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Wednesday, February 25, 2009
Tuesday, February 24, 2009
AirTran launches fare sale for travel into fall
In a sign of great uncertainty about demand for air travel this year amid the deep U.S. recession, discount carrier AirTran Airways launched a fare sale to all its destinations Tuesday for flights through the middle of the fall.
American Airlines, Continental Airlines, United Airlines, US Airways and Delta Air Lines quickly matched on routes where they compete with AirTran, and JetBlue said it would do the same.
AirTran's sale extends through the summer, normally a busy time for airlines when they have been able to reap premiums in the past as more people travel. But now with many people hurting financially, fewer are taking vacations, businesses are cutting back on corporate travel and many who fly are waiting longer to book.
What's also unusual is how far in advance AirTran has loaded its schedule. Prior to two weeks ago, AirTran showed its schedule for about 210 days. On Tuesday morning, the carrier was showing its schedule for the next 267 days. Discount carrier Southwest Airlines as of Tuesday was only showing its schedule for the next six months, while legacy carriers tend to show their schedule for about 11 months out.
"Basically, what they are doing is locking in seats because of the lack of certainty of what's going to happen during the recession," Rick Seaney, head of airfare research site FareCompare.com, said of AirTran. "They can throw all their history out the window."
Asked if the length of the sale is a sign of desperation, Seaney said, "I wouldn't call it desperation, but I would call it a healthy does of realism. At this point, airlines are not trying to make a profit on each seat, they are just trying to fill them up."
AirTran, a unit of Orlando-based AirTran Holdings, said its sale fares, starting as low as $39 one-way, are available for purchase through March 5 for travel through Nov. 4. The biggest discounts are for travel on Mondays, Tuesdays, Wednesdays, Thursdays and Saturdays. The sale fares are slightly more for travel on Fridays and Sundays.
There are some blackout dates and restrictions involving certain destinations, like Florida and Cancun, Mexico. A 10-day advance purchase is required, and seats at the discounted fares are limited.
New York-based JetBlue Airways will match in markets where the two carriers compete, spokesman Sebastian White said. Spokespersons for Atlanta-based Delta Air Lines, American, a unit of Fort Worth-based AMR, Houston-based Continental Airlines, Tempe, Ariz.-based US Airways, and Chicago-based UAL, parent of United Airlines, said their carriers have now matched AirTran on routes where they compete.
"A travel date into November is unusually long for a domestic fare sale," American spokesman Tim Smith said.
Whitney Eichinger, spokeswoman for Dallas-based Southwest, said her carrier is matching AirTran in markets where it affects Southwest's city pairs, though Southwest's schedule is currently posted only through Aug. 14. Separately, Southwest launched a fare sale Tuesday for dozens of cities to Florida destinations for travel through the end of June. Bargain fares during Spring Break are included.
Kevin Healy, senior vice president of marketing and planning for AirTran Airways, acknowledged that his carrier's sale is a big one, even by AirTran's standards. But he also noted that low oil prices, his carrier's low cost structure and capacity cuts the airline has made mean such sales can be profitable.
"I think it's fair to say nobody is really able to accurately gauge demand," Healy said. "Our basic business model has always been to stimulate as much demand as you possibly can. To that end, I don't think that's changed. I think you're seeing more activity from the legacy carriers."
Healy said that it's too soon to know what demand is going to look like this summer.
"There's a lot of uncertainty in the market," Healy said. Referring to President Barack Obama's planned speech to Congress and the nation Tuesday night, Healy said, "Hopefully the president tonight will calm some of those concerns."
American Airlines, Continental Airlines, United Airlines, US Airways and Delta Air Lines quickly matched on routes where they compete with AirTran, and JetBlue said it would do the same.
AirTran's sale extends through the summer, normally a busy time for airlines when they have been able to reap premiums in the past as more people travel. But now with many people hurting financially, fewer are taking vacations, businesses are cutting back on corporate travel and many who fly are waiting longer to book.
What's also unusual is how far in advance AirTran has loaded its schedule. Prior to two weeks ago, AirTran showed its schedule for about 210 days. On Tuesday morning, the carrier was showing its schedule for the next 267 days. Discount carrier Southwest Airlines as of Tuesday was only showing its schedule for the next six months, while legacy carriers tend to show their schedule for about 11 months out.
"Basically, what they are doing is locking in seats because of the lack of certainty of what's going to happen during the recession," Rick Seaney, head of airfare research site FareCompare.com, said of AirTran. "They can throw all their history out the window."
Asked if the length of the sale is a sign of desperation, Seaney said, "I wouldn't call it desperation, but I would call it a healthy does of realism. At this point, airlines are not trying to make a profit on each seat, they are just trying to fill them up."
AirTran, a unit of Orlando-based AirTran Holdings, said its sale fares, starting as low as $39 one-way, are available for purchase through March 5 for travel through Nov. 4. The biggest discounts are for travel on Mondays, Tuesdays, Wednesdays, Thursdays and Saturdays. The sale fares are slightly more for travel on Fridays and Sundays.
There are some blackout dates and restrictions involving certain destinations, like Florida and Cancun, Mexico. A 10-day advance purchase is required, and seats at the discounted fares are limited.
New York-based JetBlue Airways will match in markets where the two carriers compete, spokesman Sebastian White said. Spokespersons for Atlanta-based Delta Air Lines, American, a unit of Fort Worth-based AMR, Houston-based Continental Airlines, Tempe, Ariz.-based US Airways, and Chicago-based UAL, parent of United Airlines, said their carriers have now matched AirTran on routes where they compete.
"A travel date into November is unusually long for a domestic fare sale," American spokesman Tim Smith said.
Whitney Eichinger, spokeswoman for Dallas-based Southwest, said her carrier is matching AirTran in markets where it affects Southwest's city pairs, though Southwest's schedule is currently posted only through Aug. 14. Separately, Southwest launched a fare sale Tuesday for dozens of cities to Florida destinations for travel through the end of June. Bargain fares during Spring Break are included.
Kevin Healy, senior vice president of marketing and planning for AirTran Airways, acknowledged that his carrier's sale is a big one, even by AirTran's standards. But he also noted that low oil prices, his carrier's low cost structure and capacity cuts the airline has made mean such sales can be profitable.
"I think it's fair to say nobody is really able to accurately gauge demand," Healy said. "Our basic business model has always been to stimulate as much demand as you possibly can. To that end, I don't think that's changed. I think you're seeing more activity from the legacy carriers."
Healy said that it's too soon to know what demand is going to look like this summer.
"There's a lot of uncertainty in the market," Healy said. Referring to President Barack Obama's planned speech to Congress and the nation Tuesday night, Healy said, "Hopefully the president tonight will calm some of those concerns."
Sunday, February 22, 2009
Southwest Piloting Onboard Wi-Fi
Southwest Airlines today launched a one-airplane pilot test of inflight wireless Internet with satellite connectivity supplier Row 44. In the next month, Southwest plans to expand the trial to three more aircraft.
The carrier is offering onboard Wi-Fi for free during the trial period, though it plans ultimately to monetize the offering, a spokesperson said today.
Though Southwest did not disclose price points, as it awaits trial results, Row 44 CEO John Guidon said, "If we were selling this as a retail service, meaning if the airlines weren't marketing it, then we'd probably put it somewhere in that $7.99 region, but we have really no input on how much the airlines will charge. They'll charge as they'll see fit and I'm sure it will be a good value."
Southwest expects the trial to extend "for the next few months." The Southwest trial is the first with Row 44, though Alaska Airlines, which already has inked an agreement with the provider, is expected to roll out the service "extremely soon," Guidon said.
Southwest said expansion beyond the pilot requires Federal Communications Commission approval, as Row 44 continues to wrap up its permits. "We're in a process that we've been navigating through for some months, and we're getting very close to the end of that process," said Guidon.
The carrier said the service is compatible with any Wi-Fi-enabled device, including laptops and smart phones, though "cellular technology will not work."
Southwest joins a growing number of domestic airlines that are bringing Wi-Fi onboard. American Airlines and Delta Air Lines in the past year have rolled out Wi-Fi on a limited domestic basis in conjunction with Aircell. American Airlines in August began rolling out the service across its 15-plane Boeing 767-200 fleet, while Delta is planning a fleetwide domestic rollout of the service, which this week launched on its 20th domestic aircraft. United Airlines last month also announced plans to outfit 13 transcontinental Boeing 757 aircraft with inflight wireless Internet capabilities in the second half of the year.
The carrier is offering onboard Wi-Fi for free during the trial period, though it plans ultimately to monetize the offering, a spokesperson said today.
Though Southwest did not disclose price points, as it awaits trial results, Row 44 CEO John Guidon said, "If we were selling this as a retail service, meaning if the airlines weren't marketing it, then we'd probably put it somewhere in that $7.99 region, but we have really no input on how much the airlines will charge. They'll charge as they'll see fit and I'm sure it will be a good value."
Southwest expects the trial to extend "for the next few months." The Southwest trial is the first with Row 44, though Alaska Airlines, which already has inked an agreement with the provider, is expected to roll out the service "extremely soon," Guidon said.
Southwest said expansion beyond the pilot requires Federal Communications Commission approval, as Row 44 continues to wrap up its permits. "We're in a process that we've been navigating through for some months, and we're getting very close to the end of that process," said Guidon.
The carrier said the service is compatible with any Wi-Fi-enabled device, including laptops and smart phones, though "cellular technology will not work."
Southwest joins a growing number of domestic airlines that are bringing Wi-Fi onboard. American Airlines and Delta Air Lines in the past year have rolled out Wi-Fi on a limited domestic basis in conjunction with Aircell. American Airlines in August began rolling out the service across its 15-plane Boeing 767-200 fleet, while Delta is planning a fleetwide domestic rollout of the service, which this week launched on its 20th domestic aircraft. United Airlines last month also announced plans to outfit 13 transcontinental Boeing 757 aircraft with inflight wireless Internet capabilities in the second half of the year.
Wednesday, February 18, 2009
Body scanners replace metal detectors in tryout at Tulsa airport
For the first time, some airline passengers will skip metal detectors and instead be screened by body scanning machines that look through clothing for hidden weapons, the Transportation Security Administration said Tuesday.
An experimental program that begins today at Tulsa International Airport will test whether the $170,000 body scanners could replace $10,000 metal detectors that have screened airline passengers since 1973. Airports in San Francisco, Las Vegas, Miami, Albuquerque and Salt Lake City will join the test in the next two months, TSA spokesman Christopher White said.
The scanners aim to close a loophole by finding non-metallic weapons such as plastic and liquid explosives, which the TSA considers a major threat. The machines raise privacy concerns because their images reveal outlines of private body parts.
"We're getting closer and closer to a required strip-search to board an airplane," said Barry Steinhardt of the American Civil Liberties Union.
Privacy advocate Melissa Ngo fears that passengers won't understand that the scanners take vivid images that screeners view.
White said each scanner has explanatory signs on how the machines work and posters showing the image they create.
Passengers at the test airports will be instructed to go through the new scanners. Anyone who doesn't want to go through will be allowed to refuse and instead go through a metal detector and receive a pat-down, White said.
People in the scanner will stand with their arms raised and their face will be blurred out in the metallic-looking image on a nearby screen. TSA screeners view the images from inside a closed room near a checkpoint and immediately delete them.
"We've struck a very good balance between security and privacy," White said.
Christopher Bidwell, security chief at the Airports Council International trade group, said the scanner "really does not reveal as much as some people might think."
The scanners aim to address problems exposed by government probes in which covert agents got liquid explosives and detonators through airport checkpoints. A 2005 Homeland Security report urged better checkpoint technology.
Security analyst Bruce Schneier, a frequent critic of the TSA, said the scanners should improve security but warned that they take longer than metal detectors — 30 seconds vs. about 15 seconds per passenger. "There will be pressure to do the screening faster, which will be sloppier," Schneier said.
The scanners bounce harmless "millimeter waves" off passengers' bodies and use no radiation.
The TSA has done preliminary tests of the scanner on passengers who had just passed through metal detectors. Those tests found that the machines excel at finding hidden objects, White said.
Based on the results of the latest test, the TSA will decide at an undetermined date whether to use more body scanners in place of metal detectors.
An experimental program that begins today at Tulsa International Airport will test whether the $170,000 body scanners could replace $10,000 metal detectors that have screened airline passengers since 1973. Airports in San Francisco, Las Vegas, Miami, Albuquerque and Salt Lake City will join the test in the next two months, TSA spokesman Christopher White said.
The scanners aim to close a loophole by finding non-metallic weapons such as plastic and liquid explosives, which the TSA considers a major threat. The machines raise privacy concerns because their images reveal outlines of private body parts.
"We're getting closer and closer to a required strip-search to board an airplane," said Barry Steinhardt of the American Civil Liberties Union.
Privacy advocate Melissa Ngo fears that passengers won't understand that the scanners take vivid images that screeners view.
White said each scanner has explanatory signs on how the machines work and posters showing the image they create.
Passengers at the test airports will be instructed to go through the new scanners. Anyone who doesn't want to go through will be allowed to refuse and instead go through a metal detector and receive a pat-down, White said.
People in the scanner will stand with their arms raised and their face will be blurred out in the metallic-looking image on a nearby screen. TSA screeners view the images from inside a closed room near a checkpoint and immediately delete them.
"We've struck a very good balance between security and privacy," White said.
Christopher Bidwell, security chief at the Airports Council International trade group, said the scanner "really does not reveal as much as some people might think."
The scanners aim to address problems exposed by government probes in which covert agents got liquid explosives and detonators through airport checkpoints. A 2005 Homeland Security report urged better checkpoint technology.
Security analyst Bruce Schneier, a frequent critic of the TSA, said the scanners should improve security but warned that they take longer than metal detectors — 30 seconds vs. about 15 seconds per passenger. "There will be pressure to do the screening faster, which will be sloppier," Schneier said.
The scanners bounce harmless "millimeter waves" off passengers' bodies and use no radiation.
The TSA has done preliminary tests of the scanner on passengers who had just passed through metal detectors. Those tests found that the machines excel at finding hidden objects, White said.
Based on the results of the latest test, the TSA will decide at an undetermined date whether to use more body scanners in place of metal detectors.
How is the economy changing the way we travel?
So we're going away on weekends and sticking close to home.
But are we taking a cruise? Traveling with the girls? Vacationing with the kids?
READ MORE: Travelers could find big discounts in convention cities
Here's how the economy is changing the way we travel.
Second city
Some smaller cities are stealing the glory.
Both Fort Myers, Fla. and Charleston, S.C. experienced double digit growth in January 2009 over January 2008, based on American Express Travel bookings.
Cities such as Tucson, Palm Springs, Calif. and Portland, Ore. are also becoming popular destinations, with Travelocity data showing increases of 12%, 13% and 38% over last year.
Even Philadelphia's star is rising, said Travelocity senior editor Genevieve Shaw Brown.
Brown said it's hard to pinpoint the reason for the spikes: it could be a decrease in airfare or hotel prices, excellent marketing or a larger travel trend.
For example, hotel rates in Fort Myers are down about 10%, she said. Fort Myers and Sanibel Island are known for beaches, wildlife viewing and history, such as the Edison & Ford Winter Estates.
But hotel rates in Portland are up, she said.
She attributes Philadelphia's popularity spike to good marketing, a decrease in airfare of 16% compared to the overall 8% decrease for domestic flights and more interest in historic destinations in general.
Some secondary cities do benefit in a down economy because people are seeking shorter trips, said Gabe Saglie, senior editor of Travelzoo. So someone in New York who wants to get away for the weekend may take a trip to Philadelphia.
He said as big cities rev up their marketing to woo travelers, smaller cities may get some of the trickle down tourism.
Family travel
Families are going back to the basics, says Brown. So rather than take a two-week vacation to Europe, they may go to a national park, she said.
David Mandt, spokesman for the International Association of Amusement Parks and Attractions, is cautiously optimistic about the summer season for the 400 theme parks in the U.S. He said even when gas was $4 a gallon in 2008, people continued to visit theme parks — they simply selected parks closer to home.
"Fundamentally our guests still have a need to get away and have fun with their friends and families," he said.
While for years, park operators have used special offers, promotions and discounts to encourage families to visit at a specific time, he said the deals may be easier to find this year, especially when it comes to packages that include accommodations.
Universal Orlando Resort has a deal allowing families to book a three-night package and receive two additional nights free. Packages begin at $689 and include accommodations at a hotel near Universal and unlimited theme park admission to both Universal Studios and Islands of Adventure. The package can be booked until March 29 for stays any time between now and Oct. 8.
At Walt Disney World near Orlando, visitors can save $400 off the price of a seven-night stay between February and the end of June. The deal — being touted as "buy four nights, get three free" — can be booked through the end of March.
Women travel
Girlfriend getaways are still incredibly popular, according to Stephanie Oswald, host of All-Girl Getaways on the Fine Living Network.
But she said women are being more cost-conscious, such as traveling in the middle of the week, meeting at the airport and renting one car together, or renting a vacation home and going to a day spa instead of going to a destination spa.
April Merenda, president and co-founder of Gutsy Women Travel, said her business is up 25% over last year. But she said some women are canceling or postponing their trips because of economic concerns. She said many companies have canceled tours, so she's picking up some of those travelers.
Allison O'Sullivan, managing director of The Women's Travel Club, said the year started slowly and she cut back on trip offerings in January and February. But she said things are picking up. She's getting more calls and said she is "going full speed ahead the rest of the year."
The Women's Travel Club, which includes women from ranging from the 40s to 70s, has focused on international destinations, such as Italy, Iceland and Holland.
But O'Sullivan said she is planning to offer some domestic trips for women who want to stay closer to home, not worry about currency changes and use their miles.
"Yes, they are affected by the economy and are looking for deals, but they are not sitting at home," she said.
Cruising
Home port cruising is making a comeback, according to Carolyn Spencer Brown, editor-in-chief of CruiseCritic.com. The cruises were popular after the Sept. 11 terrorist attacks.
"Then people got tired of the same itineraries and started to venture to more exotic regions," she said. "Now with the economy, people are more interested in being able to drive to the port."
The Carnival Conquest is offering a once-a-month cruise from Galveston, Texas, to the Eastern Caribbean, a radical move considering the Caribbean's western islands are much more convenient, said Spencer Brown. The ship was recently refurbished, with a new movie screen, teen club and additional balconies.
And starting in April, Carnival Pride will sail from Baltimore year-round with visits to popular destinations, including the Bahamas, Florida and Grand Turk in the Turks & Caicos Islands.
Spencer Brown said cruises continue to offer amazing deals to fill their ships. She has seen some as low as $25 per person a day. (Ships make much of their money through gambling and alcohol.)
"Right now the buyer is in the driver's seat," she said. "It's a wonderful place to be."
But are we taking a cruise? Traveling with the girls? Vacationing with the kids?
READ MORE: Travelers could find big discounts in convention cities
Here's how the economy is changing the way we travel.
Second city
Some smaller cities are stealing the glory.
Both Fort Myers, Fla. and Charleston, S.C. experienced double digit growth in January 2009 over January 2008, based on American Express Travel bookings.
Cities such as Tucson, Palm Springs, Calif. and Portland, Ore. are also becoming popular destinations, with Travelocity data showing increases of 12%, 13% and 38% over last year.
Even Philadelphia's star is rising, said Travelocity senior editor Genevieve Shaw Brown.
Brown said it's hard to pinpoint the reason for the spikes: it could be a decrease in airfare or hotel prices, excellent marketing or a larger travel trend.
For example, hotel rates in Fort Myers are down about 10%, she said. Fort Myers and Sanibel Island are known for beaches, wildlife viewing and history, such as the Edison & Ford Winter Estates.
But hotel rates in Portland are up, she said.
She attributes Philadelphia's popularity spike to good marketing, a decrease in airfare of 16% compared to the overall 8% decrease for domestic flights and more interest in historic destinations in general.
Some secondary cities do benefit in a down economy because people are seeking shorter trips, said Gabe Saglie, senior editor of Travelzoo. So someone in New York who wants to get away for the weekend may take a trip to Philadelphia.
He said as big cities rev up their marketing to woo travelers, smaller cities may get some of the trickle down tourism.
Family travel
Families are going back to the basics, says Brown. So rather than take a two-week vacation to Europe, they may go to a national park, she said.
David Mandt, spokesman for the International Association of Amusement Parks and Attractions, is cautiously optimistic about the summer season for the 400 theme parks in the U.S. He said even when gas was $4 a gallon in 2008, people continued to visit theme parks — they simply selected parks closer to home.
"Fundamentally our guests still have a need to get away and have fun with their friends and families," he said.
While for years, park operators have used special offers, promotions and discounts to encourage families to visit at a specific time, he said the deals may be easier to find this year, especially when it comes to packages that include accommodations.
Universal Orlando Resort has a deal allowing families to book a three-night package and receive two additional nights free. Packages begin at $689 and include accommodations at a hotel near Universal and unlimited theme park admission to both Universal Studios and Islands of Adventure. The package can be booked until March 29 for stays any time between now and Oct. 8.
At Walt Disney World near Orlando, visitors can save $400 off the price of a seven-night stay between February and the end of June. The deal — being touted as "buy four nights, get three free" — can be booked through the end of March.
Women travel
Girlfriend getaways are still incredibly popular, according to Stephanie Oswald, host of All-Girl Getaways on the Fine Living Network.
But she said women are being more cost-conscious, such as traveling in the middle of the week, meeting at the airport and renting one car together, or renting a vacation home and going to a day spa instead of going to a destination spa.
April Merenda, president and co-founder of Gutsy Women Travel, said her business is up 25% over last year. But she said some women are canceling or postponing their trips because of economic concerns. She said many companies have canceled tours, so she's picking up some of those travelers.
Allison O'Sullivan, managing director of The Women's Travel Club, said the year started slowly and she cut back on trip offerings in January and February. But she said things are picking up. She's getting more calls and said she is "going full speed ahead the rest of the year."
The Women's Travel Club, which includes women from ranging from the 40s to 70s, has focused on international destinations, such as Italy, Iceland and Holland.
But O'Sullivan said she is planning to offer some domestic trips for women who want to stay closer to home, not worry about currency changes and use their miles.
"Yes, they are affected by the economy and are looking for deals, but they are not sitting at home," she said.
Cruising
Home port cruising is making a comeback, according to Carolyn Spencer Brown, editor-in-chief of CruiseCritic.com. The cruises were popular after the Sept. 11 terrorist attacks.
"Then people got tired of the same itineraries and started to venture to more exotic regions," she said. "Now with the economy, people are more interested in being able to drive to the port."
The Carnival Conquest is offering a once-a-month cruise from Galveston, Texas, to the Eastern Caribbean, a radical move considering the Caribbean's western islands are much more convenient, said Spencer Brown. The ship was recently refurbished, with a new movie screen, teen club and additional balconies.
And starting in April, Carnival Pride will sail from Baltimore year-round with visits to popular destinations, including the Bahamas, Florida and Grand Turk in the Turks & Caicos Islands.
Spencer Brown said cruises continue to offer amazing deals to fill their ships. She has seen some as low as $25 per person a day. (Ships make much of their money through gambling and alcohol.)
"Right now the buyer is in the driver's seat," she said. "It's a wonderful place to be."
Las Vegas worries its image hurts business travel
Sin City is worried that its well-honed style is crimping its business.
Born of carefully crafted slogans — "What happens here stays here" — and smiling, sequined showgirls, the image of a 24-hour adult Disneyland with free-flowing liquor and casino chips is making the tourist destination seem radioactive to companies keen on not appearing frivolous as they seek government bailouts.
In the past two weeks, at least four major companies canceled meetings worth hundreds of thousands of dollars — not because of costs but because of appearances. Even President Barack Obama questioned the propriety of flying off to Las Vegas if taxpayers were helping foot the bill.
Tourism officials, already nervous after watching meeting and convention attendance decline 5% in 2008, are challenging the impression that business meetings are wasteful — especially those conducted under the neon lights of Las Vegas.
"It's necessary, for us to thrive in this community, that folks come here and realize that this is not some stepchild," Las Vegas Mayor Oscar Goodman said. "This is a very important place for people to conduct very important business."
Goodman — who often appears at functions with a showgirl at each arm — sent a letter this week to Obama objecting to his remarks.
"You can't get corporate jets, you can't go take a trip to Las Vegas or go down to the Super Bowl on the taxpayer's dime," Obama said during a town hall meeting in Indiana.
Obama's comment came after Wells Fargo & Co. canceled a conference at two high-end Las Vegas hotels in response to a barrage of criticism from Capitol Hill after The Associated Press reported on the company's previous luxury-laden trips for its top employees.
The company, which received a $25 billion bailout, cried foul in a full-page New York Times ad and said media reports about bailed-out companies have been "deliberately misleading." The bank said it would cancel all its recognition events this year.
Wells Fargo is not alone. Since the fall, companies that have taken $277 billion in federal assistance through the Troubled Asset Relief Program have faced increased scrutiny for their travel practices by lawmakers and an angry public.
Goldman Sachs Group Inc. moved a three-day conference from the Mandalay Bay hotel-casino to San Francisco, incurring a $600,000 cancellation penalty to skip town. U.S. Bancorp, which received $6.6 billion, dropped plans to reward top managers with a trip to Naples, Florida. Morgan Stanley, which has received $10 billion in bailout funds, canceled a trip for top employees to Monte Carlo.
Roger Dow, president of the Travel Industry Association, called the growing attention "paralyzing" for corporate meetings and events, which represent 15% of all travel spending nationwide.
"We have to stop this from being epidemic," said Dow.
Dow said Wells Fargo should not have canceled.
"Personally, I wish that ad had said, 'It was a perfect business expense to get the money back to the American taxpayer faster, and this is one of the tools that we use and we will defend them and show anybody that is curious why they are effective and why they have a great bottom-line result for this organization,"' Dow said.
Michael Massari, vice president of meeting sales and operations for Harrah's Entertainment, Inc., in Las Vegas, said some companies should not have planned trips in the first place.
"If there are meetings that you're having that are lavish and are boondoggles or that are no longer productive because of the expense, that have diminishing returns, then good companies should stop doing those things," he said.
Massari, however, said the vast majority of meetings — in Las Vegas and elsewhere — are well thought-out.
Those who promote Las Vegas, the top U.S. business travel destination, are quick to list reasons why it's a good place to book meetings. Easy airline access. 140,000 hotel rooms. Low rates. Plentiful convention facilities. A wide range of dining and entertainment options.
Las Vegas hosted more than 22,000 meetings, conventions and trade shows last year, according to the Las Vegas Convention and Visitors Authority, which markets the city to leisure and business travelers.
For years that promotion has unabashedly included gambling and nightlife. On the convention authority's website, a section for meeting planners features photographs of showgirls, the Las Vegas Strip and a roulette wheel.
"The two are not at odds with one another," said Mayor Goodman, who also chairs the convention authority.
Robert Goldstein, senior vice president of Las Vegas Sands Corp., said he is annoyed by the idea that a company can't do business at a fun destination.
"We're not going to pretend all this stuff doesn't exist," Goldstein said. "Last time I checked, alcohol was prevalent in a lot of major cities, and you can go anyplace in the country if you want to see girls."
Goldstein said Sands would likely not change its marketing strategy despite three recent cancellations that would have each brought hundreds of guests to its Venetian and Palazzo hotel-casinos.
Some tourism officials don't think Las Vegas should cling to its reputation as a party town if it wants to attract image-conscious companies.
"In light of the recession, in light of everything, we absolutely have to change," said Karen Gordon, president of Activity Planners International, a Las Vegas-based company that assists corporate meeting planners and recently laid off half of its eight-person staff.
Jan Jones, senior vice president of communications and government relations for Harrah's and a former mayor of Las Vegas, said the public is focusing more today on how businesses make decisions, and because of that, Las Vegas itself will likely see a change.
"All of our marketing is having to change somewhat, because the consumer is changing," Jones said. "In 2009, you spell Vegas V-A-L-U-E."
Born of carefully crafted slogans — "What happens here stays here" — and smiling, sequined showgirls, the image of a 24-hour adult Disneyland with free-flowing liquor and casino chips is making the tourist destination seem radioactive to companies keen on not appearing frivolous as they seek government bailouts.
In the past two weeks, at least four major companies canceled meetings worth hundreds of thousands of dollars — not because of costs but because of appearances. Even President Barack Obama questioned the propriety of flying off to Las Vegas if taxpayers were helping foot the bill.
Tourism officials, already nervous after watching meeting and convention attendance decline 5% in 2008, are challenging the impression that business meetings are wasteful — especially those conducted under the neon lights of Las Vegas.
"It's necessary, for us to thrive in this community, that folks come here and realize that this is not some stepchild," Las Vegas Mayor Oscar Goodman said. "This is a very important place for people to conduct very important business."
Goodman — who often appears at functions with a showgirl at each arm — sent a letter this week to Obama objecting to his remarks.
"You can't get corporate jets, you can't go take a trip to Las Vegas or go down to the Super Bowl on the taxpayer's dime," Obama said during a town hall meeting in Indiana.
Obama's comment came after Wells Fargo & Co. canceled a conference at two high-end Las Vegas hotels in response to a barrage of criticism from Capitol Hill after The Associated Press reported on the company's previous luxury-laden trips for its top employees.
The company, which received a $25 billion bailout, cried foul in a full-page New York Times ad and said media reports about bailed-out companies have been "deliberately misleading." The bank said it would cancel all its recognition events this year.
Wells Fargo is not alone. Since the fall, companies that have taken $277 billion in federal assistance through the Troubled Asset Relief Program have faced increased scrutiny for their travel practices by lawmakers and an angry public.
Goldman Sachs Group Inc. moved a three-day conference from the Mandalay Bay hotel-casino to San Francisco, incurring a $600,000 cancellation penalty to skip town. U.S. Bancorp, which received $6.6 billion, dropped plans to reward top managers with a trip to Naples, Florida. Morgan Stanley, which has received $10 billion in bailout funds, canceled a trip for top employees to Monte Carlo.
Roger Dow, president of the Travel Industry Association, called the growing attention "paralyzing" for corporate meetings and events, which represent 15% of all travel spending nationwide.
"We have to stop this from being epidemic," said Dow.
Dow said Wells Fargo should not have canceled.
"Personally, I wish that ad had said, 'It was a perfect business expense to get the money back to the American taxpayer faster, and this is one of the tools that we use and we will defend them and show anybody that is curious why they are effective and why they have a great bottom-line result for this organization,"' Dow said.
Michael Massari, vice president of meeting sales and operations for Harrah's Entertainment, Inc., in Las Vegas, said some companies should not have planned trips in the first place.
"If there are meetings that you're having that are lavish and are boondoggles or that are no longer productive because of the expense, that have diminishing returns, then good companies should stop doing those things," he said.
Massari, however, said the vast majority of meetings — in Las Vegas and elsewhere — are well thought-out.
Those who promote Las Vegas, the top U.S. business travel destination, are quick to list reasons why it's a good place to book meetings. Easy airline access. 140,000 hotel rooms. Low rates. Plentiful convention facilities. A wide range of dining and entertainment options.
Las Vegas hosted more than 22,000 meetings, conventions and trade shows last year, according to the Las Vegas Convention and Visitors Authority, which markets the city to leisure and business travelers.
For years that promotion has unabashedly included gambling and nightlife. On the convention authority's website, a section for meeting planners features photographs of showgirls, the Las Vegas Strip and a roulette wheel.
"The two are not at odds with one another," said Mayor Goodman, who also chairs the convention authority.
Robert Goldstein, senior vice president of Las Vegas Sands Corp., said he is annoyed by the idea that a company can't do business at a fun destination.
"We're not going to pretend all this stuff doesn't exist," Goldstein said. "Last time I checked, alcohol was prevalent in a lot of major cities, and you can go anyplace in the country if you want to see girls."
Goldstein said Sands would likely not change its marketing strategy despite three recent cancellations that would have each brought hundreds of guests to its Venetian and Palazzo hotel-casinos.
Some tourism officials don't think Las Vegas should cling to its reputation as a party town if it wants to attract image-conscious companies.
"In light of the recession, in light of everything, we absolutely have to change," said Karen Gordon, president of Activity Planners International, a Las Vegas-based company that assists corporate meeting planners and recently laid off half of its eight-person staff.
Jan Jones, senior vice president of communications and government relations for Harrah's and a former mayor of Las Vegas, said the public is focusing more today on how businesses make decisions, and because of that, Las Vegas itself will likely see a change.
"All of our marketing is having to change somewhat, because the consumer is changing," Jones said. "In 2009, you spell Vegas V-A-L-U-E."
Sunday, February 15, 2009
Friday, February 13, 2009
Check on Airport Delays@www.yourbusinesstravel.info
Supreme Clientele Travel displays an interactive map of FlightStats'- an exclusive airport delays index for your region. Updated every 30 minutes, the color-coded dots indicate each airport's delay index - a measure of current delay conditions and trends. You can see system-wide conditions at a glance. Moving a mouse over an airport's location generates a pop-up window inviting you to click through for links to airport information, flight arrivals and flight departures so that you can check for any impact on your specific flight.
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