The Travel Career Connexxions Opportunities Newsletter
04/14/09
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This week in Opportunities:
Despite Economy, Agents Optimistic About 2009 Cruise Sales
Membership in Loyalty Rewards Programs Approaches Two Billion
Opportunities Watch!
Executive Movers! See who's going where?
Travel Executive Employment Report
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OPPORTUNITIES NEWS & TRENDS
Despite Economy, Agents Optimistic About 2009 Cruise Sales
According to a just-completed survey by Cruise Lines International Association (CLIA), America's travel agents remain optimistic about cruise
sales despite lingering economic uncertainty. Focusing on this year's Wave Season, the period between January and March when cruise
vacations show heavy bookings, the online survey drew more than 1,000 responses. Results largely confirmed cruise lines' positive
outlook that the industry is well positioned to weather the economic storm and will continue to see growth.
"Given the exceptional economic environment we find ourselves in, these survey results should be taken as good news," said Terry
Dale, CLIA's president and CEO. "They show every indication that consumers are responding to the value offered by cruise vacations
and to the many incentives offered by CLIA member cruise lines. What is particularly significant is that travel agents are relatively
optimistic not only about cruise booking volumes but about revenues in 2009 as well. This suggests that they believe the industry's
pricing and marketing strategies will compensate for and even overcome the conditions that have lowered consumer confidence in other
business sectors, such as retail and residential real estate."
The CLIA survey found that a majority of agents were optimistic that overall 2009 will be the same or better in terms of cruise bookings
and revenue. A majority also reported good, very good or excellent bookings during this year's Wave Season. The results also suggest that
booking patterns may be quickly returning to the industry norm and that, although lower priced cruises represent the majority of sales,
travelers also show signs of willingness to spend.
A summary of survey findings follows:
- Among respondents, 66.2 percent of agents predicted that overall cruise revenues for 2009 will be the same or better than 2008;
almost 30 percent (29.6) expected somewhat better revenues this year;
- 69.2 percent of agents expected overall bookings this year to be the same or better, with 31.1 percent expecting somewhat better bookings in 2009;
- Among the top motivating factors for consumers in 2009 for booking a cruise vacation will be: special offers (32.7 percent), good pricing
(29.4 percent) and good value (23 percent);
- Agents reported that the top reasons their clientele would book cruises during Wave Season 2009 would be: good value (40 percent); special
pricing (28 percent), and love of cruises (11.1 percent);
- During this year's Wave Season, 54.3 percent of agents said booking activity was good, very good or excellent; 48.7 percent found total
booking revenues during the same period to be good, very good or excellent;
- 56 percent of agents expected booking volume increases when compared to Wave Season 2008; 53.8 percent expected increases in revenues over
the same period last year;
- For 60.9 percent of respondents, consumers were booking cruises three to seven months ahead, with a third of agents reporting a three to four
month booking window. This is in contrast to a few months ago when consumers responded to the economic crisis by booking at the last minute;
- For 24.5 percent of agents, the average price of cruises sold was $1,000-$1,500 during Wave Season; for 23.2 percent of respondents, the average
price was $751-999; only 7.6 percent reported average prices of cruises sold to be less than $500;
- For 60 percent of agents, the typical length of cruise sold remained seven days, which has been the industry average consistently; 21.2 percent
of agents said their average cruise length sale was 4-6 days.
For more information on cruise vacations, please visit CLIA's Website at www.cruising.org.
Membership in Loyalty Rewards Programs Approaches Two Billion
Membership in U.S. loyalty rewards programs has reached 1.808 billion, according to the 2009 COLLOQUY Loyalty Census released today.
The adjusted total represents a 24% growth from the 1.3 billion tally in COLLOQUY’s last loyalty marketing industry census, published
two years ago in 2007. The 2009 census covers three industry segments not included in the 2007 version: Car Rentals, Cruise Lines and Mass
Merchandisers. If these new industries are removed, the adjusted 2009 U.S. census total stands at 1.673 billion. To properly compute
growth trends, COLLOQUY used the adjusted 2009 membership total as its data point.
COLLOQUY’s 2009 updated measurement of the scope of U.S. loyalty marketing shows the average U.S. household has signed up for 14.1 loyalty
programs but actively participates in only 6.2 of them. The corresponding numbers in 2007 were 12 and 4.7.
A loyalty marketing program recognizes and rewards the best customers of a business. COLLOQUY’s census tabulates program memberships, not
unique individuals. COLLOQUY provides a complete report on the 2009 census in a white paper titled, “The Big Sort: The 2009 COLLOQUY Loyalty
Marketing Census.” The paper is available free of charge at www.colloquy.com/whitepapers.
In a key finding from the research released today, COLLOQUY pegs the number of active memberships in U.S. loyalty programs at 792.8 million –
a number that the study’s authors characterize as “one of the worst-kept dirty secrets of the industry.”
Definitions of active memberships vary from company to company; but a typical example is a member that has at least one instance of activity,
such as earning points on a purchase or redeeming for a reward, within a 12-month period. The 792.8 million number means the rate of active
membership is relatively flat at 43.8%, compared to 39.5% in 2007.
“With roughly one billion inactive memberships, essentially names in databases, it’s fair to say the U.S. loyalty industry has reached the
middle-age bloat stage,” said COLLOQUY partner Kelly Hlavinka.
“Given the bursting of the credit bubble, the recession and pressure to control program costs, loyalty marketers must turn to growing program value,
not the size of their membership base,” added COLLOQUY Editorial Director Rick Ferguson. “Conditions are ripe for marketers to use loyalty data across
the enterprise, enhance value propositions and adopt innovative loyalty models such as coalitions, as they seek to revive lapsed members and turn
engaged members into profitable, loyal customers.”
COLLOQUY is a provider of loyalty marketing publishing, education and research. Its 2009 census is based on information from its own archives,
program web sites, sponsor-company press releases, annual report filings, third party publications and research reports.
Other industries covered in the 2009 census include Airlines, Drug Stores, Department Stores, Financial Services, Fuel Convenience, Gaming,
Grocery, Hotel, Restaurant, Specialty Retail and Other.
U.S. loyalty program memberships ranked by industry are as follows (in millions): Financial Services 422.0; Airline 277.4; Specialty Retail 191.3;
Hotel 161.8; Grocery 153.3; Mass Merchants 124.8; Gaming 106.0; Dept. Stores 92.8; Drug Stores 73.9; Fuel Convenience 51.2; Restaurant 13.7; Car
Rental and Cruises 10.7; and Other 127.9.
The results of this study will be presented in a webinar cosponsored by The Direct Marketing Association, June 25, 2009. Registration and information
available at www.the-dma.org/seminars/loyaltyweb/20090625.shtml.
OPPORTUNITIES WATCH!
Luxury Hotel Collection to Develop Brand Beyond European Borders
Franklyn Hotels and Resorts, a pan-European specialist in small luxury lifestyle hotels, is looking to extend the collection onto a global stage. The group
plans to establish a presence in North America and Asia by 2010, with an initial expansion into New York, Singapore, China, Indonesia and Thailand. This has
followed KOP Group's recent investment in Stein Management Company, parent company of Franklyn Hotels and Resorts, and the subsequent appointment of Michael
Sagild to the position of Chief Executive Officer.
Franklyn Hotels and Resorts is a unique, pioneering brand of luxury boutique hotels delivering individual luxury to guests seeking an alternative to large,
chain-operated hotels. The portfolio focuses on iconic, emblematic properties situated in urban centers as well as areas of great natural settings.
These objectives will be achieved in alignment with key partner KOP Group, a diversified real estate and private equity company, who themselves have created
waves in the real estate industry in Singapore with their bold vision and exciting projects. KOP Group, through its subsidiary, KOP Hotels and Resorts, will
use its fund to invest in hotel projects and acquisition.
CEO Michael Sagild says, "Our key focus with Franklyn is on strategic growth with a global rather than Eurocentric outlook. Through harnessing the strong
fundamental work of Franklyn's portfolio and philosophy, we will roll-out a distinctive, innovative brand of luxury boutique hotels onto a wider geographic
platform - achieved alongside KOP Group. While developing luxury living to new levels of excellence, Franklyn will become an established brand in North
America and Asia. Within two years, our guests will be able to enjoy this exceptional level of service and quality in North America and Asia, be it
during their stay in Franklyn Hotels and Resorts, or when dining at a Franklyn Restaurant."
OPPORTUNITIES EXECUTIVE MOVERS!
AGENCIES: eLong, Inc., a leading online travel company in China, has announced the appointment of Mike Doyle as
the Company's Chief Financial Officer, effective April 1, 2009. Doyle is currently Chief Financial Officer of Expedia Asia Pacific, a division of Expedia,
Inc., and has served on the Board of Directors of eLong since December 2004.
Doyle holds an MBA from Harvard Business School and a Bachelor's Degree in Finance from Southern Methodist University. Concurrent with his appointment as
Chief Financial Officer, Doyle tendered his resignation from eLong's Board of Directors (as well as the Compensation Committee of the Board of Directors)
with the resignation to take effect upon the appointment or election of his successor...
Universal Travel Group Inc., a growing travel services provider in the People's Republic of China specializing in online and customer
representative services to the travel service industry offering packaged tours, air ticketing, hotel reservation and air cargo agency services, has
announced the appointment of David Liu to the position of VP of Finance and Investor Relations. Liu will be based in the U.S. to
assist the CFO in managing investor relations for the Company.
Liu is fluent in both English and Chinese and has extensive experience in the financial services industry, as well as a strong network in both the U.S.
and China investment communities. Prior to joining Universal Travel Group, Liu served as a Private Banker for J.P. Morgan Private Bank in New York.
During his tenure with J.P. Morgan, Liu assisted clients and their IR firms to host promotional events to both institutional and individual investors.
He also attended numerous China-focused investment conferences and established a vast network amongst U.S. listed Chinese companies. Prior to J.P. Morgan,
Liu also worked in the market risk field at Deutsche Bank Securities Inc. in New York and obtained retail banking experience at Industrial and Commercial
Bank of China in Deyang, China. Liu holds a MSBA in finance from Texas Tech University and a BS in Finance from Southwest University of Finance
and Economics in Chengdu, China.
HOTELS & RESORTS: Crestline Hotels & Resorts, Inc. has announced the appointment and promotion of
Gina L. Worobel, to Director of Sales & Marketing for the Hilton Singer Island Oceanfront Resort in Singer Island,
FL. Worobel joined the Hilton Singer Island in 2007 as a Sales Manager. She brings 20 years of sales and hospitality industry sales
experience to her new role. She began her career with Interstate Hotels at the Marriott Sawgrass Resort. She has held hospitality sales
positions throughout Florida including Director of Sales & Marketing at the Palm Beach Gardens Marriott, also a Crestline managed hotel at the time...
Marriott International, Inc. has announced that Amy C. McPherson, executive vice president of global
sales and marketing, will become president and managing director of European lodging. The newly created position aligns with Marriott's
strategic priority of accelerating worldwide growth and its ability to compete in the global economy.
Reporting to Arne Sorenson, the company's newly appointed president and chief operating officer (effective May 1), McPherson will be
responsible for the performance and growth of a new division that combines the United Kingdom, Ireland and Continental Europe. Following
a transition period, she will relocate to Europe and begin her new role July 1.
Since joining Marriott in 1986, McPherson has held a variety of senior positions throughout the company with responsibilities in revenue
management, finance, business development and business transformation. She was instrumental in launching the company's Look No Further Best
Rate Guarantee ensuring consistent pricing across all sales channels, and more recently, led the development of Sales Force One, a
breakthrough strategy to cross sell Marriott's portfolio of brands and hotels.
Under McPherson's leadership, Marriott.com became the seventh largest consumer retail website in the world, generating $6.2 billion in
gross property-level revenues in 2008, and the company's global Marriott Rewards frequent guest program grew to more than 30 million
members. In 2005, she was recognized as one of 25 outstanding "Women Who Mean Business" by the Washington Business Journal.
McPherson is a graduate of James Madison University in Virginia and holds a BBA degree in Business Management and Economics. She also
earned an MBA degree from the College of William & Mary in Virginia.
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