January 1, 2007
As we enter 2007 all of us at Marketing & Tourism Trends and Ferri & Partners would like to take this opportunity to wish all our readers worldwide a happy and healthful, peaceful and profitable 2007.
The New Year, of course, will continue to being about many changes and new trends in our industry. One of the first changes you may notice is the new look of Marketing & Tourism Trends above.
Another is the archiving of issues beginning with July 1, 2006. You may now access previous issued by clicking on Marketing & Tourism Trends page on our website www.ferriandpartners.com.
Our very best wishes to you, your staff and family,
Jim Ferri
First Buzzword Of 2007: Simplexity
Has all that holiday complexity convinced you we're finally over the simplicity thing? Not so fast.
According to Marketing Daily market researchers believe that 2007 will find consumers seeking out a new trend, which Robbie Blinkoff, managing partner of Context-Based Research Group, is calling simplexity. "Consumers have been trying to simplify and organize their lives," he says, "but they've also been going down the complexity path, and the two are converging. Simplexity will be a synthesis of the two, yet distinctly different."
While computer geeks have been tossing the word around for some time, it's now a genuine phenomenon among consumers, and explains their passion for brands like Apple's iPod, Skype, and Google's maps. "People understand that the technology behind these is very complex, but they have the veneer of simplicity," Blinkoff says.
That doesn't mean the simplicity movement has finally jumped the shark, exactly. But as marketing trends go, it is probably time. After all, the voluntary simplicity movement dates back to the early 1990s. Real Simple launched in 2000. And the Dutch consumer electronics giant Philips Electronics, which even has a Simplicity Advisory Board, has been milking its "Simplicity" campaign since 2004.
"Simplicity is evolving into its next iteration," says Ann Clurman, a senior partner at Yankelovich. "The need for simplicity comes from an overarching need to be in control of your life. And that's not going away."
Airlines Eye First Post-9/11 Profit
The resurgent airline industry is poised for its first profitable year since before the 2001 terrorist attacks, and analysts are expecting even healthier earnings next year says the Houston Chronicle.
Higher fares, continued demand for seats and lower operating costs have helped to revive the once-moribund industry. Calyon Securities analyst Ray Neidl said in a recent research report he's looking for a $2.3 billion industry profit this year and $5.6 billion in 2007 earnings.
It's a stark turnaround for an industry that has burned many investors over the years. U.S. passenger and cargo airlines lost a total of $34.97 billion between 2001 and 2005, with losses peaking at $11.01 billion in 2002, according to the Air Transport Association of America.
In recent years, against the backdrop of high fuel prices and aggressive low-cost carrier growth, network airlines lined up to seek shelter in bankruptcy court. There, carriers took advantage of Chapter 11 protection by slashing employees' wages and returning planes to lessors.
That cut operating costs while also limiting the number of available seats in the skies, thereby giving carriers more pricing power.
High-Tech Hotels Offering Convenience And Luxury
Are you finding it hard to travel without having your laptop, iPod and portable DVD player in tow? Wish you could pack your high-definition TV to travel along with you? Well, you're not the only one.
Theses days, says ABC News, more and more hotels look to accommodate both the business traveler and gadget addict alike. High-speed Internet access and Wi-Fi connectivity have become standard in many hotels, and it's easy to see why.
Smith Travel Research, a Hendersonville, Tenn.-based research firm that focuses on the hotel industry, predicts more than $122 billion will be spent on lodging this year in the United States alone. With revenues like that, it's no surprise that companies will pull out all the stops to make sure they get your attention when making a reservation.
LodgeNet Entertainment Corp., an operator of interactive entertainment systems and services for the lodging industry, has designed several services to appeal to this fast-growing market. The company's LaunchPad device is a connectivity panel that allows guests to connect their laptops and most portable media devices to high-definition displays located in their hotel rooms. The product has been so well received that Hyatt Hotels has designated it a brand standard, according to Ann Parker, director of corporate communications at LodgeNet.
Online Chat Is A Grapevine That Yields Precious Fruit
Word-of-mouth advertising – sharing information with friends, relatives and colleagues to propagate interest in a company or product – has been around for decades, but with the advent of the Internet, it has taken on new life. According to The New York Times companies like MD Moms are using online message boards and chats to get the word out for little or no cash investment. Web logs, e-mail newsletters and chat rooms have also become vehicles for promotion.
These strategies work because people are increasingly turning to those they trust for product advice and suggestions, said Ed Keller, the chief executive of the Keller Fay Group, a word-of-mouth market research and consulting firm based in New Brunswick, N.J. Consumers value the opinions of those they know more than any prepared marketing message on television or in a print publication, he said.
“Word-of-mouth marketing is more important today than it’s ever been,” Mr. Keller said. “It’s not so much about traditional media anymore: print, radio or TV. The word of friends and family is valued 1.5 times more than it was in the 1970s. Consumers are more confident in taking decision in their own hands.”
And buzz marketing isn’t just for new brands or products. It can also work well for established companies.
California’s Coastal Cities Are Issued Warning On Condo-Hotels
The head of California’s Coastal Commission has sent a letter warning coastal cities they shouldn't approve new types of time-share development or condo-hotels without taking significant other steps first.
The San Diego Union-Tribune reports that in a memo to all coastal city governments and “interested parties” Peter Douglas, executive director of the commission, said the new higher-priced developments run the risk of “eliminating affordability of overnight accommodations in the coastal zone.” His letter notes the state Coastal Act “establishes a preference for lower-cost visitor-serving accommodations.”
Some of these developments involve “fractional” time shares. They require a greater investment than a standard time share, which usually has one week of vacation stay. Fractional time-share owners buy 30-day blocks and can stay up to 90 days in a year.
Douglas said cities should change their Local Coastal Plans, which regulate development in coastal areas, to address such developments before they are approved.
No Great Surprises in Americans’ Choice Of Vacation Spots
Americans fancy themselves grand innovators. But when it comes to vacation preferences, the same destinations pop up with the regularity of midwinter flight delays in Chicago says USA Today.
Witness the recent survey of Carlson Wagonlit Travel agents, who this time each year take stock of advance bookings for the coming year. Domestically, Las Vegas, Orlando and Honolulu top the list, which is a minor detour from 2005 and 2006 top draws, when Maui ranked third (it's fourth in the 2007 lineup), followed by Honolulu.
Domestic bookings at American Express Travel tell a similar story. But internationally, new destinations such as India, South Africa and Hong Kong are showing up with increased frequency. Bookings for Europe remain strong, despite the weak dollar.
Internationally, Caribbean cruising remains popular. Of the 507 Carlson Wagonlit respondents, 71% say they have booked Caribbean cruises, followed by Cancun (67%) and the Riviera Maya (35%), south of Cancun. Those results also closely mirror last year's, when Riviera Maya outranked Cancun, which was recovering from the devastation of 2005's Hurricane Wilma.
The U.S.-based staff of Lonely Planet has a decidedly less formal means of gauging interest in destinations. Going on the assumption that the views of the guidebook's crew of 80 are a good barometer of travel plans, staffers named their top three hotspots. The No. 1 choice was China, cited for its varied topography, interesting culture, affordability and emergence as a high-profile world power. The USA ranked second, with locales such as Hawaii ("tropical, safe … natural beauty"), New Orleans (the post-Katrina curiosity factor combined with a desire to aid in its recovery) and Brooklyn (vibrant art and restaurant scene). Argentina and Brazil ranked fourth and fifth.
Pennsylvania: New Focus On Gambling
Pennsylvania is poised to become one of the US's biggest gambling states but it will have a long ways to go to rival Las Vegas or even Atlantic City, say industry experts.
A move to issue gaming licenses also cleared the way for more intensive tourism development in the state. About $4 billion is expected to be invested in the first phase of the state's new legalized gambling effort says TravelMole.
"This level of capital investment…would suggest that these are going to become significant gaming properties," Joe Weinert, vice president of Spectrum Gaming Group, a consulting company, told the AP. He added, however, that Pennsylvania would not immediately rival either Las Vegas or Atlantic City.
However, there is expected to be a spurt in the growth of restaurants, entertainment and shopping throughout the state to further lure gamblers. Most of the state's new slot parlors are along its borders, which will bring in a lot of drive-in tourist traffic.
Demand For Boutique Accommodation In Wellington On The Rise
Wellington, New Zealand, has seen significant developments in the boutique accommodation sector over the last 12 months, says AsiaTravelTips.com. “Wellington is a boutique city – small but rich in its offerings to visitors – and the growing range of independent and unique properties adds yet another dimension to what we can offer,” said Positively Wellington Tourism’s Australian Marketing Manager Sarah Peacock.
The latest addition to Wellington’s extensive boutique accommodation offering is Villa Margarita, a modern two-bedroom homestay property located just 15 minutes north of the city, and offering abundant open space and spectacular views of Pauatahanui Inlet, Mana Island and beyond to the South Island.
Also new is Lambton Heights, a luxurious and intimate heritage bed and breakfast property in inner-city Kelburn, which offers just two guestrooms (soon to be three), plus a private garden and spa pool, and sweeping vistas of the city of Wellington, and the harbor.
At the luxury end of the spectrum, 298 Oriental Parade is a Bed and Breakfast with a stunning harbor-side location, while The Clark Collection offers two properties in the Wellington area; Palliser, an historic Victorian villa on the hill overlooking Oriental Bay, and The Ranch, a superb 65 acre estate overlooking the Kapiti Coast.
New Hotel Brand Targets 'Extreme' Travelers
Having already placed its fast-growing brand on everything from restaurants to sports drinks, the youth-oriented Extreme Group, the company behind the U.K.-based Extreme Sports Channel, has entered into an agreement two hotel firms to develop a new lifestyle hotel with plans to develop it into a worldwide chain.
The approximate $392 million agreement partners Extreme with Istithmar Hotels, a Dubai-based investment firm, and Protea Hotels, a South African hotel management company, to develop the new hotels reports an article in Travel Weekly.
The first of the Extreme Hotels opened in November in downtown Cape Town, South Africa. With Table Mountain serving as a backdrop, the 130-room property features, among other things, a fully functional, rock climbing wall on the outside of the property.
Hallmarks of the brand also include "high value and great service" coupled with "cutting edge technology, a revolutionary social bar concept" and access to extreme sports facilities, packages and equipment. Pricing starts at around $45 for room-only rates or around $70 for room and breakfast.
Survey: Awareness Of Fractional Ownership Grows
Awareness of the fractional ownership concept has grown among affluent U.S. households, according to a survey conducted by PricewaterhouseCoopers.
According to survey results, says HotelBusiness, more than 40% of the households responding have heard of fractional ownership and one-sixth indicate they may consider purchasing at a fractional ownership resort within the next five years.
The online survey of 2,900 high-income households was conducted by PwC on behalf of the Ritz-Carlton Club, Interval International, and Starwood Vacation Ownership. A total of 897 individuals responded. "Affluent household" was defined as having annual income of $200,000 or more.
Tourist Tram Proposed For Alaska's U.S. Forest Land
A company that has built trams in tropical rain forests is considering Ketchikan for a tram in a temperate rain forest. "We like rain forests," said Josef Preschel, chief operating officer of Rain Forest Aerial Trams. "We have operations in tropical rain forests and we think it's an interesting idea to develop our company to temperate rain forests."
The company has proposed building a tram from Herring Cove to Fawn Mountain, a distance 200 feet short of a mile. A car would carry eight passengers and a tour guide explaining the history of the area says USA Today.
"We came up here 10 years ago and looked around at that time but decided to go elsewhere," said company chief engineer John Dalton. "Some of the reasons were, we didn't know how a timber-industry-dominant culture would perceive us because we are an environmental company. But the increase in tourism has brought us back."
The company has grown from one park in Costa Rica to five total in the Caribbean and Central America. "The climate, tourism and the openness of the community were some reasons to build in Ketchikan," Dalton said.
Emirates Seeks Compensation For Airbus Delivery Delays
Emirates airline confirmed today that it was seeking financial compensation from Airbus, saying it had been "badly hurt" by the two-year delay in delivery for the super-jumbo A380 plane.
But the airline declined to discuss compensation figures published in the French press, saying the compensation clauses in the contract to purchase 45 of the European-built planes were confidential.
The rapidly expanding Emirates is the world's biggest customer for the A380, says an AP report in The Wichita Eagle, having ordered 45 of the 555-seat, double-deck aircraft in a deal worth about $13.5 billion.
Airbus, which is based in Toulouse, France, has announced three delays in delivery for the super-jumbo since early 2005. The latest delay, declared in the past few months, stretched delivery to two years.
The French newspaper Le Parisien had reported that Emirates is seeking $294 million in compensation. An Airbus representative in France declined to confirm the figure and said that discussions with Emirates over compensation were "nothing new."
Iceland's FL Group Buys Stake In AMR Corp
Reuters reports that Iceland's FL Group hf has bought a 5.98% stake in AMR Corp. making it the third-largest shareholder in the parent of American Airlines.
Investment company FL Group, which owns 23% of Finnish flag carrier Finnair and has made a string of investments in the airline industry, said it had been building the stake in AMR, the world's largest carrier in terms of passenger traffic, over a considerable period of time and had spent over $400 million.
``We believe AMR Corp. is well positioned to take advantage of the growing U.S. air travel market,'' FL Group Chief Executive Hannes Smarason said in an e-mailed statement. ``The supply-demand balance has improved considerably over the last several years.''
Boeing Poised To Regain Title As No. 1 Plane Manufacturer
Boeing Co. appears poised to regain its title as the world's biggest planemaker, beating out rival France-based Airbus in sales of aircraft for the first time in five years.
The Chicago Sun-Times reported that Boeing had 875 new orders this year compared with Airbus' 694 orders as of Dec. 21, citing the airplane makers' Web sites and Reuters calculations, which would make Boeing the market leader if the numbers hold.
Reuters also said an advance of a Financial Times Deutschland report slated for publication today said Boeing had beaten out Airbus in orders this year. The paper cited 714 orders for Airbus and quoted an Airbus spokeswoman saying 2006 will be "the second best year in the company's history for orders and deliveries" regardless of the end of year ranking.
Boeing's Web site reveals 904 orders through Dec. 20. Airbus' Web site reveals 635 orders through the end of November. Boeing, which has seen continued strong demand for its next generation, fuel-efficient 787 Dreamliner, updates its orders weekly. Airbus provides monthly updates.
Last year, Airbus narrowly beat out Boeing in orders, landing 1,055 net orders, compared to Boeing's 1,002. Excluding cancellations, the Airbus tally came to 1,111 orders, the largest number ever booked by any airplane maker. Airbus was aided by a big order from China for 150 A320 single aisle jets in December 2005.
Report: Newspapers The Preferred Medium For Affluent Empty Nesters
The seventeen million empty nesters in the 87 markets surveyed regularly by The Media Audit are 45 or older and very affluent, indexing about 100 points above the market average of 100 in almost every income category beyond $50,000.
Annual household income categories and indexes are:
· $50,000 - $74,999, index 221
· $75,000 - $99,999, index 202
· $100,000 - $149,999, index 196
· $150,000 or more, index 179
Bob Jordan, president of International Demographics, Inc., notes that "The media habits of the affluent empty nesters are dominated by newspapers and the Internet." According to the report, more than 27% spend an hour or more each day reading a newspaper (index 159) and 38.7% spend 430 minutes or more each week on the Internet (index 107). Radio, television and direct mail all index at less than 100 with the affluent empty nesters.
Almost one fifth of the people who plan on spending more than $30,000 for their next automobile are affluent empty nesters, 50% more than the average. And those who ate out at least four times during the last two weeks (at a sit-down restaurant) also index at 152.
Other findings from the report include:
· 35% (index 123) of the affluent empty nesters plan to take an ocean cruise during the next 2-3 years
· 33.9% (index 130) visited a gambling casino at least once during the past year
· More than 37% (index 114) made five or more purchases on the Internet during the past year
· 20.1% (index 114) made 12 or more purchases on the Internet.
· Approximately 62.8% (index 104) spend $100 or more weekly at the supermarket
· 33.6% (index 100) spend $150 or more there.
"The empty nesters are another example of the enormous impact the presence or absence of children has on almost all household expenditures," says Jordan.
Homewood Suites To Allow Guests To Select Rooms
Starting the first quarter of 2007, Homewood Suites by Hilton will allow guests checking in online to select their suite based on personal preferences reports HotelBusiness.
Guests can choose suites based on floor location as well as proximity to an exit, elevator, the lobby, etc. Given that Homewood Suites is an extended stay brand, guests often are in residence for weeks at a time, so suite location becomes more of a concern than in a typical transient booking.
Initially, Homewood is making the functionality, called Suite Selection, available to high-level members of its Hilton Honors frequency program before rolling it out more widely.
Influencing The Influencers: How Online Advertising And Media Impact Word Of Mouth
“Word of mouth” is a hot topic in marketing these days. Indeed, DoubleClick Touchpoints, an annual survey of online consumers, has routinely seen respondents select “word of mouth” as a key factor that influences their purchase decisions across most product categories.
But, aside from sending your product to your hundred favorite bloggers, how can marketers efficiently spend marketing dollars to influence word of mouth? That was a key question Touchpoints set sut to answer in our 2006 DoubleClick Touchpoints IV survey.
This year, DoubleClick identified more than 1,000 influencers among the 6,000-plus Touchpoints respondents: active networkers, subject matter experts, bloggers, and online community participants. That key audience segment reports that websites in general, and web advertising in particular, are key sources of influence for them.
In this focus report, the following key findings are examined:
· Influencers cite web advertising as the second most important source for learning more about products after websites; they are much more likely to cite web ads for this than non-influencers
· How influencers shop varies considerably from one product category to another
· Influencers pay attention to ads, positively and negatively
· Influencers use more of all media, particularly the Internet, and they embrace emerging media
Marketers Pushing “Mancations”
In simpler times, men who wanted to get away in the exclusive company of their gender might don camouflage and take off for the woods, seek out a fishing hole or hit the golf course. Afterward, maybe they'd drink beer, belch with abandon and tell off-color stories in the easy fraternity of guydom. But that was before marketing became high art.
To hear it from PR types, the guy's getaway is no longer just a getaway says USA Today. It's now a "mancation." And marketers are jumping on the concept like linemen sacking a quarterback.
Offerings range from a Rat Pack-channeling $49,000 long-weekend blowout in Las Vegas to a $499 "Tough Guys" spa outing in Key West with optional $75 "We'll Never Tell" full back wax to driving a race car, shooting wild boar and sparring in the boxing ring.
The mancation may or may not be one of the hottest trends in travel, as the publicists breathlessly claim. But the nomenclature caught on last summer when Vince Vaughn uttered the word in the movie The Break-Up. Larry Meadows, a software company product manager in Tampa, believes he may have coined the term when a group of longtime guy pals were at a 2002 wedding, and one of their wives suggested the men get together more often.
U.S. To Branson: Virgin America Is Not American Enough
The government has tossed a roadblock in the path of start-up airline Virgin America, reports Associated Press, ruling that the company must change its ownership and corporate structure before it can receive an operating certificate.
Under the law, a U.S. airline must be 75% owned and controlled by Americans and the Department of Transportation said Virgin America does not currently meet that requirement.
Virgin America is based in Burlingame, Calif., and had planned to begin flights in 2007. While Richard Branson, head of England's Virgin Airlines, was instrumental in getting Virgin America started, the new airline had indicated it had financing from a variety of sources.
Air Wars Over Hawaii
When go! Airlines launched interisland service on June 9, the skies over Hawai‘i would never be the same reports The Garden Island of Kauai. Backed by the deep-pocketed, Phoenix-based Mesa Air, go! burst on the scene offering one-way fares of $19, throwing inter-island stalwarts Hawaiian and Aloha into at first a panic then a tizzy.
While the older airlines matched the new kid on the block’s fares each time they dropped, a Hawaiian lawsuit filed against Mesa claimed that the go! business model was designed explicitly to drive Aloha – which had recently emerged from bankruptcy – out of business, a move that’s illegal even in free-enterprise capitalism.
Dubai Hotels Record Impressive Growth In Q3 2006
Dubai's booming hospitality industry continued its impressive growth levels in the third quarter of 2006 as well with 14% increase in hotel revenues compared with the corresponding period last year. Hotel room occupancy increased to 85% according to zawya.com.
According to data released by the Dubai Department of Tourism and Commerce Marketing (DTCM), Dubai hotels and hotel apartments played host to 1,647,450 guests during July and September, an increase of 3.2% compared with third quarter of 2005.
The guest nights rose by 7.3% with the third quarter of 2006 logging in a total of 4,484,413. The most impressive growth was in revenues which totaled AED 2,039,051,655, a 14% rise over the previous year's corresponding period. Of the total business, 86.8% revenues were generated by hotels.
44 Million Visitors To Set NYC Tourism Record
Fight your way through the holiday hordes in Times Square this week and you will likely witness a record in the making.
Officials predicted Wednesday that 44 million people will have visited the city by the end of 2006, including some 1.25 million people this week alone. The number surpasses last year's record total of 42.6 million and continues a crescendo of recovery since the tourism industry took a hit after the September 11 attacks.
Tourism is said to support nearly 350,000 jobs and generate $24 billion annually for New York, which is why Mayor Michael Bloomberg is pushing to attract millions more tourists. He hopes for New York to draw 50 million annual visitors by 2015 reports USA Today.
New Airline Gets Nod To Serve U.S.-France Market
Travel Weekly reports that the Transportation Dept. has givenj its approval for a new all-business class airline to offer service between France and the U.S. The DOT's decision clears the way for L'Avion, formerly Elysair, to launch its inaugural service between Paris (Orly) and New York (Newark) as soon as it's ready to do so. L'Avion will fly 757 aircraft configured for 100 seats.
The decision makes the carrier the newest entry into the transatlantic, scheduled service, all-business class market. U.S.-based Eos and Maxjet are already flying [New York (Kennedy) to London (Stansted) and Las Vegas, New York (Kennedy) or Washington (Dulles) to London (Stansted), respectively], and London-based Silverjet is scheduled to inaugurate its service between London (Luton) and Newark January 25.
In another twist, the decision increases the possibility that some U.S. carriers will return some service to Orly Airport, which is close to the center of Paris.
Ritz Loosens Up Its Tie To Change With The Times
For generations, Ritz-Carlton has been known for over-the-top luxury: old-money guests, crystal chandeliers and in-your-face service. But old-world stuffiness doesn't play well with today's jet-setters. They're arriving in jeans and T-shirts, toting iPods and laptops, often checking in with kids. They don't want to wear a jacket and tie to the hotel dining room, or have the bellman carry their wheeled bags to their room.
So rather than risk becoming irrelevant to future generations, President and COO Simon Cooper is broadly re-inventing the famous brand. In doing so, the venerable chain's joining Hyatt, Hilton, Holiday Inn and other less-expensive chains also trying to keep up with changing tastes.
It hasn't been easy reports USA Today. Cooper says he initially found some resistance from hotel managers who, by most measures, ran successful hotels. "That's when it's really hard to explain to an organization that you have to change," says Cooper, a former professional yacht captain and amateur rugby player. But he knew changes were crucial, because "our customers are changing."
Customers such as Scott McKain, a frequent traveler and author of What Customers Really Want, say the overhaul is long overdue. He's found Ritz staff to be cloying and insincere with their robotic replies. He also dislikes when staffers have insisted upon escorting him to a room he'd asked about, no matter how close it may be.
Ritz-Carlton's strategy has implications for each of its 63 existing hotels and its future hotels, including its most traditional, Cooper says. Nothing is sacred. He scrapped Ritz-Carlton's famous customer-service rules that required staff to say, "Certainly, my pleasure," to each guest request.
Even the generations-old tea service, traditionally served on delicate English floral bone china, now arrives on square, minimalist Asian china.
"Twenty years ago, being consistent was a plus," says Cooper, who took over shortly before the 9/11 attacks in 2001 after founder Horst Schulze left. "Today, it's almost completely the opposite."
The New Mile Hi! Club
So many aspects of air travel are out of your control – the quality of the food, delays, your seatmates. But wait, not so fast says ABC News.
Airtroductions, a new social networking site, actually lets you choose your seatmate. Like other social networking sites, all you need to do is create a profile and search among a list of potential matches.
Most people just want to find someone they can strike up a good conversation with and make the time pass quicker. "You know," says Peter Shankman, who designed the site, "when you are hurtling 35,000 feet above the earth in a tin tube going 600 miles an hour, it's a bit stressful, so if you can talk to someone fun, that's the No. 1 reason people are using it."
To use the site, you enter your flight itinerary on your Airtroductions profile. Then, after buying a ticket from any of the common airline ticketing sites (like Orbitz or Travelocity), the system tells you how many people on your flight have also entered their itineraries on Airtroductions. Just scroll through their profiles and decide who (if anyone) you'd like to contact.
Unfortunately, though, while your travel companion can be prearranged, your seat is not. It's up to the Airtroductions members to make the seat swaps once on the plane.
You are now free to move about the cabin…and date. Sure, why not? According to Shankman, "There are a lot of single travelers out there who travel a lot for work and don't necessarily have the time to go to singles events … or get set up by their aunt Bertha, and if this is a way for them to meet, then great."
Lufthansa To Sell Thomas Cook Holding, Take Stake In Sun Express
Lufthansa signed a MOU to sell its 50% stake in leisure travel group Thomas Cook to KarstadtQuelle for €800 million ($1.05 billion) but will raise its stake in Condor Flugdienst from the present 10% to 24.9% and receive the shares held by Condor in Turkish holiday airline SunExpress.
Air Transport World reports the accord still requires the approval of both the LH and KarstadtQuelle boards and relevant regulatory authorities, Lufthansa said, adding that the transactions are scheduled to be finalized in the 2007 first quarter. LH and KarstadtQuelle each currently hold a 50% stake in Thomas Cook and Condor is presently 90% owned by Thomas Cook.
Dubai's Istithmar Buys Into U.S. Mandarin Hotel
Istithmar, an investment firm owned by the Dubai government, has moved further into U.S. property by buying a 73% stake in the Mandarin Oriental New York in a deal valuing the hotel at $340 million. According to The Washington Post Singapore-listed Mandarin Oriental International Ltd.said in a statement on Thursday that it had sold half of its 50% stake to Istithmar.
Apollo Real Estate and related companies would sell almost all of their 50% equity stake to the Dubai investment house in February 2007, it added.
Mesa Deal To Create China Commuter Flights
The Wall Street Journal reports that U.S. regional airline operator Mesa Air Group Inc. has signed a deal with Chinese carrier Shenzhen Airlines Co. to create China's first commuter airline. The joint venture, the first between U.S. and Chinese passenger carriers, would support Shenzhen's large-jet operations and introduce new flights to small and poorly served markets. The project is provisionally named Beijing Airlines.
China's aviation market is booming and the government has gradually deregulated the industry, allowing new carriers to take flight and established airlines to compete on busy routes. But most of the airlines fly larger jets and there are only about 70 smaller, regional jets in operation in the country, according to Mesa.
Four Armani Hotels Ready By 2011, Says Emaar
Emaar Hotels and Resorts, the hospitality subsidiary of global real estate major Emaar Properties, will open four Armani hotels by 2011, gulfnews.com reports.
Emaar Hotels and Resorts is a collaboration between Emaar Properties and haute couture leader Giorgio Armani. It works to conceptualise, develop, own and operate luxury hotels across the world under the brand name Armani Hotels and Resorts.
Dolce International Continues European Expansion
Dolce International has announced that in cooperation with KCL AG, it will be building a new 250-room Hotel & Conference Destination just outside the Bavarian capital of Munich, Germany. The new hotel will be adjacent to the Ballhaus Forum in Unterschleißheim – a conference, convention and event location that Dolce will manage beginning in March 2007.
The new hotel will also have extensive meeting facilities covering some 32,000 square feet and will be managed by Dolce International following its completion in the fourth quarter of 2008. It will also boast recreational and wellness areas and demonstrate the same high standards of contemporary design now synonymous with the Dolce brand.
Best New Business Hotels Of 2006
Once again, Forbes.com has rounded up the year’s best business hotels. And while there hasn’t been an abundance of new hotel openings recently – the industry took a while to recover from the post 9/11 travel slump, and in the meantime, raw materials like steel and concrete have grown pricier – the hotels that have opened are vying to outdo one another in terms of services and amenities.
"After the bed wars, we had the TV wars. Now, bathrooms are getting a huge makeover," says Jan Freitag, vice president at Hendersonville, Tenn.-based Smith Travel Research. "Chains are taking out bathtubs and putting in stand-alone showers. They are catering to a business traveler, who doesn't need a tub, so we're seeing rain showers with glass walls instead."
But bathrooms aren't the only amenities getting bumped up. Freitag cites additional perks aimed at businesspeople like e-concierges, who tackle your technical woes, extended hours for ordering room service and complimentary personal trainers in hotel gyms.
Even though demand for hotel rooms is high at the moment – new hotel openings haven’t kept up with consumer travel demand, giving hotels unprecedented pricing power – many properties are investing in upgraded amenities in preparation for a downturn.
"Everyone knows the hotel industry is cyclical," Freitag continues. "Eventually, hotels will have to fight for their customers again. And they want to go for the premium customer – the business traveler will always be there, paying the premium rate, booking at the last minute. For the upscale hotels, the business traveler is driving the amenities and modernizations."
A trio from the Forbes list of selected hotels:
· The London NYC, an LXR-owned property in Manhattan that was formerly The Rihga Royal Hotel. Thoroughly reinvented this past November, the hotel now flaunts a totally redesigned lobby, guest rooms and restaurants--including Gordon Ramsay, in his American debut, who will offer special room service and fitness menus in addition to two on-property restaurants.
· At Palacio Duhau-Park Hyatt, which opened this summer in the Argentine capital of Buenos Aires, butler service comes standard with every room and the hotel itself is in a restored palace located in the Recoleta neighborhood, one of the city's most expensive.
· And at the new Mandarin Oriental in Prague, which opened in September, every room has two LCD high-definition TVs (suites have three), high-speed internet, and a limestone bathroom with heated floor. In the hotel spa, a former Renaissance church, weary business travelers can unwind in one of seven luxurious treatment suites.
New Airline Emissions Rules May Increase Fares Within Europe
Fliers could see fares rise when EU pollution allowances begin European regulators are demanding that airlines flying to and from European Union countries, including U.S. carriers, follow stricter emissions regulations beginning 2012.
In an effort to combat global warming, says The Washington Times, the European Commission yesterday announced a proposal to require airlines
flying within the European Union to follow carbon-dioxide emissions trading in 2011. Flights to and from outside the region would be included a year later.
The plan could add $2.40 to $11.80 per ticket for a typical flight within Europe, with higher price increases for long-haul trips, according to the commission, the European Union's governing body.
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