Business Travel News - August 24, 2009 - (Page 4)

NEWS CWT Sees Higher Airfares, Lower Hotel Rates in 2010 promotional rates and upgrades. With airlines further scaling down CWT Solutions Group Americas capacity in the fourth quarter of this director of hotel consulting Neysa year, oil prices remaining relatively Silver said decreases in average corsteady and demand starting to creep porate negotiated rates would deup, travel buyers should plan for air- pend on when travel buyers negotifare increases in all classes of serv- ated their hotel programs. For those ice, according to a 2010 forecast completed last fall, CWT forecasts Carlson Wagonlit Travel North domestic average daily rates to deAmerica released this month. CWT, crease 6 percent to 8 percent. Buyhowever, projects average daily ho- ers who negotiated closer to the end tel rates to fall considerably. of 2008 are expected to see rate CWT estimates drops of 1 percent to published domestic 3 percent. As rates airfares for all classes fell, many buyers to increase 3 percent renegotiated deals in to 5 percent from 2009 for greater dis2009 levels. Internacounts, which are extional economy class pected to remain the fares are expected to same in 2010. rise 4 percent to 6 While low occupercent and business pancy levels will conclass fares 5 percent tinue to aid the buyto 8 percent. er’s market in 2010, However, “airlines a further slowdown are doing a lot on the in supply growth in CWT’S DALE EASTLUND yield-management could spell trouble Airlines managing ultimate price side to manage the for buyers when the ultimate price,” said economy fully reCWT Solutions Group Americas sen- bounds, said Silver. ior director Dale Eastlund. “You may “That isn’t going to have an imhave the discount off the full walk- pact today because occupancy is alup fare, but you have to book into a ready low,” she said, “but we are golower inventory for the best fare.” ing to bump up against a time again Eastlund said airlines are imple- where demand is high and the econmenting more tiered pricing in dis- omy is booming, and because they counts, especially on international didn’t keep a steady build rate, we routes where premium-cabin load are going to have high occupancy factors have fallen dramatically. issues and rate pressures again.” “As a company drives business to CWT also projects pricing relief suppliers and overperforms, airlines in average daily car rental and limreward the buyer with stronger dis- ousine rates, with drops of 1 percounts,” he said. “For those buyers cent to 3 percent and 3 percent to 5 not doing the right percent, respectively. things or not driving For on-demand Webcasts, The forecast is see btnonline.com/Webcasts the business where based on 2010 U.S. they should, airlines are building in gross domestic product growth of a scale so you not only can go up in 1.5 percent, a 10.2 percent U.S. unyour discount, but can fall down.” employment rate, an average oil CWT anticipates the hotel buyer’s price of $70 to $75 per barrel and market will continue in 2010 as the research by economists at the Uniaverage daily room rate will drop versity of Minnesota and University about $10 domestically compared of California, Los Angeles. with 2009 rates, taking into account ■ sharris@btnonline.com ■ BY SETH HARRIS UATP ADVANCES PLAN FOR HOTEL, CAR PAYMENT Universal Air Travel Plan president and CEO Ralph Kaiser this month told Business Travel News the payment network has gained approval from its board to add hotels and rental cars to its merchant network. Kaiser said UATP, which for nearly three-quarters of a century has offered a centrally billed payment option for airlines, has been piloting the new payment capabilities with a corporate client and a major hotel chain, though he would not disclose its partners on the project. Kaiser said UATP’s board last month approved the plan, and he expects to announce at least one major hotel chain as a merchant by year-end. INSIDE TRACK AMEX REPORTS CONTINUED Q2 PRICE DROPS Average domestic airfares in the second quarter decreased 18 percent year over year to $212 and international fares fell 19 percent to $1,609, as companies increasingly required travelers to book seats in the back of the plane, according to this month’s American Express Business Travel Monitor. During the quarter, 36 percent of booked seats were in business class, compared with 50 percent in the second quarter of 2008. Average domestic booked hotel rates fell 2 percent to $150 compared to the first quarter of 2009, the monitor showed. While international booked hotel rates decreased 12 percent year over year, rates increased 6 percent over the first quarter to $241. Car rental rates decreased 3 percent from the previous quarter to $71. AMADEUS TO RELEASE NEW AGENT DESKTOP TOOL Amadeus this month announced its plans to release a new agent point-of-sale tool, primarily designed for corporate travel management companies, which the company expects to begin rolling out in North America in the first half of 2010, followed by a general deployment in the second half of the year. Like other agent desktop developments from other global distribution system providers and mega travel management companies during the past 18 months (BTNonline, Aug. 11, 2008), Amadeus One has both a graphical and cryptic user interface, operates in a multi-GDS environment, housing traveler profiles and other non-GDS data (BTNonline, March 16) and brings several mid-office quality control functions up to the front end. Focusing on corporate travel, Amadeus One integrates policy management administration and rules-based modules so agents can more easily configure policies into the system and monitor them. Amadeus’ Boston-area development team has been working on building Amadeus One during the past 12 months by integrating several Amadeus technologies currently in use in the marketplace, including profile solutions and command engines, according to Amadeus North America senior vice president of product development Mary Keagul. HYATT FILES FOR INITIAL PUBLIC OFFERING Hyatt Hotels Corp. this month announced a filing with the U.S. Securities and Exchange Commission proposing an initial public offering of shares. Hyatt intends to raise up to $1.15 billion in the IPO. The filing did not specify the timing of the IPO. The company’s portfolio of 413 branded hotels with119,509 rooms is among the world’s largest. Hyatt has operated as a private company for several decades. The family of Hyatt founder Jay Pritzker took Hyatt and its separate international interests private in 1979 and 1982, respectively. The two joined to create the unified Hyatt Hotels Corp. in 2004. 4 Monday, August 24, 2009 www.BTNonline.com Business Travel News http://www.btnonline.com/Webcasts http://www.BTNonline.com

Table of Contents for the Digital Edition of Business Travel News - August 24, 2009

Business Travel News - August 24, 2009
Contents
Inside Track
Profiles In Travel Mgmt
2009 Travel Manager Salary & Attitude Survey
Forum
Aviation
Lodging
Payment & Expense
Meetings Today
Travel Management
Travel Management Tech
EuroBTN
Destinations

Business Travel News - August 24, 2009