Business Travel News October 27, 2008 - (Page 4)

NEWS Crisis Shakes Mtg.Contract Terms BY ELISSA HUNTER occupancies. They’re really interestBuyers may see conflicting atti- ed in ensuring that once a or a group tudes from hotels regarding cancel- is booked, they remain as committed lation and attrition terms, with some as possible to holding that event.” properties more lenient to fill space Hotels anticipating a recovery in but others anticipating a more the future may be less flexible in nevolatile meetings market and trying gotiations for longer-term meetings, to hold firm on their terms. said Tony Wagner, vice president of The current financial crisis not meetings and events for Carlson only heightens the risk of meeting Wagonlit Travel North America. cancellations or limited attendance “They’re trying to hold back their but also has raised the importance willingness to negotiate those clausof negotiating a contract that offers es or reduce rates for far advance protection should bookings,” he said. such a situation oc“If we’re looking at cur. In such situa2010 or 2011, they tions, “attrition bemay hold back becomes even more cause they don’t important. You don’t want to have a selfknow if your compafulfilling prophecy ny will suddenly be that the market will downsized and your decline. Three- to sales meeting is gosix- to nine-month ing to be 25 percent lead times—that’s less than it was a where you’re getting year ago,” said Darin a bit of flexibility on Howard, senior buythe property level.” er in the procureWhile American NYU PROF. BJORN HANSON ment department of Express hasn’t seen Hotels understand uncertainty. Carlson Marketing. more hotel attrition With future meetand cancellation leings uncertain, buyers may find niency, opportunity exists in smallsome hotels more amenable to nego- er markets. “In some markets that tiate attrition and cancellation. In have weaker demand, you can get certain situations, “we’re seeing the lower pricing and better terms and same terms with a little bit of flexi- conditions,” said Frank Schnur, vice bility,” said Bjorn Hanson, associate president of advisory services for professor at New York University’s American Express Business Travel. Tisch Center. “This is the hotel inShould a cancellation be necesdustry saying, ‘We understand you sary, buyers should come prepared can’t be as certain as For the latest breaking news, with future business you were. We have to to mitigate charges. “If see btnonline.com/bn have these provisions, you cancel, the seller but we’ll try to understand your is hurt, and if you have opportuniunique situation now.’ ” ties to mitigate those damages even However, other hoteliers, seeing further than what was negotiated in the same uncertainty, could hold the original contract, you can easily firm. “Hotels have become more dif- go back and ask them, ‘If I can give ficult and are becoming more strict you X, Y and Z, would you waive the on conditions, specifically around original conditions of the contract?” attrition and cancellation,” said Mary Howard said. “You have to know the MacGregor, vice president of mar- value of the business that you have keting and business development canceled, so that you know the damfor BCD Meetings & Incentives. “It’s ages that you’ve caused the hotel, primarily because they feel book- but then you also have to know the ings are potentially volatile and they value of future opportunities.” want to secure their condition and ■ ehunter@btnonline.com ■ OAG: FOURTH-QUARTER U.S. AIR CAPACITY CUTS STEEPEN The domestic airline market will lose nearly 11 percent of its flights and 9 percent of its available seats in the last three months of this year, compared with the same period last year, OAG said in a revised capacity analysis. OAG reported the United States will lose 21.4 million available seats in that timeframe. Several domestic carriers during third-quarter earnings calls this month said they could further scale back capacity next year if demand continues to deteriorate. INSIDE TRACK TRAVELPORT WORKS TOWARD TRAVERSA EXPANSION Travelport GDS president and CEO Gordon Wilson said the company continues to roll out its Traversa corporate booking platform with launch client IBM, a process that began in the summer of 2007. “We just cut over IBM in India with the product,” Wilson said this month. “We’re working with another major corporation with the product, and we’re also engaged with users of the original Travelport, and we’re working on a migration plan to move those customers onto the Traversa model.” Wilson would not disclose the other client, and said the company is not yet prepared to sunset the Travelport booking tool. REGISTERED TRAVELER CO. RAISES ANNUAL FEE Clear Registered Traveler this month upped its fee for annual memberships in its program to $199, from $128. The program promises a faster pass through airport security for members who submit to a background check and pay the annual charge. Verified Identity Pass launched Clear at a cost of $99.95, then in January raised annual memberships to $128 to include a $28 Transportation Security Administration vetting fee. A Clear spokesperson said existing members “get a break” at $159 to renew. The company also introduced a 10-year membership option for $1,200. WORKTOPIA PARTNERS WITH PEGASUS, STARWOOD Hotel distribution provider Pegasus Solutions announced an agreement with meetings technology firm Worktopia to provide its Universal Meeting Solution users access to Pegasus’ Ultradirect distribution technology. The agreement will link UMS to the central reservation systems of 86,000 properties and offer real-time information on rates, availability and reservations. The first phase will allow booking of one to nine guest rooms, with the ability to book 10 or more rooms set for the second phase of the release. The first phase of development is expected to be completed toward year-end, said Worktopia CEO John Arenas. A separate Worktopia partnership with Starwood Hotels & Resorts, announced this month, allows for real-time booking of small meeting rooms in 63 Starwood properties in the southeastern United States, with plans to introduce additional properties in the future. TOP 25 FOR BTN’S 25TH YEAR The Jan. 26, 2009, issue of Business Travel News will include our 25th annual list of the 25 business travel buyers, suppliers, consultants, public policy makers or association leaders who, through their decisions or actions, exerted the greatest influence in the industry during 2008. Please e-mail editor-in-chief David Meyer at dmeyer@btnonline.com by Nov. 17 with nominations that provide not only the nominee’s name, company, title, phone number and e-mail address, but also descriptions of the 2008 accomplishments and influence that should earn your nominee a place on this year’s list. 4 Monday, October 27, 2008 www.BTNonline.com Business Travel News http://www.btnonline.com/bn http://www.BTNonline.com

Table of Contents for the Digital Edition of Business Travel News October 27, 2008

Business Travel News- October 27, 2008
Contents
Inside Track
Profiles In Travel Management
BTN Research
Forum
Lodging
Travel Management Tech
Destinations
Washington Wire

Business Travel News October 27, 2008