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This week in Opportunities:

Leisure & Business Travel See Spring Boost
Airline Ticket Sales Soar
NY Hotels have best March occupancy since 1969
Airline Prospects Remain a Mixed Bag
The Bottom Line for Execs. - What They Made in '03
Networking Opportunities
New Opportunities!
Executive Movers! See who's going where?
Travel Executive Employment Report

OPPORTUNITIES NEWS & TRENDS!

Leisure & Business Travel See Spring Boost

Things are looking up for the U.S. travel industry. The Travel Industry Association of America's Spring 2004 forecast predicts Americans will take 270.2 million person-trips during March, April and May 2004, up 3.3 percent over last spring. The overall forecast calls for the strongest spring travel season since the spring of 2001. A person-trip is one person on one trip traveling 50 miles or more from home, one way. The Travel Industry Association (TIA) predicts spring 2004 leisure travel will show a positive growth of 3.1 percent over last spring-the highest volume of spring person-trips in five years, with Americans planning on taking more than 215 million leisure person-trips. TIA's forecast calls for a 5 percent hike in business and convention travel volume this spring, compared with spring 2003. American business travelers plan on taking nearly 45 million business person-trips this spring, representing the highest number of business trips since spring of 2001.

Airline Ticket Sales Highest Since June 2001

The Airlines Reporting Corporation (ARC), the clearinghouse between major U.S. airlines and accredited travel agency locations, posted record numbers in March, meaning the sale of airline tickets is on the rise (and with it travel overall). ARC said it settled more transactions in March than in any other month since June 2001. Total sales, domestic fares and international fares process also reached their highest point in 33 months. In addition, ARC-accredited locations set a new record high average volume of sales per week, breaking the previous high set in February. For March, total sales were $7.116 billion, up 21 percent from the same month last year, when total sales were just $5.9 billion. Average weekly sales per retail location were up 36 percent at $56,715 versus $41,848 in the same month last year.

New York Hotels Record Better March Business

If you want more evidence that travel business is coming back, just read the outlook for hotel occupancies in bellwether New York City. According to PKF consulting, the international hospitality advisory firm, New York occupancies for the month of March reached their highest level for any March since 1969. Preliminary data for the month indicate city occupancies averaged nearly 85 percent, compared with 69 percent recorded in March 2003. More importantly, the high occupancy levels were combined with a healthy 5.5 percent increase in average daily room rates-to approximately $182.00. The strong March results also bring the overall first quarter, traditionally the slowest period of the year for New York City hotels, up to an average occupancy of 76 percent, compared with 67 percent last year. Overall, room revenues for the first quarter of 2004 increased by 16 percent. PKF attributed the healthy increases to an increase in visitation in the first quarter, compared to the same period last year, when there existed uncertainty among travelers because of the Iraq war. In addition, occupancies have been helped by the lower value of the U.S. dollar against the euro and other currencies, making New York an attractive destination for foreign travelers, and making domestic travelers decide to make their travel plans in the U.S. this year.

Airline Prospects Remain a Mixed Bag

Of course, not all segments of the travel industry are performing up to par. The first set of airline quarterly results reported last week showed continued weakness among most major carriers, with strength demonstrated by one low-cost carrier. Delta Air Lines reported a first quarter net loss of $383 million-and Delta executives emphasized the carrier needed to find a path to long-term, sustainable profitability. Continental Airlines reported a first quarter net loss of $124 million, though those results represented a 44 percent improvement over first quarter 2003. So far, only Southwest Airlines is posting profitable results. The low-cost carrier said its net income for first quarter 2004 was $26 million, compared to first quarter 2003 net income of $24 million, an increase of 8.3 percent. Analysts expect most major carriers to report losses, while low-cost airlines are expected to be profitable, continuing a trend that began last year. So don't look for major carriers to go on any hiring sprees, save to replace some departing top executives.

What Selected Top Travel Executives Made in 2003

So what kind of compensation are top travel executives getting these days? Starwood Hotels & Resorts Worldwide paid Chief Executive Barry Sternlicht a total of $5.3 million, including restricted stock valued at $1.5 million and a bonus of $2.7 million, some of which was deferred or used to buy options. That compares to the total $5.1 million Sternlicht received for 2002, including a $1.18 billion bonus and a restricted-share grant of $2.8 million. Starwood also paid former Chief Financial Officer Ronald Brown $1.44 million in total compensation for 2003. Brown is now Starwood's executive vice president for strategy. Meanwhile, Hilton Hotels paid President and CEO Stephen Bollenbach a $2 million bonus for 2003, double what he received in 2002. Bollenbach's salary of $1 million a year remained unchanged, but he also realized $20.4 million from the exercise of options in 2003.

Finally, you don't have to run a profitable airline to make money. US Airways board has awarded Chief Executive David Siegel a compensation package with a potential value of nearly $11 million, though the airline says that figure is misleading because it inflates the value of stock awards granted to Siegel and other top executives. According to US Airways' proxy statement, Siegel received a salary of $600,000 and no bonus in 2003, plus other cash compensation of $98,890. He was also given 1.13 million shares of US Airways stock, valued at $8.3 million under Securities and Exchange Commission accounting rules. He also received an option on 669,600 shares of stock, with a strike price of $7.42 a share, valued at $1.9 million, assuming those shares increase in value 5 percent a year through 2010. Because the stock currently trades at less than the strike price, they now have no value. The total compensation package, including the potential value of the options, is $10,906,010. But a US Airways spokesman said the value of the 1.13 million shares given to Siegel is misleading, because unlike most stock grants, which are redeemable immediately, Siegel cannot cash in his shares until at least 2005. The $8.3 million value is based on the stock's value of $7.34 a share on the date they were granted, though US Airways now trades closer to $4 a share.

The airline also said Siegel's salary is less than the $750,000 a year to which he is entitled under his contract. Excluding stock options for both years, though, Siegel's 2003 compensation of $8.996 million dwarfs his 2002 compensation of $1.447 million.

NETWORKING OPPORTUNITIES!

Meet the Industry at Travel Institute's 2004 Forum

Want more information on one of the best networking conferences in the travel business? The Travel Institute has unveiled additional details about its annual National Forum, Sept. 10-12, 2004, at the Arizona Biltmore Resort & Spa in Phoenix. This year's Forum, which is open to all travel professionals, will feature significant program changes that will enhance attendees' educational experience. "Think-tank" discussion groups, popular in past Forums, will encourage participants to exchange ideas with a cross-section of industry professionals. Attendees will be engaged in rotating discussion groups that respond to the general session presentation topics in lively problem-solving sessions. Each session will be moderated by an industry leader from a travel agency, supplier, or Institute board member or manager, allowing for varying perspectives on key issues. A cornerstone of the Forum will be the integration of innovative concepts from the best-selling book Six Thinking Hats by Dr. Edward de Bono. Barbara Stennes, CSP, a Certified Master Trainer of Six Thinking Hats, will lead activities throughout the weekend with help from travel industry leaders who have been trained as facilitators. During the course of the conference, attendees will engage with up to 30 fellow travel professionals in their rotating discussion groups. Networking activities and exciting events are also scheduled, including The Travel Institute's 40th birthday gala. All travel professionals are invited to attend the National Forum, and Institute members receive a $100 discount. The early bird member rate of $245 and $345 non-member rate expire May 31. For more information, call 800-542-4282 or visit www.thetravelinstitute.com.

Find Out More About Airlines at May CEO Event

Want to find out more about opportunities in the airline industry? The low-cost carrier phenomenon will be among the hot topics on the agenda of AvNews' 12th Annual International Airline CEO Conference, set for May 2-4 at The Westin Diplomat Resort & Spa in Hollywood, Fla. Top executives with Song, JetBlue Airways, Spirit Airlines, American Eagle, GOL (the Brazilian Southwest Airlines clone), and many Latin American airlines and international aviation companies will be among the 230 attendees and 25 airlines represented. The conference will feature speeches by Song CEO John Selvaggio; TAP Air Portugal CEO Fernando Souza Pinto; the U.S. Department of Transportation's under secretary for policy, Jeffrey Shane; Embraer CEO Mauricio Botelho; and Bombardier Aerospace's president of the regional aircraft division, Steven Ridolfi. In addition to the speeches, the conference will feature panel discussions and workshop on topics ranging from issues that affect regional airlines to cargo carriers. Other conference activities will include a golf tournament to kick off the event along with cocktail receptions and banquets that will enable attendees to network with the "who's who" in the airline industry. Admission to the conference is open to all AvNews subscribers. Admission is $995 for AvNews' non-airline subscribers and $795 for airline subscribers. AvNews Latin America & Caribbean is a monthly newsletter read by airline industry CEOs and key decision-makers in more than 50 countries. For detailed program information and to register for the International Airline CEO Conference, visit www.ceoconference.com or call 305- 876-9339.

GROWTH OPPORTUNITIES!

InterContinental Unveils New Hotel Indigo Brand

InterContinental Hotels Group unveiled a new brand, Hotel Indigo, described as a new lodging alternative for the traveler seeking a hotel experience, not just a hotel room. Hotel Indigo is positioned as a lifestyle brand that delivers a refreshing, inclusive hotel experience to middle-market consumers who want to trade up to higher levels of quality, but still seek value. The brand was developed primarily for conversions of existing properties, especially in preferred locations where a hotel might not be reaching its full potential. The first Hotel Indigo is scheduled to open in Atlanta by the end of 2004, and will have approximately 140 rooms. Indigo will be InterContinental's seventh brand, coming less than six months after the acquisition of Candlewood Suites in October 2003.

Savoy May Launch Claridge's as Luxury Chain

Irish investor group Quinlan Private, the new owners of the Savoy Group, the London-based luxury hotel company, are reportedly weighing the creation of a worldwide chain of hotels branded as Claridge's, one of Savoy's select group of hotels. Quinlan is understood to be looking to buy upscale properties in such cities as New York and Paris to expand the brand overseas. The move follows Quinlan's $1.4 billion purchase of Savoy Group, which includes four of London's best-known hotels--the Berkeley, Claridge's, the Connaught and the Savoy. Other plans reportedly being considered by Quinlan include the redevelopment of the flagship Savoy hotel, with the addition of 150 rooms to the property's existing 236. Quinlan bought Savoy Group from U.S. venture capital firms Colony Capital and Blackstone Group.

Former Ritz Carlton CEO Grows New Company

Former Ritz Carlton President and CEO Horst Schulze reportedly has unveiled plans for a new ultra-luxury hotel on the South Shore of Bermuda. Schulze's West Paces Hotel Group has financing lined up for a new 100-room, $80 million hotel called the Cliffs Resort and Spa. Schulze's company also is planning to develop other hotels in Atlanta, New York, Beverly Hills, Chicago and London, all aimed at the top rung of the market.

Joie de Vivre Keeps Adding Boutique Hotels

We've mentioned Joie de Vivre Hospitality in this newsletter quite a lot lately. This week is no exception. The boutique hotel company is expanding once again with the June 25 grand opening of the completely renovated 86-room Hotel Montgomery in Downtown San Jose.

Growing Category: Upscale Vacation Home Ownership

There's a booming market for upscale vacation home ownership. Abercrombie & Kent Destination Clubs, a division of the luxury tour operator Abercrombie & Kent, just added 20 resort properties, some in new prime vacation destinations, including Sun Valley, Aspen, Rhode Island, San Diego and England.

Southport, Conn.-headquartered Abercrombie & Kent Destination Clubs provide members with the ability to own multiple vacation homes throughout the world at a fraction of the cost. Destination Clubs offer members unlimited access to more than 70 world-class destinations on all seven continents, including residences and yachts in Nevis, Jackson Hole, Cabo San Lucas, Telluride, Tortola, Hawaii and Scottsdale. Also available are luxury City Club suites in Paris, London, Rome, New York, San Francisco, Miami and San Diego. Members also enjoy access to private jet and turbo prop aircraft through Abercrombie & Kent Jets powered by Bombardier Flexjet.

EXECUTIVE MOVERS!

AIRLINES: M. Michele Burns, executive vice president and chief financial officer, has resigned from Delta Air Lines, effective April 30. She will join Mirant Corporation of Atlanta as executive vice president and chief financial officer, and lead the company's financial restructuring. Gerald Grinstein, Delta chief executive officer, said he will announce a replacement for Burns soon. Burns is the latest top Delta executive to leave the airline. Frederick Reid, president, resigned earlier this year to take a new post with Richard Branson's planned low-cost U.S. carrierÖ

World Airways, Inc. announced several senior management changes following the April 1 promotion of Randy Martinez to president and chief executive officer and Jeff MacKinney to chief operating officer. Charlie Addison has been named senior vice president, operational support services. In this role, Addison will lead crew resources, IT and facilities, aircraft acquisitions and fleet management, operations analysis, contract services and publications. Charlie McDonald will join World Airways on May 3 as senior vice president of operations. He will focus on day-to-day operations, overseeing flight operations, technical operations, customer services and in-flight services. Most recently, McDonald has been senior vice president and chief operating officer of TransMeridian Airlines, and prior to that held management positions with American Eagle and British Aerospace. Rob Binns has been named senior vice president, marketing and planning. He will oversee the planning functions previously held by MacKinney, along with added responsibility for sales and marketing. Binns will join World on April 26, having served most recently as president and chief executive officer of TransMeridian Airlines and previously as its chief financial officer. He spent six years with TWA and two years with Pegasus Aviation.

CRUISES: Celebrity Cruises tapped international shipping executive John Krousouloudis as vice president of marine operations. Krousouloudis will oversee all nautical and technical operations as well as safety and environment issues for Celebrity's fleet of 10 ships, reporting to Dietmar Wertanzl, Celebrity's senior vice president of fleet operations. Krousouloudis was most recently president of Athenian Energy, serving major oil clients, Prior to that he was chief operating officer and general manager of AVIN International, a Greek operator of 32 oil tankers trading worldwideÖ Royal Caribbean Cruises Ltd. promoted 20-year Royal Caribbean veteran Bill Martin to vice president-trade support and services, a new post designed to improve the cruise company's relationship with travel agencies. Martin previously led the company's customer service and decision support teams and was the architect of the company's recently released automated intelligence tool, "Insight," a first in the cruise industry.

HOTELS: Boyd Gaming Corporation said that effective March 31, 2005, Don Snyder will retire as president, and Keith Smith will be named president. Snyder first joined the Boyd in April 1996 when he was appointed to its board, and in January 1997 was named its president. Keith will continue as the company's chief operating officer, a position he has held for three years. Boyd Gaming is owner and operator of 13 gaming entertainment properties located in Nevada, New Jersey, Mississippi, Illinois, Indiana and Louisiana. Last year it opened Borgata Hotel, Casino and Spa in Atlantic City, through a joint venture with MGM MirageÖ Choice Hotels International, Inc. has added to its MainStay Suites franchise sales team by naming Brian Ebbs and Mark Pearson as franchise sales directors selling MainStay Suites franchises in the eastern and mid-western regions of the U.S. Ebbs is responsible for expansion of the MainStay Suites brand in the eastern part of the U.S.. His hospitality career includes eight years with Choice when he worked in the company's marketing department in addition to serving as both director of franchise services and marketing manager for Flag Hotels, Choice's Australian franchise partner. As a new franchise sales director for Choice Hotels, Pearson is responsible for the expansion of the MainStay Suites brand in the mid-western region of the U.S. Pearson formerly was employed by the Cendant Corporation, overseeing new construction hotel development of the Wingate and Super 8 brands in the MidwestÖ

Destination Hotels & Resorts, which operates 25 independent, luxury and upscale hotels, resorts and golf clubs in the U.S., named Denise Miller as regional director of sales based in New York. Miller's addition to the DH&R sales team continues to strengthen the company's national sales efforts with regional offices in both New York and San Francisco, CalifÖ.Noble House Hotels and Resorts has appointed Raluca Leibowitz as general manager and Cliff Brutus as director of sales and marketing for Grove Isle Resort & Club, located on Biscayne Bay in Coconut Grove, Fla. Leibowitz, who will be responsible for overseeing the day-to-day management and operations at the 49-room luxury resort, joined from Hotel Zaza in Dallas, where she served as hotel manager since its opening. Her previous experience includes positions as corporate director of human resources with The Melrose Hotel Company, director of regional training for The Four Seasons Resort & Club in Dallas, and director of human resources for the Dallas Medallion Hotel. She also has held operational positions at both the Dan Panorama Hotel and the Dan Carmel Hotel in Haifa, Israel. Brutus will be responsible for managing all aspects of the sales and marketing department, including corporate and leisure sales, marketing, advertising, and catering. He has been with Noble House since 2001, when he joined as director of leisure travel sales for Florida. Prior to joining Noble House Hotels and Resorts, he worked for Island Outpost, a luxury hotel chain with properties in the Caribbean and Miami's South BeachÖ

Cendant Travel Distribution Services (TDS), a division of Cendant Corp., appointed Joseph Flynn, Debra Taube, Gregory Hopkins, and Graham Bray as regional vice presidents and Christine DeZarn as director-technical sales. In these roles, Flynn, Taube, Bray and DeZarn will be responsible for new business development in Europe, Asia Pacific, Africa, the Middle East and the Americas. The TDS enterprise sales team sells a diverse range of travel distribution solutions to the hospitality industry through brands. Flynn is responsible for selling enterprise solutions in North America. He has worked in sales in the hospitality technology business for more than 13 years. Flynn is based in Boston. Prior to joining TDS, he worked for Hotel Information Systems, Inc. (HIS), a wholly owned subsidiary of MAI Systems Corporation. Taube is charged with selling enterprise solutions throughout North America. Prior to joining TDS, Taube was vice president, business development and marketing for TravelWerx, a provider of CRM technology for the travel and hospitality industry. Previously, Taube held sales positions at American Express, Carlson Wagonlit and Thomas Cook. Taube is based in Detroit. Hopkins is responsible for enterprise solutions in the U.S. He previously worked for Wayport, Inc., a leading provider of high-speed Wi-Fi, and for SynXis, where he served as national sales director. Hopkins is based in Miami. Bray is in charge of enterprise solutions for Europe, the Middle East and Africa. He joins TDS from Pegasus Solutions, a reservations-related technology and services provider to the hospitality and travel industry, where he served as director of sales for the same regions. Bray is based in London. Bray also co-founded Mirror Image Communications (MIC) and launched the Total Distribution System, a real-time B2B distribution system, automating the complex leisure accommodation bookings process. He has held various operational and sales roles for major hotel brands, including Forte and Le Meridien, Thistle, Holiday Inn and Protea Hotels in South Africa. DeZarn is responsible for global technical sales, focusing on the support of the online distribution channel. Prior to joining TDS, DeZarn was with Galileo International for nine years, serving in a sales capacity for technical product lines within the travel industry. DeZarn is based in Denver. The new members of the enterprise sales team report to Andy Hermo, vice president-enterprise sales-TDS.

TOUR OPERATORS: John Peters, former president of Zeus Tours, and vice president-field sales and marketing of Far & Wide Travel Corporation, has been appointed executive vice president for sales, marketing and business development of Group IST. Peters is based at Group IST's headquarters in midtown Manhattan. Group IST is a leading providers of specialty travel, offering religious tours, small ship and barge programs, and customized group travel.

TRAVEL TECHNOLOGY: Orbitz, the online travel agency, said Mary Oleksiuk has been named as vice president-human resources. Oleksiuk is responsible for employee recruitment, development and retention for the company. She was most recently senior vice president-human resources, communications and learning for Solucient, LLC, a healthcare information company. Her experience includes 17 years in a variety of human resources and technical positions for Allied Signal Inc. and Honeywell...ITA Software, Inc., which provides airline distribution technology, named Eli Sanders as vice-president of customer relations, a newly created position. Eli will be responsible for all aspects of customer relationship management and client services reporting to Dave Baggett, chief operating officer. Prior to joining ITA, Eli worked at SBI.Razorfish as vice-president of client services. He also served as senior software engineer and project lead at BellCore, the R & D division of the Regional Bell Operating Companies.

TRAVEL AGENCIES: GIANTS, the 1,500-location travel agency cooperative, has named industry veteran Suzanne Hall to the newly created position of senior director of marketing and development-land products. Hall will oversee GIANTS' successful Select Traveler Hotel Connections program, in addition to other land-based vacation products such as the new villa/vacation home product and the Global Concierge program. She will also be the primary marketing contact for GIANTS' preferred wholesale and land-products suppliers. Hall previously held executive posts with several tour operators, including CIT Tours, IST Cultural Tours, and Jet Vacations/Air France. Prior to joining GIANTS, Hall served as vice president of sales and marketing for CIT Tours.

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