Business Travel News - February 9, 2009 - (Page 1)

FEBRUARY 9, 2009 INSIDE Southwest Plans Its First Capacity Cut . . . . . . 3 Hotels Slashing Capital Spending. . . . . . . . . 4 Hilton Joins Midprice Extended-Stay Fray. . 16 Hertz Launches Car-Sharing Offering . . . . . 18 Travelers Add Leisure To Business Trips . . . 20 6 14 COMPANY TAPS PORTER GROWS TRAVEL ENERGY TRANSBORDER Rick Seymour leads CEO Robert Deluce rapid rollout of travel pursues frequency, management moves. fleet growth. BTNonline.com Drop In Demand Amex Integrating GE Card Dims Open Skies ONE-ON-ONE AMEX’S ANRÉ WILLIAMS Anré Williams, president of American Express global commercial card division, recently spoke with Business Travel News editor Michael B. Baker about the integration of GE Money’s Corporate Payment Services, now nearly complete after last year’s acquisition, and other growth opportunities. Business Travel News: How is American Express’ acquisition of GE’s card portfolio changing the corporate payment landscape (BTNonline, April 28, 2008)? Anré Williams: Clearly, it reduces the number of large providers. There are still a lot of providers for corporate Continued on page 26 BY JAY BOEHMER TRANSATLANTIC TRAFFIC THROTTLED First-quarter change in available seat miles on North American routes, 2009 v. 2008 Germany -10.9% The persistent economic downturn is nullifying ca-9.0% pacity gains the U.S.-EU Open Skies agreement Switzerland -6.7% brought to the transatlantic market last year, as a U.K. soured demand environment has turned carriers to France -5.1% reverse their 2008 capacity surge between the UnitNetherlands -1.0% ed States and the European Union. 1.4% However, the magnitude of the transatlantic cuts Italy is likely not enough to mitigate the ongoing deterio- Spain 14.8% ration in demand, particularly the dwindling appetite Total -5.9% for premium class travel, airline analysts said. That Source: UBS suggests pricing power among transatlantic airlines is poised to weaken, giving corporate travel buyers with significant volume a degree of further negotiating leverage. For the first time since the first quarter of 2003, European capacity will be down across short-haul and long-haul markets, said UBS European airline analyst Tim Marshall in a Continued on page 24 Postmaster: Newspaper Handling/Periodicals Postaage Hotels Loaded Negotiated Rates Agencies Reconsider R&D Decisions Faster, More Accurately This Year BY SETH HARRIS BY MICHAEL B. BAKER The wait-and-see attitude some buyers adopted during hotel negotiations this past season has not severely delayed the 2009 rate-loading process, with many buyers and consultants reporting that hotel rates were loaded into the global distribution systems with improved accuracy and speed this year. The economic downturn, however, is providing a new set of buyer challenges, including a need for heavier monitoring to ensure negotiated rates remain the best deal and the potential for aggressive rate squatting. Neysa Silver, director of hotel consulting in the Americas for Carlson Wagonlit Travel’s Solutions Group, said the majority of the agency’s DOMINION’S KELLIHER programs are complete, with the first round Loaded rates can fall off. Continued on page 25 Many travel management companies are changing technology product development plans, reallocating resources and, in some cases, holding research and development budgets flat because of economic pressures and changing corporate travel buyer priorities. R&D spending often is grouped with marketing and travel as among the first costs targeted when business slows. In doing so, agencies are reevaluating development practices and considering outsourcing or partnering on some projects. In the past several years, many of the larger agencies opted for inhouse development to differentiate Continued on page 8 http://www.BTNonline.com

Table of Contents for the Digital Edition of Business Travel News - February 9, 2009

Business Travel News - February 9, 2009
Contents
Inside Track
Profiles In Travel Mgmt
Forum
Aviation
Lodging
Car & Ground Transportation
Travel Management
Destinations
Washington Wire

Business Travel News - February 9, 2009