December 15, 2007
Season's Greetings and best wishes for a healthy and prosperous New Year!
– The staff of Ferri & Partners
Staying Ahead Of Global Warming: Resorts Prepare For A Future Without Skis
The sun was glaring down on the Swiss Alps. Bronzed 30-somethings in designer sunglasses and tight T-shirts were draped over extra-large lounge chairs that lined the deck. Euro-pop music played from multiple speakers as fetching young waiters served expensive bottles of Champagne and cheese plates. It might have been August at a Nikki Beach Club – except for the splotches of snow, mountain vistas and overworked snow machines.
It was my second day at the glamorous Arosa ski resort in eastern Switzerland, says the International Herald Tribune’s Gisela Williams and I had yet to hit the slopes. Instead, I was jostling with Chanel-toting Europeans for sun chairs at Arosa's mountaintop restaurant, and floating in the glittering swimming pools of the Tschuggen Grand Hotel's futuristic new spa.
Could this be the future of Alpine skiing? With glaciers melting and snow packs shrinking, ski resorts in the Alps are trying to stay ahead of global warming, not only by installing more snowmaking guns, but also by transforming their resorts with colossal spas, sleek architecture and other off-slope attractions.
Big-name architects like Zaha Hadid are designing high-altitude ski features. Shopping centers are going up on mountain peaks. And venerable hotels like the Tschuggen Grand are becoming all-weather resorts, in its case by adding a $30 million, 43,000-square-foot spa designed by the Swiss architect Mario Botta.
While ski resorts throughout Europe are vulnerable to rising temperatures, Switzerland has been leading the way with several pioneering architectural non-ski attractions.
In Davos, home of the World Economic Forum, everyone is talking about the spaceship-like InterContinental Resort designed by the eco-friendly architect Matteo Thun – an elliptical-shaped complex with 186 luxury hotel rooms, residential apartments, shops, conference rooms and, of course, a vast spa.
The complex, which Thun calls "a new planet," is expected to open in 2010 and will be partly built from local materials.
"A lot of people are telling us: You guys are doing fine because you're far above the critical height line where ski areas will have a problem," said Armin Egger, former director of Davos Tourism. "But we know if about 40% of skiing areas in the European Alps will be gone in 50, 100 years, then we will have a problem as well."
Don’t Fear Traveler Review Sites – Use Them To Increase Market Share
As our vocabularies have become peppered with words like Google, YouTube, TripAdvisor and “del.icio.us”, a sea change has occurred in hospitality marketing, writes Greg Leddy, Managing Director of Ferri & Partners in the latest issue of Caribbean Hotel and Restaurant Buyer’s Guide. Not only has the playing field been leveled for many small- and medium-size hotels, but marketing has been turned on its head as the consumer has taken charge.
The driving force behind all this is the phenomena called “Social Media” or “Social Networking”, the countless blogs, chatrooms, hotel rating sites, podcasts, etc. that now allow consumers to share their experiences and opinions with fellow travelers worldwide. In using every form of media, including text, video, photos and audio, sometimes all together, social networking is giving a worldwide platform to the most powerful and credible form of communication – word-of-mouth. Innumerable sites such as Myspace, TripAdvisor, Facebook, Wikipedia and YouTube now supplement traditional “one way” media (television, newspapers, etc.) through online
“two-way” discussions about an incredible range of interests, issues and experiences among millions of consumers.
Although once thought by many to only be used by kids for watching funny videos and chatting with their friends online, social media has developed into a phenomena that is here to stay. And it will continue to evolve to include more mature and affluent audiences.
Just witness Travelocity’s recent introduction of a new tool that allows travelers to sort through tens of thousands of hotel reviews to find relevant information about families, solo women travelers, travelers with disabilities, travelers with pets, etc. Obviously, it isn’t targeted at your teenage son or daughter.
And what might Google (which recently purchased YouTube), Rupert Murdoch (his News Corporation is the new owner of MySpace) and Yahoo (the proud new parent of photo-sharing site Flickr) have up their marketing sleeves? Even CNN has gotten into the act with its use of video uploaded by viewers.
Social media has given the traveler a distinct and very loud voice. Obviously, these empowered consumers have the potential to inflict incredible damage on a hotel’s reputation.
Bad news, as they say, travels fast. But in the viral online environment of the Internet, bad news travels even faster and wider. You only need to scroll through a few pages of TripAdvisor.com, Expedia or Hotels.com to understand that fact or, (much) worse, to be on the receiving end of a flurry of negative comments on any social site.
But if you look at social media from an entirely different perspective, you can see that it also can be a tool to enhance and protect your business. For one, hotel reviews can be far more positive than negative. In fact, a Texas A&M study involving TripAdvsor users concludes that “online travel review writers are mostly motivated by a concern for other consumers and helping a travel service provider.” The study indicates that “venting negative feelings or receiving rewards for postings are not seen as important motives.”
Spain Takes On Vegas With Massive Project
A desert area in Spain is about to take on "Sin City."
A massive Las Vegas-style casino complex featuring bullfights and replicas of the Pentagon, the Egyptian pyramids and Roman temples will be built in an area outside Zaragoza, a city in northeastern Spain, officials said.
The Aragon regional government announced Thursday that it had signed a preliminary agreement to jump-start the ambitious 5,000-acre project in the Los Monegros region, east of Zaragoza.
According to MSNBC it will have 32 casinos, five theme parks, around 70 hotels – including one modeled after the Pentagon that will be at an espionage theme park called "Spyland" – and a bullring, officials said. The complex, which will be called "Gran Scala," is estimated to require some $25 billion in investment and is expected to be ready by 2015.
Spanish media reported that it would be the second-largest casino complex in the world after Las Vegas, also known as "Sin City" and "The Entertainment Capital of the World."
Aragon regional government President Marcelino Iglesias announced the signing of a draft agreement Wednesday with a consortium of foreign firms called International Leisure Development. "This is an important day for Aragon. Gran Scala is a great hope," Iglesias' deputy Jose Angel Biel told a reception. "We couldn't let the opportunity pass."
The complex is expected to attract up to 25 million visitors a year, authorities say. Spain, as one of the world's top three tourist destinations, attracts just over 50 million visitors a year. Biel told leading daily El Pais the first brick would be laid next Sept. 16, the day after the 2008 World's Fair finishes in Zaragoza.
The Gran Scala project has been backed by most of Spain's mainstream political parties except the United Left, which has described it as "a barbarity" because of the negative environmental consequences the complex may have.
Not As Great In 2008 For U.S. Hotels
PKF Hospitality Research is reaffirming their forecast for a modest slowdown in U.S. lodging industry performance in 2008.
For the year, reports HospitalityNet, PKF-HR is projecting occupancy levels to experience a slight decline (-0.7%), while average daily room rates (ADR) should grow 5.3%. The net result is a 4.5% gain in revenue per available room (RevPAR), the slowest pace of RevPAR growth since recovering from the 2001 to 2003 industry recession.
While the PKF-HR forecast calls for a deceleration in the pace of revenue growth, it should be noted that the 4.5% RevPAR growth rate is still above the Smith Travel Research long-term average of 3.4%. These findings come from the recently released fourth quarter edition of Hotel Horizons(SM), the quarterly lodging forecast report produced by PKF-HR.
"Given the cyclical nature of the lodging industry, a slowdown in performance does not come unexpectedly," said Mark Woodworth, president of PKF Hospitality Research. "Hotel construction activity is picking up and will cause a modest imbalance between supply and demand."
Survey: Air Travelers Prefer Automated And Online Services
Air travelers not only embrace new technology, but are keen for more high-tech travel options and are demanding "opportunities to take more control of their travel experience," according to the International Air Transport Association's annual Corporate Air Travel Survey of more than 10,000 active travelers, published last month.
· 89% of respondents prefer electronic tickets to paper tickets
· 56% have used Internet check-in
· 69% have used self-service kiosks instead of check-in desks
· a majority, 54%, favored more self-service options.
Respondents ranked the self-service features they plan to use most often in future:
· Online booking (75%)
· online reservation changes (69%)
· online check-in (61%)
· e-mail notification service (60%)
· printing boarding pass at home (58%)
· common-use self-service check-in kiosks, or kiosks serving multiple airlines (53%)
· re-routing of missed or canceled flights (41%)
· remote baggage drop-off service (33%)
· post-arrival assistance (28%)
Whadda You A Wiseguy? Las Vegas Plans Mob Museum
Las Vegas is building a museum about some of its founding fathers and most influential figures – guys with names like Bugsy, Lefty and Lansky.
The mob museum will stand as frank acknowledgment of the major role mobsters played in developing Las Vegas into the gambling capital of America and giving the city its rakish glamour during the 1940s and '50s.
"Let's be brutally honest, warts and all. This is more than legend. It's fact," said Mayor Oscar Goodman, a former defense attorney whose clients once included mobsters Meyer Lansky and Anthony "Tony the Ant" Spilotro. "This is something that differentiates us from other cities."
According to Associated Press the project has gained the support of the FBI and is guided by a retired FBI agent. They say they are involved because you can't tell the stories of Benjamin "Bugsy" Siegel, his banker, Lansky, casino boss Frank "Lefty" Rosenthal and others without telling the story of the lawmen who pursued them.
Things That Go Bump On New Year's Eve
A glittering ball in Times Square is not the only thing that drops at midnight on New Year's Eve says the Los Angeles Times.
In Key West, Fla., a 6-foot-tall manmade conch shell descends to the roof of Sloppy Joe's Bar to mark the new year. But the island is also home to two other midnight descents on Dec. 31: a super-sized red high-heel shoe carrying drag queen Sushi at the Bourbon Street Pub-New Orleans House complex; and a pirate wench who descends from the top of the mast of the tall ship Liberty Clipper at the Historic Seaport.
In Atlanta, the 19th annual Peach Drop features an 800-pound peach made of fiberglass. The event, held in Underground Atlanta, a six-block retail and entertainment district, will be followed by fireworks and an explosion of confetti. Country singer Miranda Lambert will be on hand to entertain the crowd. Festivities start at noon that day for families, and continue until 4 a.m. as restaurants, bars and nightclubs in Kenny's Alley stay open to accommodate all-night revelers. Details at peachdrop.com.
In New Orleans, the celebration starts at 8:30 p.m. with partying and music in Jackson Square. At midnight a lighted gumbo pot drops from atop the Jax Brewery, illuminating a huge plastic baby when it reaches the bottom of the pole. Then a fireworks display lights up the night skies over the Mississippi. The revelry continues overnight in the nearby French Quarter, followed by college football on Jan. 1 with the Sugar Bowl game between Hawaii and Georgia.
Virgin Set To Unwrap Plans For Major Hotel Brand
Virgin is understood to be plotting the launch of a major hotel brand. Former Virgin Trains marketer Craig Inglis is thought to be spearheading the plans, which are due to be presented to the Virgin board in January. The new brand, which is being developed for the UK and Europe, will be unveiled in the spring or summer says MarketingWeek in the UK.
The new portfolio will complement the company’s existing properties. Virgin currently operates three branded hotels in Barbados and is planning to open new units elsewhere in the Caribbean, Dubai, Mauritius and the US.
Industry insiders have linked the plan with the start-up agency expected to be launched by James Murphy, the former chief executive of Virgin incumbent RKCR/ Y&R, in January. It is thought that the start-up agency will be allowed to pitch for the account, as there is no incumbent agency.
New Agreement Opens Door To Huge Chinese Leisure Market
A new federal trade agreement that will allow destinations for the first time to market in China has tremendous implications for the future US travel market, says TravelMole.
The Department of Commerce has signed a memorandum of understanding between the US and China that will allow US companies to do business with China. Tour and other companies will be able to offer and market group leisure travel packages.
With the number of Chinese who travel outside their homeland expected to nearly triple to 100 million people by 2020, an infusion of tourists to the US could be a big boost for American businesses.
"Potentially in the next 10 years, they could blow out all our other markets," said Bruce Bommarito, vice president of international market development for the Travel Industry Association, a US business group.
"The National Tour Association (NTA) is well positioned to assist U.S. travel companies in arranging Chinese leisure group travel and is ready to work with industry professionals in both countries," said NTA Chairman and CEO Bob Hoelscher, CTP.
Previously, Chinese regulations prevented companies from organizing and marketing packaged tours for leisure purposes to countries that did not have Approved Destination Status agreements.
Web Access and E-Mail on Flights
Passengers may soon hear a new in-flight announcement: “You can now log on.”
Starting next week and over the next few months, several United States airlines will test Internet service on their planes. On Tuesday, says The New York Times, JetBlue Airways will begin offering a free e-mail and instant messaging service on one of its planes, while American Airlines, Virgin America and Alaska Airlines plan to offer broader Web access in coming months, probably at a cost around $10 a flight.
“I think 2008 is the year when we will finally start to see in-flight Internet access become available,” said Henry Harteveldt, an analyst with Forrester Research, “but I suspect the rollout domestically will take place in a very measured way.” “In a few years time,” he added, “if you get on a flight that doesn’t have Internet access, it will be like walking into a hotel room that doesn’t have TV.”
The airlines’ goal is to turn their planes into the equivalent of wireless hot spots once they reach cruising altitude. These services will not be available on takeoff or landing.
Virgin America even plans to link the technology to its seat-back entertainment system, enabling passengers who are not traveling with laptops or smart phones to send messages on a flight.
The network can potentially be used as well for communications within the plane, like food and drink orders — something Virgin America already does with its seat-back system.
While the technology could allow travelers to make phone calls over the Internet, most carriers say they currently have no such plans. Many travelers find the prospect of phone calls much less palatable than having a seatmate quietly browsing e-mail.
Onboard phone calls are “one of those ‘just because you can doesn’t mean you should’ types of technologies,” Mr. Harteveldt said. “The last thing you want is to be in a crowded tube at 35,000 feet for two or three hours with some guy going on and on about his trip to Vegas.”
New 'National Treasure' Film Set To Inspire More S.D. Tourism
Tourism officials believe that the new Nicolas Cage movie, National Treasure: Book of Secrets, could bring more visitors to South Dakota says USA Today.
Locations where filming took place include Mount Rushmore and Sylvan Lake in Custer State Park, in the Black Hills. The state has posted information about the sites, along with movie trailers and interviews — on the state tourism website, http://www.TravelSD.com/nationaltreasure.
The film is a follow-up to the 2004 movie National Treasure and is scheduled for release later this month.
"The release of National Treasure: Book of Secrets is a big deal for South Dakota and we want to reflect that on our website," Richard Benda, Tourism and State Development secretary, said in a release. "Not only will this movie give exposure to our state in terms of attracting tourists, but it also had a $3.9 million economic impact on our state during filming."
Europe Continues To Exceed The Long-Term Growth Forecasts
With a 4% increase in international tourist arrivals from January through August 2007, Europe looks set to achieve another record year in terms of tourism growth, according to the World Travel Trends Report of ITB Berlin and IPK International.
Moreover, as the participants gathered in Pisa for the 15th World Travel Monitor Forum from 24-26 October agreed, the growth is remarkable since it will exceed the World Tourism Organization’s (UNWTO’s) long-term annual growth forecast for Europe of 3% for the fourth consecutive year.
If the 4% increase seen in the first eight months of this year continues through to the end of 2007, this will mean an additional 18 million arrivals – no mean feat for the world’s most mature destination region says HospitalityNet.
Nevertheless, as data gathered from their members by UNWTO and the European Travel Commission (ETC) shows, the Europe-wide average for inbound tourist arrivals, estimated by UNWTO based on data available at the end of October, masks some fairly wide variations from one sub-region to another. The huge pent-up demand for Central & Eastern Europe over the past few years, for example, now seems to have largely bottomed out, although some countries in the region are continuing to perform well – e.g. Latvia and Lithuania – and Romania’s tourism has strongly benefited from its membership of the European Union.
Northern Europe, on the other hand, has shown a marked slowdown in growth this year – largely due to the stagnation in international visitors to the UK – although some destinations have turned in good results. Finland is one example, having recorded a growth of nearly 8% in overnight volume from January through August.
Growth to Western Europe has also slowed, according to UNWTO – albeit only from 5% to 3% – attributed in part to Germany’s decline in arrivals through the second quarter of 2007. This was of course hardly surprising, given the huge boost to inbound tourism demand over the same period in 2006 provided by the country’s hosting of the FIFA Football World Cup.
Europe’s star performer this year so far, in terms of sub-regions, is Southern/Mediterranean Europe – up 7% in terms of international arrivals through the month of August. The sharp recovery of Turkey has been a main contributor to the improved performance, but the Balkan States have also performed well above average – in particular Montenegro and Serbia – and Malta has had an excellent year so far, largely thanks to the introduction of low-cost airline services.
Study: Marketers May Be Banking Too Heavily On New Products
A new poll finds that 70% of marketers either launched a new line extension or developed a new innovation this year, reports Marketing Daily, and most rated that launch as the single most important initiative in their business in 2007. And 64% plan to do so again in 2008, according to Next Level SMG, the brand strategy firm that conducted the survey.
Finally, she says, many companies are acknowledging that they need to do some serious pruning in their brand portfolios. While 52% think they have the right number of brands to adequately cover their market, nearly one-third (31%) believe that they have too many. "And sometimes, those brands are just using up shelf space, and it's important to make way for new products," she says.
"But companies can place too much emphasis on new products," Krauss adds, "and while that drives short-term growth, they don't always create sustainable growth."
Dominican Republic Gets New Resorts, Fresh Airlift
JetBlue will offer nonstop service from Kennedy International Airport in New York to Puerto Plata in the Dominican Republic beginning Jan. 10, and two new luxury resorts are also under construction on the Caribbean island.
According to Caribbean News Digital the Ritz-Carlton plans to build a 220-room luxury property, opening in 2010 in the Cap Cana community near Punta Cana, while the Four Seasons Hotels and Resorts will build its first property at Casa de Campo, to open in the winter of 2009.
The Caribbean’s first Maxim Bungalows are scheduled to open in Cofresi Beach in January, with units ranging in size from studios to two-bedroom suites. Additional Maxim Bungalows are scheduled to open in Juan Dolio in late spring of next year.
Santo Domingo’s Sans Souci Port is reopening, with Royal Caribbean’s Legend of the Seas inaugurating the renovated port on December 16. The project is scheduled to be completed by 2010.
The port will eventually include four separate ship terminals with docking areas, a shopping mall and duty-free shopping area, a beach club, two 900-room hotels and convention center, and a luxury condominium development.
Study: New York Tourism Thriving
A new study has found that New York's tourism industry contributed $46.6 billion to the state's economy in 2006 -- a 7.2% increase from 2005. The study, reports NBC, found that the hotel industry's growth rate in New York was twice the national average, with a 13% increase in revenue.
The state's tourism industry has had strong growth for the past three years and accounts for 4% of New York's gross domestic product and 740,000 direct and indirect jobs. The industry contributed $2.7 billion in taxes to state and local governments last year.
Ryanair Calendar With Bikini-Clad Attendants Slammed As 'Sexist'
Associated Press reports that Spain's government-run Women's Institute has labeled a 2008 calendar for low-cost airline Ryanair featuring bikini-wearing air flight attendants as sexist and said it would be sending letters of complaint to Irish and EU authorities.
The institute, which defends women's rights, said that while the fact that the proceeds from calendar sales would go to charity was positive, the photographs "represent the stewardesses as sexual objects" and "reinforce discriminatory stereotypes."
"It is significant that only women are used, in a sector in which there is a considerable percentage of men," the institute, which is part of the Labor and Social Affairs Ministry, said in a statement.
The calendars show female attendants – one for each month – posing in bikinis on or outside airplanes. They are sold on Ryanair flights and on the Internet for around $10.25. Proceeds go to the Irish disabled children's charity Angels Quest.
"We're not talking about morals or nudity here, it's simply how women are portrayed," institute spokeswoman Maria Jesus Ortiz said. "If there had been men in the calendar, I'm sure there would have been no controversy."
How Southwest Is Wooing Business Travelers
Southwest Airlines wants to shed its image as a "leisure airline." That's why the airline has added a new class of fares aimed at the business traveler willing to pay a little more for early boarding and better seating.
As El Pasoan Chris Robertson arrived in Austin on a Southwest flight, he told El Paso Inc. that he likes what the airline is doing. "I think that now they definitely compete with some of the other airlines that have already been offering perks to business travelers," Robertson said.
The slightly higher-priced "business select" fare comes with top priority in boarding, extra frequent flier credits and a free drink. "These folks are our true Southwest road warriors, and they should be rewarded for their devotion to Southwest Airlines," said Gary Kelly, Southwest's CEO at a news conference unveiling the plans.
But business flyers aren't necessarily being rewarded, as the new "business select" fares cost from $10 to $30 more each way, compared to standard business fares.
The new fares are expected to account for 10% of seats per flight. Officials say that will give other passengers a legitimate shot at receiving a better boarding pass.
The airline has made it clear that it wants to increase revenue to offset rising costs – mostly from fuel and labor – and to stay on par with increased low-fare competition from airlines like JetBlue.
Last year, Southwest set a goal to boost annual revenue by $1 billion a year by 2010, and according to officials, this is just another step in that process. The new business perks are expected to bring about $100 million in new annual revenue to the airline.
Lufthansa To Take A Stake In Jetblue
According to the International Herald Tribune Lufthansa said late Thursday that it had agreed to pay $300 million for a 19% stake in the U.S. discount airline JetBlue Airways, marking the first time a major European carrier would purchase a significant stake in an American airline since a landmark "open skies" agreement was signed between the United States and the European Union in March.
For Travelers, One Is No Longer The Loneliest Number
Until recently, travel options for singles were largely limited to trips of the packaged-tour variety, reports the International Herald Tribune, with everyone thrown into one enormous group or just one step removed from a dating service. Now that's beginning to change.
As travel companies look for new ways to expand business, they're increasingly courting solo travelers. Roughly one in 10 leisure travelers hit the road alone, according to the most recent data from the Travel Industry Association, and more travel companies, from specialty tour operators to individual resorts, are creating packages that cater to those customers:
· Intrepid Travel, which specializes in small, off-the-beaten-path tours, just introduced four singles-only trips to places like Peru and Nepal. Travelers willing to share a room don't have to pay the usual single-supplement fee that helps to make up for the difference in price charged to two travelers sharing a room.
· In January, Absolute Travel, a Manhattan travel agency specializing in customized luxury trips, will begin a service pairing compatible travelers who would rather not go it alone.
· Even individual spas and resorts are creating packages for solo travelers. The Westin St. John Resort and Villas is offering a three-night, $2,550 "solo-cation," which includes a villa with a private pool, a private Jeep tour and a poolside cabana with butler.
· This summer, the Fairmont Miramar Hotel in Santa Monica rolled out a Single and the City package, which encourages guests to explore the city on their own. And for the first time, Canyon Ranch in Tucson is letting singles pay the lesser per-person double-occupancy rate with a minimum four-night stay from Dec. 9 to 22.
Has Anyone Considered The Sopranos?
Could Vince Lombardi, Molly Pitcher, Joyce Kilmer and Woodrow Wilson soon lose their unique place in New Jersey highway lore?
A disparate group of famous New Jerseyans that includes a football coach, Revolutionary War heroine, poet and president could have their names replaced at highway rest stops if state lawmakers decide to sell naming rights to the service areas. The idea is part of a larger effort to squeeze revenue out of New Jersey's toll roads.
"It's just taking money from advertisers and putting their name up," state Sen. Raymond Lesniak, D-Elizabeth, one of the architects of the plan, told The Record of Bergen County. "It's a lot easier than raising tolls, but there's no concrete proposal. We're looking at naming rights, and we're looking at development rights."
Some travelers said they would be sorry to see the historical figures replaced by sneaker companies or soft drink makers. "That's like taking George Washington off the dollar bill," Kearny resident Robert Morcilio told The Record as he munched on fast food at the Vince Lombardi Service Area. A wall in the rest stop features a short biography of Lombardi listing his local ties and accomplishments, which included two Super Bowl titles with the Green Bay Packers.
TUI, Royal Caribbean In Joint Venture
TUI AG and Royal Caribbean Cruises will launch a new joint venture serving the German cruise market says Hotel Travel News.
The new company, TUI Cruises, will begin service with one ship, in early 2009, and grow quickly with two newbuilds planned for 2011 and 2012. Both partners will hold a 50% interest in the joint venture, which is subject to regulatory and board approvals before completion.
The first ship to operate under the TUI Cruises brand will undergo renovations before entering service. Once deployed, it will not only enhance the German cruise market, but also meet the sophisticated needs of German-speaking customers seeking a contemporary/premium cruise experience. The onboard product will be custom-tailored to German tastes, and encompass food, entertainment and amenities. German will be the language used onboard as well.
Rankings Matter To Vegas' Upper Crust
In the rarified world of luxury hotels, it's not only the thread count of the sheets or the sheen of the marble but the sincerity of the staff that separates the best from the rest. As budget options like the Stardust and New Frontier have been imploded to make way for more expensive, classier resorts, a battle is being waged for the tourist dollars of the upper crust says Associated Press.
Details such as pronouncing a hotel guest's name correctly and delivering room service within five minutes of the appointed time are crucial to attaining the top ranks from such agencies as Mobil, AAA and Michelin. Higher rankings mean higher room rates for operators. Likewise, restaurateurs covet the rankings, which bring headlines and crowds of big-spending customers.
In the case of The Venetian, owner Las Vegas Sands Corp.was able to raise the average daily room rate in the first three quarters of 2007 by $22 from a year earlier – to $259 – after spending $100 million on renovations to achieve five-diamond status from AAA. For the 4,000-room hotel, which opened in 1999, that means millions of dollars more to the bottom line, said senior vice president Paul Pusateri, who spearheaded the drive to improve its four-star rating.
The property doubled the number of pillows on each bed to four, increased the thread count to 260 on its sheets in standard rooms and installed flat panel TVs and automatic drapes. It also began running secret shoppers through its property at least every two weeks, testing employees on hundreds of AAA and Mobil rating criteria, such as making eye contact, dealing with communication breakdowns and responding to requests quickly.
Marriott International Business Growing
CNN reports that hotel operator Marriott International Inc. said Wednesday its international business is growing at a strong pace, with more than two-thirds of rooms under development outside the United States.
Laura Paugh, senior vice president of investor relations, said at the Wachovia Real Estate, Gaming & Lodging Conference in New York that particular growth can be seen in Asia Pacific and the Middle East.
The Bethesda, Md.-based company has experienced a surge in international management fees, according to Paugh. In 2000, 15% of incentive management fees came from abroad compared with 42% last year. In contrast, incentive management fees from North America declined to 58% in 2006 from 85% in 2000.
Delta Videos Targeting Airline Etiquette Problems
Volumes have been written about how to properly behave at weddings or which fork to use at fancy dinners.
But when it comes to dealing with the neighboring passenger who hogs precious airline arm space or the unruly kid who won't pipe down on crowded flights, there's precious little out there.
Delta Air Lines is trying to raise awareness of behavior in the air by creating an animated series of videos showing passengers confronted with delicate social situations. The Atlanta-based company is rolling out "Planeguage: The language of traveling by plane," a series of 25 humorous videos the airline has posted online and introduced on flights this month.
"We understand what you go through as a traveler," said Tim Mapes, Delta's vice president of marketing. "These videos can reinforce, 'Hey, you don't want to be that guy.' "
The snippets include "Middleman," about the middle-seat bully; "Kidtastrophe," depicting unruly tots on planes; "Lav Dance," about the person who bumps into everyone in the airplane aisle while returning from the lavatory; and "Shady Lady," about the passenger who raises or closes the window shade without considering other passengers.
The videos, which were created after Delta officials heard customers talk about experiences aboard planes, are meant to "help raise travelers' consciousness about what it means to be good travel companions," said spokeswoman Betsy Talton.
Online Consumer Reviews Impact Offline Purchasers
A new study conducted by comScore with The Kelsey Group, shows that nearly one out of every four Internet users reported using online reviews prior to paying for a service delivered offline by restaurants, hotels, travel, legal, medical, automotive and home services, Of those who consulted an online review, says a recent article in The Center for Media Research, 41% of restaurant reviewers subsequently visited a restaurant, while 40% of hotel reviewers subsequently stayed at a hotel.
Based on the survey of more than 2,000 U.S. Internet users in October 2007, consumers were willing to pay at least 20% more for services receiving an "Excellent," or 5-star, rating than for the same service receiving a "Good," or 4-star, rating.
More than three-quarters of review users in nearly every category reported that the review had a significant influence on their purchase, with hotels ranking the highest at 87%. Review users noted that reviews generated by fellow consumers had a greater influence than those generated by professionals.
London Hotels Demonstrate Resilience
London continues to rank alongside Paris and Rome as one of Europe's top city destinations, having shrugged off the effects of the 2005 terrorist attacks and competition from increasingly popular destinations in Eastern and Central Europe.
This is according to new figures released in PKF Hotels Consultancy's annual report, Country Trends 2007 says Hotel Travel News.
The PKF report, an analysis of the performance of 888 hotels across the UK, Europe, Middle East and Africa, reveals that London hotel occupancy grew by 7.7% in 2006, the year after the terrorist attacks on the Capital, with average rooms yield also growing by 15.9% as hoteliers were able to charge an average £109.97, an extra 7.6% more per room.
PKF's monthly hotel trends data shows that the Capital's hotels have continued to perform well in the first three quarters of 2007 with room rates rising a further 9.0% although occupancy increased by only 0.5% on the same period of the previous year.
Alitalia Gets Three Bids, Air France Favorite
Airline Travel News reports that Alitalia has received three offers from investors interested in buying the ailing Italian airline. Air France-KLM is the running favourite, then there is a consortium led by Italian business lawyer Antonio Baldassarre. Air One, Italy's second-biggest airline has also presented an offer.
Lufthansa said earlier Thursday it has decided not to bid for the Italian government's controlling 49.9% stake in Alitalia, which is losing between one million and two million euros a day due to high operating costs and fierce competition from low-cost carriers.
Alitalia is expected to take ten days to examine the nonbinding offers, and then will select one party with which it will open exclusive talks.
New Rallying Cry: Save The Small Airports
Not long ago, reports The New York Times, many of New Jersey’s small airports were endangered because of opposition from local communities and pressure from developers interested in converting the land to more profitable use, like condos or shopping malls. These general-aviation airports, which cater to private pilots, flight schools and other nonairline operations, were closing at the rate of one a year, falling to 43 today from a high of around 100
after World War II.
But state officials say the trend may be reversing as larger airports in the region reach capacity and a new generation of very light jets prepares to take flight.
“As private aviation takes off in the region, it is important for us to preserve a core airport system,” said Kris Kolluri, New Jersey’s transportation commissioner. “Congestion is certainly a factor, and these smaller airports can play a role,” he added, alluding to record delays that have strained major airports in the New York City area.
'Dream' Trips To Australia Push Up Hotel Performance
Australia often appears in the world’s top ten dream destinations, and is currently ranked as the number one choice by online travel company Expedia, as well as customers of MasterCard.
Given its climate, stunning beaches, the vast outback, its rainforests and many world heritage sites, it has been an attractive option for decades; and more affordable flights are now adding to its appeal.
According to figures from the HotelBenchmark™ Survey by Deloitte, Australia’s increasing popularity is boosting profits among the country’s hoteliers, who saw revenue per available room (revPAR) move up to AU$139 during the first nine months of 2007. This is AU$13 higher than the year before, when Australia welcomed thousands of spectators for the Commonwealth Games.
Overall revPAR has grown by more than 10% year-on-year driven largely by average room rates which currently stand at AU$177. With little hotel development in the pipeline and the government planning to make bold investments in tourism, hoteliers should be able to sustain this excellent performance for the coming months.
The top source of tourists to Australia is neighbouring New Zealand, followed by the UK, according to Tourism Australia. However, if looked at in terms of the length of time and the amount of money spent in Australia, the Brits would be number one.
Japan takes third place, even though tourist numbers have dropped by 12% year-to-October 2007 compared to the previous year. This is mainly due to the depreciation of the Yen against the Australian Dollar, making trips to this vast continent less appealing. Currently, the US is the fourth largest source market.
Australia’s controversial marketing campaign, launched in February 2006, showing typical Australian scenes accompanied by the blunt tag line: “So Where the Bloody Hell Are you?” has been very successful. All four key source markets were targeted and numbers were up as a result. Tourism Australia reported 3.6m visitors during the first eight months of 2007, a year-on-year increase of 4%. Arrivals from China and Korea, two important markets, were also up. Now, Australia’s tourism authorities are expanding their activities to position the country as a great place to do business.
Opening The Skies Between Europe And The U.S.
A new Battle of the Atlantic is about to begin – one that in its own way will be every bit as fierce as the one between Allied convoys and German U-boats in World War II says a recent article in Barrons. Only this time the battle will be waged 35,000 feet above the ocean, by the giant airlines flying the lucrative trans-Atlantic routes between Europe and the U.S.
This once-tightly-controlled market is about to be deregulated, opening the industry to a storm of change. It all will center on London's Heathrow Airport, which, under the terms of a new international aviation pact signed by the U.S. and the European Union, will now finally be open to all comers. – It's quite liberalization.
For 30 years, the rules of the Bermuda airline agreement limited Heathrow-U.S. traffic to just four airlines -- two U.S. and two British. Originally, the U.S. carriers were Pan Am and TWA, but their rights have long since been transferred to AMR's American Airlines and UAL's United Airlines. On the British side, the two are British Airways and privately held Virgin Atlantic.
Until now, all other airlines, British and U.S. alike, that wanted to fly between London and the U.S. have had to use the far less popular and less accessible airports at Gatwick, Stansted and Luton. Other European carriers, including leaders like Lufthansa and Air France, were barred from flying to the U.S. from anywhere except their own nation's airports. That was a huge disadvantage, and clearing away the prohibitions – slated for this coming March – could give a real lift to the global airlines industry.
A study prepared for the European Union by the consulting firm Booz Allen Hamilton suggests that the initiative will generate at least 26 million additional trans-Atlantic passengers annually within five years, a 50% increase over the current 50 million. That could help the global aviation industry continue increasing its earnings, after a long slump following the terrorist attacks of Sept. 11, 2001.
For this year, profits are on track to hit $5.6 billion, up from a loss of $500 million in 2006, says the International Air Transportation Association, The spoils, however, won't be divided evenly. Air travelers certainly will win, with trans-Atlantic fares falling by 10% or more. And depending on exactly how it plays out, the deregulation could help the stocks of U.S. carriers like Continental, Delta and US Airways, previously barred from Heathrow.
At the same time, British Airways, believed to get as much as 60% of its operating profit from trans-Atlantic flights, is sure to face serious challenges. Ditto American Airlines, which has a bigger presence at Heathrow than any other U.S. carrier.
As the skirmishing spreads, it could well touch off a fresh round of aviation mergers in Europe, following the successful union of Air France and KLM. And the emergence of fewer but bigger players in Europe could, in turn, accelerate consolidation among major U.S. carriers.
Downtown Napa's Tourism Hopes Bolstered By New Market
Last weekend, says the Wine Spectator, more than 600 Napa, California residents got a sneak peak at the Oxbow Public Market, one of the latest – and most anticipated – developments in downtown Napa. The market, a 40,000-square-foot retail marketplace located next door to Copia: The American Center for Wine, Food and the Arts, is part of a redevelopment plan designed to make downtown Napa more of a tourist destination. The market is scheduled to open on Dec. 15.
"The best way to attract tourists is to attract locals. If the community embraces the project, if it's an extension of what the community is about, they'll bring their visitors there," said Steve Carlin, CEO of the Oxbow Public Market. Carlin operated the Oakville Grocery for 20 years and managed the renovation of San Francisco's popular Ferry Building Marketplace, which was the inspiration for the Oxbow Market.
The market's current 22 tenants (there are 25 interior spaces) represent a mix of artisan food and specialty shops, restaurants, and a microwinery and wine bar. There will also be a farm stand, open daily, where seasonal, locally grown produce will be available in 10 stalls on the outside edge of the market. The facility, which will open in stages, is expected by Carlin to be about 80% up and running by mid-January 2008, and fully operational by summer 2008.
As of now, the millions of visitors to Napa Valley each year tend to skip downtown Napa, instead opting to visit the more scenic destinations such as St. Helena, Calistoga or Yountville. Copia, which opened in 2001 as a museum dedicated to food and wine, never drew the attendance it anticipated, and the struggles have resulted in multiple restructurings and selling off part of its land. "It's very clear that Copia has underperformed," said Carlin, "but changes are being made to improve their operation, and what role they have in the community."
This latest development of the Oxbow district – named after the oxbow bend in the river where Copia is located – is not limited to just the market itself. The Westin Verasa, a 160-unit condominium resort, is expected to open next year on the east side of Copia. And on the west side of Copia, a Ritz-Carlton has yet to break ground, but a 500-room hotel is slated to open there in 2010.
Survey: Love Is In The Air At Philly Airport
Missed your connecting flight? Don't curse your luck; your airport delay might be just the ticket for making a different kind of connection says USA Today.
Using a formula based on amenities per traveler, on-time performance and inclement weather, a recent survey of more than 860 people ranked the best airports for forming a relationship with a fellow traveler. Commissioned by AXE, a men's grooming brand, and Sperling's BestPlaces, the survey looked at the 37 airports serving the 30 largest metro areas in the USA.
Philadelphia International Airport took top nod in the survey, with Newark International, John F. Kennedy International, Washington-Dulles International and La Guardia International also snagging a spot in the top five. Oakland International lost the amenities arms race, ranking dead-last. Two other West Coast airports – Los Angeles International and San Jose International – also scored spots in the worst five airports to, well, score.
Being on top "feels great," said Phyllis VanIstendal, government affairs manager at PHL. "We try to live up to the City of Brotherly Love name by making the airport a warm and welcoming place for people who pass through it."
Thanks to some of the nation's longest and most frequent delays – which the survey deemed as a positive factor – getting stuck at PHL might be the perfect place to fine-tune your flirting skills. With more than 50 places to grab a drink or a bite, and live music entertainment every Thursday and Friday evening in the Food Court, it's a prime place to meet a mate. VanIstendal suggested Cibo Bistro and Wine bar in Terminal B as a hot spot to meet others, especially with its stellar views of the airfield at night.
"We serve about 10 million connecting passengers a year," VanIstendal said. "Those passengers generally have surplus time in the terminals because they can't really leave the airport. That's a high degree of statistical probability for the love bug to bite."
But caution Casanovas: Keep it casual or you might send a fellow flier running for the closest emergency exit.
"As with any new connection, keep it light," Janet Siroto, editor in chief of Match.com's Happen Magazine, said. "Don't offer the person a ride to their hotel once you land or try to set up a date, just try to get an exchange going, a minute or two of back and forth repartee about the food or the smell of Cinnabons saturating the concourse."
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