Business Travel News - December 15, 2008 - (Page 21)

MEETINGS TODAY New Dolce CEO To Further Conference Center Chain’s Evolution BY MICHAEL B. BAKER Rudnitsky, who also has worked in Conference center and hospitali- leadership roles outside the hospitalty company Dolce Hotels and Re- ity industry at companies including sorts has appointed former Wynd- Kraft, Nabisco and Pillsbury, anham Hotel Group CEO Steven nounced his departure from WyndRudnitsky as its new ham in September. president and CEO “This will be a noas the brand seeks tably different expesignificant expanrience,” Rudnitsky sion as well as a disaid. “I’ve spent my versification of its career in public comcustomer base. panies. Now, I’ll be Rudnitsky, officialable to focus enerly assuming the CEO gies on longer-term position on Dec. 8, goals without some takes responsibility distractions of quarfor developing the terly earnings that company’s strategic are a part of publicly direction, meeting traded companies.” business objectives Rudnitsky now is CEO STEVEN RUDNITSKY and overseeing all charged with driving Powering up the Dolce brand company departDolce’s growth plan, ments. He reports to which will be undercompany chairman and founder written by the company’s investors. Andy Dolce. They include Broadreach Capital Dolce currently manages 23 ho- Partners, which in 2007 purchased tels, resorts and conference centers a majority stake in Dolce (BTNonin the United States, Canada and line, Oct. 8, 2007). Europe and plans to double that Despite the hotel development fiportfolio within the next five years. nancing difficulties triggered by the credit crunch, chairman Dolce is take a more granular look at day-toconfident that the company, with day operations to see how to best Rudnitsky at the helm, will meet its optimize performance and growth, development goals. The focus will Rudnitsky said. He plans to spend be on gateway U.S. cities where his first hundred days in office visitDolce does not have a presence and ing properties, learning how Dolce expansion in Europe, he said. goes to market on a property-by“We want to go where our cus- property basis and adapting that tomers are meeting, and it’s pretty with his experience. “I’ve been a easy to define those markets,” Dolce brand guy for 20 to 25 years, and said. “We’re re-establishing ourselves combined with what I’ve learned, I in the U.S. marketplace: We are in can take the Dolce brand and make Dallas and Austin and would like to it much more powerful than even be in Houston, we should be in what it already is,” he said. Phoenix, we need a rePart of that strength sort property in Miami Access the will come from a drive 2008 Corporate Travel Index to take in more busior Tampa and we could see btnonline.com/perdiem reinforce our position ness from the leisure in the Washington, D.C., area. We travel markets, particularly in such want to get a large presence in the Dolce resort locations as Austin, United Kingdom, particularly in Lon- Paris and Barcelona, Dolce said. don followed by Manchester, and “This is a successful company and we’re looking at Milan, Vienna and clearly an industry leader,” Rudnitmore in Spain and Germany.” sky said. “My challenge will be to Beyond that, Dolce said the com- build on successes to date and be pany also would be exploring expan- consistent with the company culsion into the Asia/Pacific region, par- ture. I look forward to working in ticularly India and China. front and in back of the house to acThe company also can take ad- complish this.” vantage of the difficult economy to ■ mbaker@btnonline.com ■ alyst Kevin Crissey, but added that revenue declines likely are not enough to offset gains from lower fuel pricing. Using American and US Airways as “a proxy for the industry,” Crissey in his modeling said revenue would have to drop 9 percent to 13 percent to generate share declines like those witnessed earlier this year. That, he noted, is “unlikely.” Delta Air Lines president Edward Bastian said demand would have to drop in excess of 20 percent “to offset the amount of fuel savings we’re seeing.” Meanwhile, Southwest Airlines CEO Gary Kelly said, “We are still in the money with our fuel hedges here in the fourth quarter,” but also said the carrier “will be de-hedging a bit, down to 63 percent coverage” at a capped price of $73 a barrel for 2009. If oil prices remain constant, Southwest could post losses on its hedges, rather than the 2008 gains that kept the carrier on a different competitive plane. Still, Kelly said, “We will want to remain hedged. We’re out of business at $200 crude oil. $50 crude is a problem, but it just has to be managed.” Delta hedged its oil position for next year, saying that 74 percent of the carrier’s 2009 consumption “will participate at today’s market level of fuel.” Bastian noted Delta expects to pay about $100 per barrel in 2008, but is poised to reap a $5 billion benefit in fuel savings in 2009. ■ jboehmer@btnonline.com ■ Airlines See Better ’09 Continued from page 3 “During the past year, several smaller carriers have disappeared, and this, along with the capacity reductions, results in an industry that is significantly smaller than it was a year ago,” said Beverly Goulet, American Airlines vice president of corporate development and treasurer. She said the capacity removed from the domestic system—more than 9 percent of December 2007 levels—amounts to that of a “very large airline.” Continental Airlines senior vice president of finance and treasurer Gerald Laderman added that the reduction in capacity also helps the industry face what has been determined to be a sustained economic recession. Laderman called those cuts, enacted in response to high fuel costs, the “right thing for wrong reason.” He added, “Oil is back down to a more manageable level, but it was nice the industry cut capacity, given the economic slowdown.” Airlines posted poor November traffic figures with double-digit percentage declines in passenger traffic. During the Credit Suisse conference, US Airways’ Parker gave the most detailed traffic outlook, despite “limited visibility.” He said, “November was very soft, December looks better than November and January looks better than December.” He added, “The cutbacks in capacity have been extremely helpful. While demand is down, so is capacity, so you’re not seeing the typical declines in revenue per available seat mile.” Parker said, “Most people are predicting RASM improvements in ’09.” Noting this summer’s fuel price peaks, Continental’s Laderman told investors next year’s trend doesn’t suggest “significant rises again in the price of oil,” which “gives us and the industry some breathing room” as demand and revenue deteriorate. “Clearly the market is saying demand will be very poor in 2009,” said UBS airline an- Business Travel News www.BTNonline.com Monday, December 15, 2008 21 http://www.btnonline.com/perdiem http://www.BTNonline.com

Table of Contents for the Digital Edition of Business Travel News - December 15, 2008

Business Travel News - December 15, 2008
Contents
Inside Track
Profiles In Travel Mgmt
Forum
Aviation
Lodging
Ground Transportation
Travel Management
Meetings Today
Washington Wire

Business Travel News - December 15, 2008