Business Travel News - March 15, 2010 - (Page Cover1)

MARCH 15, 2010 INSIDE Northstar Travel Media Buys BTN . . . . . . . . . 3 TMCs, Tech Cos. Target Midmarket . . . . . . . . 3 La Quinta First Hotel Chain To Join UATP . . . 4 Online Booking, Expense Tools Tighten Ties . . 6 MPI Spotlights Meeting Metrics . . . . . . . . . 14 6 8 12 HRG CEO SEES BOEING’S CTD POLICIES EASE TAKES FLIGHT Radcliffe to keep focus on savings as fears lessen. AIR JOINT CHIEF FORESEES UNITY BTNonline.com Jim Johnson pilots BA’s Walsh sees company’s move joint ventures as from in-house TMC. consolidation steps. JVs Alter The Skies BUYERS FACE FEWER TRANSATLANTIC OPTIONS BY JAY BOEHMER Premium Class Begins Comeback PREMIUM AIR SHARE GROWS, BUT LAGS PRE-RECESSION PEAK BY JAY BOEHMER The growing dominance of transatlantic joint ventures is fundamentally changing how airlines sell services to corporate travel buyers, as government approvals for antitrust immunity are converting nearly SECOND IN one dozen distinct transatlantic competitors into three dominant entities. A SERIES While the simple procurement principle that concentration of power on one side reduces negotiating leverage on the other has been a cause for concern among travel buyers, airlines are claiming a number Postmaster: Newspaper Handling/Periodicals Postaage Corporate travelers slowly are making their way back to the front of the plane for long-haul international journeys after a year marred by deep declines in premium volFirst and business class percentage of all air tickets umes, while carriers once again are investpurchased by American Express corporate clients ing in product and in some cases adding 50% 49% 47% 40% premium capacity. 42% 39% 36% 37% 30% Though it is unanimous that premium 20% class passenger counts and yields are im10% 0% proving from the depths of 2009, they reQ308 Q408 Q109 Q209 Q309 Q409 main well below their peaks, and carriers Continued on page 26 anticipate a long slog toward full recovery—keeping buying power on the corporate side. “It’s still a buyer’s market,” Advito vice president Bob Brindley said. “The REPORTER’S NOTEBOOK: MASTERS PLUMB DEPTH OF DEMAND carriers will be very quick to admit that while their premium demand is creeping up, it certainly is not where it was for most of 2008. Even though they’ve cut capacity back, they still have a lot of premium seats to sell and it’s still a very competitive market.” BY JAY BOEHMER volumes would grow—then plateau. According to new American Express corporate client data, premium After recounting the grim state of “One could say that the recession class utilization hit a low in the second quarter of 2009 when only 36 perContinued on page 24 the industry in the past year, Amer- may be behind us,” Petruccelli told ican Express Global Travel Services the roughly 175 senior-level buyers president Charles Petruccelli dur- and suppliers in attendance. “The ing the Masters Program in Wash- question: Is this the beginning of a Continued on page 10 ington, D.C., last month said travel Petruccelli Predicts 2010 Plateau 2010 BTN U.S. HOTEL CHAIN SURVEY ONE-ON-ONE RITZ-CARLTON PRESIDENT AND COO SIMON COOPER Recovery Steady As Groups Return Ritz-Carlton Hotel Co. president and COO Simon Cooper recently spoke with Business Travel News hotel editor Michael B. Baker about corporate travel’s role in the luxury tier and changes within parent company Marriott International. Business Travel News: Are you seeing business and group travel levels recovering? Simon Cooper: 2010 probably is going to be categorized by two things. One is a steady return of business. I wish I could use the other s-word, sudden, but it will be Continued on page 23 UPPER UPSCALE DELUXE Le Meridien Hotels Ritz-Carlton Hotels • • MIDPRICE UPSCALE/SELECT SERVICE Hampton Inns and Suites Crowne Plaza Hotels For more, see page 16. http://www.BTNonline.com

Table of Contents for the Digital Edition of Business Travel News - March 15, 2010

Business Travel News - March 15, 2010
Contents
Inside Track
Profiles In Travel Management
Forum
Aviation
Meetings Today
BTN's 2010 U.S. Hotel Chain Survey

Business Travel News - March 15, 2010