Travel Agent - April 28, 2008 - (Page 91)

NEWS IMPACT Hawaii Tourism Regroups as Aloha Airlines Goes Down qantas.com.au) has a few down in Sydney and AirTran (www. airtran.com) may have a few. We’re in contact with anyone who is operating with 717s.” Miyasato added that the solution wasn’t just to purchase small aircraft—if the company added craft other than 717s, it would create problems in maintenance and training of pilots and staff. Miyasato acknowledges that the price of inter-island fares is a sensitive issue. “Inter-island travel is the core of our business, and we’ll keep the $49 interisland fare as long as we can,” says Miyasato. “A lot depends on how high fuel prices continue to rise.” (On the mainland, there’s also some concern that the demise of low-cost carrier ATA will cause ticket prices from the mainland to Hawaii to rise.) In response to Aloha closing, Hawaiian pushed through a new daily flight between Oakland and Honolulu. The flights will begin on May 1, departing from Oakland at 9 a.m. and arriving in Honolulu by noon. The return flight to Oakland leaves in the afternoon for a late evening arrival. “Our business model is getting our customers to Hawaii early so they can get to their hotels by noon and enjoy their day; conversely, we schedule departing flights so they’ll arrive home in the evening,” says Miyasato. Mark Rogers High fuel prices and inter-island fare wars are two reasons cited for Aloha Airlines going out of business THIS PAST MONTH when Aloha Airlines (www.alohaair lines.com) filed for Chapter 11 bankruptcy protection, I expected a drawn-out process of move and countermove as the troubled carrier made an effort to get back on track. Then, on Sunday, March 30, days after the bankruptcy announcement, Aloha Airlines shocked the travel world when it declared it would cease all passenger operations as of Monday, March 31. According to Aloha’s President and CEO David Banmiller, the company did everything it could to find a buyer or financing, but ran out of time. “This is an incredibly dark day for Hawaii,” he said. The move affected about 1,900 employees, most of them in Hawaii. Aloha Airlines cited high fuel prices and an inter-island fare war from Mesa Air’s subsidiary go! (www.iflygo.com). Inter-island airfares had dropped by half to approximately $49 since the June 2006 entry of go! During the height of the fare wars between go! and Aloha, inter-island fares dropped to a ridiculously low price of $19. I spoke to one Hawaii tourism player off the record, who says, “It was more than fare wars that brought Aloha down—there were other factors, including an aging inter-island fleet.” Filling the Gap Other carriers were quick to jump into the void left by Aloha, chief among them Hawaiian Airlines (www.hawaiianair.com). “We’ve added 6,000 seats a day into our inter-island inventory, flying wide Boeing 766 aircraft,” says Blaine Miyasato, vice president, customer service, Hawaiian Airlines. “To maintain this kind of schedule, we’re looking to add 12 additional smaller 717 aircraft to our fleet to replace the 766s, which are larger than necessary for inter-island travel.” Miyasato explains that the problem Hawaiian is facing is that 717s aren’t being made anymore. “We’re scouring the world for these aircraft,” he says. “Qantas (www. By Air or By Sea? When I was in Waikiki earlier this month, I would usually witness an exercise in eye-rolling when I would bring up the Hawaii Superferry (www.hawaiisuperferry.com), which was designed for inter-island travel by sea. The Hawaii Superferry has been plagued by one problem after another. But even with its problems, tourism players think the time has never been better for the Hawaii Superferry to step up and deliver on its early promise. No one expects the Superferry to replace air travel between the islands, but it could definitely serve a purpose for those wanting to transport their own vehicle, or who aren’t pressed for time. (It’s generally considered that door-to-door, an inter-island Honolulu/Maui flight would take two hours, while the same journey on the Superferry would take five hours when factoring in the time it takes to get your vehicle on and off of the ferry.) All of this turmoil has a silver lining for agents and their clients. We’re used to seeing special promotions during Hawaii’s shoulder seasons. Shari Chang, senior vice president sales, marketing & revenue management, ResortQuest Hawaii, told me that the company will now be offering similar special promotions for travel during the peak summer months. Look for other companies to follow suit. — MARK ROGERS April 28, 2008 TravelAgent | 91 http://www.qantas.com.au http://www.airtran.com http://www.airtran.com http://www.alohaairlines.com http://www.alohaairlines.com http://www.hawaiianair.com http://www.iflygo.com http://www.hawaiisuperferry.com http://www.hawaiisuperferry.com http://www.qantas.com.au

Table of Contents Feed for the Digital Edition of Travel Agent - April 28, 2008

Travel Agent - April 28, 2008 Online Now Contents Contributors From the Editor Africa: Where to Stay in the Gateway to Southern Africa South Pacific/Australia: Luxury Lodges in Queensland and Tasmania Pacific/Asia: Shanghai, China’s Cosmopolitan Powerhouse, Sees New Hotel and Cruise Development Canada: Downtown Calgary is Easy to Get Around and Filled with Historic and Cultural Attractions California: Laguna Beach Blends Culture with Coastal Beauty Florida: Golf, History, Food and Fun Defined Our Stay at the Renaissance Resort in St. Augustine Las Vegas: Vegas Hotels Gamble on the Allure of Men’s Grooming Pacific Northwest: Washington Inns Emphasize Local Charm Mexico: Tulum Comes Into its Own as a Luxury Destination Europe: Cruising the Mosel and Rhine Rivers with Amadeus Waterways Rudi Schreiner, President of Amadeus Waterways, Talks about River Cruises Caribbean: Travel Agent Reports From the Dominican Annual Tourism Exchange The Slot Spot: Gaming at the Casino Dominicus Cruise: Suppliers and Businesses Use Ships as Springboards to Satisfy Enthusiasts’ Hobbies and Passions Key Legal Decisions Will Affect the Future of Alaska’s Cruise Industry Cover Story: Exclusive Beach Destinations Hotels: The Girlfriend Getaway is an Exploding Market Agent Profile: Sabine Harris’ Personal Touch Provides a Memorable Experience Virtual Tourism: New Websites Give a New View of Tourist Destinations Agenda: Fam Trips, Deals & Incentives, Calendar Anguilla’s Cap Juluca Sold Aloha Airlines is Grounded Exorbitant Hotel Rates Make Alternatives More Appealing Koepf takes Helm at NACTA, Plans to Expand Membership In the Spotlight Classified Marketplace Editorial Index Advertising Index Trendwatch

Travel Agent - April 28, 2008

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