Business Travel News - September 8, 2008 - (Page 1)

SEPTEMBER 8, 2008 INSIDE American, Aircell Debut Wi-Fi In The Sky . . 3 Groups Attempt To Define Green Meetings . . 4 Capacity Cuts’ Effect On Top Airports . . . . . . 8 AA, BA, Iberia To Tighten Ties, Seek ATI . . . 14 HRG: U.S. Hotel Rates Leveling Off . . . . . . 18 6 16 18 BAYER TAKES 2 VERIZON UPS TMCS GLOBALLY REMOTE USE Paul Lang leads global agency sourcing effort. HOTEL CO. TO GROW IN INDIA BTNonline.com Debra Goldmann Leela head Poortier helps lead effort to plans growth to push alternatives. meet rising demand. ONE-ON-ONE SABRE CEO SAM GILLILAND CEO Sees Distribution Evolution BTN editors last month spoke with Domestic airfares 8-12% Sabre CEO Sam Gilliland to discuss As companies begin to set travel budgets for the travel distribution outlook, airline 2009, buyers expect the cost of airfares to rise International airfares 16-20% merchandizing initiatives and the dramatically, though a softening hotel market Hotel rates 2-3% next generation of the company’s corand competitive rental car rates could help offRental car rates 0% porate travel offerings. set the severity of overall expense increases. Business Travel News: We’ve reMany corporations and travel management Source: Carlson Wagonlit Travel cently heard your competitors say companies said they still were in the midst of fibooking softness has spread outside of nalizing travel budgets for next year, and the early read is mixed—with increased, dethe United States, which was not the creased and flattened budgets plotted proportionally, according to a Topaz Internacase earlier in the year. Are you seeing tional survey of 157 travel buyers, fielded for Business Travel News. According to the similar trends? Topaz poll results, 34 percent of respondents said Sam Gilliland: What their companies plan to take more trips next year, we’re seeing is reflective of while 29 percent expect the same and 36 percent what you also see in terms are predicting a decrease in volumes. of economic news around However, even companies planning fewer trips next year are accounting for growing travel costs— the world. We have the soft- BY SETH HARRIS Global distribution system providers are competing outside of with 42 percent planning for budget increases. ening economy here, which For more information, see the 2009 BTN has led to softer bookings in their traditional geographic comfort zones, raising the overall levthe United States. You have el of inducement compensation and jockeying for position before Budget Planner on page 10. seen some of the economic the next rounds of negotiations with travnews in the United King- el management companies and airlines. GDSs assert the diversification of proddom, and it’s not going swimmingly there either. uct and service offerings are today’s difUse of independent and small group That softness seems to have ferentiators. However, inducements still BY MICHAEL B. BAKER Corporate travel buyers are report- hotels participating in corporate promoved to continental Eu- are an important part of the overall ecorope as well. More recently, nomic model, as they enable a relatively ing increased access to and use of in- grams increased 89 percent from 2007 we’ve also been seeing in the balanced sharing of the costs between dependent and boutique hotels, to 2008, according to Utell Hotels & bookings that it’s getting soft travel suppliers and buyers. spurred by better negotiating oppor- Resorts, the representation service in Asia. It goes into what apTravelport during its second-quarter tunities, availability in tight markets segment of Pegasus Solutions that pears to be a global cycle. earnings call last month noted induce- and the potential to increase travel- represents more than 3,000 properContinued on page 24 Continued on page 25 Continued on page 25 er compliance with hotel programs. Buyers See Air As ’09 Budget Breaker AIRFARES POISED FOR DRAMATIC 2009 GROWTH $ Projected change, 2008 to 2009 Inducements Up In GDS Turf Battle ERIC WONG Boutiques’ Rates, Space Entice Buyers You think big. You’ll pay small. Saves you money Call 1-800-331-3550 or visit Thrifty.com/business today. ©2008 Thrifty Rent-A-Car System, Inc. Thrifty.com is a trademark of Thrifty, Inc. All rights reserved. Thrifty features quality products from Chrysler, Dodge, Jeep® and other fine cars. http://BTNonline.com http://Thrifty.com/business http://www.choicehotels.com http://Thrifty.com/business http://Thrifty.com

Table of Contents for the Digital Edition of Business Travel News - September 8, 2008

Business Travel News - September 8, 2008
Contents
Inside Track
Profiles In Travel Management
BTN Research
Aviation
Meetings Today
Lodging
Asia/Pacific
Washington Wire

Business Travel News - September 8, 2008

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