Airlines  

International Premium Travel Sees First Uptick in Nearly Two Years
The International Air Transport Association reported that international premium travel was up 1.7 percent in December 2009 over a year earlier. That’s the first increase since May 2008. Economy travel was up five percent over a year earlier. The recession hit airlines hard throughout the first half of 2009, but a post-recession upturn began in the second half. May marked the low point for premium travel while February marked the low point for economy travel. (Source: IATA press release).

Global Air Capacity Grows for the Sixth Month in a Row
More good news came from OAG, the aviation data tracking company. It reported that in February, global airline capacity was up five percent, the sixth month in a row that it has increased. The single exception: North America, which reported a one percent decline in February in both flight frequency and capacity. However, North America saw positive growth of three percent and two percent for frequency and capacity in flights to and from the region. Decreases continue on service between North America and Western Europe, where routes have five percent fewer seats and five percent fewer flights for the month. Still, the OAG said airlines are adding routes in North America—108, with most being domestic flights. (Source: OAG press release).  

U.S. Airline Revenue Up for First Time in More Than a Year
Other positive airline news: The Air Transport Association reported that passenger revenue rose 1.4 percent in January, reversing 14 consecutive months of declines. Traffic was down very slightly--.4 percent—and the average price to fly one mile was up very slightly--.6 percent. James C. May, president and CEO of the ATA, said that the small revenue increase, coupled with a 17 percent increase in cargo traffic, could be the sign of a recovery. (Source: ATA press release). 

Business Travel Continues Slow Recovery

Business travel continues its slow recovery with more than one in seven (15 percent) adults planning at least one business trip during the next six months, up from 13 percent recorded one year earlier. According to the travel horizons survey co-authored by Ypartnership and the U.S.  Travel Association. The U.S. Travel Association projects a slight increase in both business and leisure travel for 2010 over 2009. The "perceived safety of travel," declined from 93.8 in October 2009 to 84.8 in February 2010, presumably due to lingering concerns about the "Christmas Bomber" incident that occurred in Detroit over the recent holidays. (Source: Ypartnership and U.S. Travel Association press release).

Virgin America Ups Baggage Fees, American Charges for Blankets
Airlines continue to add on fees. American Airlines, following the lead of other airlines, will charge $8 for blankets and pillows in coach starting May 1. Virgin America upped its baggage fee for all checked bags to $25 from $20. First Class passengers continue to check two bags for free; Main Cabin select and Main Cabin passengers with refundable fares can check their first bag for free. (Source: Virgin America press release, American statement).  

Road Warriors Biggest Worry is Those at Home
Nearly 74 percent of business travelers say their stay-behind spouse has expressed concern about being left home alone, according to a survey commissioned by Logitech, a Swiss technology company. Even more, 79 percent frequently worry about their significant other when traveling for business. Fifty-nine percent said they would look for a job with less business travel when the economy improves. And 54 percent would take a $5,000 paycut if it meant never having to travel for work again. (Source: Logitech press release).

Hotels 

Global Hoteliers Say Worst is Over
The Global Hotel Market Sentiment Survey shows that hotel operators believe that the worst of the crisis is behind them and that 2010 will be the beginning of the long road to recovery. Six months ago, the majority of hoteliers were pessimistic, predicting that conditions would get worse. Hoteliers in regions that are seeing stronger recoveries are the most positive. Asia and the Oceania moved from scores of -41 and -48 six months ago, to +47 and +42 now. Europe, which was the most pessimistic region at the time of the last survey, is now entering positive territory. Hoteliers in America, which has been possibly the hardest hit region in the world over the last 18 months, now feel more positive about the coming year than they did in the middle of last year. Most of the participants expect average room rates to stay more or less the same in 2010, with weak corporate and leisure group business demand, but expect a slight improvement in occupancy, driven by individual leisure travelers. (Source: Horwath HTL press release). 

Hotels in the Americas Still See Rates, Occupancies Decline
Despite optimism about the future, the present remains tough for hotels in the Americas, according to the latest STR Global monthly numbers. In January 2010, the region’s occupancy ended the month virtually flat with a 0.7-percent decrease to 45.5 percent, average daily rate (ADR) fell 6.0 percent to $96.68, and revenue per available room dropped 6.7 percent to $43.98. Boston, Mass., reported the largest occupancy increase, jumping 18.3 percent to 48.9 percent. Two other markets reported double-digit occupancy increases: Miami, Fla. (up 10.6 percent to 74.6 percent), and Rio de Janeiro, Brazil (up 10.4 percent to 76.4 percent). Alberta, Canada, posted the largest occupancy decrease, falling 9.9 percent to 46.9 percent. Three markets reported double-digit ADR decreases: Washington, D.C. (down 27.2 percent to $132.65); Chicago, Ill. (down 14.5 percent to $85.99); and San Juan, Puerto Rico (down 10.8 percent to US$190.01). (Source: STR Global press release)

Spotlight On…..          

                    Airports

Travelers continue to be dissatisfied with airports, according to the J.D. Power and Associates 2010 North America Airport Satisfaction Study. Airports continue to struggle with delivering baggage promptly, providing a comfortable atmosphere and making airports easy to navigate. The study found that airports need to consistently deliver on three things: 

• Clear signage
• Delivering baggage quickly and accurately
• Partnering with the Transportation Security Administration to reduce security wait times.

A few airports are doing better than others. Detroit, Denver and Minneapolis St. Paul were the top three among large airports (Denver and Minneapolis/St. Paul tied for second place). Kansas City, Portland and Tampa were the top three medium sized airports. And Indianapolis, Fort Myers/Southwest Florida and Tucson were the top three small airports.           (Source: J.D. Power’s press release).

 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.