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The Travel Career Connexxions Opportunities Newsletter
02/12/08

The only weekly newsletter detailing essential trends, news and top executive moves in travel. Opportunities is a free newsletter that provides you with the vision to "see" travel industry opportunities in the making. Whether you are in sales, business development, guiding your company's growth or managing your career, reading opportunities will give you the advantage to succeed. Opportunities is another innovative tool brought to you by Travel Career Connexxions. For more information, visit http://www.TravelExecutive.com

This week in Opportunities:

Despite Slowing Economy 'Super Rich' Continue to Spend
Study Finds GDS Hotel Promotions Have a Growing Influence on Bookings
Demand for Communications Mobility Make In-flight Voice and Data Inevitable
Executive Movers! See who's going where?
Travel Executive Employment Report

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Did you know? As of 02/12/08 there are 200 executive-level travel jobs published in the Travel Career Connexxions employment report. Positions include Vice President of Sales and Marketing (02/11), Director of Pricing Strategy (02/08), Director Investor Relations (02/11), Vice President of Operations (02/11), Director of Sales (02/04), Vice President of International Marketing (02/05) and more. It only takes one person to fill the job of a lifetime - and that someone could be you! http://www.TravelExecutive.com

OPPORTUNITIES NEWS & TRENDS

Despite Slowing Economy 'Super Rich' Continue to Spend

Despite continued news of a looming recession, 80.3 percent of the "Super Rich" (consumers with net worth of $30 million plus) will increase their spending on luxury goods and services. This is according to the Elite Traveler/Prince & Associates 2008 Affluent Consumer Spending Survey conducted January 10-18, 2008. The survey polled a panel of more than 600 affluent consumers who had a net worth of at least $1 million. Overall the wealthy expect the economy to worsen in 2008. However, 84 percent of the Super Rich said the current economic environment represents an investment opportunity, and they will continue to spend more on luxury products and services and increase donations to charitable organizations more than ever before. The survey also reports that affluent consumers have little faith in the government's ability to "fix" the present economic situation. The survey revealed that 58.2 percent of "Rich" consumers (those with a net worth from $10 to $30 million) will increase their spending on luxury goods and services. However, 21 percent of consumers with a net worth of less than $10 million plan to decrease their spending on luxury goods and services. "The Elite Traveler Affluent Consumer Survey further confirms that the Super Rich remain insulated from the economic woes that have forced even the mass affluent consumer confidence levels to an all time low," said Douglas Gollan, president and editor-in-chief of Elite Traveler and co-author of The Sky's the Limit, Marketing to the New Jet Set. Does cost matter? As expected, the Super Rich are not price sensitive as only 7.4 percent report an increase in the cost of luxury products as playing a role in their purchasing decisions. However, almost half of the Mass Affluent consumers surveyed said cost is a deciding factor when purchasing luxury goods and services in this current uncertainty. Although most consumers shop around to find the best deal when purchasing an expensive product, that rule does not seem to apply to the Super Rich. Less than 10 percent of Super Rich consumers said they would take more time to purchase a luxury product this year but would otherwise make speedy impulse purchases. Twelve percent of Rich consumers reported an increase in the time they would take to make a luxury purchase, while 34 percent of Mass Affluent consumers would spend more time making a purchase as they balance economic uncertainty and higher costs for everyday expenses. Nearly 70 percent (69.1 percent) of the Super Rich say they will increase their charitable giving this year, realizing their support is needed now more than ever to offset cut backs from those who have felt the pinch from a weakened economy. At the same time, 47.6 percent of the Rich will increase their charitable giving. Only 13.9 percent of the Mass Affluent will give more in 2008.

Study Finds GDS Hotel Promotions Have a Growing Influence on Bookings

TravelCLICK, Inc., a provider of eMarketing solutions for the hotel industry, has released results from a survey that demonstrates travel agents continue to increase their reliance on Global Distribution Systems (GDS) promotions for hotel bookings. Conducted for TravelCLICK by Phoenix Marketing International, the online, biannual survey included 500 travel agents from 30 countries, representing the four major GDS systems -- Amadeus, Galileo, Sabre, and Worldspan. The study finds that 41 percent of travel agents worldwide are using their GDS platform more often than in the past, while 30 percent are using the GDS shopping displays more often. When asked about their awareness of GDS promotional messages, 55 percent of travel agents recalled seeing promotional messages in the past three months. Of this group, 52 percent made a booking at a hotel shown in the promotional message they saw, while 68 percent requested more information by looking at the click-through screen attached to the promotional message, and more than 70 percent looked inside the GDS systems for more information. "Compared to the earlier study, the likelihood that an agent will book a hotel as a result of a promotional message has increased significantly from 40 percent in 2005 to 52 percent in 2007," said David Pluchino, Senior Research Manager at Phoenix Marketing International. "This increase indicates the agents' growing awareness and reliance on GDS promotions to find relevant, high-value choices for their clients." Among those agents who recalled seeing promotional messages, 80 percent felt that showing the best available rate offered by the hotel -- even if it is not a negotiated rate -- is the best way to get them to book a hotel while they are researching a hotel for negotiated rates. The survey also sheds light on the effectiveness of display ad content. Those surveyed ranked the details in promotional messages that are most likely to lead them to book a particular hotel. In order of importance, travel agents are most likely to book when the promotion:

  1. Shows a rate that they can actually book for the dates they are searching for (43 percent)
  2. Shows only the destination they are searching for (16 percent)
  3. Shows the hotel's GDS property ID (14 percent)
  4. Is competitive, offering a value greater than the hotel's standard available rates (14 percent)
  5. Includes information on amenities, travel agent incentives, and other add-ons in addition to price (13 percent)
"Driving over 30 percent of overall hotel bookings, GDS purchase decisions are beginning to mirror the behaviors of shoppers on the Internet -- relevant, targeted promotions help shoppers make informed decisions faster and with confidence," said John Hach, vice president of eMarketing solutions at TravelCLICK. "As a result, we are seeing higher performance from hotel GDS promotional messages as agent adoption increases." Survey results also reveal that most travel agents worldwide believe GDS systems should offer rate parity: 89 percent of US travel agents and 76 percent of international travel agents said it was very important to see the same rates available on all platforms. A copy of the study presentation is available at www.travelclick.net.

Demand for Communications Mobility Make In-flight Voice and Data Inevitable

U.S. airlines may be at a competitive disadvantage as European carriers move forward on plans for in-flight Internet connectivity and communication services on-board passenger aircraft, concluded a panel of industry experts last week at a National Press Club briefing sponsored by satellite communications leader EMS Technologies, Inc. and Aviation Week & Space Technology magazine. The Open Skies Agreement, signed by U.S. and European airlines last year, goes into effect this March, allowing U.S. and European carriers to compete in each other's market for transatlantic routes. But some industry observers foresee a potential competitive imbalance favoring non-U.S. carriers that could result if U.S. regulatory restrictions are not lifted. The panel, including representatives from AeroMobile, EMS SATCOM, JetBlue Airways, Inmarsat, OnAir and the World Airline Entertainment Association (WAEA) discussed the impact of this agreement and other technology and business drivers on the choice-of-carriers decisions of more than 600 million passengers expected to travel internationally this year. While the Federal Communications Commission (FCC) and Federal Aviation Administration (FAA) currently restrict airlines from using cell phones, innovative airlines like JetBlue are moving forward on trials with introductions of in-flight WiFi this year. In December, JetBlue, in partnership with LiveTV, Research in Motion and Yahoo!, became the first U.S. domestic carrier to provide free in-flight e-mail and text messaging on "Betablue," an Airbus A320 aircraft equipped with an onboard wireless network. According to a recent USAToday/CNN/Gallup poll, nearly 70 percent of frequent or occasional air passengers want the U.S. airline cell phone ban lifted. In addition, nearly 65 percent of BlackBerry and Treo users would use their devices in-flight if they could, according to a survey of European passengers sponsored by OnAir. According to the World Airline Entertainment Association, the market for in-flight communication and entertainment is forecast to increase from $50 million in 2005 to $950 million by 2016.

OPPORTUNITIES EXECUTIVE MOVERS!

CRUISELINES: Cruise industry veteran Lynn C. Torrent has been named senior vice president of sales and guest services at Miami-based Carnival Cruise Lines, the world's largest cruise operator. She will take on her new role on March 3. In this capacity, Torrent has overall responsibility for Carnival's various sales activities, particularly as they relate to supporting our travel agent partners, who account for the vast majority of the company's bookings. In addition to overseeing the line's award-winning sales force comprised of business development managers throughout the U.S. and Canada, Torrent is responsible for Carnival's call centers in Florida and Colorado Springs, Colo., as well as embarkation teams in the line's 20 different homeports. She is also responsible for Carnival's CARE Team, which provides assistance and support to guests and their families should medical incidents or other emergency situations arise during their vacation. A 13-year cruise industry veteran, Torrent most recently served as president and CEO - North America of Costa Cruises, a sister company to Carnival Cruise Lines, where she was responsible for the company's operations in North and Central America. Prior to that, she served for three years as vice president of marketing for Carnival's parent company, Carnival Corporation & plc. She began her career in the cruise industry in 1995 as executive vice president of sales, marketing and passenger services for Renaissance Cruises. Early in her professional career, Torrent was a senior auditor with Arthur Anderson in New York and later served as chief financial officer with Safecard Services, where she worked for Gerry Cahill who was then Safecard's chief operating officer. Torrent earned a bachelor's degree from CW Post in New York and her MBA from Florida Atlantic University...

HOTELS & RESORTS: Silverleaf Resorts, Inc. has announced that effective February 4, 2008, the board of directors of Silverleaf Resorts, Inc. has elected Robert M. Sinnott as Silverleaf’s Chief Financial Officer. Sinnott succeeds Harry J. White, Jr., who has served as Chief Financial Officer since June 1998. White will remain with the company as Chief Accounting Officer through May 8, 2008, the annual shareholder meeting date. After that date, White has announced his plans to retire as an officer and full time employee of Silverleaf; however, he will continue to remain involved with the company in a consulting capacity. Sinnott, who is a CPA, previously held the position of Director of Finance for Silverleaf Resorts from 1998 to 2003. Since 2003, he has served as Vice President of Finance for Ashford Hospitality Trust, Inc., a Dallas based publicly held owner of various hotels with revenues of over $1.5 billion... Hyatt Hotels & Resorts has announced the appointment of Brigitta Witt to the new role of vice president, environmental affairs. Witt will assist with the development of a corporate environmental policy that addresses Hyatt’s commitment to minimizing the impact that its hotels have on the environment. The policy she creates will focus on awareness and education to promote and reinforce a culture of environmental consciousness through all of facets of Hyatt’s global operations. Witt reports to John Wallis, senior vice president of product and brand development, Global Hyatt Corporation. Witt brings to Hyatt more than a decade of experience in marketing, change management and strategy consulting. Most recently she was senior director of business development and general manager for GreenDimes, an organization dedicated to reducing the production and eco-strains of junk mail. Her responsibilities included managing daily operations and establishing partnerships with global companies and organizations. Witt has spent the greater part of her professional career developing and implementing large-scale programs and initiatives at a variety of organizations, ranging from global corporations and state governments to Silicon Valley start-ups. At Wayport, Inc. she managed the deployment of company technology and WiFi connectivity to over 8,000 restaurants for their largest client, McDonald’s Corporation. For Epylon Corporation she implemented a strategic sourcing program for the New York City Board of Education, and in the early stages of her career, she developed marketing alliances for Hyatt International Corporation. Witt holds a Bachelor of Arts degree in Communications from the University of California, San Diego and a Master of Science degree in Integrated Marketing from Northwestern University... Privately held Noble Investment Group announced that it has added additional leadership depth to its operations team with the naming of Gary Rosenberg as vice president of resort operations. The company has current developments underway that will double its resort portfolio within the next three years. Rosenberg has extensive domestic and international expertise in large scale resort operations. In his new role, Rosenberg will oversee operational aspects for Noble's resort and destination properties, and will have an active role during the development phase of new resort investments. Noble is currently developing two new resort hotels with spa, golf and marina operations and has additional opportunities in the pipeline. Rosenberg brings a specialized focus to Noble, with an established background in superior product delivery, service standards and expertise in club and resort integration. Prior to joining Noble, Rosenberg was president of GKR Hospitality Group in Virginia, where he provided organizational resort and club management consulting. Previously, he was the executive vice president and chief operating officer for ClubCorp Resorts, where he developed a portfolio of strategically aligned resort properties in the United States and abroad. He also implemented a $120 million capital investment plan to completely restore the Homestead Resort in Virginia. In addition, he managed the asset's financial performance, which resulted in a $23 million improvement in operating profits. While also with ClubCorp, he directed the opening and operating strategies of prominent resort properties around the world, including the Homestead, Pinehurst, Barton Creek, Palmilla, Palmas Del Mar, Ocean Reef, Daufuskie Island, Firestone and several others. Rosenberg has a degree in business administration with an emphasis in marketing from the Brandywine College in Wilmington, Del. He is a member of the American Hotel and Lodging Association, the D.S. Lancaster Community College and Virginia Tech Board of Directors and has received the Virginia Hospitality Executive of the Year award.

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