The Travel Career Connexxions Opportunities Newsletter09/14/04
The only weekly newsletter detailing essential trends, news and
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This week in Opportunities:
The Travel Institute Unveils New Educational Programs
Travelers' Internet Use Continues to Grow
Delta to Lower Management Overhead Costs by 15%
US Airways Files For Bankruptcy Protection
Alaska Airlines Set to Cut up to 900 Jobs
Opportunities Watch!
Executive Movers! See who's going where?
Travel Executive Employment Report
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OPPORTUNITIES NEWS & TRENDS!
The Travel Institute Unveils New Educational Programs
The Travel Institute, the premier venue for travel professional
education in the industry, just unveiled updated educational
programs, pending revisions to its Certified Travel Counselor
and Certified Travel Associate programs and a new Corporate
Travel Industry Executive program. David Preece, The Travel
Institute's president and CEO, said in the past year the
Institute has changed its name (from the Institute for
Certified Travel Agents), re-engaged the industry with a new
platform, defined a new business strategy, repositioned its
role, unveiled new educational products, and expanded its reach
and relevancy by opening up to membership to the entire travel
industry. By the end of this month the Institute also will
unveil a new Certified Travel Industry Executive designation
for industry professionals who are not travel agents. Candidates
for the CTIE will need to have 10 years business experience,
with at least five years in travel. The focus of the CTIE will
be on planning, thinking, leadership, management and ethics,
and a white paper will be required for the certification, as
well as subsequent papers every three years for
recertification. Revisions to the CTC and CTA programs will be
implemented by the first quarter of 2005, including new
curriculums and testing options. Finally, the Institute has
unveiled or is in the process of introducing a number of new
Destination and Lifestyle Specialist programs, including ones
focused on Mexico, different European regions, Gay & Lesbian
travel, and Spa Travel, among others. For more information,
visit www.thetravelinstitute.com.
Travelers' Internet Use Grows--But at Slower Pace
The Web Internet continues to be one of the hottest growth
areas in the travel industry. In its annual survey, the Travel
Industry Association of America (TIA) reported that travelers'
use of the Internet to plan and book their trips continues to
grow, though at a slower pace. Nearly 64 million online
travelers--30 percent of the U.S. adult population--used the
Internet in the past year to get travel and destination
information. Of that group, 44.6 million actually booked at
least one travel service or product online in the past year.
The number of Americans using the Internet for travel planning
remains stable at 63.8 million, reflecting slower growth in
general Internet use among the traveling population. But the
number of travelers who actually book airline tickets, hotel
rooms and other travel services online continues to grow. TIA's
new report shows that nearly 45 million people--nearly
three-quarters of all online travel planners--booked travel
over the Internet in the past year, up nearly 6 percent from
one year ago. The number of online bookers doing all of their
travel booking online continues to grow, with 40 percent now
doing so, versus 29 percent a year ago. Airline tickets
continued to be the most frequently purchased travel products
online, reported by 82 percent of all online travel bookers, up
from 75 percent in 2003. This was followed by accommodations at
67 percent and rental cars/RVs at 40 percent. Compared to a
year ago, there was also growth in online travel bookers
purchasing travel packages (16 percent vs. 12 percent) and
tickets for tours or excursions (11 percent vs. 4 percent).
Online travel bookers spent an average of $2,700 in online
travel purchases in the past year, up from $2,600 the
previous year.
Delta to Lower Management Overhead Costs by 15%
A weak employment picture for the nation's airlines just got a
whole lot weaker. Delta Air Lines outlined key elements of a
transformation plan intended to target more than $5 billion in
annual cash savings by 2006. The plan would effectively
downsize Delta's hub in Dallas and result in work force
reduction of roughly 7,000 employees. The plan calls for
lowering management overhead costs by 15 percent, and reducing
pay and benefits; and creating an Employee Reward Program to
include equity, profit sharing and performance-based incentive
payouts. In addition, Delta's plan redesigns Delta's primary
hub at Atlanta's Hartsfield-Jackson International Airport to
add more flights than any airline has ever flown from any one
city, while at the same time reducing congestion; growing
Delta's Cincinnati and Salt Lake hubs by re-deploying aircraft
currently used at Dallas/Ft. Worth; and adding 31 new nonstop
flights to 19 additional destinations from the airline's focus
cities of Boston; New York-JFK; Columbus, Ohio; and Ft.
Lauderdale, Orlando and Tampa, Florida. Delta CEO Gerald
Grinstein said the further restructuring of Delta's employment
costs is a "necessary but painful" part of the company's
long-term viability and growth equation. The airline's
employment costs continue to be higher than those of network
and low cost carriers. Delta has called for approximately $1
billion in annual savings from its pilots, and the company and
the pilots' union continue to meet in an effort to find
mutually acceptable solutions.
US Airways Files For Bankruptcy Protection
The employment picture is no better at troubled US Airways. As
predicted by some analysts, the airline filed for Chapter 11
bankruptcy protection on Sunday, Sept. 12. The move comes after
the airline failed to win $800 million in concessions from its
unions as part of a major cost-cutting effort. US Airways had
filed for bankruptcy protection two years, ago, emerging late
last year. The airline also received a $900 million guaranteed
loan from the Air Transportation Stabilization Board (ATSB) two
years ago. This time around, however, some airline analysts say
US Airways may not be able to emerge intact from Chapter 11 a
second time. They say the airline may eventually have to file
for Chapter 7 liquidation. Other analysts say US Airways'
bankruptcy protection filing puts it in much stronger position
with its unions, which may be forced to succumb to the
airline's cost-cutting demands. Either way, US Airways move is
sure to affect employment prospects negatively, both for
unionized workers and management.
Alaska Airlines Set to Cut up to 900 Jobs
Delta and US Airways aren't the only airlines with employment
woes. Alaska Airlines last week said it will chop nearly 900
jobs and close its Oakland, Calif., maintenance facility as
part of efforts to become more competitive against low-cost
carriers and save up to $35 million annually. Alaska, which
employs more than 11,000, last month cut 150 management
positions. On Sept. 9, it announced plans to shed another 750
jobs. The cuts mark airline's first major layoffs since the
Sept. 11 terrorist attacks. Alaska Airlines CEO Bill Ayer
attributed the cuts to competitive threats from low-cost
airlines, high fuel prices and customer demand for cheap
tickets. The cuts include 340 jobs at the Oakland maintenance
base, which closed Sept. 9. Alaska also will close some
maintenance and ground support operations, resulting in another
60 job cuts. The airline also is cutting 273 jobs in Seattle
and various cities in Alaska because it will begin using
contractors to clean airplanes between flights in
those cities.
OPPORTUNITIES WATCH!
Classic Custom Vacations Looks for a CEO
Discount travel site Hotwire.com announced that Bob Hohman,
currently president of IAC Travel's Classic Custom Vacations
(CCV) business, will join the company as president, effective
Oct. 1, 2004. Hotwire President and CEO Karl Peterson will
continue in his current leadership role until Hohman joins the
company in October, and will then assume an advisory role to
the Hotwire executive management team. That means CCV is now on
the hunt for a new president. Ron Letterman will continue in
his role as CCV chairman and will assist in management of the
company in the interim. Hohman will join Hotwire after serving
as president of CCV, a full-service travel company that
specializes in tailoring luxury vacation experiences. Hohman
also spent seven years at Expedia, Inc., most recently as vice
president of its Hotels & Packages Division.
The Top Job in T&E Just Opened Up
Looking for what is widely considered the top job in the travel
and entertainment business? Walt Disney Company just might have
opening for you. Last week Michael Eisner, Walt Disney
Company's chief executive officer, said he would step down from
his post when his contract ends in September 2006. In a letter
to the board made public on Sept. 10, Eisner, now 62, announced
his intention to step down after nearly two decades as chief
executive of the entertainment and travel. Over the past year
Eisner has been under intense pressure to resign from a group
of Disney shareholders, including Roy Disney Jr., who were not
satisfied with the company's performance or Eisner's succession
plans. Disney also was faced with a hostile takeover bid by
Comcast Corp. Under pressure, Disney's board in March had
stripped Eisner of his chairman's post, giving the job to board
member George Mitchell, and making Eisner chief executive. Last
week Eisner also reportedly said he would favor being succeeded
by long-time Disney number two Robert Eiger, president and
chief operating officer. But you may have some other
competition for the post. Entertainment industry analysts
reportedly have named several other contenders for the post,
including News Corp. Chief Operating Officer Peter Chernin;
former Viacom Inc. President Mel Karmazin; Jeff Bewkes,
chairman of Time Warner Inc.'s entertainment and networks
group; eBay Inc. CEO Meg Whitman; Gap Inc. CEO Paul Pressler,
who previously served as president of Walt Disney Parks &
Resorts; Tom Freston, co-president of Viacom; Yahoo Inc.
Chairman and Chief Executive Terry Semel; and even Steve Jobs,
chief executive of Pixar Animation Studios Inc. and
Apple Computer.
Travel Corporation Expands With Uniworld Buy
Quick, what's the quickest growing tour operator company in the
business? The answer might surprise you The Travel Corporation
just purchased Uniworld, one of the largest river cruise
operators, for an undisclosed sum. Based in Encino, Calif.,
Uniworld features cruises on the rivers of Europe, China,
Russia, Australia and New Zealand, South America and the
Adriatic. Travel Corporation's other brands include Trafalgar
Tours, Insight Vacations and Contiki Holidays. Last year the
company purchased a number former Far & Wide brands, including
Swain Tours and African Travel. Uniworld, like all brands
within the group, will continue to operate as an independent
and autonomous company. Serba Ilich, who founded Uniworld in
1976, said purchase will allow Uniworld to continue to expand
its operations. Ilich will remain with Uniworld as
non-executive chairman, enabling him to pursue personal
opportunities. Brian Stevenson, currently chief operating
officer, will now take on the role of Uniworld president and
chief executive officer, with responsibilities for day-to-day
operations. Jon Baxter will be chief financial officer.
Royal Caribbean Options Second Ultra Voyager
The big just keep getting bigger. Royal Caribbean Cruises Ltd.
exercised its option to build a second Ultra Voyager ship at
the Kvaerner Masa-Yards in Finland. Scheduled for delivery in
the spring of 2007, the ship will be operated by the Royal
Caribbean International brand. Like its prototype, which is due
for delivery in the spring of 2006, the second Ultra Voyager
will be roughly 15 percent larger than its Voyager-class
counterpart. At 100 percent capacity, she will carry 3,600
guests and 1,400 crew..
Halekulani Hires a Real Mover & Shaker
No, it may not really a top travel executive post in the
classic sense, but it might be a whole lot more fun.
Halekulani, Honolulu's luxury resort, has named master
mixologist Dale DeGroff to the newly established role of
director of beverage arts in residence. In his new position,
DeGroff will oversee all aspects of beverage programs and
service at Halekulani's three restaurants and lounge, and will
introduce a new menu of unique signature cocktails and
beverages created exclusively for Halekulani. Universally
acknowledged as the world's premier mixologist, DeGroff
developed his techniques and talent for over 20 years tending
bar at some of the world's great establishments. The most
notable of his positions was at New York City's Rainbow Room,
where he pioneered a gourmet approach to recreating the great
classic cocktails and invented over 400 of his own unique
libations. Often referred to as the "King of Cocktails,"
DeGroff creates award-winning cocktail menus, develops
innovative beverage programs, and has established himself as
the leading authority and a much sought after expert in the
beverage industry. He was recently named "Beverage Professional
of the Year" by Bon Appetit Magazine.
OPPORTUNITIES EXECUTIVE MOVERS!
AIRLINES: United Airlines said that the two United Express
groups--operational and business management--will be combined
into a single organization, effective immediately. Sean Donohue
will head the organization as vice president-United Express and
Ted, United's low-cost subsidiary. Greg Kaldahl,
director-United Express, and Cindy Szadokierski, managing
director-United Express, will report to Donohue...Sun Country
Airlines announced a new line-up in its marketing department
today. Minneapolis marketing executive Wendy Williams Blackshaw
has been named director of marketing for the airline. Williams
Blackshaw will be responsible for all aspects of the airline's
marketing activities. This will include all strategic
oversight, advertising, public relations, corporate
partnerships, events and web site initiatives. Prior to her
appointment at Sun Country, Williams Blackshaw operated her own
marketing consulting company. In addition to Sun Country
Airlines, her clients included Simon Property Group, Skatewave,
MN State High School League, University of Minnesota, Harley
Davidson and Malt-o-Meal. Prior to that, she was director of
marketing for Mall of America, where she spent more than six
years developing one of the first retail sponsorship programs
in the country as well as celebrity ad campaigns using stars
such as model Rachel Hunter, Hall of Famer Paul Molitor and
Minnesota natives Louis Andersen and Lonnie Anderson. Before
working with the Mall of America, Williams Blackshaw held
marketing positions with the Minnesota North Stars and
Rollerblade. In another move, the airline promoted Molly
Wolfgram to marketing manager. Wolfgram, a 10-year Sun Country
employee, had been marketing assistant for the department.
Wolfgram began her career at Sun Country in 1995 as a flight
attendant. She moved into the marketing department in 2001 as
an intern and in 2002 she was hired as a marketing assistant
with responsibility for events and promotions.
HOTELS & RESORTS: Starwood Hotels & Resorts Worldwide named
Alisa Rosenberg as vice president-investor relations. Rosenberg
will be responsible for developing and executing all aspects of
Starwood's investor relations program targeted to shareholders,
analysts and the investment community. She will report to Dan
Gibson, the company's senior vice president of corporate
affairs. Rosenberg brings to her new role 12 years of financial
and risk related experience. Rosenberg has been with Starwood
for six years and most recently served as the company's
director of risk management in Phoenix, Ariz. Prior to joining
Starwood in October 1998, Rosenberg worked in financial
analysis roles at Pilgrim America Capital Corporation and
Agency Services, Inc. Prior to those posts, she was with Ernst
and Young LLP, where she began her career in 1992...Pan Pacific
Hotels & Resorts has hired Robert Green of MSS Marketing to
help lead the sales and marketing efforts for Pan Pacific in
North America. Green will be responsible for directing all
sales and marketing activities including the reorganization of
the current regional sales offices and the development of the
Pan Pacific America brand. With over 20 years of hospitality
marketing experience, Green is currently the owner of MSS
Marketing, a firm specializing in marketing for the Hospitality
Industry. His previous experience includes over 16 years with
The Ritz-Carlton Hotel Company, where he was director of sales
and marketing for two of the companies AAA Five Diamond
properties, in San Francisco and Half Moon Bay. Green also
worked with Hyatt Hotels Corporation in sales and marketing
positions at the Hyatt Regency Scottsdale and Hyatt Hotels Palo
Alto. Pan Pacific currently has 24 hotels (17 managed
properties and 7 marketing affiliates) in 11 countries in Asia,
the Pacific and North America...The Choctaw Resort Development
Enterprise (CRDE), a business enterprise of the Mississippi
Band of Choctaw Indians, which markets itself as the Pearl
River Resort, announced a series of management changes with the
departure of Jay Dorris from the Enterprise and the appointment
of Sheila Martin as acting president and Kerry Smith as interim
chief operating officer of gaming. Dorris was released from his
employment contract on Sept. 3. Martin was promoted to acting
president from her post as chief operating officer of gaming
for Pearl River Resort. Smith was elevated to interim chief
operating officer of gaming operations. The company is
conducting a nationwide search for a new executive as soon as
possible. Martin began her gaming career when gaming became
legal in Indian Country. She worked at Lake of the Torches
Bingo Hall as a floorwalker, but quickly moved up, serving as a
bingo caller supervisor from 1993-94, promoted to hotel front
desk supervisor then table games supervisor. She was then
promoted to facility administrator for Lake of The Torches
casino gaming operations, eventually becoming assistant general
manager for the Lake of the Torches resort. She joined Pearl
River Resort in 2001. Smith, a 24-year veteran of the casino
industry, joined Pearl River Resort overseeing all slot
operations after serving in a similar capacity overseeing slot
departments at all three Trump Casinos Atlantic City
properties. He has worked as a gaming consultant in Nevada and
Oregon and was hired to direct the start up operations for
casinos in Louisiana, Southern California and Colorado. He also
served as senior vice president of casino operations for the
resorts casino hotel, and vice president of design development
for the Trump Organization. He also served as vice president of
slot operations at Trumps Plaza/Worlds Fair Hotel Casino and
director of slot operations for Circus Circus in Las Vegas and
Laughlin, Nev....
Victoria Dolan will join Marriott Vacation Club International
(MVCI), the vacation ownership division of Marriott
International, Inc., as senior vice president and chief
financial officer, effective mid-September. Dolan joins MVCI
from her current role as senior vice president of finance for
Marriott's international lodging division, a post she has held
for the past four years. Prior to joining Marriott, she spent
nine years at The Coca-Cola Company in numerous leadership
positions that include chief financial officer and executive
vice president for the Japan division and division finance
director for the Central America and Caribbean division...
Secured Diversified Investment, Ltd., a diversified real estate
holding and financial services company, said that Louis Leon,
formerly of Starwood Hotels & Resorts Worldwide, has been
appointed chief executive officer of the company. Leon has
extensive experience with public corporations in the area of
acquisition, financing, operations and management of
hospitality properties. Before joining Secured Diversified
Investment, he was the CFO of Starwood's St. Regis Monarch
Beach Resort in Orange County, Calif. Leon was previously
chief financial officer of Nakamichi America Corporation and
Nakamichi Europe Ltd., subsidiaries of Nakamichi Corporation,
Japan. Prior to his appointment at Nakamichi, he was the vice
president of finance of the hotel division (Sutton Place Grande
Hotels Group) with corporate offices located in Newport Beach,
Calif. Sutton Place owns a group of four and five star luxury
hotels located in Vancouver, Toronto, Chicago and Newport
Beach, Calif. Secured Diversified Investment is a diversified
real estate holding and financial services company that
acquires, owns and manages office buildings, shopping centers,
hotels, apartment buildings and self storage buildings...Accor
Asia Pacific has announced four general manager appointments in
China. Michel Molliet has been named general manager of Sofitel
Xian. Molliet will also play a key role in Accor's extensive
expansion in China. He has been with Accor for more than 17
years, working in a number of different countries including the
Middle East, Asia and Pacific. He was previously general
manager of the Sofitel Reef Casino in Cairns and area manager,
Far North Queensland. Robert Atlee is the new general manager
of Sofitel Silver Plaza Jinan. Atlee was general manager of the
(former) Novotel Century Kuala Lumpur Hotel. Prior to that, he
worked for Accor and Century International Hotels since 1994 in
a number of countries including Australia, Vietnam, the
Philippines and Malaysia. Gerhard Zimmer has been appointed
general manager of Sofitel Jin Jiang Oriental Pudong in
Shanghai. Zimmer has worked with Accor since 1992 when he was
pre-opening general manager of Sofitel Hyland Shanghai. After
working in the Philippines, he relocated back to China and
assisted in the opening of several of Accor hotels there, most
recently as general manager of Sofitel Boao Hotel on Hainan.
Ole Nielsen has taken over as the new general manager of
Sofitel Boao on Hainan Island. Nielsen has been with Accor for
more than nine years, starting with the Novotel Brisbane and
later moving on to The Philippines. Most recently he was
general manager of Sofitel Raja Orchid Khon Kaen in
Thailand....Peter Island Resort in the British Virgin Islands
named Sandra Grisham-Clothier as general manager.
Grisham-Clothier replaces Jeff Humes, who moves to Peter
Island's sister property, the Meridian Club in the Turks &
Caicos. Grisham-Clothier formerly was resort manager at Little
Dix Bay in Virgin Gorda, British Virgin Islands.
TRAVEL AGENCIES: Chris Mottershead, the head of U.K. business
for German travel conglomerate TUI, reportedly resigned
unexpectedly on Sept. 7 only eight weeks after company, which
owns Thomson and Lunn Poly, had quelled speculation that he
would be leaving the group. TUI, a former engineering
conglomerate, is listed in Germany and is Europe's largest tour
operator by sales. It had denied in July that Mottershead would
be leaving after he announced plans for a seven-week sabbatical
during its peak summer booking season. On Sept. 7, however, the
group said that Mottershead had decided to resign upon
returning from his sabbatical. Mottershead, a former executive
with MyTravel, will be replaced by Peter Rothwell, head of
TUI's northern Europe business. Rothwell will combine the two
roles. TUI U.K. is the largest division in the group's northern
European tourism business, operating Thomson and Lunn Poly, two
of the biggest travel companies in the U.K. The division
employs 10,000 people and accounts for about 80 percent of
TUI's sales in northern Europe. Mottershead had replaced
Charles Gurassa, now chairman of Virgin Mobile, as head of TUI
U.K. in 2003.
TRAVEL TECHNOLOGY: StarCite, Inc., a leading provider of
innovative Web-based technologies and services for the $300
billion global meetings and events industry, has hired Mel
Yarbrough as senior vice president of sales and marketing.
Yarbrough previously served as president of telecommunications
start-up Amplified Networks, Dallas. Yarbrough brings to
StarCite more than a decade of success developing effective
sales and marketing strategies in the software and telecom
industries. Previously, Yarbrough was vice president of sales
for Handango wireless and handheld software publisher;
executive vice president of sales and marketing for Loislaw,
an Aspen Publishers Company; and major account manager for the
telecommunications division of Platinum Technology. StarCite
provides a comprehensive suite of applications and services to
the $300 billion meeting and events industry.
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