Business Travel News - January 28, 2008 - (Page 1)

JANUARY 28, 2008 INSIDE BTN Delivers New Look, Keeps Focus . . . . . 3 BA To Launch Transatlantic Carrier . . . . . . . . 4 Amex Europe’s Herrick Augurs Growth . . . . . 6 Fuel Costs Fire Up Domestic Fare Hikes. . . . 16 Extended Stay CEO DeLapp Gives Recap. . . 20 3 6 26 CARLSON TAPS SAVINGS FINE-TUNED JOLY AS CEO SMORGASBORD EXPENSE TOOL CWT leader to replace Marilyn Carlson Nelson. Jackson leads food co. ConAgra’s travel effort. Raymond James’ Eriksen automates expense process. BTNonline.com Marriott Adopts Regional, Account-Based Sales Focus BY MICHAEL B. BAKER Buyers Air Merger Concerns CARRIER CONSOLIDATION LIKELY TO FURTHER CUT CAPACITY BY JAY BOEHMER Marriott International is overhauling its corporate sales strategy, shifting its sales team largely out of the back offices of individual hotels and into both account- and region-specific roles. The strategy aims to provide large corporate accounts with their own DAVID MARRIOTT personal sales contact while giving small and Marriott senior vice president midmarket accounts single regional sales of global sales contacts, covering all of Marriott’s eight core brands, according to the company. “It’s a very customer-centric approach,” said David Marriott, the hotel company’s senior vice president of global sales. “Whereas in the past, many of our sales efforts were designed around individual hotels, now we’re deContinued on page 32 As the likelihood of major domestic airline consolidation loomed larger this month, corporate travel buyers voiced concern that mergers would drive capacity down and fares up, and further degrade service. The consensus on Wall Street is that at least one major domestic merger will take shape this year, and analysts agreed that consolidation almost certainly would lead carriers to shed more domestic capacity to address overlap, creating further pricing power for airlines. UBS analyst Kevin Crissey this month polled 46 airline investors, and 93 percent expected major airlines to announce a merger in the next two months. Crissey agreed that a major merger announcement is more likely than not, as several large carriers, most notably Delta, Northwest and United, have adopted an open stance. “Investors are anticipating a deal that promises a reduction in seats and better pricing,” Crissey said. “This time, however, it appears management teams and company boards also find the idea compelling.” Continued on page 33 2008 Hotel Rate Hikes Appear On Par With 2007 BY MICHAEL B. BAKER Annual BTN Midmarket Report HOTEL DISCOUNTS DRYING UP Percentage Of Domestic Hotel Room Nights For Which There Was A Discount, Midmarket 2006 2005 2004 2003 •••••••••••••••• Early reports indicate travel buyers absorbed hotel rate increases for their 2008 programs similar to those negotiated for 2007, particularly in successfully including last-room availability even in high-occupancy markets. For the first time in GSA Deploys End-To-End Travel Technology Postmaster: Newspaper Handling/Periodicals Postaage TIM BURKE GSA travel services director several years, however, buyers also were left with a rosier outlook on future negotiations. Bob Brindley, vice president of BCD Travel’s Advito consulting division, said that with a few programs still being finalized, it’s early to predict average increases, but so far, increases are in line with the average 6 percent increase seen last year. Anecdotal reports from buyers and hoteBY SETH HARRIS liers also jibe with that The U.S. General Services Administration number. Continued on page 8 recently completed deploying its end-to-end E-Gov Travel Services program that fully integrates and automates all travel booking, reporting and reimbursement processes in one Web-enabled system. In the past year, GSA completed the migration of 82 federal agencies onto the EGov Travel Services platform. The program encompasses about 93,000 travelers and $6.5 billion in consolidated annual expenditure. GSA books 3 million annual transacContinued on page 31 50% 54% 57% 65% •••••••••••••••• •••••••• •••••••• For more, see page 10. http://BTNonline.com

Table of Contents for the Digital Edition of Business Travel News - January 28, 2008

2008 Hotel Rate Hikes Appear On Par With 2007
Business Travel News - January 26, 2008
Buyers Air Merger Concerns
Contents
GSA Deploys End-To-End Travel Technology
Marriott Adopts Regional, Account-Based Sales Focus
BTN Delivers New Look, Keeps Focus
Carlson Taps Joly as CEO
BA To Launch Transatlantic Carrier
Amex Europe’s Herrick Augurs Growth
Savings Smorgasbord
Fuel Costs Fire Up Domestic Fare Hikes
Extended Stay CEO DeLapp Gives Recap
Fine-Tuned Expense Tool

Business Travel News - January 28, 2008