The Travel Career Connexxions Opportunities Newsletter12/14/04
The only weekly newsletter detailing essential trends, news and
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This week in Opportunities:
Hyatt's AmeriSuites Buy Brings Back Hotel Vets
Cruises Stay Strong with 9.72% Boost in Passengers
Survey Shows Hotels Boost Gross Operating Profits
PATA Projects 300 Million Arrivals to Asia Pacific
Holland America's Lanterman Gets Consulting Package
Opportunities Watch!
Opportunities Resource!
Executive Movers! See who's going where?
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OPPORTUNITIES NEWS & TRENDS
Hyatt's AmeriSuites Buy Brings Back Hotel Vets
Hyatt Corporation, the worldwide hotel management and real
estate development company, last week said it will purchase
the 143-unit AmeriSuites hotel chain from affiliates of The
Blackstone Group for a reported $600 million. Definitive
agreements have been concluded and the transaction is expected
to close in early January. The move is a strategic component of
the process resulting in the formation of Global Hyatt
Corporation, a new parent company over Hyatt Hotels Corporation
(domestic US, Canada and Caribbean hotel operations), Hyatt
International Corporation (international hotel operations),
Hyatt Equities (hotel ownership) and Hyatt Vacation Club, Inc.
(timeshare). According to Thomas Pritzker, chairman and CEO of
Hyatt Corp., it is Hyatt's intention that the AmeriSuites chain
will become the upscale limited service leader in performance
and profitability by means of new segment-appropriate product
and service standards. Doug Geoga, Hyatt's president, who will
also serve as president of Global Hyatt Corp., said the
addition of the AmeriSuites product will also extend Hyatt's
distribution. Even more interesting from an executive
perspective, a senior management team led by industry veterans
Jim Abrahamson and Mike Leven will implement the AmeriSuites
strategy for Hyatt. Abrahamson will be responsible for all
aspects of the AmeriSuites business. Before joining Hyatt, he
was president of Baymont Inns and Woodfield Suites, and also
spent 13 years with Hilton in its franchising, development and
operating groups. Leven is founder, CEO and president of U.S.
Franchise Systems (USFS), a Hyatt subsidiary with nearly 500
hotel franchises currently open or under construction. Leven,
who has become an industry icon during his 44-year hospitality
career, previously served as president and chief operating
officer of Holiday Inn Worldwide and as president of Days Inn
of America.
Cruises Stay Strong with 9.72% Boost in Passengers
The cruise industry's strong growth continued in the third
quarter, as the member fleets of the Cruise Lines International
Association (CLIA) carried 2.873 million worldwide guests in
the third quarter of 2004, a 9.72 percent increase over the
same period in 2003. North American passengers grew by 9
percent during the same period, to 2.351 million guests, up
from 2.140 million third-quarter guests one year ago. The 2004
third-quarter passenger figures are new statistics released by
CLIA, whose member lines represent over 95 percent of the
cruise capacity marketed in North America. In addition to the
growing passenger totals, CLIA cruise lines also posted
impressive occupancy figures, with a 109.4 percent occupancy
factor in the third quarter of 2004 compared with 107.2 percent
for the year prior. Overall, statistics for the first three
quarters of 2004 show nearly a 10 percent increase in worldwide
passengers to 7.897 million guests, up from 7.187 million for
the same period in 2003. North American guest totals for the
period grew 10.33 percent to 6.679 million, up from 6.054
million in 2003, while foreign-sourced passengers climbed to
1.219 million guests, up from 1.133 million in 2003. For more
information, visit www.cruising.org.
Survey Shows Hotels Boost Gross Operating Profits
Hotels continue to another strong segment of the industry. The
Hospitality Research Group (HRG), the research affiliate of PKF
Consulting, said that a "typical" full-service hotel achieved
an 8.4 percent improvement in gross operating profits in the
first half of 2004, compared to the same period a year earlier.
The results are based on an in-depth analysis of more than 700
full-service hotels across the United States. Based on the
strong hotel improvements in occupancy and average daily rate
already reported in the second half of 2004, HRG expects profit
growth to be even higher for the second half and full year
2004. On the other hand, despite these positive trends, the
industry still lags far behind its past peak performance in
1998. The firm said that it doesn't expect unit level hotel
profits and profit margins to reach 1999-2000 levels until 2006
or 2007.
PATA Projects 300 Million Arrivals to Asia Pacific
Tourism in the Pacific Asia region is still surging, if a
recent survey is any indicator. The Pacific Asia Travel
Association (PATA), in the December edition of its Issues &
Trends newsletter, is forecasting more than 300 million
international visitor arrivals (IVAs) to Asia Pacific in 2004,
about 10 percent more than the previous record of 274.8
million in 2002. PATA Managing Director-Strategic Intelligence
Centre John Koldowski said: "If we can get through December
with no new external shocks to travel and tourism, I am
confident that we will break 300 million this year." Koldowski
said the main drivers for the record-breaking growth were
pent-up demand from last year, competitive fares by low-cost
carriers, the further easing of outbound regulations by China
(PRC), the strong euro, and robust economic performances in
Asia Pacific source markets. The year 2003 was one of the worst
ever for travel and tourism in Asia Pacific, largely due to
four external shocks--SARS, terrorism, global economic doldrums
and conflict in Iraq. "With all the pent-up demand carried over
from 2003, we were expecting a bounce-back year," said
Koldowski. "However, this is much more than a bounce back--this
is aggressive, strong growth." For more information,
visit www.pata.org.
Holland America's Lanterman Gets Consulting Package
What happens after a legendary leader of one of the world's
largest cruise brands steps down? Seatrade last week reported
that Kirk Lanterman, former chairman and CEO of Holland America
Line, will provide consulting services and other assistance as
needed to the company for annual compensation of $788,000 under
an agreement with Carnival Corp. & plc. Lanterman gave up his
executive positions at Holland America and its affiliates last
week and took the title of non-executive chairman. Under an
agreement with Carnival, Lanterman will provide consulting and
other assistance as may be required by Holland America
President and CEO Stein Kruse "on strategic, financial and
historical analyses and other various services" up to a maximum
of 1,000 hours annually. The consulting agreement will start
Jan. 1 and run through Nov. 30, 2005. It renews automatically
for one additional year unless earlier terminated by either
party, "but in no event will the consulting agreement be
extended beyond Nov. 30, 2006," according to a Carnival filing.
Lanterman's annual compensation of $788,000 will be payable in
monthly installments. He will retain his position as a director
of Carnival Corp. & plc.
OPPORTUNITIES WATCH!
Carnival Floats Out New Carnival Liberty Ship
Echoing the strong results for the cruise industry, Carnival
Cruise Lines is introducing even more new ships. The new
110,000-ton Carnival Liberty was floated out of its outfitting
dock at the Fincantieri shipyard in Monfalcone, Italy, last
week. Following this significant milestone in Carnival
Liberty's construction, interior outfitting has begun in
preparation for the line's first-ever Mediterranean cruises
beginning July 20, 2005. The 2,974-passenger Carnival Liberty
will be the largest ship in the contemporary market sailing in
Europe. Carnival Liberty's Mediterranean cruises will run
through October 2005, after which the vessel will sail on a
16-day trans-Atlantic crossing then launch year-round six- and
eight-day Caribbean cruises from Fort Lauderdale, Fla.,
beginning in November 2005. Carnival Valor, another new ship,
will be introduced to the U.S. market next week.
Princess Set to Name New Ship Crown Princess
Princess Cruises will name the next new vessel to join its
fleet Crown Princess. A sister ship to the highly praised
Caribbean Princess, it will debut in May 2006. Like her
sibling, Crown Princess will also offer a year-round
Caribbean deployment. But Crown Princess will not be an
identical twin. Similar to Caribbean Princess, Crown Princess
will feature a number of innovations designed for cruising the
Caribbean, but the ship will also offer a number of new design
evolutions to create additional options for passengers,
including a piazza-style atrium, even more dining venues and
redesigned public spaces.
Holland America's Noordam to Sail from New York
Holland America Line said that in 2006 it will deploy the
1,848-passenger Noordam for its inaugural Caribbean season
sailing from New York City, the line's former headquarters. The
premium cruise line will sail 13 Caribbean cruises from its new
North American homeport beginning with the Noordam's inaugural
cruise on Feb. 22. Two trans-Atlantic sailings also include New
York as a gateway. The addition of New York completes Holland
America Line's Caribbean homeports in 2006 with Tampa, Fort
Lauderdale, Norfolk, and, now, New York.
Kerzner to Expand Atlantis-Paradise Island Resort
Kerzner International Limited, a leading international
developer and operator of destination resorts, casinos and
luxury hotels, has entered into supplemental agreement to its
original deal with the Government of The Bahamas enabling the
company to proceed with the next major phase of development at
its flagship property, Atlantis, Paradise Island. The amended
Phase III project will include the following components: A
600-room luxury all-suite hotel in lieu of the 1,500-room hotel
tower contemplated in the supplement to the 2003 Heads of
Agreement. The company anticipates it will commence development
of this project during the second quarter of 2005. The proposed
all-suite hotel will be situated west of the Royal Towers,
adjacent to one of the best available beach sites in the
Caribbean. Also included is a 400-unit condo-hotel. The company
expects to partner with Turnberry Associates, one of the
premier real estate development and property management
companies in the United States. The development cost associated
with this project is expected to be $200 million.
Outrigger Adds New Resorts in Australia, New Zealand
Yet another lodging company in expansion mode is Outrigger
Hotels & Resorts. Outrigger has been awarded the management
rights for its tenth resort in the Australian state of
Queensland, and for its third resort in New Zealand. Both
properties join the company's growing portfolio of
accommodations within the Pacific, which now include 53
properties across the Pacific with more than 12,000 rooms in
Hawaii, Australia, Micronesia, Fiji, Tahiti and New Zealand.
The first of Outrigger Hotels & Resorts' newest projects is the
Outrigger Port Douglas Beach Club Resort. Construction of the
$39 million upscale boutique resort will begin in December
2004, with its opening scheduled for October 2005. The hotel
will be Outrigger's fourth property within the popular tourist
town of Port Douglas, located in Tropical North Queensland.
Outrigger also announced another property would be joining its
portfolio in New Zealand. In February 2005, Outrigger Hotels &
Resorts will assume management of the historic Terraces Hotel,
near the world-renowned hot springs district of Taupo on New
Zealand's North Island. At that time, the property will be
re-branded the Outrigger Terraces Resort, Lake Taupo. This
latest announcement comes just a few months after Outrigger
secured its second resort in New Zealand, the five-star
Outrigger at Clearwater, which joins its flagship New Zealand
property, Outrigger at the Beacon in Queenstown. Hawaii-based
Outrigger Hotels & Resorts established its Australian
headquarters on the Gold Coast in 1998 with the specific intent
of developing a network of quality holiday destinations in and
around the Australia, New Zealand and the South Pacific region.
It currently has 12 properties open or under construction in
Australia, three in New Zealand, one in Fiji, and another on
Huahine Island in French Polynesia.
InterContinental Opens 42 Hotels in Four Months
InterContinental Hotels Group announced it opened 42 hotels
(5,658 rooms) from July through October 2004 across the
Americas. These 42 openings include: Crowne Plaza opened five
properties located in Oklahoma City, Okla.; Tulsa, Okla.; King
of Prussia, Pa.; Arlington, Texas and San Antonio, Texas.
InterContinental also opened the industry's first lifestyle
brand, Hotel Indigo in Atlanta--in the heart of its
revitalizing Midtown area. Holiday Inn opened 12 hotels located
in Thousand Oaks, Calif.; Lake City, Fla.; Baton Rouge, La.;
Brooklyn Center, Minn.; Saint Joseph, Miss.; Columbus, Ohio;
Gresham, Ore.; Addison, Texas; Marshfield, Wis.; Santa Fe,
Argentina; Ottawa, Ontario, Canada; and Irapuato, Mexico
Holiday Inn Express opened 21 hotels located in Magnolia, Ark.;
Parachute, Colo.; Fort Lauderdale, Fla.; Jacksonville, Fla.;
Carter Lake, Ill.; Chanhassen, Minn.; Dickinson, N.D.;
Bernalillo, N.M.; Holiday City, Ohio; King of Prussia, Pa.;
West Mifflin, Pa.; Hot Springs, S.D.; Austin, Texas; Humble,
Texas; Cedar City, Utah; Woodbridge, Va.; White River Junction,
Vt.; Everett, Wash.; Douglas, Wyo.; Sherwood Park, Alberta,
Canada and Santiago, Chile. Staybridge Suites, an upscale
extended-stay brand, opened a property in Mount Laurel, N.J.
Candlewood Suites, the fastest growing mid priced extended-stay
brand, opened two properties located in Tulsa, Okla. and
Sterling, Va.
OPPORTUNITIES RESOURCE!
Find Hotels & Restaurants Info at IH&RA Web Site
Want a good informational web site that details what's going on
in the international hotel and restaurant industries. The
International Hotel & Restaurant Association (IH&RA) is the
only international trade association exclusively devoted to
promoting and defending the interests of the hotel and
restaurant industry worldwide. It is a non-profit membership
organization dedicated to helping members achieve their
business objectives and prepare for the future. Members include
international and national hotel and/or restaurant chains, and
national hotel and/or restaurant associations. Paris-based
IH&RA acts as an industry Watchdog protecting business
interests, helps to build your business network, and keeps you
informed about timely news events. Best of all, even if you're
not a member, IH&RA's web site (www.ih-ra.com) provides a great
resource for anyone interested in the hotel and restaurant
industry. The web site includes an update on IH@RA news and
events, a compendium of IH&RA positions on key industry issues,
list of the association's partners and affiliates, a directory
of IH&RA publications, an explanation of membership guidelines,
a members-only section, and a free career center that lists
jobs by sector, position, location and keyword. For more
information, visit www.ih-ra.com.
OPPORTUNITIES EXECUTIVE MOVERS!
AIRLINES: Delta Air Lines, Inc. announced two personnel changes
in its finance organization. Gail Grimmett, previously managing
director of investor relations, has been named managing
director and assistant treasurer-business analytics and
treasury development. Laura Fuselier has been named director of
Investor Relations. Effective immediately, Grimmett will report
to Todd Helvie, senior vice president and treasurer. In support
of Delta's transformation plan, Grimmett will have primary
responsibility for the execution of Delta mergers, acquisitions
and asset dispositions to include financial evaluation,
negotiation and execution of capital market activities. She
will also be responsible for all cash forecasting, liquidity
analysis and hedging programs. Grimmett is charged with
implementation of best-practice methodologies and processes
within all aspects of this new role. In addition to her role in
investor relations, Grimmett has previously been Delta's chief
economist as well as director of financing planning...American
Eagle announced the appointment of Captain Jim Winkley as vice
president-safety for the airline, effective Dec. 17. In his new
role, Winkley will have responsibility for the carrier's flight
and ground safety programs, maintenance safety and compliance,
regulatory affairs and dangerous goods program. Winkley started
his career in the airline business with Simmons Airlines, first
flying as a line pilot, then serving as assistant chief pilot.
He served as the carrier's director of safety from 1995 to
1998. Most recently, he has held the role of director of flight
operations-line for American Eagle with oversight of the
airline's chief pilots and administration of the company and
departmental policies for the company's 2,675 pilots...Caroline
Boren joined Alaska Airlines as managing director of corporate
and strategic communications with responsibility for the
company's corporate and internal communications as well as
media relations. A 15-year communications veteran, Boren comes
to Alaska Airlines from public relations consultant Waggener
Edstrom, where she spent eight years advising clients,
including Microsoft and Texas Instruments, on a variety of
business and communications initiatives.
CRUISE LINES: Holland America Line has named Jim McHugh as vice
president, marketing and sales for Windstar Cruises. The
appointment was made by Richard Meadows, CTC, senior vice
president, marketing and sales, Holland America Line, and is
effective Dec. 13, 2004. Windstar Cruises is a wholly owned
unit of Holland America Line. McHugh will be responsible for
the planning and implementation of all marketing and sales
initiatives for the lines three luxury sailing vessels. McHugh
brings more than 10 years of luxury cruise experience to his
new position. He was a founding member of the team that
launched the ultra-luxury line, Silversea. He most recently
served as Silversea's vice president, national accounts and
sales development.
HOTELS & RESORTS: Hilton Group plc named Ian Carter as chief
executive of Hilton International Hotels. He will take up the
appointment, previously held by the late Anthony Harris, on
Feb. 1, 2005 reporting to David Michels, chief executive of
Hilton Group plc. He will also have a seat on Hilton Group's
board...Aztar Corporation said that Paul Rubeli has informed
the board of directors of his intention to retire from his
positions as chief executive officer and chairman of the board
of directors, effective March 1, 2005. Aztar's board selected
Robert Haddock, president and chief financial officer, to
succeed Rubeli as chairman and CEO, also effective March 1,
2005. Haddock, 59, has been a senior executive of the company
since its incorporation in 1989, serving as president and CFO
since 2002 and previously as executive vice president and CFO.
Aztar is a publicly traded company that operates Tropicana
Casino and Resort in Atlantic City, N.J.; Tropicana Resort and
Casino in Las Vegas; Ramada Express Hotel and Casino in
Laughlin, Nev.; Casino Aztar in Caruthersville, Mo.; and Casino
Aztar in Evansville, Ind....In connection with the sale of
Ramada International Hotels & Resorts by Marriott International
Inc. to Cendant Corporation's Hotel Group, Cendant announced
the appointment of Reas Kondraschow as senior vice president
and managing director, international, responsible for
development of the Ramada International, Days Inn, Howard
Johnson and Super 8 and Wingate brands outside of the United
States, Canada, Caribbean and Mexico...Choice Hotels
International, Inc. promoted and elected David Goldberg to the
position of senior vice president, corporate and brand
strategy, and David Pepper to the position of senior vice
president, franchise development, effective Jan. 1, 2005. Both
will continue to report to Joe Squeri, executive vice president
and chief financial officer. Goldberg previously was vice
president, corporate and brand Strategy, and treasurer. Pepper
has been vice president, franchise sales and development, with
responsibility for franchise sales for the company's new
construction brands...David McMillan has been named to the post
of chief executive officer of the International Hotel &
Restaurant Association (IH&RA) effective Jan. 3, 2005. This
appointment received unanimous approval by IH&RA members at the
Association's Annual General Assembly held in Istanbul
alongside the IH&RA 41st Annual Congress, Nov. 19-22, 2004.
British-born McMillan has had many years of international hotel
and resort management and development experience with Hilton
Hotels Corp. and Hilton International, Hyatt International,
Commonwealth Hospitality, Holiday Inn Hotels, Four Seasons
Hotels and several independent properties including the Hotel
Meurice in Paris, the Waldorf Astoria in New York and most
recently with Cirque du Soleil. Outgoing CEO Alain-Philippe
FeutrÈ will continue the main role of advocacy for the industry
before the UN and its international agencies as a special
advisor to the president. McMillan will assume his role as the
CEO of IH&RA as of Jan. 3 January and will be based in Paris...
Marshall Management, Inc., a leading mid-sized hotel management
company, said David Lutz has joined its management team as vice
president of finance. A 25-year hospitality industry veteran,
Lutz began his hotel career as an assistant regional controller
for Guest Quarters. Lutz grew with the company during its
merger with Doubletree and its subsequent merger with Promus,
which was acquired by Hilton Hotels Corporation...Norman
Jenkins, vice president of owner and franchise services for
Marriott International, Inc. has been named senior vice
president of North American lodging development for the
company. In his new role, Jenkins will lead all development
efforts related to minority ownership. He will oversee
Marriott's recently enhanced Diversity Ownership Initiative,
which has been designed to build on Marriott's outstanding
track record of attracting top tier minority owners and
franchisees...Arthur Nathan has been appointed senior vice
president-chief human resources officer for Wynn Las Vegas,
the highly anticipated luxury resort opening on the Las Vegas
Strip in April 2005. In his new role, Nathan will oversee the
process of hiring the 9,000-person workforce and develop and
supervise all pre- and post-opening human resources plans,
programs and processes. Nathan has had an extensive career
working for Wynn in the human resources and gaming industries.
TOUR OPERATORS: Central Holidays named James Zitani as a new
regional sales manager. Zitani has assumed responsibility for
increasing overall and group sales by leading, planning and
directing sales for the company's New York, New Jersey and
Connecticut regions, as well as for supporting sales services
on a national level. Zitani, who has 23 years of travel
industry experience, began his career at Central Holidays,
where he worked for 18 years. Zitani will be based out of
Central Holidays' Moonachie, N.J., office, reporting to Fabio
Sembiante, director of sales and operations.
TRAVEL AGENCIES: American Express has named Andy McGraw as
senior vice president and general manager for American Express
Business Travel North America. McGraw succeeds Pam Arway, who
has accepted the position of country manager for
Australia--leading the consumer card business. McGraw will
assume his new role on Jan. 2, 2005 and will be based in New
York. He will be responsible for leading the growth of Amex's
business travel sector across all segments and markets. As the
current vice president for Global Travel Sales, McGraw had and
will continue to have responsibility for leading all North
American, multi-regional and global business
development activities.
TRAVEL TECHNOLOGY: Amadeus, a leading global distribution
system and technology provider to the travel industry,
appointed Albert Pozo as managing director of the newly created
global Travel Services & Leisure unit resulting from the merger
of Amadeus Tours and Travel Service Partners. The new unit has
been set up to realize the potential, and build on the current
and growing success, of Amadeus beyond air travel reservations.
It will drive travel agency and online adoption of the Amadeus
GDS for non-air bookings, developing the depth of Amadeus
services and strengthening partnership with travel providers.
Effective Jan. 1, 2005, Pozo will be responsible for Amadeus'
commercial strategy for all non-air travel providers: hotels,
car rental companies, rail, ferry and cruise operators,
insurance providers and tour operators...Sabre Airline
Solutions has named Murray Smyth as its new vice president for
Europe, the Middle East and Africa. Smyth will be responsible
for the sales and account management division of Sabre Airline
Solutions across the region, in more than 50 countries and
including virtually every major European airline. Working
closely with Sabre Travel Network and Travelocity, Smyth is
charged with helping to expand Sabre's presence in the region
with the provision of consulting, technology solutions and
services to the airline and travel industries. Smyth takes
over from Vinay Dube, who will be returning back to Southlake,
Texas, to become vice president of Product Portfolio
Management...Martin Cowley will take over as CEO of Sabre
Pacific in mid-January. Cowley will replace Michael Keating,
who joined the company in December 2002. Keating said he would
continue in a consulting role for Sabre Pacific, while
dedicating more time to a variety of other business interests,
including his corporate agency LTM (formerly Leggett World
Travel). Cowley began working as a consultant for Sabre Pacific
in 2003 and officially joined the company last month as chief
operating officer.
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