of Carey’s common stock and the op- tion to increase the stake to about 80 percent within one year. “The overall intent is to offer all of our corporate customers a complete ground transportation product across the board,” said Scott Deaver, Avis’ executive vice president of strategy. “The Carey CONTENTS November 19, 2007 Issue 650 Vol. 24, No. 21 Inside Track Bush proposes measures to ameliorate air delays. 4 6 28 TERMINAL CASE Washington Wire Bush nominates former pilot Sturgell to head FAA. Forum Directravel CEO Vitti suggests grades for airlines. BTN’s 10th Annual Airline Survey American Airlines tops buyers’ rankings. 10 Singapore’s Changi 14 20 22 25 28 readies T3 opening. Business Travel Productivity Services Most upscale hotels resisting free Internet access. Executive Dashboard Transatlantic deal augurs Open Skies changes. investment is really intended to give us more reasons to talk to corporate customers.” Avis had heard from customers a desire for chauffeured transportation offerings, Deaver said. With the Carey buy-in, Avis already is discussing the services with some corporate customers in negotiations for 2008 rental agreements, he said. “At this point, there’s a lot of handing off with the sales team, but this is beginning to happen,” he said. Neil Abrams, president of the Purchase, N.Y.-based Abrams Consulting Group, said the additional ground transportation services should strengthen Avis Budget’s position in the corporate market. With the major car rental brands now consolidated under only four companies—the most recent move being Enterprise Rent-A-Car’s summer acquisition of the parent company of the National and Alamo car rental brands (BTNonline, Aug. 1)—the shift to broader transportation services is a natural progression, he said. “This gives Avis Budget significant leverage in the corporate cars (BTN, June 11). Since the launch, the program has added six new markets: Atlanta, Philadelphia, Las Vegas, San Diego and, just this month, Seat- PUBLIC CAR RENTAL COS. SHOW Q3 STRENGTH Q3 ’07 REVENUE (IN MILLIONS) $1,720 $522 $2,450 CHANGE OVER Q3 ’06 10.0% 7.6% 9.3% Q3 NET INCOME (IN MILLIONS) $103 $11.3 $162.7 CHANGE OVER Q3 ’06 NA* 91.5% 51.4% Avis Budget Dollar Thrifty Hertz *Avis Budget reported a loss of $1.01 billion in the third quarter of 2006, related to costs from the breakup of its parent company, Cendant Corp. Sources: Car rental companies’ earnings reports Meetings Today Meeting buyers strategize to ease hotel costs. Destinations Japan’s hotel rates expected to climb. ON THE RECORD Even a partial ownership of a carrier of a CRS was not sufficient to establish that this was a parent carrier in the meaning of the regulation. BENOÎT LE BRET, EC TRANSPORT HEAD OF CABINET, PAGE 6 FIND DAILY NEWS UPDATES AND MORE AT WWW.BTNONLINE.COM BTN (USPS 728-870, ISSN 8750-3670) is published semi-monthly, except one time in January, November, December and three times in April by Nielsen Business Media Inc., 770 Broadway, New York, NY 10003, tel. 646-654-5000, and is distributed free of charge to qualified corporate travel buyers and travel agents specializing in business travel in the United States and Canada. 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For address changes (please include mailing label), single copy sales ($10 per issue including shipping and handling, prepayment required), subscription information, and other customer service inquiries, write to Business Travel News, P.O. Box 1187, Skokie, IL 60076, or call 847-647-7987 outside the U.S. POSTMASTER: Send changes of address to BTN, P.O. Box 1187, Skokie, IL 60076. Printed in the USA. sector,” Abrams said. “Now, they can offer a multitude of services. If car rental doesn’t work for a client in an area, they have alternate transportation capability. They can customize a corporate travel program, so you have the Avis, Budget and Carey brands.” Carey, meanwhile, will retain its executive team, including president and CEO Gary Kessler. This is Avis’ second significant foray into chauffeured car services this year. In June, it launched a chauffeured drive service to loyalty program members in 10 U.S. business destinations, supplying drivers at hourly rates for rented tle and Miami, said Dennis Carlson, president and CEO of Avis chauffeured drive service partner WeDriveU. Plans are for continued expansion next year with growth into the top 100 markets in the next three to five years, Carlson said. Michael Caron, vice president of project and program development for Avis Budget Group, said the company is in discussions with several multinational companies to use the service for their executives. “We’ve had month-overmonth growth,” Caron said, “and we’re very pleased with how this product is positioned.” CORRECTION A recent article (BTN, Oct. 22) incorrectly spelled the name of Richard Barajas, GetThere vice president for the Western region and global business development. Monday, November 19, 2007 3 Business Travel News www.btnonline.com http://www.btnonline.com http://www.btnonline.com

Table of Contents for the Digital Edition of Business Travel News - November 19, 2007

Business Travel News - November 19, 2007
Contents
Avis Ups Its Bet With Carey Investment
Notebook: ACTE Assails Green Taxes
EC Adopts Revised CRS Code Of Conduct
Dynamic Discovery: General Dynamics’ Loper Mines Data
American First: AA Wins BRN's 2007 Air Survey
Perfecting Attendance: CA’s Brust Deploys Event Reg. Tech.
Mtg. Buyers Grapple With Price Hikes
Business Travel News - 2007 Resource Guide
Table of Contents
Airline Benchmarks
Siemens: Global Balance
Hotel Benchmarks
Syngenta: Selective Sourcing
Online Booking Benchmarks
Pfizer: Cross-Border Mtgs. Consolidation
Meetings Benchmarks
Planes, Trains and Striking Good Deals

Business Travel News - November 19, 2007

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