Airlines 

Customer Satisfaction Rises as Airlines Cut Capacity
For the first time since 2003, passenger satisfaction with airlines improved, according to the University of Michigan’s American Customer Satisfaction Index (ACSI). Passenger satisfaction was up 3 percent to 64, ending a downward slide that, with few interruptions, began in 1994. Although they are up, airlines remain one of the lowest scoring businesses in ACSI. American Airlines fell 3% to 60.  Southwest continues to lead the industry for a sixteenth straight year, up 3% to an all-time high of 81. United Airlines anchors the bottom, unchanged at 56. Airlines with the biggest customer service problems in the past improved the most.  Continental is up 10% to 68, and US Airways is up 9% to 59, both erasing last year’s declines.  Delta improved 7% to 64 after its merger with Northwest, while Northwest itself remained near the bottom of the industry at 57, just ahead of United. (Source: University of Michigan press release).

Q4 2008 Airfares at Historic Highs for the Quarter Despite 3.7 Percent Decrease from Q3
The Department of Transportation reported that domestic airfares in the fourth quarter of 2008 were down 3.7 percent from the all-time quarterly high set in the third quarter but were still the highest for any fourth quarter on record. The drop to a $347 average fare was the biggest third quarter to fourth quarter decline in the 14 years of such record keeping and just the third time in 14 years that fares have fallen from the third quarter to the fourth quarter.  In the other 11 years, average fares rose from the third quarter to the fourth quarter. Since 2004, average fares have been increasing faster than inflation. Source: (DOT press release).

Domestic U.S. Passenger Airline Revenue Declines for Sixth Consecutive Month
The U.S. trade association for major airlines, The Air Transport Association of America (ATA), said that airline revenues dropped 18 percent in April, down from April 2008, for the sixth month in a row, and that the number of passengers traveling on U.S. airlines fell 6.3 percent. The average price to fly one mile fell 12.6 percent. (Source: ATA press release).  

Demand Decline for International Air Travel Slows, Worst May Be Over But No Sign of Recovery

The International Air Transport Association (IATA) reported a 3.1% decline in passenger demand compared to April 2008. The average passenger load factor stood at 74.4%. The 3.1% passenger demand drop was a clear improvement compared to the -11.1% fall in March, but the Easter holidays, which fell in April, positively skewed the data by at least two percent and traffic gains came at the expense of yields in most regions. Fare discounting spurred a demand increase on North Atlantic routes and North American carriers, who experienced a 13.4% drop in demand in March, saw this reduced to -4.2% in April. “The worst may be over,” said Giovanni Bisignani, IATA’s director general and CEO. However he said that IATA has not yet seen any signs that recovery is imminent. (Source: IATA press release).

Delta Shuttle Offers Bonus Miles and Lower Fares
Delta Air Lines is offering Delta SkyMiles and Northwest WorldPerks members 2,500 bonus miles for each flight segment purchased and flown on the Delta Shuttle between New York City and Boston or Washington, D.C. through July 26. Members will receive 5,000 miles for each round-trip Shuttle purchase or 2,500 miles when they buy a one-way fare. In addition, Delta cut Shuttle fares up to 60 percent cheaper than previous walk-up prices. (Source: Delta press release).  
 

American Airlines Cabins Are Now Cash-Free

American Airlines has gone cashless onboard flights within the continental United States, as well as flights to and from Hawaii, Alaska, and Canada. American will accept American Express Cards and other major credit or debit cards only for in-flight purchases such as headsets, fresh meals, snacks and alcoholic beverages. Flight attendants utilize a hand-held Onboard Sales Recorder to charge credit and debit cards. (Source: American press release).

Hotels 

Hotel Occupancies, Rates and Revenues Continue to Fall
The U.S. hotel industry declined in three major measures—occupancy, rates and revenues—at the end of May, according to Smith Travel Research, with occupancies falling 11.1 percent to 59.4 percent, average daily rates (ADR) dropping 9.3 percent to $98.31 and revenue per available room down 19.4 percent. Two of STR’s top 25 markets saw increases, 4.3 percent in San Francisco/ San Mateo and 1.7 percent on Oahu. Four markets saw ADR decreases of 15 percent or more: New York, down 29.8 percent; Chicago down 16 percent; San Diego, down 15.8 percent and Phoenix down 15 percent. (Source: STR press release). 

Hotels Find Tough Times Make Travelers More Waste-Conscious
Frequent travelers have become waste-conscious, according to Element Hotels’ new Eco-Travel Index, which tracks frequent travelers’ “green” travel habits. The study found that nearly 78 percent of respondents said they are paying more attention to wasteful habits like 'leaving the lights on, leaving the TV on, [or] leaving the faucet running.' But more than 41 percent say their vigilance about squandering resources is 'due to the economy, while just 28 percent claim it's 'due to the environment.' Their eco habits lip on the road, with nearly half (46 percent) saying they 'always' recycle glass and plastic at home, but just 36 percent do on the road. At home - more than 34 percent say they limit shower time or lawn-watering - but only 20 percent watch water consumption while traveling. Only about one-third of travelers surveyed consider themselves 'outstanding' in their personal 'green programs,' with most feeling more like 'green beginners.' (Source: Element press release)

Rail

Amtrak Cuts Fares 25 Percent on Northeast Regional Service
Amtrak has lowered fares 25 percent off the lowest published coach fare on the Northeast Regional service between Washington, DC, New York, and Boston and has extended the current lower fares on Acela Express. Reservations must be made 14 days in advance and are good for travel through Sept. 3.  The 25 percent discount is also available from Washington, DC to Newport News, on Amtrak's Vermonter service between Springfield, Mass. and Washington, DC, and on the Keystone service between Philadelphia and New York. Sample fares are:  New York-Washington, $49 down from $72 and Boston-New York, $49 down from $62. (Source: Amtrak press release).

Spotlight On…..                              

                            Traveling More But Spending Less

A new American Express survey finds that corporate America plans to spend less on travel even as it maintains or even increases travel to meet with new or existing clients. Most—70 percent—expect a recovery to begin sometime in 2010. 

·         87 percent plan to spend less on business travel this year

·         82 percent plan to maintain or increase travel for meetings with new clients

·         66 percent plan to maintain or increase travel for meeting with existing clients

 The Travel Team, Inc.  is committed to providing you with useful information on the latest developments in the travel industry. The following information has been compiled from a variety of sources and is updated monthly.