The Travel Career Connexxions Opportunities Newsletter
02/12/08
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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?
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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:
- Shows a rate that they can actually book for the dates they are
searching for (43 percent)
- Shows only the destination they are searching for (16 percent)
- Shows the hotel's GDS property ID (14 percent)
- Is competitive, offering a value greater than the hotel's standard
available rates (14 percent)
- 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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