Ask BTE

 


Managed Travel & Procurement Solutions Online



INSIDE JUNE 2009

' border=



Home



Archives



Events



About Us



Media Kit



Subscribe












  Cover Story





  Association News





  Departments

    Special Reports

    City Sourcing

    Airport Monitor

    Editor's Notes

    Speaking Freely

    Going Global

    Industry News & People





Sponsored by





Contact Us



Privacy










June 30, 2009



• NBTA Merger Idea Rebuffed, ACTE Aligns With PCMA

Directors of the Association of Corporate Travel Executives (ACTE) and the Professional Convention Management Association (PCMA) have announced that, after two years of informal collaboration, they are ready to actively pursue a formal strategic alliance. Each organization will remain independent with its own leadership, emphasized officers of both organizations in a joint press conference on June 25, but members will share reciprocal benefits without incurring new membership fees. Among the benefits discussed: co-located educational events, expanded professional networks, mutual access to research, sharing best practices, and "an enhanced advocacy voice."

The announcement came after weeks of rumors of a proposed merger with the National Business Travel Association, culminating in a favorable vote by the NBTA Board on June 18, rejection of the proposal by the ACTE Board on June 22 and the subsequent resignation of three of its officers who favored the move. When asked if the June 25 announcement of the alliance was the result of that "failed merger," ACTE's executive director, Suzanne Gurley said "It wasn't a failed merger - that would assume there was an actual merger in discussion ... this is not a shotgun approach." But the appearance of a hurriedly-called press conference was not easy to dispel. AirPlus International's Richard Crum, who stepped into the void left by the resignation of 2009 President Doug Weeks of Booz Allen Hamilton, joined the press conference by cell phone.

The demographics of the two organizations are very similar. Membership of both comes predominantly from upper-level management. Though both are headquartered in the US (ACTE in Alexandria and PCMA in Chicago), each claims an important international aspect. Sexton says half the members of PCMA host meetings outside the United States. ACTE claims membership of 6,000 from 82 countries around the world; roughly half are from the US. There is membership overlap in terms of the organizations represented, but it is seldom the same person.

PCMA membership is in the range of 5,500 and going up. It has 16 chapters, whose members are not always members of the national organization. Fourteen of the chapters divide representation for the 50 states, two others share representation for Canada. Membership in the chapters ranges from 151 to more than 1,500; the average is just under 400.

Acknowledging a similarity with airline alliances, leaders of the two organizations said the ACTE-PCMA alliance would preserve each one's independence while offering some economies of scale. Most frequently mentioned was the co-location of large events. The first opportunity for that, according to PCMA's president and CEO, Deborah Sexton, would be her association's January 10-13 meeting in Dallas. But that is not a sure thing. "We're still discussing if there's enough time. The first priority is a quality program and [if] the destination is prepared to handle [increased attendance]. ... We need to come up with plans very quickly," she said, adding that she expects to have plans laid within a month for 2010 and 2011.

Officers from both sides acknowledged the possibility of some staff realignment but offered no details other than a vague expectation that the alliance would serve to "elevate staff." Material subsequently provided mentioned that "there may also be a number of occasions where the expertise of employees can be purchased by alliance partners for special projects or events, creating a revenue stream where none previously existed."

Although both organizations publish periodicals, and PCMA's - recently launched - was mentioned specifically several times, there was no speculation about coordinating the two. The most clearly-viewed synergies, cited numerous times by all six officers involved in the press conference, are in the areas of peer-to-peer education and research.

Although questioned numerous times during the 45-minute conference about any financial terms involved in the alliance, officers of both sides cited nothing more specific than the possibility of revenue-sharing from co-located events. But rumors have circulated about ACTE's financial health and were raised again after the conference, speculating about the likelihood of PCMA lending money to ACTE or guaranteeing payment of its bills. "We certainly don't see an immediate need for either of those actions," replied a PCMA spokesman, "but we will guarantee that any aspect of a joint endeavor bearing the PCMA name will be adequately funded." 



Aircraft Management Group Adds Instant Quote Service To Site

Aircraft Management Group has redesigned its web site, giving prospective clients instant access to real-time information on fleet availability, estimated trip costs and flight times. Visitors to the site will also be able to verify the company's PASS (Pilot & Aircraft Safety Survey) Ready status, and to follow other development at the charter company on Twitter. Future updates to the web site include a fleet gallery, aircraft profiles and a direct link to Aircraft Management Group, Inc.'s Facebook page. 



AirPlus Survey Chronicles Growth Of Virtual Meetings

Based on an April survey of 192 travel management professionals in North America and Europe, AirPlus International reports that virtual conferencing is increasing as a budget-conscious alternative for corporate travel. Eighty-one percent of the respondents said they were using teleconferencing; 71 percent said they were using web-conferencing.

While more than half the respondents agree that virtual meetings are as effective as meeting in person, 25 percent maintained that it is rarely or almost never as effective.

Airplus, whose traditional market has been payment solutions for business travel purchases, indicates that its interest in virtual meetings stems from a continued need for rich data to prove and quantify those savings. In fact, the company offers free monthly webinars from its Data Lab focused on the value of the AirPlus Information Manager for analysis of corporate travel spend. 



CWT Wins Renewed FedRooms Contract With GSA

The U.S. General Services Administration's Federal Acquisition Service again awarded its FedRooms contract to Carlson Wagonlit Travel. CWT has supported FedRooms since its creation in 2004. Last year, by leveraging the federal government's buying power, the program delivered rates that were an estimated 40 percent below corporate rates.

FedRooms now offers federal travelers low-cost accommodations at more than 7,000 hotels in prime locations. The number has grown at an annual average of 40 percent since its launch.

In 2008, FedRooms' rates for the largest U.S. cities were 31 percent below the Business Travel News' corporate rates. 



Emirates Accelerates Delivery Of A380 For Paris Route

An Emirates A380 super-jumbo will begin serving Paris on February 1, 2010. The French capital is the latest destination to be added to the growing list of gateways served by the airline's double-decker. Plans to introduce the aircraft at Charles deGaulle airport have been accelerated by almost a year because of "encouraging sales," according to Tim Clark, the airline's president.

The superjumbo's First Class cabin features leather seating, shower spas, a lounge (serving a wide range of beverages and canapés) for First and Business class passengers, and an additional lounge area located at the front of First Class. A380 passengers will be offered an elaborate menu, access to and in-flight entertainment system, and an advanced mood lighting system that simulates a starlit sky, which adjusts throughout the flight to reflect the time at the destination and to help combat the effects of jet lag. 



Frontier, Midwest To Codeshare As Each Awaits OK For Republic Buyout

Frontier Airlines has reached a codeshare agreement with Midwest Airlines that will extend both companies' networks when it goes into effect late this summer. In the meantime, both airlines are awaiting various government approvals for separate deals to be acquired by Republic Airways Holdings.

The terms of the Frontier-Midwest agreement, Frontier will sell tickets under its own code, offering additional destinations currently served by Midwest from its Milwaukee hub. Midwest customers will connect to Frontier and Lynx Aviation flights in Denver. More details of the program, along with specific cities that will be available through the codeshare, will be announced at a later date.

Frontier, currently operating under Chapter 11 protection, announced a week ago that it had reached an investment agreement with Republic, in which Republic will serve as equity sponsor for Frontier's plan of reorganization and purchase 100 percent of the equity in the reorganized company for $108.75 million. The plan is subject to bankruptcy court approval and various conditions. If approved as proposed, Frontier would become a wholly-owned subsidiary of Republic when it emerges from Chapter 11. The plan also applies to Frontier's Lynx Aviation subsidiary; both would maintain their current names and continue to operate as usual.

Midwest's deal with Republic is similar. The Milwaukee-based airline also will retain its brand name by becoming a wholly owned subsidiary of Republic. Its Boeing 717s will be replaced with Embraer 190s, so it will be able to offer nonstop service to key destinations.

Republic Airways Holdings' deal with TPG Capital of Fort Worth to purchase Midwest has been priced at $31 million - $6 million in cash and $25 million in a five-year note. Its purchase price for the post-Chapter 11 Frontier has been priced at $108.75 million.

Republic, based in Indianapolis, already owns Chautauqua Airlines, Republic Airlines and Shuttle America. Together the three currently employ approximately 4,500 aviation professionals and operate 212 regional jets, offering scheduled passenger service on approximately 1,200 flights daily to 101 cities in 37 states, Canada and Mexico through airline services agreements with seven US airlines. All of the airlines' flights are operated under their airline partner brand, such as AmericanConnection, Continental Express, Delta Connection, United Express, Midwest Connect, Mokulele Airlines and US Airways Express. 



Hilton Negotiates High Visibility On Cvent RFP Network

Cvent has formed a strategic partnership with Hilton Hotels Corporation guaranteeing the hotel company enhanced search placement on the Cvent Supplier Network. Hilton properties will be highly visible to meeting planners who use Cvent to send group business electronic RFPs. Hilton will be positioned to capture immediate group business leads since 89 percent of the Cvent electronic RFPs are for meetings and events occurring within the next 12 months. 



Hospitality News

Chicago: Accor North America has completed renovations on several properties in the Chicago area, Arlington Heights; West-Villa Park; North-Glenview; Elk Grove; Northwest-Palatine; Southwest-Aurora; and Joliet. Each of the renovated properties features elements of the new "Phoenix" prototype design, which includes a modernized interior, sleek European boutique-style guestroom, wood-effect laminate flooring, and a variety of energy management systems.

Chicago: The Courtyard Chicago Elmhurst/Oakbrook has completed renovations - including a host of high-tech upgrades for businesses seeking a conference venue in Chicago. Available technologies include free hotel-wide high speed wireless internet access and the Marriott's proprietary E-Interface, a "one-stop shop" for local information including mapping tools, up-to-the-minute weather data, and dining and leisure options, as well as a host of national news feeds. The Courtyard features a 75-person conference room, plus all the business amenities needed for a successful, stress-free meeting,

Cutler Bay, FL: Accor North America has opened a new corporately-owned Motel 6 here at on Caribbean Boulevard in Miami-Dade County, near the Florida turnpike. The 150-room property was formerly a Best Western.

Dallas:The Residence Inn by Marriott Dallas Park Central has completed a full-scale $2.3 million property renovation that encompasses all areas of the hotel including guest suites, meeting rooms and public areas. All 139 newly-renovated suites offer the latest Marriott bedding with plush mattress and high quality triple sheeting, new carpeting and granite countertops in the kitchen and bathroom. The upgrade also includes in-suite enhancements such as high-definition, flat-screen LCD television and complimentary wireless Internet access.

Paris:The five-star Hotel Banke, the latest property in the Derby Hotels Collection, has opened in Paris. The hotel occupies a 20th-century building designed by Paul Friesse and Cassien Bernard that once housed the HSBC Bank. Teller windows, lobby and loan offices have been replaced by an art gallery, opulent lobby lounge and 93 luxurious guest rooms.

Penn Square, PA: Interstate Hotels & Resorts has opened the 299-room, full-service integrated Lancaster Marriott at Penn Square and Lancaster County Convention Center, comprising a combined 90,000 square feet of meeting space. The $177-million hotel and convention center project is a joint venture of the Redevelopment Authority of the City of Lancaster, Lancaster County Convention Center Authority and private developer Penn Square Partners. Interstate operates both parts of the integrated facility. The 19-story Lancaster Marriott at Penn Square incorporates the 19th-century Beaux Arts façade of the landmark Watt & Shand department store, featuring a lobby highlighted by cathedral ceilings and mahogany paneling. The integrated facility features a spacious 46,500-square-foot exhibition space; a 9,000 square-foot ballroom; and numerous smaller, finely appointed meeting spaces. Wireless connectivity is available throughout the facility. 



JAL Expands Codeshare With Air France

Japan Airlines (JAL) will expand its code share network with Air France (AF) to include the latter's Paris-to-Istanbul service, effective July 7. JAL already connects to 11 other destinations in Europe via Paris. JAL and Air France first started code sharing in 1960 and at present, the agreement includes code share flights from Tokyo (Narita) and Osaka (Kansai) to Paris. The other existing code share flights connect Paris to Barcelona, Berlin, Copenhagen, Dusseldorf, Hamburg, Lyon, Munich, Nice, Prague, Stockholm and Warsaw. 



KDS Adds Agent Assistance, All Invoices To Corporate Solution

KDS has expanded the functionality of its corporate online solution through two new modules: KDS Total Travel, an online solution accommodating trips that have been completed with agent Assistance; and KDS Invoice Reconciliation, which automates cost allocation and reconciliation for imported supplier invoices.

In Total Travel, all requests are made online, including complex requests that are routed to an agent who proposes options back to the traveler. By routing all bookings through KDS Corporate, policy is enforced, costs are monitored and data capture is complete.

In Invoice Reconciliation, lodge card data, travel agency and other supplier-invoiced costs can be viewed and matched against existing trip data, eliminating the need for accounts payable teams to manually cross-check every line item. With all travel related costs held in the same database,

the much sought-after, total trip cost reporting now becomes a reality. 



Lufthansa Wins EU Nod For Acquisition Of Brussels Airlines

The European Commission has granted regulatory approval for the tie-up of Lufthansa and Brussels Airlines, paving the way for the German airline's purchase of an initial 45 percent stake in SN Airholding SA/NV, the parent company of Brussels Airlines. Clearance from the EU competition authority will also give Lufthansa an option, to buy the remaining 55 percent stake in Brussels Airlines as of 2011, once it has secured the necessary traffic rights, thereby completing the takeover of the Belgian carrier. The transaction is expected to be finalized by the end of June.

Lufthansa and Brussels airline passengers already profit from their partnership in the run-up to Brussels Airlines' accession to Star Alliance. 



MNS Unveils Global Conferencing Network To Replace Dedicated Lines

Media Network Services, based in Oslo, has launched a global video conferencing network enabling any business with video conference equipment to experience High-Quality to Telepresence and HD video conferencing without the need of traditional dedicated networks. There is no need to invest in new video conferencing equipment in order to use the MNS network.

MNS offers two services, based on company size and existing equipment: one for users of Telepresence and HD video conferencing, usually large enterprises, and another for High-Quality Video Conferencing, usually the choice of small- and medium-sized companies. 



MobilityPass's New Global Card Eliminates Need For Local SIM Versions

MobilityPass has introduced its Global Voice SIM card, which allows users to stay connected from country to country without the expense of purchasing local SIM cards or subscribing to mobile services. The Global Voice SIM is a pay-as-you-go card; MobilityPass says it can save business travelers up to 80 percent of their overseas mobile costs. 



Names In The News

AirPlus International has promoted Aaron Kelling to executive vice president, strategic partnerships, a newly-created position designed to foster continued growth in the US market through the further development of executive level relationships with key industry partners.

Formerly vice president of sales and account management for the Northern US and Canada, in his new role, Kelling will have responsibility for the entire US market. AirPlus has also promoted Alexander Houston to executive vice president, sales, and Kathy Cantwell to vice president of client services. Houston was formerly vice president of sales for the southern US; Cantwell, director of customer and agency relations. The new management roles are effective immediately and represent the development of segmented US sales and account management teams.

Signature Flight Support has named Patrick Sniffen vice president marketing for its worldwide network of FBOs. He is based at Signature's corporate offices in Orlando. Previously vice president of marketing and communications for a prominent international flight services company, Sniffen will focus on enhancing the Signature brand, marketing and communications as well as media relations.

Travelport GDS has named Mark P. Ryan its new chief information officer, with global responsibility for formulating and executing the company's technology strategy, including software solutions and applications development. From his base in Atlanta, Ryan will lead a team of more than 500 technology professionals worldwide with development hubs in Atlanta, Denver, Kansas City and Langley, UK. He also oversees Travelport's joint venture technology operation in Delhi, India. 



Pegasus Market Vision Reports Refine Hotels' Forecasting Abilities

Pegasus Solutions has teamed with Rubicon to offer agency demand reports to hotels so that they can measure market performance and forecast market potential based on revenue, net reservations, room nights, ADR (average daily rate), market share, average lead time and average length of stay. Additionally, booking patterns can be analyzed through the evaluation of room rate achieved, geographical source of business, travel agency, consortia / travel management company (TMC), or the channel that produced the bookings. Labeled MarketVision, the business intelligence tool helps property view of booking demand up to 120 days out. 



Porter Signs Full-content Pact With Travelport

Travelport GDS has reached a multi-year full content agreement with Porter Airlines, giving all Galileo- and Worldspan-connected travel agents access to the airline's full published fares and inventory, including access to the airline's lowest web fares. Porter will also be available through Travelport's Agencia booking solution. Apollo agencies will gain access to Porter inventory immediately; Worldspan and Galileo will follow suit in August. 



Rescott Pledges Savings From Cross-platform E-conferencing Service

Rescott, an Indiana-based technology company, has developed a web conferencing platform that encompasses rich video, six way video broadcast, voice-over-IP and telephone audio, PowerPoint, streaming media content, and PayPal billing integration. Dubbed DoConference, the system is cross-platform compatible and can handle several thousand attendees in one webinar.

Ease of use and low cost are the main selling points. According to Toby Reeves, president of Rescott, DoConference will accommodate up to six presenters "for the same low cost." The company is offering a special introductory price as low as $41 per month for unlimited usage. 



The Next 8 Days

July 1 Inland NW BTA meets at 11:30 am in the Davenport Hotel. www.inbta.org

July 5 Hawaii BTA meets from 5:30 to 7:30 pm in Ronald McDonald House, Honolulu. www.hawaiibta.org

July 7 Georgia BTA will meet at 11:30 am at Renaissance Waverly, Atlanta. www.gbta.org

July 8 Hawaii BTA will meet at 11 am in Ruth's Chris Steak House, Honolulu. www.hawaiibta.org

July 8 Texas BTA meets at 11 am in the Hilton Houston Post Oak. www.tbta.org 



Travelex Currency Conversion Technology To Debut In Japan

The Travelex foreign exchange company has launched Currency Select, its dynamic currency conversion technology, in Japan in conjunction with UC Card, one of the largest Visa and MasterCard merchant acquirers in Japan. The technology allows international travelers the option of paying for goods and services in their home currency, giving them visibility as to the actual cost of their purchases despite current volatility in exchange rates.

Currency Select services are also available in Singapore, the UAE, Australia and New Zealand. 



Virgin Atlantic Orders 10 New A330-300s; Delivery Starts Next Year

Virgin Atlantic Airways has placed a $2.1billion order for 10 new Airbus A330-300 aircraft, Five will be delivered in 2011; five in 2012. The new aircraft, which can seat up to 270 passengers, will operate on many of Virgin Atlantic's existing routes as well as assist in planned growth to new destinations from London such as Beijing, Cancun and Vancouver.

A330-300s are known for their fuel efficiency, lower maintenance costs and substantial cargo Capacity; Virgin Atlantic already owns 38 of them. Each new aircraft will feature lighter, more comfortable seating, and USB ports and power sockets in Upper Class and Premium Economy cabins. All passengers will be able to send and receive emails and texts on their Blackberries, handheld PDAs and other mobile devices.

Delivery of the airline's 15 Boeing 787-9 Dreamliners on order is expect to begin in 2013. 



Passkey Debuts Real-time Tracking Dashboards For Planners, Hotel Staffs

Passkey has launched Live Dashboards, a real-time event and group tracking technology that is being used in two versions. One allows meeting planners and hotel staff to track and manage individual events in real-time; the other is strictly for hotel staff, helping them to monitor and maximize their group performance.



Event Dashboards provide meeting planners a user-friendly real-time visual

snapshot of their event, allowing them to easily track and manage their events

anytime without having to constantly call the hotel for updates. The Dashboard delivers such critical metrics as block pick-up, delegate lists, reservation pace, revenue and an event timeline, as well as the ability to manage reservations and rooming lists online.



Since the dashboards are deployed across many hotel brands, properties and meeting destinations, planners can “toggle†their dashboard from event to event, allowing them to track all of their events in one place, regardless of the venue or destination.



Hotel Dashboards give the hotel staff and management a consolidated, real-time view of all their group business in one screen. This provides them important insights into their groups, such as tracking performance trends, viewing each event's metrics and forecasting future group business. With it, hotels can easily address any potential inventory availability issues, track overall group trends and identify up-sell opportunities. They also monitor critical business metrics such as reservation cost savings, up-sell revenue, and group LOS and ARD. 




back to top 










© 1997-2008 Business Travel Executive Inc., All Rights Reserved

Opentracker: Web Site Analytics