The Travel Career Connexxions Opportunities Newsletter
06/17/08
The only weekly newsletter detailing essential trends, news and
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This week in Opportunities:
U.S. Travel Resilient Despite Economic Challenges
CLIA Releases 2008 Cruise Market Profile Study
Survey: Business Travelers Changing Behaviors in Current Economy
Executive Movers! See who's going where?
Travel Executive Employment Report
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OPPORTUNITIES NEWS & TRENDS
U.S. Travel Resilient Despite Economic Challenges
Global Insight, an economic and financial analysis and forecasting company, has
released the second quarter 2008 update of U.S. Travel Insights, predicting
a slight year-over-year increase in the total number of domestic
Person-Trips, and a higher spike in international arrivals. U.S. Travel
Insights forecasts domestic leisure and business travel, international
arrivals and visitor spending.
Total U.S. domestic Person-Trips are expected to reach a seasonally
unadjusted 489 million in the second quarter of 2008, up from 487 million
(+0.4%) in same period last year. Domestic Person-Trips registered 444
million in the first quarter. Leisure travel, which comprises about 76% of
all domestic Person-Trips, will grow by 0.8% in the second quarter, while
business travel is expected to contract by the same percentage.
Better-than- expected economic growth in the first half of 2008 is the
primary driver of this continued, albeit small, expansion.
"Rising travel inflation, particularly for transportation, has not yet
dampened Americans' desire to travel, although it is causing significant
cost- cutting changes in trip behavior," said Douglas Shifflet, Chairman
and CEO of D.K. Shifflet and Associates.
Looking ahead to the third quarter of 2008, domestic leisure
Person-Trips will reach 437 million. Business travelers will contribute an
additional 132 million Person-Trips. This represents growth over the same
quarter a year ago of 1.1% and -0.4%, respectively. Leisure Person-Trips
will be bolstered in the latter half of the year by Americans spending at
least part of their tax rebate on travel. The divergence of leisure and
business travel demonstrates differing trip motivation. Holidaymakers and
those who are off to visit family and friends have thus far been undeterred
by the slowing economy and rising oil prices. On the other hand, business
travel is under rising pressure due to corporate cost control and the
availability of improved alternatives such as Web meetings and conference
calls.
Domestic travel reached 1,999 million Person-Trips in 2007. This
represented a slight decline from 2006 (-0.1%), despite robust fourth
quarter performance in both leisure and business travel. U.S. Travel
Insights expects full year 2008 to reach 2,005 million Person-Trips, a 0.3%
increase over 2007. Unfortunately, 2009 looks to be a more challenging year
as both leisure and business are expected to backslide. The slowing economy
and lingering influence of rising oil prices will finally take their toll.
Total Person- Trips will decline by -0.4% to 1,996 million. Leisure travel
will see its first decline since 2003.
Travel spending growth will begin to slow in 2008, down from the
inflation-fueled rates of 2006 and 2007. Total domestic visitor spending
will rise by 3.6% this year, followed by an increase of only 0.9% in 2009.
Changing trip behavior such as substituting domestic for international
trips, trading down in hotel quality, foregoing in-trip shopping or
entertainment spending, shorter stays, and visiting destinations closer to
home have all helped to maintain the traveler's ability to go while coping
with rising travel costs and economic woes.
"Rising hotel rates, gasoline prices, and air fares have thus far been
met by changing trip behavior rather than a decision to stay home. This is
strong evidence of the surprising resiliency of travel, particularly
leisure trips," said Kenneth McGill, Managing Director of Global Insight's
Travel & Tourism Service Group.
The domestic traveler will finally see some relief from rising travel
costs in the latter half of 2008 and 2009. The U.S. Travel Insights' Travel
Price Index (TPI) predicts trip inflation of about 2.7% for the last three
quarters of 2008. Travel costs will slow further in 2009 to an average 1.6%
increase for the year.
"Virtually every cost component of the TPI will begin to moderate over
the next two years, including fuel costs," said Jennifer Fuller, Director
at Global Insight and principal author of U.S. Travel Insights. "Slowing
demand and rising supplies will take some of the heat off of hotel rates,
gasoline prices, and other trip costs."
International arrivals to the U.S. from Europe, Canada, and Mexico have
been remarkable over the past four quarters. Total arrivals will surpass
59.2 million in 2008, representing growth of 4.4% over last year and coming
off an increase of 11.3% versus 2006. Through the first two months of 2008,
international arrivals are up 6.4% over the same period a year ago. The
rising value of foreign currencies against the dollar, their relatively
strong and stable economies, and a renewed interest in destination USA have
all combined to create a perfect storm of international visitation.
Moreover, U.S. Travel Insights expects that trend to continue through 2009
as foreign visitors register 62.1 million trips, a 4.8% improvement over
this year.
The U.S.'s most important source markets -- Canada, Mexico, United
Kingdom, and Japan -- are all showing growth as foreign visitors come to
key destinations such as New York, Orlando, Washington, D.C., and Las Vegas
to play, shop, visit friends/family, and gamble. Japan arrivals are
expected to rebound in 2008 after two consecutive years of decline,
advancing 5.7% to 3.7 million arrivals. Canada and Mexico arrival growth
slows after two years of double-digit advances, but remains at a very
respectable 4.1% and 3.6%, respectively.
CLIA Releases 2008 Cruise Market Profile Study
Driven by satisfied
customers eager to travel more, despite the uncertain economy, the cruise
industry is well-positioned for continued growth and success. This is one
of the conclusions to be drawn from the Cruise Lines International
Association's (CLIA) 2008 Cruise Market Profile Study released last week.
The biannual survey of American consumers, first conducted in 1986,
identifies American consumer demographics, attitudes and intentions as they
relate to leisure travel and specifically to cruising. Research was
conducted online in March and April 2008 by TNS, a leading market research
firm. A total of 2,426 U.S. residents were interviewed.
This year's findings reinforce previous studies in painting a picture
of a healthy, in-demand cruise industry fueled by vacationers with broader
travel interests than non-cruisers and whose satisfaction with cruising is
based on perceived and realized value. In 2007, 9.57 million Americans took
a cruise vacation representing 76 percent of the total 12.56 million guests
carried on CLIA member cruise lines. Based on this year's study, 33.7
million Americans stated intent to cruise within the next three years.
The study also shows that travel agents, who sell the great majority of
cruises, remain a vital part of the industry and are perceived by travelers
as providing the best service in vacation and cruise planning. The majority
of cruisers (70 percent) reported that professional designations, such as
CLIA's Cruise Counsellor Certification, would influence their choice in
selecting a travel agent to plan and book their vacation. "Given the
current economic climate, we are particularly pleased to see that American
cruisers remain bullish on the industry. Their high satisfaction with a
wonderfully diverse cruise product drives their intention to take more
cruises. In fact, cruisers represent the ideal travel prospect, because of
their broad interest in all types of travel and willingness to spend on
what they perceive to be high value experiences," said Terry Dale, CLIA's
president and CEO.
"This fact is not lost on CLIA's nearly 16,000 travel agency members
who continue to be the industry's invaluable distribution system and
consumers' most reliable source of assistance and service in planning and
booking vacations," he continued.
Among the key findings of CLIA's 2008 Cruise Market Profile Study:
- Consumer interest in cruising continues to be strong despite downward
pressure on travel in general due to the economy and fuel costs; 77
percent of past cruise vacationers and 55 percent of vacationers who
have yet to take a cruise expressed interest in doing so within the
next three years.
- CLIA survey respondents who indicated a "definite" or "probable" intent
to cruise within the next three years represents almost 34 million
adults from the target market (at least 25 years of age with a minimum
household income of $40,000), which is good news for not only the
cruise industry, but also for travel agents who can cultivate new
customers.
- 94.8 percent of all cruisers rate their cruise experience as satisfying
with 44 percent claiming the highest "Extremely Satisfying" ranking
making a cruise among the very best in meeting and exceeding guest
expectations.
- The general profile of the 2008 cruise vacationer is upscale (with a
median household income of $93,000), educated (69 percent have a
college degree) and the median age of cruisers is now 46 years old,
down from 49 in 2006, which shows that cruise vacations continue to
appeal to younger travelers.
- Travelers most frequently name the Caribbean as their cruise
destination of choice (43 percent) with Alaska, Bahamas, Hawaii, Europe
and the Mediterranean/Greek islands also top choices.
- Cruise vacationers agree (80 percent) that a cruise is a great way to
sample destinations that they may wish to visit on a future land-based
vacation.
- The cruise line utilization and the consumer awareness of more than 30
domestic embarkation ports adds strong inducement to future cruising:
72 percent cite additional "close to home" ports as increasing their
likelihood to cruise. Respondents cited the convenience of being able
to drive to the ship (71 percent), saving money by not having to
purchase air travel (67 percent) and avoiding the hassles of flying to
embarkation points (64 percent) as primary benefits of "close to home"
cruising options.
- Cruise vacationers are the premier leisure traveler. Cruisers travel 39
percent more per year than non-cruise vacationers, they take 2.9 annual
leisure trips on all types of vacations by both land and sea (21
percent or nearly one in four of their vacations are by cruise), and
they typically spend 50 percent more on their vacation travel than a
non-cruise vacationer.
- Both past cruisers (69 percent) and cruise prospects (56 percent)
recognize a cruise vacation as providing very high value for the
vacation dollar. Those who have experienced the inclusive nature and
service of a cruise vacation rank cruising as the best vacation value.
- Typical vacationers, including cruisers (75 percent), travel in pairs,
usually with spouses, with the proportion of family travel with kids
under 18 steadily growing (25 percent in 2008 from 13 percent in 2002).
- Travelers, including cruisers, consider destination as the most
influential aspect of choosing a vacation.
- Travel agents continue to play an important role in planning and
booking cruises and travel: 42 percent of respondents say agents
provide the best service, up from 40 percent in 2006; 59 percent are
extremely or very satisfied with agents, with overall satisfaction of
93 percent; 78 percent of cruisers use travel agents for all types of
travel planning as compared to 44 percent of non-cruise vacationers.
For more information about CLIA's 2008 Market Profile Study, visit
www.cruising.org.
Survey: Business Travelers Changing Behaviors in Current Economy
With a lagging economy causing many
travelers to change their ways, more than two-thirds (68%) of those
surveyed this month by Orbitz for Business
and Business Traveler Magazine say they
are now staying at less expensive/lower star-rated hotels to save on travel
costs. Additionally, a large majority of business travelers and corporate
travel managers, 79%, are feeling some degree of pressure to cut travel
expenses, leading to myriad changes in traveler behavior in the corporate
travel marketplace.
These are among the key findings of the first ever Orbitz for
Business/Business Traveler Magazine Quarterly Trend Report, which examines
the most prevalent issues affecting the corporate travel industry today.
While the report shows that many business travelers are in fact
traveling differently, they aren't necessarily cutting back -- as more than
half (60%) say they are conducting as much, if not more business travel in
2008 compared with 2007.
"This report reinforces what we've been hearing from our customers:
Most clients aren't cutting back on travel, rather, they continue to look
for ways to become more cost effective with their managed travel programs
in a cost- conscious economy," said Dean Sivley, senior vice president and
COO, Orbitz for Business.
A significant segment where companies and travelers alike are cutting
back is trade shows and conferences. Almost half (44%) report that they, or
their company, are planning to attend fewer trade shows this year, or will
simply send fewer employees to those events that are being attended.
Another notable trend is that of business travelers taking more day
trips. Twenty-five percent of respondents say that when possible, they are
now flying in and out of a business destination the same day more often,
rather than spend a night in a hotel.
International travel is another area where some companies are scaling
back. Thirty-three percent of those surveyed say their companies are
currently doing less international travel as a way to save.
Additionally, the Orbitz for Business/Business Traveler Trend Report
found that of those who do travel internationally, 56% say they are allowed
to fly business class for long-haul flights. Of the 44% who are not, 10%
say their company policy has changed in the past year.
This supports a recent International Air Transport Association report,
which found premium air traffic shrank 3.9% in March compared with the same
month last year, as the number of international air travelers flying in
business or first class fell by its largest amount in five years.
Other report findings include:
- 67% of respondents are more apt to stay at a less expensive hotel if it
offers amenities like free Wi-Fi and/or continental breakfast, over a
more luxurious hotel that does not offer these perks
- 32% say the area in which they are most limiting or keeping an eye on
spending is air.
- 17% of those surveyed say their company's per diem spending for meals
has decreased in the past year
The Orbitz for Business/Business Traveler Magazine Trend Report was
conducted online from 5/15/08 through 5/23/08, through a MarketTools survey
of 610 Business Traveler Magazine subscribers.
OPPORTUNITIES EXECUTIVE MOVERS!
AIRLINES: AirTran Holdings,
Inc., the parent company of AirTran Airways, Inc., has announced
that its Board of Directors has appointed Arne G. Haak, current vice
president of finance and treasurer, to the position of senior vice
president of finance, treasurer and chief financial officer.
In his new role as CFO, Haak will also continue to oversee financial
planning and analysis, treasury, purchasing, and investor relations. Prior
to his career at AirTran Airways, Haak worked for US Airways. Since joining
AirTran Airways in 1999, he has worked in a variety of roles from financial
planning and analysis to investor relations. He became vice president of
finance and treasurer in January 2006.
Haak received a Bachelor of Science degree in economics from
Pennsylvania State University, and he also earned a Masters of Business
Administration from the University of Maryland. Haak is a member of the
Association for Financial Professionals (AFP), and he has earned the
designation of Certified Treasury Professional and AFP Honors in 2007. A
graduate of Leadership Orlando, Haak is fluent in
both English and Swedish...
Horizon Air has announced the election of Dan Russo as vice president of marketing and communications.
In his new role, Russo will have responsibility for the airline’s marketing, planning, sales and advertising functions, along with all
aspects of internal and external communications. He also will be the primary interface with the Alaska Air Group Shared Services teams
responsible for the market and schedule planning and revenue management activities for both Horizon and Alaska Airlines. Alaska Air Group,
based in Seattle, is the parent company of Horizon and Alaska Airlines.
Before joining Horizon Air in February 1986 as sales manager, Russo held management and executive positions at AirCal, Wien Airlines and
American Discovery Tours in Mercer Island, Wash. At Horizon, Russo most recently served as director of marketing and communications and was
project lead for the carrier’s 25th anniversary celebration in 2006.
A graduate of San Jose (Calif.) State University with a bachelor’s degree in journalism, Russo volunteers for Special Olympics and Habitat for Humanity.
HOTELS & RESORTS: Red Lion Hotels
Corporation has announced today that Barry Hughes has been promoted
to Senior Vice President, Distribution and Marketing, effective
immediately. Hughes has served Red Lion Hotels Corporation as Vice
President, Distribution and Marketing since November 2002. He reports
directly to Red Lion Hotels President and Chief Executive Officer Anupam
Narayan.
Hughes has over 15 years of experience in the hospitality industry
and for the last five years has been responsible for overseeing
distribution and revenue management, call center operations and marketing
for Red Lion. Prior to joining Red Lion, Hughes was Executive Vice
President of Electronic Media and Corporate Strategy for Proximus
Information, LLC in New York and also served in executive roles for Cahners
Business Information, Trase Miller/MTI Vacations, and Galileo
International...
Morgans Hotel Group Co. has announced that Howard Wein has been appointed Senior Vice
President of Food and Beverage, effective immediately. Wein joins MHG from the Starr Restaurant Organization, where he served
as Chief Operating Officer of Starr Restaurants and founder and President of Starr Restaurants Hotel Group since 2004. In his new role,
Wein will drive operational excellence, directing management of operations, marketing, development, strategic planning, human resources
and IT. He will lead new project development and maintain and develop relationships with MHG’s bar and restaurant partners.
At Starr Restaurants, Wein oversaw the direct management of all operations, marketing, development, strategic planning, human
resources and IT for the organization. He also directed menu development and management and chef recruiting, and helped the company
grow from eight to 16 restaurants. As the Chief Operating Officer of Starr Restaurants, he designed and developed several restaurants,
including Buddakan and Morimoto in New York City, Buddakan and Continental in Atlantic City, and Striped Bass, Continental Midtown, Barclay
Prime in Philadelphia. Previously, Wein worked for Starwood Hotels & Resorts Worldwide, most recently serving as the Corporate Director of
Food and Beverage for Westin Hotels and Resorts. Wein received his Bachelor of Arts degree from Hampshire College and holds a Master of
Management in Hospitality (MBA) from the Cornell University School of Hotel Administration...
Lowe Enterprises, a national real estate development, investment and management firm, has named Robert J. Lowe,
Jr. chief executive officer of Lowe Hospitality Group, the firm’s national hotel, resort and resort residential community acquisition, development and
management division.
Lowe joined Lowe Enterprises in 1992. He was named president of Lowe Destination Development (LDD) in 2003 and became president of Lowe
Hospitality Group in 2007.
Under his leadership, the firm’s current resort and resort residential development activities have grown to include the 102-acre Terranea Resort
in the Los Angeles’ area community of Rancho Palos Verdes, the 700-acre Stone Eagle Golf Club in Palm Desert, Calif., the 136-unit Stowe Mountain
Lodge in Vermont and the 6,000-acre Suncadia project near Roslyn, Wash.
Completed projects include the development of the 210-room Estancia La Jolla Hotel and Conference Center in La Jolla, Calif., the redevelopment
of the historic Hotel Del Coronado, and the development of the Reserve, an award winning master planned community in Indian Wells, Calif.
Lowe completed his undergraduate studies at Stanford University and earned his MBA from the Anderson School at the University of California at Los Angeles...
Marriott International, Inc. has announced that Stephanie Coleman Linnartz has been named
senior vice president, global sales. Linnartz is responsible for
leading the company's worldwide sales force, including the reservations and
customer care team, representing approximately 3,000 hotels across nine
brands in 67 countries and territories. She begins her new role on July 31,
reporting to Amy McPherson, executive vice president, global sales and
marketing.
In her most recent assignment as senior vice president, sales and
marketing planning and support, Linnartz helped to launch Sales Force One
which significantly expands the company's ability to cover more customer
accounts and increase revenues and profits.
Linnartz joined Marriott in 1997, working in finance and business
development. She later held management positions in revenue management and
sales and marketing.
As the daughter of Daniel and Valerie Coleman, owners of the Phoenix
Park Hotel and Dubliner Irish Restaurant and Pub in Washington, D.C.,
Linnartz grew up in the hotel business. She served as sales manager at the
Phoenix Park Hotel before moving to sales and catering roles at Hilton
hotels in Honolulu and Washington, D.C.
Linnartz graduated from Holy Cross College in Worcester, Mass., with a
bachelor's degree in political science and earned her master's in business
administration from the College of William & Mary in Williamsburg, Va.
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