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The Travel Career Connexxions Opportunities Newsletter
06/17/08

The only weekly newsletter detailing essential trends, news and top executive moves in travel. Opportunities is a free newsletter that provides you with the vision to "see" travel industry opportunities in the making. Whether you are in sales, business development, guiding your company's growth or managing your career, reading opportunities will give you the advantage to succeed. Opportunities is another innovative tool brought to you by Travel Career Connexxions. For more information, visit http://www.TravelExecutive.com

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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Did you know? As of 06/17/08 there are 207 executive-level travel jobs published in the Travel Career Connexxions employment report. Positions include Director Meeting Planning (06/12), Director of E-Commerce Marketing/Data (06/04), Director of Tax (06/10), Regional Sales Director - Travel (06/13), Travel Technology Consultant (05/29), V.P. of Marketing (05/28) 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

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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© 2008 The Weekly Executive Employment Report is a publication of Travel Career Connexxions, Inc.