Business Travel News - July 28, 2008 - (Page 60)

EXECUTIVE DASHBOARD Hotels,Eyeing Cuts,Delay Negotiations The uncertain course of the U.S. economy has prompted a somewhat scattershot opening to the beginning of the negotiating season for 2009 corporate hotel rates, as some hoteliers wait to assess the potential impact of corporate travel cutbacks. However, any delay in the typically months-long process could hinder the loading of agreed-upon rates into global distribution systems in time for 2009, potentially hamstringing their availability to travelers. Buyers usually begin the annual process in July. “A lot of the chains are still evaluating, so it could be just a little bit later to see what the economy and the international markets are going to be like,” said Kathy Pruett, senior director of consulting at BCD Travel's consulting arm Advito. “It’s not going to be that late, maybe by a week or two.” Some hoteliers have predicted difficult negotiations given potential travel cutbacks, and Frank Schnur, vice president of consulting for American Express Business Travel Advisory Services, said “2009 looks like it’s going to be the best year [buyers] have had in negotiating with hotels in a long time.” ■ INTERNATIONAL AIR ECONOMY CLASS USE BY VERTICAL MARKET Percentage of tickets on intercontinental flights booked in economy class 100% 80% 60% 40% 20% 0% Heavy industry Pharmaceuticals 36% Telecom Chemicals Tecnnology Automotive Consulting Consumer goods 54% 50% 56% 81% Banking Oil 17% 8% 25% 20% 29% CONTINENTAL JOINS VENTURE, STAR ted CEO Glenn Tilton, left, and Continental CEO Larry Kellner flirted with a merger but instead last month agreed to form a transatlantic joint venture with Air Canada and Lufthansa. The joint venture, which includes Continental joining the Star Alliance, would allow for transatlantic revenue pooling and joint fare-setting, as would a previously announced mélange of Delta, Air France, Northwest, and KLM. “The alliance has less risk, but it also has less reward,” said retired aviation professor and air merger consultant Darryl Jenkins. “A merger has more risk, more reward.” Uni Source: A 2008 CWT Travel Management Institute study, based on 2006 transaction data Most Major Cities Add Taxi Fuel Fees Record-high oil prices have sparked higher airfares and chauffeured transportation rates, and now many large cities—with New York as yet a notable exception—likewise are introducing fuel surcharges for taxicabs. Many surcharges are calculated on a scale tied to current retail gas prices. A new $1 per ride surcharge introduced in Miami last month, for example, will increase to $1.50 if and when the U.S. average per-gallon average retail price of gas remains above $4 for three weeks. Similar surcharges in the past few months have surfaced in Chicago, Philadelphia and Washington, D.C., while Boston, Dallas, Los Angeles and Seattle had done so previously. New York officials, however, said no new surcharges are planned. ■ MOST U.S. HOTEL RATE GROWTH TO EASE IN 2009 Projected year-over-year percentage change in U.S. average daily rate Luxury Upper Upscale Upscale Midprice without F&B Midprice with F&B Economy CORPORATE TRAVEL EXPENSE MANAGEMENT LARGELY DECENTRALIZED Organizational structure for T&E expense processes No formal organization 4.1% 2.0% 2.9% 1.3% 2.4% 3.8% 4.6% 1.7% 2.5% 2.1% 1.8% 1.4% 1% 2% 3% 33% 14% 11% 42% Shared and distributed across multiple functions Independently handled within each business unit or region Central organization for companywide management Source: An April 2008 Aberdeen Group study of 160 enterprises Total 2008 4.0% 2009 3.4% 4% 5% 0% Source: PKF Hospitality Research 60 Monday, July 28, 2008 www.BTNonline.com Business Travel News http://www.BTNonline.com

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

Business Travel News - July 28, 2008
Contents
Inside Track
Profile
Newsmaker
BTN Research
Forum
Aviation
Lodging
Ground Transportation
Meetings Today
Travel Management
Expense/Payment
Destinations
Executive Dashboard
Washington Wire

Business Travel News - July 28, 2008