The Travel Career Connexxions Opportunities Newsletter
05/23/06
The only weekly newsletter detailing essential trends, news and
top executive moves in travel. Opportunities is a free
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This week in Opportunities:
Despite Fuel Prices, Memorial Day Travel Expected to Rise
Hotel Revenues Rose in 2005, Along with Expenses
AMEX Travel: Family Vacations on the Rise
Opportunities Watch!
Executive Movers! See who's going where?
Travel Executive Employment Report
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Did you know? As of 05/23/06 there are 165 executive-level
travel jobs published in the Travel Career Connexxions
employment report. Positions include President & CEO (05/22),
Director of Group Sales (05/19), Vice President of Marketing &
Communication (05/16), Director of Sales (05/15), Director of
Solutions Technology (05/16), President and CEO (05/22) 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 Fuel Prices, Memorial Day Travel Expected to Rise
Travel will be up slightly this Memorial Day holiday despite
high gas prices and increasing vacation costs, according to
AAA. AAA estimates that 37.6 million Americans will travel 50
miles or more from home this holiday, a 0.9 percent increase
from last year. Approximately 31.4 million travelers (84
percent of all holiday travelers) expect to go by motor
vehicle, a 0.7 percent increase from the 31.2 million who
drove a year ago. Another 4.3 million (11 percent of holiday
travelers) plan to travel by airplane, up 1.5 percent from last
Memorial Day. A projected 1.9 million (5 percent of all holiday
travelers) vacationers will travel by train, bus, or other mode
of transportation, about even with a year ago. Holiday auto
travelers will find gas prices nationwide currently averaging
$2.93 for a gallon of self-serve regular gasoline -- up 17
cents from a month ago and more than 75 cents higher than this
time last year. Air travelers will also be paying more to fly
this weekend. AAA's Leisure Travel Index shows flights over the
holiday weekend averaging 10 percent more this year than last
year. Hotel rates will also be up about 5 percent from a year
ago. The greatest increase will be seen in rental car rates --
up about 19 percent from a year ago -- adding almost $6 to the
average daily car rental rate, the highest average rate for
Memorial Day weekend in the past six years. The Air Transport
Association (ATA) expects more than 21 million passengers to
travel globally on U.S. airlines over the 2006 Memorial Day
holiday. The nation's airlines are expecting to transport 2.1
million passengers per day between Monday, May 22 and
Wednesday, May 31. Systemwide, passenger volumes during this
period are projected to rise 1.9 percent from a year ago,
principally due to 9 percent growth in international air
travel. Guest bedrooms across the country will be full this
Memorial Day holiday as 41 percent of travelers expect to stay
with friends or relatives; hotel/motels rank second with 35
percent; followed by cabin/condo, 8 percent; no overnight stay,
7 percent; and camper/trailer/RV/tent, 5 percent, according
to AAA.
Hotel Revenues Rose in 2005, Along with Expenses
In 2005, U.S. hotels were able to turn a healthy 8.8 percent
rise in total revenue into an impressive 15.5 percent increase
in profits according to the recently released 2006 edition of
Trends in the Hotel Industry published by PKF Hospitality
Research (PKF-HR), an affiliate of PKF Consulting. This marks
the second consecutive year of double-digit profit growth for
U.S. hotels. However, expenses continue to escalate at a level
more than twice the rate of inflation, causing concern for
hotel owners and operators. In 2005, the cost of operating a
U.S. hotel grew 6.5 percent. Leading all expenses in percentage
growth were utilities that grew 13.6 percent from 2004 to 2005.
The largest cost center, labor and related expenses, increased
by 5.1 percent last year, creating another drag on profit
growth. Unlike 2004, a wider variety of properties started to
benefit from the industry upswing during 2005, the second year
of recovery from the 2001-2003 recession. According to the
study, in 2005, all five property types the Trends survey
achieved strong gains in total revenue, as well as double-digit
increases in bottom-line profits. PKF-HR breaks down their
survey sample into five property categories: full- service,
limited-service, convention, all-suite, and resort. Among the
different property categories, limited-service hotels achieved
the greatest increase in revenue (10.3%), while full-service
hotels achieved the greatest increase in profitability (19.3%).
While convention hotels lagged the other property types
somewhat in terms of revenue and profit growth, the 7.8 percent
gain in revenues and 12.2 percent increase in profits posted by
these hotels are well above the long-term averages for this
segment. For the hotels in PKF's 2005 Trends sample, a 2.9
percent increase in occupancy combined with a 7.4 percent
increase in ADR to generate a 10.4 percent increase in RevPAR.
This favorable mix of RevPAR drivers was the primary reason for
the high growth in profits achieved in 2005. In 2005, revenues
from all other minor-operated departments did not keep pace
with the significant rise in rooms revenue. The combined
revenues from the food department, beverage department,
telecommunications, other operated departments, and rentals and
other income increased by 5.6 percent from 2004 to 2005. Not
contributing to the increase in bottom-line profits was the
telecommunications department. Sales in this department dropped
another 7.6 percent in 2005, the fifth consecutive year of
revenue declines. Total operating expenses for the hotels in
the Trends sample grew 6.5 percent in 2005, double the 3.3
percent rate of inflation for the year. At 44.6 percent of all
operating expenses, labor and related costs continue to
represent the largest expense item for hotels. Therefore, the
5.1 percent increase in labor and related costs incurred during
2005 contributed significantly to the 6.5 percent increase
total hotel operating costs. In 2005, rooms department expenses
increased 7.3 percent, the single largest increase for any
revenue-generating department. Two of the most significant cost
increases in 2005 have been in management fees (8.9 percent)
and franchise fees (9.8 percent). This makes sense since a
large portion of these costs is often charged as a percentage
of revenue. With newspaper headlines trumpeting the daily
increases in crude oil prices, hotel owners and operators are
extremely concerned about the direct and indirect impacts of
rising energy prices. In 2005, hotel utility costs rose 13.6
percent, the single largest increase of any individual expense
item on a hotel's financial statement. It appears that
municipalities all across the nation have taken notice of the
rise in hotel industry profits and values. In 2005, hotel
property taxes rose 6.2 percent, the largest increase since
1987. For more information on the 2006 Trends in the Hotel
Industry survey or a Benchmarker report, visit www.pkfc.com.
AMEX Travel: Family Vacations on the Rise
Family travel is on the rise this summer, according to almost
four out of five (79%) American Express Travel agents polled
nationwide, who identified it as one of this year's most
significantly increasing travel trends. This summer, family
vacations are expanding beyond the traditional getaways to
include newer, broader, more active and meaningful travel
plans, say agents. They say that top motivators for family
travel include the desire to introduce children to different
cultures, customs and lifestyles, to experience new things
together and create lasting memories. Results from the American
Express Travel poll of 279 of their agents found that family
travel today means more than the typical nuclear family trip of
the past. Eighty-one percent of agents are booking family
vacations consisting of multi-generational trips that include
grandparents. Additionally, more than two-thirds (69%) of
agents are seeing grandparents traveling exclusively with their
grandchildren -- independent of Mom and Dad. Other trends
spotted by agents include adult children traveling with their
parents (69%); family and family friends traveling together as
one large group (67%); "blended" families, consisting of
divorced/remarried parents with their new spouses and children,
traveling together (31%); and extended family members including
aunts, uncles and cousins taking trips as a collective group
(28%). American Express Travel agents say that families are
increasingly drawn to active and experience-driven travel plans.
In fact, poll results showed that agents are booking more
outdoor, adventure family vacations (62%), along with more
international family vacations (57%). Almost half (49%) of
travel agents polled recognized cruising as a growing trend in
family travel. Families are also taking trips to celebrate the
family itself with family reunions on the rise, according to
the 41% of agents who said they had been asked to plan such a
trip this year. Another key trend is a rise in family members
pairing up to travel. Almost two-thirds (64%) of agents are
seeing a rise in mother-daughter getaways; and 36% of agents
noted an increase in father-son travel. Almost two-thirds of
agents said that spa getaways make up most mother-daughter
vacations; while fathers and sons most often choose active
vacations, such as hunting, biking, hiking or fishing. Data on
2006 family travel trends was collected via an online poll of
279 American Express Travel agents across the U.S. The poll was
fielded during the first and second weeks of May 2006.
OPPORTUNITIES WATCH!
Group Travel Company Seeks Direct Marketer
Subscribe to the Travel Career Connexxions employment report
and find more open positions like this:
Vice President, Marketing
Groople, Inc.
Are you an experienced direct marketing executive? Do you have
an entrepreneurial passion to work in a start-up environment?
We are seeking a well-rounded individual to develop a strong
direct marketing program and manage our existing online
marketing effort in order to further build the Groople
brand within our target markets.
Groople is the leader in
the dynamic and fast growing group travel market. As the Vice
President of Marketing you will be responsible for the
Marketing Department including the budget and key financial
metrics and will serve as the senior marketing officer
reporting directly to the CEO.
If you love direct marketing and have a passion for creating
sales from your efforts, then we have a unique opportunity for
you. You will work closely with Groopleís entire organization
as a part of the executive management team and will be
largely responsible for the success of Groople.
In addition to managing the existing online marketing program
and assisting with the channel marketing lead generation
effort, co-managing public relations and managing
the development of the Groople brand, the successful candidate
will be responsible for building a direct marketing program
from the ground up and should personally have the skills
necessary to implement the program.
Responsibilities:
- Obtain a detailed understanding of Groopleís customer and
prospect database.
- Develop all aspects of a direct marketing program using
multiple delivery and contact mechanisms. Create direct
marketing plans and programs that generate leads and result in
sales
- Conduct ongoing segmentation and data analysis to identify
profitable marketing opportunities
- Perform in-house services and only utilize cost-effective third
party providers for eCommerce, marketing automation
infrastructure, analytical and modeling services when needed
- Work closely with the Business Development team to generate
leads for the channel marketing program
- Through the execution of these marketing programs, you will be
largely responsible for the success of the company.
Qualifications:
- At least five years of direct marketing experience required;
senior management experience preferred
- Strong strategic thinker with tactical abilities. You must be
capable of creating a vision and executing the detailed plans
without a large staff
- Broad breadth of direct marketing experience, encompassing
all relevant and related disciplines
- Demonstrated success managing the strategy, implementation
and optimization of direct marketing programs
- Detailed experience with database marketing including
segmentation, testing and ROI analysis
- Hands-on experience with a campaign management and query
reporting tools
- Experience directly managing outside agencies and/or
database service providers
- Results-oriented self-starter
- High level of integrity
- Exceptional analytical, organizational and interpersonal skills
- Team player capable of building a world-class direct marketing team over time
Preferred skills and experience:
- Previous sales responsibility in a marketing role within
publishing or other industry reliant on direct marketing
- Previous eCommerce, specifically email marketing, search
engine or online advertising experience
- B.S./B.A. in Business Administration or Economics preferred.
- MBA or equivalent preferred
Groopleís corporate office is located in Centennial, Colorado.
Groople provides group travel services for hotel products to
Travelocity, TravelHero, World Choice Travel and more. Groople
is an equal opportunity employer and provides a solid benefits
program including health insurance, 401K and a stock option
plan. Please email your cover letter and resume to
careers@groople.com or fax to (303) 483-9019.
Attention: Mike Stacy.
OPPORTUNITIES EXECUTIVE MOVERS!
AIRLINES: UAL Corporation, parent company of United Airlines,
has announced four new officer appointments. United appointed
Jane Allen senior vice president - Human Resources, with
responsibility for United's human resource functions worldwide,
including labor relations, personnel policies and issues,
benefits and compensation. Allen, who joined the company in
2003, previously served as senior vice president - Onboard
Service, a role that is being filled by Sean Donohue, currently
United's vice president - Customer Experience. The company also
announced it appointed Monique Hines vice president -
Information Services Division, and Srisu Subrahmanyam, vice
president - Continuous Improvement. Prior to joining United,
Allen held several leadership roles at American Airlines,
including vice president of flight service and vice president
of employee relations and chief labor negotiator. Having joined
American as an attorney, she also served as managing director
of compensation and benefits. Allen will report directly to
Tilton in this role. In his new role as senior vice president
-- Onboard Service, Donohue will be responsible for the
company's worldwide flight attendant operations, food and
beverage operations, flight attendant manpower planning and
scheduling, and crew hotel accommodations. Donohue joined
United in 1984 and has held a number of leadership positions
across the company, including launching Ted in 2004. Donohue
also served as vice president of Operational Services, United
Express and Ted, where he was responsible for overseeing
United's system operations control center as well as ensuring
the growth and profitability of Ted and the financial and
operational performance of United Express. In his most recent
role, Donohue has worked closely with the operational divisions
to improve customer satisfaction. Dennis Cary, senior vice
president - Marketing, will continue to lead the customer
experience initiative and will work with Donohue and other
company leaders to drive improvements for United's customers.
The company expects to name Donohue's replacement following an
internal and external search for candidates. In her new role as
vice president - Information Services Division, Hines will have
responsibility for leading information systems development,
deployment and support; technology and service management and
IT architecture companywide. Hines joined United in 2004 as
managing director, chief of development. Prior to joining
United, Hines was vice president and chief information officer
for Pactiv Corporation. She also held several leadership roles
at Whirlpool Corporation and GE Capital, including vice
president of Global Architecture & Business Consulting, vice
president of Global Supply Chain, vice president of Enterprise
Resource Planning and several Information Services leadership
positions, delivering capabilities focused on enabling and
significantly improving business operations. She will continue
to report to Garry Kelly, senior vice president - Continuous
Improvement, Strategic Sourcing and Chief Information Officer.
Also reporting to Kelly in a newly created role as vice
president - Continuous Improvement will be Srisu Subrahmanyam.
In this role, Subrahmanyam will be responsible for leading
overall corporate continuous improvement efforts and driving
improved productivity. He joined United in 1999 and held
several management positions, including managing projects for
Onboard Service, maintenance supply chain management efforts in
United Services and IT portfolio management as Director of
Business Technology. He also led the corporate Industrial
Engineering group and most recently served as a managing
director in the Information Services Division...South African
Airways has announced the appointment of Marc Cavaliere as
Executive Vice President-North America. Based at the carrier's
U.S. headquarters in Fort Lauderdale, Florida, Cavaliere will
oversee all aspects of SAA's North American operations
including the airline's regional integration into the global
Star Alliance. An airline industry veteran with more than 20
years experience, Cavaliere joins South African Airways from
his most recent position as Vice President of Sales and
Distribution for low-fare carrier Spirit Airlines. In addition
to directing Spirit's sales and distribution strategies,
Cavaliere also managed Spirit's Internet sales, e-commerce and
the airline's participation in the Global Distribution Systems
(GDS). Prior to joining Spirit in 2001, Cavaliere was Vice
President and Senior Partner with Aviation Management, a
leading consulting firm specializing in South American and
Latin American carriers. His past experience includes five
years with American Airlines directing the airline's sales and
airport operations in several regions around Latin America and
the Caribbean, as well as positions with Pam Am as the
airline's last Country Director in Brazil, and as Director of
New England responsible for Pan American World Airways, Pan Am
Shuttle and Pan Am Express...Arthur Pappas, a veteran of nearly
30 years with American Airlines, today was named the airline's
Vice President-Chicago, with overall responsibility for
American's major hub at O'Hare International Airport. Pappas
succeeds Bernard J. DeSena, who is retiring after 40 years with
the airline. Pappas joined American in 1976 as a reservations
agent in New York. After serving in a number of customer
service positions in the New York area, including service at
New York's LaGuardia Airport, he was assigned to Dallas/Fort
Worth Airport, American's largest hub, serving for 13 years at
DFW in passenger service, operations and as Ramp Manager.
Later, Pappas was promoted to Managing Director-System
Operations Control, heading the organization that coordinates
the operation of the airline worldwide. In 1999, Pappas became
Regional Manager, responsible for a number of cities served by
American in the Northeast. Three years later, he assumed his
most recent post as Managing Director-Los Angeles, overseeing
all facets of American's customer service and ramp service
activities at Los Angeles International Airport.
HOTELS & RESORTS: Riviera Holdings Corporation announced the
appointment of Mark Lefever as its Executive Vice President,
Chief Financial Officer and Treasurer. Lefever fills positions
vacated by Duane Krohn, who retired in early May. Lefever has
extensive experience in the gaming industry, having served as
top financial officer for several casino/hotel properties,
including Resorts Atlantic City, The Desert Inn Resort and
Casino in Las Vegas, and Sheraton Casino in Tunica County,
Mississippi. Most recently, Lefever was Senior Vice President
and Chief Financial Officer of Resorts Atlantic City. Prior to
that, he was General Manager of Trump 29 Casino in Coachella,
California, where he was responsible for all operational and
financial facets of that Native American casino. As Chief
Operating Officer and Chief Financial Officer of The Desert Inn
Resort and Casino, Lefever assisted in the sale of that
property to Steve Wynn in 2000. Prior to his positions in the
gaming industry, Mr. Lefever spent 10 years in the audit and
business advisory practice with Arthur Andersen LLP. He is a
member of the New Jersey Society of Certified Public
Accountants. He also holds a B.S. in accounting from Villanova
University in Pennsylvania...Kimpton Hotel and Restaurant
Group, LLC has named its president, Michael A. Depatie to
the position of Chief Executive Officer, effective July 1,
2006. Only the third person to hold that position in the
company's 25-year history, Depatie succeeds Chairman and CEO
Tom LaTour, 62, who is retiring after 23 years with the
company. LaTour will remain a member of the board and will be
a consultant to the company. Depatie joined Kimpton in 2003 as
CEO of Real Estate for Kimpton Group Holding, LLC, the parent
company of Kimpton Hotel & Restaurant Group. Responsible for
securing funds and for the acquisition and development of new
hotels and restaurants, Depatie quickly created a powerhouse
finance and development department, and formed the $157.2
million Kimpton Hospitality Partners, L.P. ("KHP Fund"), a
limited partnership to acquire, develop and redevelop
boutique/lifestyle hotel properties. Throughout his time at
Kimpton he has worked closely with LaTour on the overall
strategic direction of the company. In September 2005, Depatie
was promoted to president of Kimpton Hotels & Restaurants,
responsible for overseeing the company's hotel and restaurant
operations, and legal activities in addition to finance and
development, design and construction.
TRAVEL TECHNOLOGY: OneLink Corporation, a provider of
integrated booking and settlement processing services for
travel suppliers and their distributors, has announced that
David Fromal has been appointed as the company's chief
operating officer, a new position. Fromal, a veteran
technology and travel services senior executive, has helped
several early stage companies successfully establish and grow
their lines of business. In his new position, Fromal will lead
OneLink's efforts to aggressively market its innovative
reservations and transaction processing services--a lineup that
features groundbreaking upfront financial settlement for travel
agents. Fromal comes to OneLink from Salis Inc., a
venture-backed startup focused on business process management,
where he was president and CEO. During his tenure as CEO,
Fromal re-positioned Salis' product lines to create an entirely
new transaction processing category, securing multi-million
dollar contracts with several Fortune 100 companies in the
process. Prior to Salis, Fromal spent four years as executive
vice president, Strategic Development and Corporate
Communications, for TRX, Inc., a $120 million global leader in
travel industry transaction processing services. Fromal also
spent 13 years in a variety of executive roles at American
Express Travel Related Services Company, Inc. Starting his
career in direct sales, Fromal eventually attained the position
of senior vice president/general manager, Personal Travel
Services, managing a $1 billion sales organization with 1,250
associates nationwide...SynXis, the Sabre Holdings business
that provides reservation management, distribution and
technology services for hotels, has announced the addition of
Kim Tisdale and Laura Brouk to their senior management team.
Tisdale is assuming the role of Vice President of Service
Delivery overseeing the SynXis implementations and data
services teams which includes SynXis' new call center
operations in the United States and Uruguay. Brouk is taking
the position of Vice President of Business Development and
creating a new team within SynXis to assist properties in
maximizing their revenue. Tisdale brings with her a wealth of
knowledge with over 17 years of experience in the hotel
industry, most recently as Director of Electronic Distribution
Services for Millennium & Copthorne Hotels. Tisdale has also
held various positions at Hilton International and Forte
Hotels. Brouk has been in the hospitality business for 18
years. She has held positions in operations, sales and revenue
management at both the property and corporate level for several
chains including Marriott, Starwood, Interstate and most
recently Wyndham International as Vice President of Revenue
Management. In 2004 Brouk was named one of the 25 Most
Extraordinary Minds in Hospitality Sales and Marketing
by HSMAI.
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