Interview of 11 Industry CEO's, including:
Stephen Holmes - CEO, Wyndham Worldwide
Michelle Morgan - CEO, Signature Travel Network
Larry Kellner - CEO, Continental Airlines
Stephen Perry - CEO, New Orleans Metropolitan CVB
Dan Hanrahan - CEO, Celebrity and Azamara Cruises
Richard Launder - President, Travel Corporation USA
Jeff Clarke - CEO, Travelport
Jay Rasulo - Chairman, Walt Disney Parks and Resorts
Robert Salerno - CEO, Avis Budget Group
Doug Anderson - CEO, Carlson Wagonlit Travel
Cristopher Rodrigues - Chairman, VisitBritain
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Monday, January 12, 2009
Monday, January 5, 2009
Wednesday, December 17, 2008
Holiday Showcase
The Association Forum of Chicagoland once again hosted it's Annual Holiday Showcase on Tuesday, December 16 at Hyatt Regency Chicago's Grand Ballroom. Having been to a number of similar events in the past, I was expecting to see some tempered expectations from the show exhibitors, but was shockingly surprised by the enthusiasm for 2009.
I'll first recognize the fact that the show floor was saturated with hotel sales people from around the country. Hotel sales people are, by nature (or by sheer willpower) a very upbeat and optimistic group and always seem to be on top of the world. Adding to the collective jovial atmosphere was a veritable blizzard in Chicago on the day of the show, which put some folks' commute home at nearly four hours. I can only imagine the effect that had on some attendees flight arrangements! That being said, everyone I spoke with was extremely positive with the business they have in hand at the moment. Each and every one of them were very concerned about the coming slowdown, but had not seen a measurable change in their daily workload as of yet.
While the Motivation (IT&ME) Show was much more broad in terms of scope and level of exhibit investment by sponsoring companies, the Holiday Showcase seemed very succinct and to-the-point. Booth spaces were very small and aisles were very tight, which made navigating difficult at times (particularly when attempting to avoid detection by certain individuals). Most hotel chains took the less-is-more approach, with the host Hyatt being the lone exception. Even Las Vegas was very subdued... and nothing LV does is subdued!
The reps from the large properties and chains that I spoke with all proclaimed to be very busy with plenty on the books for Q1 2009. But I understand their perception of my role, and any other response would be sales suicide.
PRESS RELEASE FROM WEBSITE:
3,425 Attendees, Exhibitors Discover What’s Next at Holiday Showcase 2008
CHICAGO – More than 2,311 association industry professionals discovered "what's next" for association management through informative and inspiring education sessions and unequaled networking and business opportunities today during the Association Forum of Chicagoland's sold-out Holiday Showcase 2008 at the Hyatt Regency Chicago.
This year, 1,114 exhibitors showcased their products and services to association professionals and corporate meeting planners during Chicagoland's annual No. 1 business services and meeting sites exposition. More than 25 percent of exhibitors were business services and nearly15 percent were new to Showcase.
The 20th anniversary of Holiday Showcase included a motivating and energizing presentation by Center Stage speaker Nancy Giles. The TV and radio talk show personality and contributor to CBS News Sunday Morning shared her views on race, politics, career choices, and social networking. Before Giles took the stage, Showcase attendees were formally introduced to the Forum's new president and CEO, Christie Tarantino, CAE, who officially will lead the Forum Jan. 5.
"This year marks 20 years of contacts, contracts, content and celebration at the No. 1 business services and meeting sites expo in Chicagoland," Tarantino said. "And the Forum will continue to offer an unparalleled one-stop shopping experience, full of actionable wisdom and opportunities for association and meeting planning professionals to expand and share their knowledge for many years to come."
Participants also chose from a diverse array of learning topics, including the Knowledge Lab, learning stations that covered going digital with publications, demystified Second Life, provided insight on gaming for education to engage members and explored advanced applications and what's next in Web 2.0. There also were sessions on delivering high impact meetings, maximizing negotiations in a tough economy, determining how information sharing in Cyberspace impacts associations' intellectual property protections and unique insights from ASAE & The Center's "Decision to Volunteer Study."
Participants were treated to a special lunch performance by the Jesse White Tumblers with Illinois Secretary of State Jesse White as part of the act. The day concluded with eight exceptional grand prizes with a minimum value of $2,500 and 30 exciting booth prizes.
"The largest gathering of business services and hospitality exhibitors in the Midwest continues to be an ideal experience," said Holiday Showcase 2008 Chair Bill Grusich , CMP, president of hinton + grusich. "The learning sessions were fantastic, addressing all staff specialties, needs and career levels in association management and the opportunities for association managers to connect with peers and exhibitors were plentiful."
Holiday Showcase 2009 will be Dec. 15 at the Hyatt Regency Chicago. Details will be available in June at associationforum.org.
Starwood, Hyatt and Marriott are all pushing ahead with very ambitious expansion plans over the next three years, so I guess they see the light at the end of the tunnel! I overheard many exhibitors saying that they had a better show than last year. Generally, the exhibitors seemed pretty positive about their experience at Holiday Showcase 2008, but the hospitality industry as whole, is a pretty upbeat bunch. We have to be!
I'll first recognize the fact that the show floor was saturated with hotel sales people from around the country. Hotel sales people are, by nature (or by sheer willpower) a very upbeat and optimistic group and always seem to be on top of the world. Adding to the collective jovial atmosphere was a veritable blizzard in Chicago on the day of the show, which put some folks' commute home at nearly four hours. I can only imagine the effect that had on some attendees flight arrangements! That being said, everyone I spoke with was extremely positive with the business they have in hand at the moment. Each and every one of them were very concerned about the coming slowdown, but had not seen a measurable change in their daily workload as of yet.
While the Motivation (IT&ME) Show was much more broad in terms of scope and level of exhibit investment by sponsoring companies, the Holiday Showcase seemed very succinct and to-the-point. Booth spaces were very small and aisles were very tight, which made navigating difficult at times (particularly when attempting to avoid detection by certain individuals). Most hotel chains took the less-is-more approach, with the host Hyatt being the lone exception. Even Las Vegas was very subdued... and nothing LV does is subdued!
The reps from the large properties and chains that I spoke with all proclaimed to be very busy with plenty on the books for Q1 2009. But I understand their perception of my role, and any other response would be sales suicide.
PRESS RELEASE FROM WEBSITE:
3,425 Attendees, Exhibitors Discover What’s Next at Holiday Showcase 2008
CHICAGO – More than 2,311 association industry professionals discovered "what's next" for association management through informative and inspiring education sessions and unequaled networking and business opportunities today during the Association Forum of Chicagoland's sold-out Holiday Showcase 2008 at the Hyatt Regency Chicago.
This year, 1,114 exhibitors showcased their products and services to association professionals and corporate meeting planners during Chicagoland's annual No. 1 business services and meeting sites exposition. More than 25 percent of exhibitors were business services and nearly15 percent were new to Showcase.
The 20th anniversary of Holiday Showcase included a motivating and energizing presentation by Center Stage speaker Nancy Giles. The TV and radio talk show personality and contributor to CBS News Sunday Morning shared her views on race, politics, career choices, and social networking. Before Giles took the stage, Showcase attendees were formally introduced to the Forum's new president and CEO, Christie Tarantino, CAE, who officially will lead the Forum Jan. 5.
"This year marks 20 years of contacts, contracts, content and celebration at the No. 1 business services and meeting sites expo in Chicagoland," Tarantino said. "And the Forum will continue to offer an unparalleled one-stop shopping experience, full of actionable wisdom and opportunities for association and meeting planning professionals to expand and share their knowledge for many years to come."
Participants also chose from a diverse array of learning topics, including the Knowledge Lab, learning stations that covered going digital with publications, demystified Second Life, provided insight on gaming for education to engage members and explored advanced applications and what's next in Web 2.0. There also were sessions on delivering high impact meetings, maximizing negotiations in a tough economy, determining how information sharing in Cyberspace impacts associations' intellectual property protections and unique insights from ASAE & The Center's "Decision to Volunteer Study."
Participants were treated to a special lunch performance by the Jesse White Tumblers with Illinois Secretary of State Jesse White as part of the act. The day concluded with eight exceptional grand prizes with a minimum value of $2,500 and 30 exciting booth prizes.
"The largest gathering of business services and hospitality exhibitors in the Midwest continues to be an ideal experience," said Holiday Showcase 2008 Chair Bill Grusich , CMP, president of hinton + grusich. "The learning sessions were fantastic, addressing all staff specialties, needs and career levels in association management and the opportunities for association managers to connect with peers and exhibitors were plentiful."
Holiday Showcase 2009 will be Dec. 15 at the Hyatt Regency Chicago. Details will be available in June at associationforum.org.
Starwood, Hyatt and Marriott are all pushing ahead with very ambitious expansion plans over the next three years, so I guess they see the light at the end of the tunnel! I overheard many exhibitors saying that they had a better show than last year. Generally, the exhibitors seemed pretty positive about their experience at Holiday Showcase 2008, but the hospitality industry as whole, is a pretty upbeat bunch. We have to be!
Stay Classy San Diego
We just got back from hosting an investigator meeting for a large pharma client in beautiful San Diego. We once again decided on the Hotel Del Coronado, one of my favorite hotels in California. Even though the hotel is extremely old by Southern Californian standards, I feel confident in saying that you can't go wrong holding a mid-sized meeting at The Del.
This luxury beachfront hotel was built over 120 years ago and still maintains it's National Historic Landmark status. Although the resort is steeped in history (world's largest resort when opened in 1888, first hotel to use electric lighting-certified by Einstein himself, site of banquet celebrating Lindbergh's first trans-Atlantic flight, and host to the likes of Elvis, Marilyn Monroe, Babe Ruth, Charlie Chaplin and 15 U.S. Presidents) hotel management has done a terrific job of continually updating the facility to keep with the times. The Del was recently purchased by KSL Resorts and has been rewarded with AAA's coveted Four-Diamond rating in addition to being ranked among the "Top 10 Resorts in the World" by USA Today.
The last upgrade was completed in 2005 and included a top-to-bottom renovation of all guest rooms. The 65,000 sq ft of meeting space is laid-out conveniently and the conference services staff was very attentive to our specific needs. Even the NY Times gives it a great review!
Physicians flew in from around the globe for this important and intensive four-day session, so attention to detail and teamwork were of utmost importance. We once again partnered with PRA Destinations, who managed the transportation flawlessly, as usual. The best night out was a group dinner function at Island Prime, about 20 minutes away from The Del. Perched on stilts over the bay, the dining room and deck provide stunning views of San Diego's skyline and Coronado Island. The menu was very well-rounded and had enough to suit our group of discerning guests. The results from the post-program surveys told us a great time was had by all.
All in all, the meeting held in San Diego was a huge success. The old-world charm combined with the modern-day luxury of the Hotel Del Coronado make it a can't miss property for medium-sized meetings. While the physicians and study leaders had a packed schedule of meetings and breakouts, the ideal location, beautiful climate and evening events provided them with enough relaxation to maintain their focus. Everything went smoothly, the weather was impeccable and our client was very pleased– what more can I ask for?
This luxury beachfront hotel was built over 120 years ago and still maintains it's National Historic Landmark status. Although the resort is steeped in history (world's largest resort when opened in 1888, first hotel to use electric lighting-certified by Einstein himself, site of banquet celebrating Lindbergh's first trans-Atlantic flight, and host to the likes of Elvis, Marilyn Monroe, Babe Ruth, Charlie Chaplin and 15 U.S. Presidents) hotel management has done a terrific job of continually updating the facility to keep with the times. The Del was recently purchased by KSL Resorts and has been rewarded with AAA's coveted Four-Diamond rating in addition to being ranked among the "Top 10 Resorts in the World" by USA Today.
The last upgrade was completed in 2005 and included a top-to-bottom renovation of all guest rooms. The 65,000 sq ft of meeting space is laid-out conveniently and the conference services staff was very attentive to our specific needs. Even the NY Times gives it a great review!
Physicians flew in from around the globe for this important and intensive four-day session, so attention to detail and teamwork were of utmost importance. We once again partnered with PRA Destinations, who managed the transportation flawlessly, as usual. The best night out was a group dinner function at Island Prime, about 20 minutes away from The Del. Perched on stilts over the bay, the dining room and deck provide stunning views of San Diego's skyline and Coronado Island. The menu was very well-rounded and had enough to suit our group of discerning guests. The results from the post-program surveys told us a great time was had by all.
All in all, the meeting held in San Diego was a huge success. The old-world charm combined with the modern-day luxury of the Hotel Del Coronado make it a can't miss property for medium-sized meetings. While the physicians and study leaders had a packed schedule of meetings and breakouts, the ideal location, beautiful climate and evening events provided them with enough relaxation to maintain their focus. Everything went smoothly, the weather was impeccable and our client was very pleased– what more can I ask for?
Friday, December 12, 2008
Procurement is from Mars, Meeting Planners are from Venus
The premise behind aligning procurement with meetings and incentives is to create value with volume buying. The many nuances of the planner/procurement relationship have been well-documented and are different at every company. Regardless of the situation at your company, the key to developing a win-win partnership is seeing both sides of the picture. Like any relationship, understanding each others motivation will allow planners and procurement to meet in the middle- to achieve a successful program, while internally aligning overall procurement goals.
Just like most meeting managers saw the savings inherent in centralizing meeting components, which were historically booked by various administrative assistants without experience, procurement managers want to ensure that meetings departments are sourcing, deciding and buying these elements within the proper framework. Ensuring that meeting spend goes into appropriate ‘buckets’ rather than being spread out over various budgets allows procurement to have better visibility and leverage that spend. The ideal result is to balance program goals & objectives with the demands of the procurement framework to find a creative solution to the needs of the company. There is no template to making the procurement/planner relationship work, however the most import step to developing a true partnership is understanding and appreciating each department’s point of view.
The ‘Divide’ between Planners and Procurement
For a perfect example of the inherent ‘divide’ between planners and procurement, let’s consider we are sourcing a property for a National Sales Meeting. Sourcing tools with eRFP functionality like StarCite are great for certain situations, particularly with multiple events in a short timeframe, however these tools should not be the only sourcing tool used. Mainly because eRFP’s are typically due within 48 hours and do not always allow planners the flexibility to obtain the best overall value for the company. While procurement likes the standardized responses that can be put in ‘dashboards’ that are easy to compare side-by-side, meeting planners know that by picking up the phone and having a conversation with the properties being considered always allows them to obtain a better deal from a total overall cost perspective.
Moreover, most large hotels are overloaded with so many eRFP’s, and as such have developed a canned response to submit because they are too busy working on multiple projects to provide a fully customized proposal. By discussing options with the properties directly, planners are able to negotiate numerous types of concessions (such as free internet, airport transportation, free room nights, room upgrades and reduced F&B) that would not normally be included in an eRFP response.
How do we meet in the middle?
We’ve all heard the same buzzword-laden responses such as consolidate budgets, align goals, develop a cohesive strategy, obtain a holistic view, leverage spend… but how do we do it? The most important first step is for both sides to realize that they want the same thing. They just go about it in different ways.
Meeting planners don’t always appreciate the analytical nature behind procurement initiatives and may feel threatened that their work is being commoditized. Procurement fails to see the value in meeting planners’ creativity and the positive effect that their experience has on reaching a meeting’s objective. A great example to demonstrate this point would be an incentive program. All incentive programs are different- they have different types of qualifiers and varying goals. Unlike a meeting or training audience, incentive qualifiers are motivated by the selection of a given hotel or destination and many times the property itself is what inspires them to win. Experienced meeting planners understand that incentives are a powerful motivator and want to go the extra mile to transform the trip into a true reward. Procurement wants to streamline sourcing, ensure compliance, mitigate risk and maximize investment. Often times it's the added touches- room gifts, gala dinners, and private tours- that procurement wants to cut first. And that's where the conflict begins.
What are the goals of both sides in this example? To obtain the best possible value for the company (if they are not, you have a whole new set of problems to deal with). Procurement sees value in dollar figures while meeting planners view value as the increase in sales resulting from reps striving to win the incentive. Procurement reports to the CFO, while meeting planners have ties to multiple departments, but mostly identify with Sales & Marketing objectives. Each side needs to appreciate the competencies that the other side brings to the table.
Great article from Procurement POV
Great Article from Planners POV
ART & SCIENCE - not SCIENCE vs. ART
It’s looking at the same project through ‘different lenses’ and understanding the opposing contexts of value that will bring the two sides together when there is conflict. Strategic sourcing processes have been honed to a science in many large organizations, whereas meeting planners consider their expertise as more of an art. Each side needs to be able to look at the situation from the other side of the table to develop a successful partnership moving forward. Once both sides are able to appreciate what the other side is trying to accomplish, there won't be anymore 'sides'... just one team.
Simply put: Procurement handles all legal aspects while Planners serve the client. Understanding this fundamental premise and allowing each side to utilize their expertise creates a win-win situation for all.
Just like most meeting managers saw the savings inherent in centralizing meeting components, which were historically booked by various administrative assistants without experience, procurement managers want to ensure that meetings departments are sourcing, deciding and buying these elements within the proper framework. Ensuring that meeting spend goes into appropriate ‘buckets’ rather than being spread out over various budgets allows procurement to have better visibility and leverage that spend. The ideal result is to balance program goals & objectives with the demands of the procurement framework to find a creative solution to the needs of the company. There is no template to making the procurement/planner relationship work, however the most import step to developing a true partnership is understanding and appreciating each department’s point of view.
The ‘Divide’ between Planners and Procurement
For a perfect example of the inherent ‘divide’ between planners and procurement, let’s consider we are sourcing a property for a National Sales Meeting. Sourcing tools with eRFP functionality like StarCite are great for certain situations, particularly with multiple events in a short timeframe, however these tools should not be the only sourcing tool used. Mainly because eRFP’s are typically due within 48 hours and do not always allow planners the flexibility to obtain the best overall value for the company. While procurement likes the standardized responses that can be put in ‘dashboards’ that are easy to compare side-by-side, meeting planners know that by picking up the phone and having a conversation with the properties being considered always allows them to obtain a better deal from a total overall cost perspective.
Moreover, most large hotels are overloaded with so many eRFP’s, and as such have developed a canned response to submit because they are too busy working on multiple projects to provide a fully customized proposal. By discussing options with the properties directly, planners are able to negotiate numerous types of concessions (such as free internet, airport transportation, free room nights, room upgrades and reduced F&B) that would not normally be included in an eRFP response.
How do we meet in the middle?
We’ve all heard the same buzzword-laden responses such as consolidate budgets, align goals, develop a cohesive strategy, obtain a holistic view, leverage spend… but how do we do it? The most important first step is for both sides to realize that they want the same thing. They just go about it in different ways.
Meeting planners don’t always appreciate the analytical nature behind procurement initiatives and may feel threatened that their work is being commoditized. Procurement fails to see the value in meeting planners’ creativity and the positive effect that their experience has on reaching a meeting’s objective. A great example to demonstrate this point would be an incentive program. All incentive programs are different- they have different types of qualifiers and varying goals. Unlike a meeting or training audience, incentive qualifiers are motivated by the selection of a given hotel or destination and many times the property itself is what inspires them to win. Experienced meeting planners understand that incentives are a powerful motivator and want to go the extra mile to transform the trip into a true reward. Procurement wants to streamline sourcing, ensure compliance, mitigate risk and maximize investment. Often times it's the added touches- room gifts, gala dinners, and private tours- that procurement wants to cut first. And that's where the conflict begins.
What are the goals of both sides in this example? To obtain the best possible value for the company (if they are not, you have a whole new set of problems to deal with). Procurement sees value in dollar figures while meeting planners view value as the increase in sales resulting from reps striving to win the incentive. Procurement reports to the CFO, while meeting planners have ties to multiple departments, but mostly identify with Sales & Marketing objectives. Each side needs to appreciate the competencies that the other side brings to the table.
Great article from Procurement POV
Great Article from Planners POV
ART & SCIENCE - not SCIENCE vs. ART
It’s looking at the same project through ‘different lenses’ and understanding the opposing contexts of value that will bring the two sides together when there is conflict. Strategic sourcing processes have been honed to a science in many large organizations, whereas meeting planners consider their expertise as more of an art. Each side needs to be able to look at the situation from the other side of the table to develop a successful partnership moving forward. Once both sides are able to appreciate what the other side is trying to accomplish, there won't be anymore 'sides'... just one team.
Simply put: Procurement handles all legal aspects while Planners serve the client. Understanding this fundamental premise and allowing each side to utilize their expertise creates a win-win situation for all.
Thursday, December 11, 2008
2009 - Banner Year for Air Travel?
Much like the recent turmoil in the stock market, the health of America’s airlines industry is changing on a daily basis. Just five months ago, second quarter travel statistics were extremely gloomy as carriers slashed capacity to counter falling demand. But a combination of factors has leveled the playing field in such drastic ways as to make some industry analysts bullish on travel in 2009.
Q2 & Q3 2008 - DOWNWARD SPIRAL
With job losses escalating and job security increasingly uncertain, gas prices breached the $4 per gallon mark all over the country. More people were holding back their travel spending, leaving airlines, hotels and resorts with fewer customers and facing the prospect of another financial crisis.
Airlines found many creative ways to raise fees and fuel surcharges this year as they tried to offset high costs for fuel, which peaked at record levels in the first week of July -- just after the second quarter ended. Average airfares soared to record heights, rising close to 12% nationally, while oil prices reached an all-time high of close to $140 per barrel. The average round-trip flight cost $352, the highest amount on record in the 13 years that the Bureau of Transportation Statistics has tracked ticket prices. Even with the fare and fee increases, most major U.S. airlines still lost money in the quarter.
The financial meltdown of Wall Street and the impending failure of the Big 3 in Detroit were threatening to send further shockwaves throughout an industry that had been walking on shaky ground for more than seven years.
Oddly enough, amid Wall Street's tumble in September, domestic airline revenues rose 14% while capacity fell close to 10%, according to recent data from the Air Transport Association. In the third quarter most all carriers reacted by grounding planes at unprecedented levels in efforts to keep costs under control and ticket prices at levels where they might turn a profit. That is an enormous departure (pardon the pun) from previous economic slowdowns, when airlines slashed prices to attract consumers in an attempt to keep planes full.
Delta, who recently completed its $2.8 billion acquisition of Northwest, recently announced they will be reducing 2009 domestic capacity by 8-10% year over year while international capacity will shrink 3-5%. Airline industry analysts held an equally gloomy view of the industry’s ability to stabilize in 2009, projecting travel statistics to fall in unprecedented numbers as a result of the recession and high price of oil. Even Southwest, which posted profits in 69 straight quarters and gained huge advantages with their fuel hedging strategy, succumbed to market pressures by reporting a quarterly loss.
Las Vegas, once considered immune to recession, was hit particularly hard by the economic & travel downturn. The LVCVA just reported their October data which saw the number of visitors decline more than 10% from October 2007 (still 3 million visitors). Hotel occupancy slid 8.5%, while the average room rate was $115, off 14% from last October. The most striking figure was a decline in Strip gaming revenues of nearly 26%.
Indeed the entire industry was pulling in the sidewalks and bunkering down for the long, long winter ahead.
Q4 & 2009 – FRESH OUTLOOK
Moving into 2009, sunnier days appear closer for most of the major carriers. Even Southwest, once the red-headed stepchild of the industry was optimistic, as it took the title of largest domestic airline. The price of oil, $140 per barrel in early July, has since plummeted to $45 on December 8, which is a huge break for the airlines. All the reorganization and capacity reductions are just starting to take hold, allowing the airlines to operate more effectively while their largest expense has been reduced by more than 50%. Picture yourself getting a raise while cutting back your hours and then having your mortgage cut by half! Sign me up.
What factors contributed to that drop, you ask? Who cares! While the election of Barack Obama (and impending departure of George Bush) most certainly had something to do with the drop in the price of oil, the cost savings not only allow the airlines to operate more efficiently, but also puts a lot of money directly into consumers’ pockets. Instead of emptying their wallets at the gas pump, many people will have a little extra money to spend on vacation getaway deals.
United Airlines made dramatic improvement in on-time performance in October as their reduced schedule allowed more time to turn around its aircraft. United moved from 17th to 10th in on-time performance rankings, according to DOT. Overall industry on-time performance improved 1% in October, while United's score improved to 86.3% from 79.8% in September. With fewer flights, airports are less crowded, more planes are getting to their destinations on time, resulting in fewer delays. Even baggage handling improved significantly!
There may be no cheaper time to travel than this winter, as the sharp drop in demand in Q2 & Q3 forces airlines, hotels and cruise companies to slash fares and lower rates. In what may be a silver lining during a season of economic angst, travelers are finding some of the best deals in recent memory, from half-priced resorts to rock-bottom airfares.
Even Hawaii has become cheaper, where multiday trips are available for less than $1,000 including airfare. The Four Seasons Resort Hawaii, Hualalai is offering a fourth night free, bringing the average rate from $725 to $544 for an ocean view room. Upgrading your room will net guests two rounds of golf and two spa treatments. An off-peak, round-trip ticket from LAX to Honolulu on Delta was selling for $244 last week, a fare which hovered near $900 over the summer. Since August, prices for Caribbean and Mexican cruises have fallen 10% on average. On some ships, travelers have been able to sail for less than $50 per person per day.
While the Las Vegas data mentioned above is not exactly encouraging, many Las Vegas hotels are offering some unbelievable deals to attract leisure travelers. One hotel is offering rooms for $1 a night in hope to lure gamblers to their casino for more lucrative gaming and F&B revenue. The internet is also being blanketed with cheap deals to Vegas offers. You can't go online without seeing at least a few.
So it seems to me that the airlines’ reorganization and consolidation as a result of the recession might just be a good thing for everyone. The airlines will be operating more efficiently while reducing their largest expense by over 50%. Consumers and businesses will be able to reap the benefits of the ensuing reduced fares, which ultimately have a great effect on destinations, transportation, hotels and entertainment.
I guess what I’m trying to say is this: If you want to help the country get out of this recession, go on vacation!
Q2 & Q3 2008 - DOWNWARD SPIRAL
With job losses escalating and job security increasingly uncertain, gas prices breached the $4 per gallon mark all over the country. More people were holding back their travel spending, leaving airlines, hotels and resorts with fewer customers and facing the prospect of another financial crisis.
Airlines found many creative ways to raise fees and fuel surcharges this year as they tried to offset high costs for fuel, which peaked at record levels in the first week of July -- just after the second quarter ended. Average airfares soared to record heights, rising close to 12% nationally, while oil prices reached an all-time high of close to $140 per barrel. The average round-trip flight cost $352, the highest amount on record in the 13 years that the Bureau of Transportation Statistics has tracked ticket prices. Even with the fare and fee increases, most major U.S. airlines still lost money in the quarter.
The financial meltdown of Wall Street and the impending failure of the Big 3 in Detroit were threatening to send further shockwaves throughout an industry that had been walking on shaky ground for more than seven years.
Oddly enough, amid Wall Street's tumble in September, domestic airline revenues rose 14% while capacity fell close to 10%, according to recent data from the Air Transport Association. In the third quarter most all carriers reacted by grounding planes at unprecedented levels in efforts to keep costs under control and ticket prices at levels where they might turn a profit. That is an enormous departure (pardon the pun) from previous economic slowdowns, when airlines slashed prices to attract consumers in an attempt to keep planes full.
Delta, who recently completed its $2.8 billion acquisition of Northwest, recently announced they will be reducing 2009 domestic capacity by 8-10% year over year while international capacity will shrink 3-5%. Airline industry analysts held an equally gloomy view of the industry’s ability to stabilize in 2009, projecting travel statistics to fall in unprecedented numbers as a result of the recession and high price of oil. Even Southwest, which posted profits in 69 straight quarters and gained huge advantages with their fuel hedging strategy, succumbed to market pressures by reporting a quarterly loss.
Las Vegas, once considered immune to recession, was hit particularly hard by the economic & travel downturn. The LVCVA just reported their October data which saw the number of visitors decline more than 10% from October 2007 (still 3 million visitors). Hotel occupancy slid 8.5%, while the average room rate was $115, off 14% from last October. The most striking figure was a decline in Strip gaming revenues of nearly 26%.
Indeed the entire industry was pulling in the sidewalks and bunkering down for the long, long winter ahead.
Q4 & 2009 – FRESH OUTLOOK
Moving into 2009, sunnier days appear closer for most of the major carriers. Even Southwest, once the red-headed stepchild of the industry was optimistic, as it took the title of largest domestic airline. The price of oil, $140 per barrel in early July, has since plummeted to $45 on December 8, which is a huge break for the airlines. All the reorganization and capacity reductions are just starting to take hold, allowing the airlines to operate more effectively while their largest expense has been reduced by more than 50%. Picture yourself getting a raise while cutting back your hours and then having your mortgage cut by half! Sign me up.
What factors contributed to that drop, you ask? Who cares! While the election of Barack Obama (and impending departure of George Bush) most certainly had something to do with the drop in the price of oil, the cost savings not only allow the airlines to operate more efficiently, but also puts a lot of money directly into consumers’ pockets. Instead of emptying their wallets at the gas pump, many people will have a little extra money to spend on vacation getaway deals.
United Airlines made dramatic improvement in on-time performance in October as their reduced schedule allowed more time to turn around its aircraft. United moved from 17th to 10th in on-time performance rankings, according to DOT. Overall industry on-time performance improved 1% in October, while United's score improved to 86.3% from 79.8% in September. With fewer flights, airports are less crowded, more planes are getting to their destinations on time, resulting in fewer delays. Even baggage handling improved significantly!
There may be no cheaper time to travel than this winter, as the sharp drop in demand in Q2 & Q3 forces airlines, hotels and cruise companies to slash fares and lower rates. In what may be a silver lining during a season of economic angst, travelers are finding some of the best deals in recent memory, from half-priced resorts to rock-bottom airfares.
Even Hawaii has become cheaper, where multiday trips are available for less than $1,000 including airfare. The Four Seasons Resort Hawaii, Hualalai is offering a fourth night free, bringing the average rate from $725 to $544 for an ocean view room. Upgrading your room will net guests two rounds of golf and two spa treatments. An off-peak, round-trip ticket from LAX to Honolulu on Delta was selling for $244 last week, a fare which hovered near $900 over the summer. Since August, prices for Caribbean and Mexican cruises have fallen 10% on average. On some ships, travelers have been able to sail for less than $50 per person per day.
While the Las Vegas data mentioned above is not exactly encouraging, many Las Vegas hotels are offering some unbelievable deals to attract leisure travelers. One hotel is offering rooms for $1 a night in hope to lure gamblers to their casino for more lucrative gaming and F&B revenue. The internet is also being blanketed with cheap deals to Vegas offers. You can't go online without seeing at least a few.
So it seems to me that the airlines’ reorganization and consolidation as a result of the recession might just be a good thing for everyone. The airlines will be operating more efficiently while reducing their largest expense by over 50%. Consumers and businesses will be able to reap the benefits of the ensuing reduced fares, which ultimately have a great effect on destinations, transportation, hotels and entertainment.
I guess what I’m trying to say is this: If you want to help the country get out of this recession, go on vacation!
Wednesday, December 10, 2008
Worthless Stock = Caribbean Vacation
Talk about innovative thinking! Elite Islands Resorts, the Caribbean’s second largest hospitality chain, announced a very interesting promotion where consumers can pay for vacation stays by using their depleted stock portfolios.
Not only is this a wonderful marketing strategy in terms of developing a new revenue stream in a depressed economic climate, but more importantly, it demonstrates that the company is betting their future on the success of the American Stock Market. The real beauty behind this program is that it is garnering them a ridiculous amount of press (CNBC Interview w/Maria Bartiromo - pop-up window) and goodwill in the marketplace, without costing them a dime.
From their Press Release:
“Award-winning Elite Island Resorts -- the second-largest independently owned luxury Caribbean hospitality group -- announces what could be for many the deal of a lifetime: the opportunity to roll back the value of their currently depressed stocks to a higher value in this recessionary time! Elite Island Resorts will accept up to a maximum of $5,000 per room transaction in stock, utilizing the stock's higher value from July 1, 2008! The stock will be accepted as payment upon transfer to Elite Island Resorts from December 5, 2008, to January 31, 2009, and will be valid for payment of Caribbean vacations now through December 20, 2009. The "Roll Back Your Stock's Value" promotion is subject to space availability and does not include air transportation. Elite Island Resorts has set aside $10 million in resort accommodations toward this program.
The great news is there are no blackout dates; travelers can use this promotion toward peak travel weeks like the upcoming holidays, February and April Breaks -- the premium travel weeks of the year. This is also the perfect opportunity to "purchase" a gift certificate as a holiday gift for loved ones or even a honeymoon and wedding trip for a special couple. The all-inclusive Caribbean resorts featured include on Antigua: The Verandah Resort & Spa; St. James's Club & Villas; Galley Bay Resort & Spa; in the Grenadines, Palm Island Resort; and on Tortola, Long Bay Beach Resort & Villas, with dining plans.
Example: The all-inclusive rate for a family of four starts at $635 per night this December holiday season at The Verandah Resort & Spa, Antigua. If one transferred American Express stock, which closed at approximately $20 on December 4, 2008, toward the purchase of their vacation, Elite Island Resorts will value the stock at $40 per share in resort credit. So a seven-night vacation worth $4,445 can be “purchased" with only 111 shares. Approximately 100 stocks are featured in this one-of-a-kind promotion; a sample includes:
Applicable Stocks High Price as 7/1/08(*)
AET - Aetna Inc. $40
AXP - American Express $40
BA - Boeing Company $65
BAC - Bank of America $24
BK - Bank of New York Mellon Corp. $39
C - Citigroup Inc. $17
CAT - Caterpillar Inc. $74
DELL - Dell Inc. $22
GE - General Electric $27
GOOG - Google Inc. $534
GS - Goldman Sachs Group Inc. $177
HON - Honeywell International, Inc. $51
JPM - JPMorgan & Chase Co. $34
MER - Merrill Lynch & Co. Inc. $33
MET - MetLife Inc. $53
TYC - Tyco International $40
WMB - Williams Company $40
USB - US Bancorp Del $28
"How many of us wished we could have sold our stock before it collapsed this fall? Elite Island Resorts is now giving investors the opportunity of a lifetime to roll back time and the value of their stock to July 1, 2008 to apply it toward a luxury Caribbean vacation. This is the first time in the travel industry that a resort company has accepted stock as payment toward vacations. We are willing to wait for the stock to turnaround," stated Steven E. Heydt, Elite Island Resorts' president.
The Process and Terms: Vacationers "paying" with stock may hold a reservation for a specific date if they wish with a credit card, which will not be charged, while the stock is being transferred into a dedicated Merrill Lynch account. Resort changes and revisions for travel dates will be permitted during the applicable promotional period through December 20, 2009. This program is non refundable after the stock transfer has occurred to the Merrill Lynch account. The promotion is valid for new reservations only. If a vacation costs more than $5,000 the difference will be charged to a credit card.
Individuals may transfer stock for more than one accommodation, and each transaction is limited to a maximum of $5,000 in stock value.”
The success of this plan remains to be determined, but they are off to a terrific start!
Not only is this a wonderful marketing strategy in terms of developing a new revenue stream in a depressed economic climate, but more importantly, it demonstrates that the company is betting their future on the success of the American Stock Market. The real beauty behind this program is that it is garnering them a ridiculous amount of press (CNBC Interview w/Maria Bartiromo - pop-up window) and goodwill in the marketplace, without costing them a dime.
From their Press Release:
“Award-winning Elite Island Resorts -- the second-largest independently owned luxury Caribbean hospitality group -- announces what could be for many the deal of a lifetime: the opportunity to roll back the value of their currently depressed stocks to a higher value in this recessionary time! Elite Island Resorts will accept up to a maximum of $5,000 per room transaction in stock, utilizing the stock's higher value from July 1, 2008! The stock will be accepted as payment upon transfer to Elite Island Resorts from December 5, 2008, to January 31, 2009, and will be valid for payment of Caribbean vacations now through December 20, 2009. The "Roll Back Your Stock's Value" promotion is subject to space availability and does not include air transportation. Elite Island Resorts has set aside $10 million in resort accommodations toward this program.
The great news is there are no blackout dates; travelers can use this promotion toward peak travel weeks like the upcoming holidays, February and April Breaks -- the premium travel weeks of the year. This is also the perfect opportunity to "purchase" a gift certificate as a holiday gift for loved ones or even a honeymoon and wedding trip for a special couple. The all-inclusive Caribbean resorts featured include on Antigua: The Verandah Resort & Spa; St. James's Club & Villas; Galley Bay Resort & Spa; in the Grenadines, Palm Island Resort; and on Tortola, Long Bay Beach Resort & Villas, with dining plans.
Example: The all-inclusive rate for a family of four starts at $635 per night this December holiday season at The Verandah Resort & Spa, Antigua. If one transferred American Express stock, which closed at approximately $20 on December 4, 2008, toward the purchase of their vacation, Elite Island Resorts will value the stock at $40 per share in resort credit. So a seven-night vacation worth $4,445 can be “purchased" with only 111 shares. Approximately 100 stocks are featured in this one-of-a-kind promotion; a sample includes:
Applicable Stocks High Price as 7/1/08(*)
AET - Aetna Inc. $40
AXP - American Express $40
BA - Boeing Company $65
BAC - Bank of America $24
BK - Bank of New York Mellon Corp. $39
C - Citigroup Inc. $17
CAT - Caterpillar Inc. $74
DELL - Dell Inc. $22
GE - General Electric $27
GOOG - Google Inc. $534
GS - Goldman Sachs Group Inc. $177
HON - Honeywell International, Inc. $51
JPM - JPMorgan & Chase Co. $34
MER - Merrill Lynch & Co. Inc. $33
MET - MetLife Inc. $53
TYC - Tyco International $40
WMB - Williams Company $40
USB - US Bancorp Del $28
"How many of us wished we could have sold our stock before it collapsed this fall? Elite Island Resorts is now giving investors the opportunity of a lifetime to roll back time and the value of their stock to July 1, 2008 to apply it toward a luxury Caribbean vacation. This is the first time in the travel industry that a resort company has accepted stock as payment toward vacations. We are willing to wait for the stock to turnaround," stated Steven E. Heydt, Elite Island Resorts' president.
The Process and Terms: Vacationers "paying" with stock may hold a reservation for a specific date if they wish with a credit card, which will not be charged, while the stock is being transferred into a dedicated Merrill Lynch account. Resort changes and revisions for travel dates will be permitted during the applicable promotional period through December 20, 2009. This program is non refundable after the stock transfer has occurred to the Merrill Lynch account. The promotion is valid for new reservations only. If a vacation costs more than $5,000 the difference will be charged to a credit card.
Individuals may transfer stock for more than one accommodation, and each transaction is limited to a maximum of $5,000 in stock value.”
The success of this plan remains to be determined, but they are off to a terrific start!
Thursday, December 4, 2008
Obama Administration's policies on the Travel Industry
While there is much left to shake out from Barack Obama’s recent election, meetings & travel industry professionals have come out in support of the administration's moves thus far.
While nothing has been laid out in detail, the new administration has given the industry a sign of good faith by agreeing to meet with top travel and tourism officials on December 16 to hear their recommendations on how our industry can help spur the economy.
SPOTLIGHT ON POSITIONS
The main issues being considered include the value of the U.S. dollar, open sky agreements, modernizing air traffic control, airline bailouts & merger approvals, TSA overhaul, passenger rights, funding for rail transportation and infrastructure, visa waivers, and promotion of the U.S. as an international tourism destination. Obama’s position on these issues remains to be seen, primarily because his immediate attention will be focused on the state of the economy, the war in Iraq or the state of the health care system.
The Obama Administration does support the Travel Promotion Act, as he was one of the 51 Senators supporting S. 1661 on the Hill. The House has already passed its version of the bill, whose implementation will largely determine which way the wind blows for the travel industry. A huge budget, federal support and promotional campaigns for inbound U.S. tourism all hang in the balance with this bill. He also supports the Airline Passenger Bill of Rights Act of 2007, as he was a co-sponsor, but that’s mostly a matter of party lines.
Obama is focusing his economic recovery strategy on making the biggest investment in the nation's infrastructure since President Eisenhower created the interstate highway system a half-century ago. Obama will scrutinize 'ambiguous' transportation spending, which in years past went out to states under the guise of improving highways and building bridges without definite plans. We might expect some targeted increases in funding for these programs, which could mean good news for the hospitality industry, because new developments and commercial construction typically surround many of these infrastructure projects.
There is no doubt that the main issue determining the future of the industry is the state of the U.S. Dollar. A sagging dollar will boost inbound overseas tourism, while a rising dollar will allow more Americans to travel abroad. Most Americans would prefer a rising dollar and Obama has said that he favors taking immediate measures to bolster its strength.
If the Airlines are planning to beg for bailout like Detroit is now, they can forget about it. Obama can, and will, hang the private industry out to dry if necessary. Basically, the sum of all this is that under an Obama Administration, the industry can expect reasonable help and sane policies, but the days of handouts and ‘advantageous’ legislation are behind us.
One thing you can be sure of with the Obama Administration; Amtrak will do very well. Obama was a co-sponsor of the Passenger Rail Investment and Innovation Act of 2007, which provides for long term funding for Amtrak. It also doesn’t hurt that Joe Biden has been one of Amtrak’s best customers, having commuted to work by Amtrak’s daily service between DC & his home in Delaware for over 35 years.
REACTION FROM TRAVEL INDUSTRY LEADERS
National Tour Association (NTA)
“NTA believes it is the duty of the travel and tourism sector of the national economy to step up immediately and deliver recommendations to President-elect Obama on how travel and tourism can stimulate the national economy. As a first step, this cross-section of travel leaders has been invited to submit ideas and convene to develop the recommendations. A broad cross-section of travel and tourism leaders has been invited to be a part of creating workable solutions for the struggling economy. The participation of more than 20 organizations has been confirmed including leaders representing packaged travel, lodging, travel agents, cruise lines, ground transportation, air transportation, and special interest travel, according to the National Tour Association, which is managing the effort.”
“We believe it is critical to equip President-elect Obama and his administration with the ways in which travel can fuel the U.S. economy,” said NTA President Lisa Simon, CTP. “We know that travel and tourism is a way to quickly inject new jobs, new income and new tax revenues into our national economy. We simply need a unified plan to make it happen.” Strategic partners and leaders within the travel and tourism sector have been asked to prepare their policy and cooperative marketing ideas, share them in advance with the entire group and then attend the summit in Washington, D.C., where the plans can be prioritized and coordinated into pragmatic solutions to assist the economic recovery within the United States. The collective recommendations of the group will be presented to President-elect Obama and his Transition Team promptly thereafter.
National Business Travel Association (NBTA)
NBTA president Kevin Maguire said: “We see great synergies in the goals of our members and those of president-elect Obama, and will work with his Administration to advance those common goals. "Obama’s public diplomacy agenda and promises to work cooperatively with world leaders and businesses are good news for the increasingly multinational business community.
"His emphasis on infrastructure investment bodes well for the long-sought-after upgrade to the Next Generation air transportation system.
"His green economy goals could help airlines, hotels, and ground transportation providers more rapidly deploy services that are both environmentally friendly and economically viable for corporate customers.”
According to many political experts, the next Congress will have its hands full with current pressing transportation issues, but revenue sources for these proposals and projects remain unknown. Obama supports swift passage of a FAA reauthorization bill and believes that “soon we can develop and deliver a modernized air traffic control system. He has often addressed the issue from a passenger point of view, having this summer said, “Airline passengers are sick and tired of delays and cancellations.” Senator Obama would work to build “confidence in the American people that funds will be spent well.” NBTA is working closely with both campaigns to ensure corporate travel issues and concerns are understood. “Travel issues haven’t made it quite to the top tear of the political agenda in Washington, but they are not far away,” said Stewart Verdery, Jr., NBTA Government Relations & Federal Strategies Consultant. “NBTA will continue its work with the new administration to advocate for the policies and proposals that will help make travel more affordable and secure.”
Visa Waiver Program
The current Administration has recently moved to admit seven new countries to the Visa Waiver Program (VWP). Citizens from 34 nations are now able to travel to the United States for 90 days or less without a visa. As Senator, Obama supported the admission of Poland and other countries in Europe, Asia, and South America into the program.
“Given the new Administration’s focus on international cooperation, we’re certain to see additional countries pressing for VWP status,” said Verdery. NBTA has been a leading advocate of strengthening the VWP. Last month, NBTA’s efforts were recognized with an invitation to represent the corporate travel industry at a White House Rose Garden event to acknowledge the advancement of VWP.
“The visa-free travel made possible by the VWP enables the free flow of commerce between the United States and its most important business and trade partners around the world,” said NBTA Executive Director Bill Connors.
Meeting Planners International (MPI-surprisingly quiet)
Tourism Leaders Prepare Recommendations for Obama
Leaders of the travel, tourism and meeting industries will present ideas and recommendations on the economy to U.S. President-elect Barack Obama his transition team and key members of Congress following a December 16 meeting in Washington, D.C.
Strategic partners and leaders within the travel and tourism sector have been asked to prepare their policy and cooperative marketing ideas, share them in advance with the group and then attend the summit in Washington, D.C., where the plans can be prioritized and coordinated into pragmatic solutions to assist economic recovery. The collective recommendations of the group will be presented to Obama promptly thereafter.
Travel Industry Association (TIA)
WASHINGTON, DC -- The Travel Industry Association (TIA) today applauded President-elect Obama's announcement of his top-level foreign policy and national security nominees. Roger Dow, president and CEO of the Travel Industry Association, issued the following statement:
"Protecting the homeland while strengthening America's economy and image in the world is one of the great challenges of our time. TIA stands ready to work with President-elect Obama and his team to leverage travel to create jobs and economic growth and strengthen America's image abroad."
"Senator Clinton, Secretary Gates and Dr. Susan Rice all recognize the need for more robust U.S. public diplomacy efforts, and people-to-people diplomacy is one of our country's most effective tools for winning hearts and minds throughout the world. Whether it is for business, leisure or education, the travel experience is unique in its ability to shape public opinion. Studies show that those who have visited the United States are 74 percent more likely to have a favorable image of the country and its policies in the world.
"We are encouraged with the nomination of Governor Napolitano to head the Department of Homeland Security (DHS). Governor Napolitano knows firsthand how to strike the right balance between security and prosperity at our nation's borders. We are confident that Governor Napolitano can improve upon the progress made by the Department of Homeland Security to date, and we look forward to working with her to ensure that our country strengthens its security and attractiveness to foreign visitors."
FAA Reauthorization: The House of Representatives in September passed legislation, H.R. 2881, the FAA Reauthorization Act of 2007, which lays out a blueprint for how to address the systemic problems that affect our air transportation system. The Senate has passed its version of the bill out of committee, but has yet to consider it on the Senate floor.
Across the aviation industry and in Congress, there is wide agreement that our air transportation system needs to make the transition to a satellite-based navigation system from a radar-based system. In addition, our airports need additional runways and other infrastructure improvements to handle the increasing number of air travelers, a number estimated to reach 1 billion annually by 2015. Enhanced technology will eventually allow more real-time information on the position of aircraft, allowing plans to fly closer together and more efficiently use our airspace.
While nothing has been laid out in detail, the new administration has given the industry a sign of good faith by agreeing to meet with top travel and tourism officials on December 16 to hear their recommendations on how our industry can help spur the economy.
SPOTLIGHT ON POSITIONS
The main issues being considered include the value of the U.S. dollar, open sky agreements, modernizing air traffic control, airline bailouts & merger approvals, TSA overhaul, passenger rights, funding for rail transportation and infrastructure, visa waivers, and promotion of the U.S. as an international tourism destination. Obama’s position on these issues remains to be seen, primarily because his immediate attention will be focused on the state of the economy, the war in Iraq or the state of the health care system.
The Obama Administration does support the Travel Promotion Act, as he was one of the 51 Senators supporting S. 1661 on the Hill. The House has already passed its version of the bill, whose implementation will largely determine which way the wind blows for the travel industry. A huge budget, federal support and promotional campaigns for inbound U.S. tourism all hang in the balance with this bill. He also supports the Airline Passenger Bill of Rights Act of 2007, as he was a co-sponsor, but that’s mostly a matter of party lines.
Obama is focusing his economic recovery strategy on making the biggest investment in the nation's infrastructure since President Eisenhower created the interstate highway system a half-century ago. Obama will scrutinize 'ambiguous' transportation spending, which in years past went out to states under the guise of improving highways and building bridges without definite plans. We might expect some targeted increases in funding for these programs, which could mean good news for the hospitality industry, because new developments and commercial construction typically surround many of these infrastructure projects.
There is no doubt that the main issue determining the future of the industry is the state of the U.S. Dollar. A sagging dollar will boost inbound overseas tourism, while a rising dollar will allow more Americans to travel abroad. Most Americans would prefer a rising dollar and Obama has said that he favors taking immediate measures to bolster its strength.
If the Airlines are planning to beg for bailout like Detroit is now, they can forget about it. Obama can, and will, hang the private industry out to dry if necessary. Basically, the sum of all this is that under an Obama Administration, the industry can expect reasonable help and sane policies, but the days of handouts and ‘advantageous’ legislation are behind us.
One thing you can be sure of with the Obama Administration; Amtrak will do very well. Obama was a co-sponsor of the Passenger Rail Investment and Innovation Act of 2007, which provides for long term funding for Amtrak. It also doesn’t hurt that Joe Biden has been one of Amtrak’s best customers, having commuted to work by Amtrak’s daily service between DC & his home in Delaware for over 35 years.
REACTION FROM TRAVEL INDUSTRY LEADERS
National Tour Association (NTA)
“NTA believes it is the duty of the travel and tourism sector of the national economy to step up immediately and deliver recommendations to President-elect Obama on how travel and tourism can stimulate the national economy. As a first step, this cross-section of travel leaders has been invited to submit ideas and convene to develop the recommendations. A broad cross-section of travel and tourism leaders has been invited to be a part of creating workable solutions for the struggling economy. The participation of more than 20 organizations has been confirmed including leaders representing packaged travel, lodging, travel agents, cruise lines, ground transportation, air transportation, and special interest travel, according to the National Tour Association, which is managing the effort.”
“We believe it is critical to equip President-elect Obama and his administration with the ways in which travel can fuel the U.S. economy,” said NTA President Lisa Simon, CTP. “We know that travel and tourism is a way to quickly inject new jobs, new income and new tax revenues into our national economy. We simply need a unified plan to make it happen.” Strategic partners and leaders within the travel and tourism sector have been asked to prepare their policy and cooperative marketing ideas, share them in advance with the entire group and then attend the summit in Washington, D.C., where the plans can be prioritized and coordinated into pragmatic solutions to assist the economic recovery within the United States. The collective recommendations of the group will be presented to President-elect Obama and his Transition Team promptly thereafter.
National Business Travel Association (NBTA)
NBTA president Kevin Maguire said: “We see great synergies in the goals of our members and those of president-elect Obama, and will work with his Administration to advance those common goals. "Obama’s public diplomacy agenda and promises to work cooperatively with world leaders and businesses are good news for the increasingly multinational business community.
"His emphasis on infrastructure investment bodes well for the long-sought-after upgrade to the Next Generation air transportation system.
"His green economy goals could help airlines, hotels, and ground transportation providers more rapidly deploy services that are both environmentally friendly and economically viable for corporate customers.”
According to many political experts, the next Congress will have its hands full with current pressing transportation issues, but revenue sources for these proposals and projects remain unknown. Obama supports swift passage of a FAA reauthorization bill and believes that “soon we can develop and deliver a modernized air traffic control system. He has often addressed the issue from a passenger point of view, having this summer said, “Airline passengers are sick and tired of delays and cancellations.” Senator Obama would work to build “confidence in the American people that funds will be spent well.” NBTA is working closely with both campaigns to ensure corporate travel issues and concerns are understood. “Travel issues haven’t made it quite to the top tear of the political agenda in Washington, but they are not far away,” said Stewart Verdery, Jr., NBTA Government Relations & Federal Strategies Consultant. “NBTA will continue its work with the new administration to advocate for the policies and proposals that will help make travel more affordable and secure.”
Visa Waiver Program
The current Administration has recently moved to admit seven new countries to the Visa Waiver Program (VWP). Citizens from 34 nations are now able to travel to the United States for 90 days or less without a visa. As Senator, Obama supported the admission of Poland and other countries in Europe, Asia, and South America into the program.
“Given the new Administration’s focus on international cooperation, we’re certain to see additional countries pressing for VWP status,” said Verdery. NBTA has been a leading advocate of strengthening the VWP. Last month, NBTA’s efforts were recognized with an invitation to represent the corporate travel industry at a White House Rose Garden event to acknowledge the advancement of VWP.
“The visa-free travel made possible by the VWP enables the free flow of commerce between the United States and its most important business and trade partners around the world,” said NBTA Executive Director Bill Connors.
Meeting Planners International (MPI-surprisingly quiet)
Tourism Leaders Prepare Recommendations for Obama
Leaders of the travel, tourism and meeting industries will present ideas and recommendations on the economy to U.S. President-elect Barack Obama his transition team and key members of Congress following a December 16 meeting in Washington, D.C.
Strategic partners and leaders within the travel and tourism sector have been asked to prepare their policy and cooperative marketing ideas, share them in advance with the group and then attend the summit in Washington, D.C., where the plans can be prioritized and coordinated into pragmatic solutions to assist economic recovery. The collective recommendations of the group will be presented to Obama promptly thereafter.
Travel Industry Association (TIA)
WASHINGTON, DC -- The Travel Industry Association (TIA) today applauded President-elect Obama's announcement of his top-level foreign policy and national security nominees. Roger Dow, president and CEO of the Travel Industry Association, issued the following statement:
"Protecting the homeland while strengthening America's economy and image in the world is one of the great challenges of our time. TIA stands ready to work with President-elect Obama and his team to leverage travel to create jobs and economic growth and strengthen America's image abroad."
"Senator Clinton, Secretary Gates and Dr. Susan Rice all recognize the need for more robust U.S. public diplomacy efforts, and people-to-people diplomacy is one of our country's most effective tools for winning hearts and minds throughout the world. Whether it is for business, leisure or education, the travel experience is unique in its ability to shape public opinion. Studies show that those who have visited the United States are 74 percent more likely to have a favorable image of the country and its policies in the world.
"We are encouraged with the nomination of Governor Napolitano to head the Department of Homeland Security (DHS). Governor Napolitano knows firsthand how to strike the right balance between security and prosperity at our nation's borders. We are confident that Governor Napolitano can improve upon the progress made by the Department of Homeland Security to date, and we look forward to working with her to ensure that our country strengthens its security and attractiveness to foreign visitors."
FAA Reauthorization: The House of Representatives in September passed legislation, H.R. 2881, the FAA Reauthorization Act of 2007, which lays out a blueprint for how to address the systemic problems that affect our air transportation system. The Senate has passed its version of the bill out of committee, but has yet to consider it on the Senate floor.
Across the aviation industry and in Congress, there is wide agreement that our air transportation system needs to make the transition to a satellite-based navigation system from a radar-based system. In addition, our airports need additional runways and other infrastructure improvements to handle the increasing number of air travelers, a number estimated to reach 1 billion annually by 2015. Enhanced technology will eventually allow more real-time information on the position of aircraft, allowing plans to fly closer together and more efficiently use our airspace.
Social Networks & Your Meeting
The launch of Facebook Connect, a single unified, sign-on application that allows users to go from one protected site to another without logging in again, is going to be a game-changer in many ways. Take me for example. I have 'social' profiles on Yahoo (email), LinkedIn (professional), Facebook (personal), Pharma Planners Connect, iMeet and, sad to say, MySpace (though I only use it to sign in so I can see others' pictures!). In addition, I have separate passwords for PayPal, banking, frequent flier programs, blog, eTrade, eBay, Amazon, email marketing, instant messenger... you get the picture.
Keeping track, protecting and manually entering this information for each site becomes quite cumbersome, especially to busy professionals whose time is crunched and are used to having everything else on the internet so user-friendly. While Facebook Connect and Google's OpenSocial projects are primarily focusing on 'social' sites for the time being, you can clearly see where this is headed.
How do we, as meeting professionals, use this to help strengthen our programs? A great way to start is to build online communities surrounding your most important events. If you are not doing this now, pick one of your most important events and test it out (there are plenty of consultants out there who can help you like QG Partnership - Obama used BSD).
Rather than diving in head first, you'll want to dip your toes in to see what works and what doesn't. The idea behind this is to connect and interact with your audience, giving them the opportunity to participate and influence your program content thus enhancing their experience with your brand/organization. Here is a list of how 35 large companies are using social networking tools. Click here for a terrific list of reason why social networking is great for business.
There are so many applications where social networking can be useful before, during and after a meeting. Picture the usefulness applied to planning an internal sales meeting. One of the main objectives should be providing ample opportunity for reps from different regions to start discussions pertaining to challenges or best practices in the field. Providing an online community with different topic forums will allow reps with similar challenges and interests to gather amongst themselves, discuss and talk about solutions to their individual difficulties. If you're planning a convention, perhaps you'd like to start online discussions before their arrival to the event; to solicit hot topics from key demographics. Keeping your fingers on the pulse of your key targets will allow your team to implement and highlight the subjects of most interest to them into your exhibit presentation. The most important thing to remember is the value of connection, which will allow you and your team to have a better understanding of your constituency- by providing them the forum to connect. But none of this will happen magically, it will require a good deal of planning and a comprehensive communications plan.
With new applications such as Facebook Connect and OpenSocial, it will be much easier for audiences to connect across a variety of previously unavailable platforms. For instance, if one of my suppliers sees my LinkedIn profile through his MySpace account, he might be encouraged to connect with me that way, where previously we would not have had the visibility. Perhaps someone reads this blog and finds out that through my iMeet profile the services my company provide are a perfect fit for what they have been looking for.
Event-specific social networking is also terrific for post-program marketing & communications. I have seen so many events where a tremendous amount of momentum was generated and the audiences were so charged-up, only to have that impact flatline within a week. Design your site to gather feedback and opinions and ask them how you can improve subsequent programs. Continue to update content that will provide your audience incentives to return. You won't get there immediately, but like they said in Field of Dreams "if you build it, they will come".
You will not know exactly how, or even if your strategy is going to work at the start, but the main point is allowing those who want to participate in that fashion the option do so. They will be the ones who will tell you what your strategy should be moving forward, not by words, but by action. One thing I can guarantee you: if you do nothing, you will get nothing in return.
VIRTUAL WORLDS
There is something nerdy about virtual worlds and the folks that inhabit them for hours on end. When I see avatars that look like velociraptors, trying to solicit virtual sex with virtual prostitutes in virtual red-light districts, I picture the person behind the keyboard to be a 30-something programmer, surrounded by empty Mountain Dew bottles and Dorito bags, who hasn't left his mother's basement in two weeks.
The kind of guy with three custom-modified computers, nine MySpace accounts who gets extremely upset if you even glance at his collection of Star Trek action figures.
While that stereotype is very creepy, one thing is certain: virtual worlds are going mainstream, in one form or another, and will continue to have more and increasingly real-world applications. It might take a few years, like the wireless revolution we were all hearing about 10 years ago (which, by the way, is happening NOW!), but one day very soon virtual worlds will revolutionize the meeting planning industry.
While you may have dismissed the thought of hosting meetings & events in virtual worlds in the past, many of the world's leading companies are placing big bets on the power of meeting online. The new generation of information workers will have a different attitude, as their education was heavily dependent on technology that didn't exist when I went to college in the 90's. All the Gen-Y kids coming out of Stanford, MIT, and Princeton, the business leaders in 10 years, all have "In-World" avatars reflecting their own preferences and personalities. One day very soon, these same avatars will be a confluence of Facebook profiles, V-Cards, LinkedIn profiles that will be their definitive 'online presence'.
Watch this video to see how some of the world's largest companies have been heavily investing in Second Life:As meeting planners, how can we afford to ignore new technologies that will impact the future of our industry so profoundly? Particularly in a down economy. Imagine completing 10 site visits in one day, without ever leaving your office. Having five regional sales meetings in two days where there are no travel expenses. Complete compliance training for various certifications from the convenience of your own office. Start thinking of the look on senior management's faces when you demonstrate the cost savings gained by having no airfare, no accommodations, no F&B costs.
Are any of you currently using this technology past the demo stage? Is the push coming from your team or your IT department? If not, are any of you in discussion about it? Who is driving it, Meeting Planning, IT, Marketing/Sales or Senior Management?
Here is an interesting example: Virtual Forbidden City developed by IBM in partnership with the Palace Museum. It was designed to encourage people from all around the world to explore and learn about Chinese history and culture.
Starwood's new hotel chain aloft actually launched it's brand with virtual tours in Second Life before any of the properties were opened.
Dell Island (video) is another great example of how consumers can interact with products online. Not a believer yet? Check out the infinite possibilities at What is Scion City. While this is nothing more than an extended commercial, approaching it in a different fashion allows for more engagement. It's only a matter of time until the graphics in Second Life are as good as they are on Grand Theft Auto IV on X-Box 360.
Obama's In-World Presidential Campaign:The business applications for meeting planners are endless, but once again a cultural/consumption shift will have to occur to make it useful. Planners need to anticipate the needs of their customers and attendees and be there waiting for them when they walk through the door. Being prepared to offer this to our internal customers before they ask for it is what makes us valuable to our organizations. If you'd like to learn more, check out Millions of Us.
Instead of a hosting a mandatory compliance training meeting in a boring conference center in some random suburb of Boston, you can host it in your virtual meeting room 'In-World' at your own branded meeting space/swim-up pool-bar, on a Pete Dye-designed golf course sitting on your private island in the Carribean.
Hey, you can dream, right? That's what makes Second Life so interesting.
Keeping track, protecting and manually entering this information for each site becomes quite cumbersome, especially to busy professionals whose time is crunched and are used to having everything else on the internet so user-friendly. While Facebook Connect and Google's OpenSocial projects are primarily focusing on 'social' sites for the time being, you can clearly see where this is headed.
How do we, as meeting professionals, use this to help strengthen our programs? A great way to start is to build online communities surrounding your most important events. If you are not doing this now, pick one of your most important events and test it out (there are plenty of consultants out there who can help you like QG Partnership - Obama used BSD).
Rather than diving in head first, you'll want to dip your toes in to see what works and what doesn't. The idea behind this is to connect and interact with your audience, giving them the opportunity to participate and influence your program content thus enhancing their experience with your brand/organization. Here is a list of how 35 large companies are using social networking tools. Click here for a terrific list of reason why social networking is great for business.
There are so many applications where social networking can be useful before, during and after a meeting. Picture the usefulness applied to planning an internal sales meeting. One of the main objectives should be providing ample opportunity for reps from different regions to start discussions pertaining to challenges or best practices in the field. Providing an online community with different topic forums will allow reps with similar challenges and interests to gather amongst themselves, discuss and talk about solutions to their individual difficulties. If you're planning a convention, perhaps you'd like to start online discussions before their arrival to the event; to solicit hot topics from key demographics. Keeping your fingers on the pulse of your key targets will allow your team to implement and highlight the subjects of most interest to them into your exhibit presentation. The most important thing to remember is the value of connection, which will allow you and your team to have a better understanding of your constituency- by providing them the forum to connect. But none of this will happen magically, it will require a good deal of planning and a comprehensive communications plan.
With new applications such as Facebook Connect and OpenSocial, it will be much easier for audiences to connect across a variety of previously unavailable platforms. For instance, if one of my suppliers sees my LinkedIn profile through his MySpace account, he might be encouraged to connect with me that way, where previously we would not have had the visibility. Perhaps someone reads this blog and finds out that through my iMeet profile the services my company provide are a perfect fit for what they have been looking for.
Event-specific social networking is also terrific for post-program marketing & communications. I have seen so many events where a tremendous amount of momentum was generated and the audiences were so charged-up, only to have that impact flatline within a week. Design your site to gather feedback and opinions and ask them how you can improve subsequent programs. Continue to update content that will provide your audience incentives to return. You won't get there immediately, but like they said in Field of Dreams "if you build it, they will come".
You will not know exactly how, or even if your strategy is going to work at the start, but the main point is allowing those who want to participate in that fashion the option do so. They will be the ones who will tell you what your strategy should be moving forward, not by words, but by action. One thing I can guarantee you: if you do nothing, you will get nothing in return.
VIRTUAL WORLDS
There is something nerdy about virtual worlds and the folks that inhabit them for hours on end. When I see avatars that look like velociraptors, trying to solicit virtual sex with virtual prostitutes in virtual red-light districts, I picture the person behind the keyboard to be a 30-something programmer, surrounded by empty Mountain Dew bottles and Dorito bags, who hasn't left his mother's basement in two weeks.
The kind of guy with three custom-modified computers, nine MySpace accounts who gets extremely upset if you even glance at his collection of Star Trek action figures.
While that stereotype is very creepy, one thing is certain: virtual worlds are going mainstream, in one form or another, and will continue to have more and increasingly real-world applications. It might take a few years, like the wireless revolution we were all hearing about 10 years ago (which, by the way, is happening NOW!), but one day very soon virtual worlds will revolutionize the meeting planning industry.
While you may have dismissed the thought of hosting meetings & events in virtual worlds in the past, many of the world's leading companies are placing big bets on the power of meeting online. The new generation of information workers will have a different attitude, as their education was heavily dependent on technology that didn't exist when I went to college in the 90's. All the Gen-Y kids coming out of Stanford, MIT, and Princeton, the business leaders in 10 years, all have "In-World" avatars reflecting their own preferences and personalities. One day very soon, these same avatars will be a confluence of Facebook profiles, V-Cards, LinkedIn profiles that will be their definitive 'online presence'.
Watch this video to see how some of the world's largest companies have been heavily investing in Second Life:As meeting planners, how can we afford to ignore new technologies that will impact the future of our industry so profoundly? Particularly in a down economy. Imagine completing 10 site visits in one day, without ever leaving your office. Having five regional sales meetings in two days where there are no travel expenses. Complete compliance training for various certifications from the convenience of your own office. Start thinking of the look on senior management's faces when you demonstrate the cost savings gained by having no airfare, no accommodations, no F&B costs.
Are any of you currently using this technology past the demo stage? Is the push coming from your team or your IT department? If not, are any of you in discussion about it? Who is driving it, Meeting Planning, IT, Marketing/Sales or Senior Management?
Here is an interesting example: Virtual Forbidden City developed by IBM in partnership with the Palace Museum. It was designed to encourage people from all around the world to explore and learn about Chinese history and culture.
Starwood's new hotel chain aloft actually launched it's brand with virtual tours in Second Life before any of the properties were opened.
Dell Island (video) is another great example of how consumers can interact with products online. Not a believer yet? Check out the infinite possibilities at What is Scion City. While this is nothing more than an extended commercial, approaching it in a different fashion allows for more engagement. It's only a matter of time until the graphics in Second Life are as good as they are on Grand Theft Auto IV on X-Box 360.
Obama's In-World Presidential Campaign:The business applications for meeting planners are endless, but once again a cultural/consumption shift will have to occur to make it useful. Planners need to anticipate the needs of their customers and attendees and be there waiting for them when they walk through the door. Being prepared to offer this to our internal customers before they ask for it is what makes us valuable to our organizations. If you'd like to learn more, check out Millions of Us.
Instead of a hosting a mandatory compliance training meeting in a boring conference center in some random suburb of Boston, you can host it in your virtual meeting room 'In-World' at your own branded meeting space/swim-up pool-bar, on a Pete Dye-designed golf course sitting on your private island in the Carribean.
Hey, you can dream, right? That's what makes Second Life so interesting.
Recession? What recession?
Contrary to the strategy of virtually every competitor in their industry, Starwood’s aggressive expansion of the aloft “lifestyle” brand flies in the face of the current economic meltdown. With such an ambitious growth strategy amidst the current fragile credit markets, it appears Starwood is going All-In on the aloft brand.
Is there something they know that we don’t? According to their website, there are 19 aLoft properties currently open, primarily in the U.S. Over the next three years, they plan on opening 73 additional properties, 13 of which will be located outside the U.S. Curiously enough, of these 92 current or proposed projects, only one will be in Europe (see list below).
While traditional upscale chains such as Four Seasons, Ritz-Carlton and Hyatt are refining their signature properties to cater to the upscale crowd, aloft is taking a decidedly different approach. With loft-like urban design, tech-savvy amenities, a social atmosphere and trendy launch parties, complete with fashion shows and DJ’s, aloft marketers are actively courting the younger, hipper Gen X & Y business travelers. aloft also chose to launch their brand in Second Life, an online virtual 3D ‘world’ that caters to younger, tech-savvy professionals, which allows users to navigate the spatial environment online using an avatar. See the video belowClearly aloft is a long-term bet, one that Starwood has made, and won, on a number of occasions in the past. Think back to when The W Hotel chain was launched ten years ago. No one had ever heard of it and it was a huge departure from their traditional Sheraton and Westin-type properties. But they pulled it off and revolutionized the ‘urban’ trend in hotel design. The chips are still on the table on that bet, but the odds of it paying off look pretty good at the moment. Given the W Hotels success, their marketers and designers are not resting on their laurels, but rather continually updating and reinventing each property to remain edgy.
If history serves as our guide, Starwood’s aloft bet will win big.
Description from an aLoft Press Release:
“Guest rooms feature the brand's signature nine-foot ceilings, oversized windows and the ultra-comfortable bed, as well as oversized walk-in showers and amenities created by Bliss Spa. Each aLoft room is also a combination of high-tech office and entertainment center equipped with wireless internet access and a one-stop connectivity solution for multiple electronic gadgetry all linked to a 42" flat-panel, HDTV-ready television.
aLoft offers atmospheric public spaces where guests can mix and mingle, read the paper, work on laptops, play a game of pool or grab a drink with friends at the re:mix communal lobby area and w xyz bar. The re:charge fitness center and splash pool give travelers options to de-stress and re-energize, while re:fuel by aloft offers sweet, savory and healthy food, snacks and beverages to grab & go, 24-hours a day. Aloft is also committed to the environment and launched a see green program, which promotes ecologically friendly practices, products and services both inside and outside the hotel.”
CURRENTLY OPEN
United States
Arkansas
Rogers - aloft Rogers-Bentonville
California
Rancho Cucamonga - aloft Ontario-Rancho Cucamonga
Colorado
Aurora - aloft Denver International Airport
Illinois
Rosemont - aloft Chicago O'Hare
Massachusetts
Lexington - aloft Lexington
Minnesota
Minneapolis - aloft Minneapolis
North Carolina
Charlotte - aloft Charlotte Uptown at the EpiCentre
Oregon
Portland - aloft Portland Airport at Cascade Station
Pennsylvania
Philadelphia - aloft Philadelphia Airport
South Carolina
North Charleston - aloft Charleston Airport & Convention Center
Tennessee
Franklin - aloft Nashville-Cool Springs
Texas
Frisco - aloft Frisco
Irving - aloft Las Colinas
Plano - aloft Plano
Virginia
Ashburn - aloft Dulles North
Chesapeake - aloft Chesapeake
Glen Allen - aloft Richmond West
Canada
Montreal - aloft Montreal Airport
Asia Pacific
China
Beijing - aloft Beijing, Haidian
FUTURE OPENINGS
United States
Alabama
Homewood - aloft Birmingham Soho Square - Opening April 2, 2009
Arizona
Chandler - aloft Chandler - Opening December 1, 2009
Glendale - aloft Glendale - Opening April 15, 2010
Phoenix - aloft Phoenix-Airport - Opening September 24, 2009
Tempe - aloft Tempe - Opening March 26, 2009
California
El Segundo - aloft El Segundo - Opening June 1, 2010
Colorado
Broomfield - aloft Denver, Arista Northwest - Opening May 1, 2009
Glendale - aloft Cherry Creek - Opening March 1, 2010
Delaware
Wilmington - aloft Wilmington - Opening February 1, 2010
Florida
Aventura - aloft Aventura - Opening March 1, 2010
Bay Harbor - aloft Bay Harbor - Opening June 1, 2010
Jacksonville - aloft Jacksonville Airport - Opening June 1, 2009
Orlando - aloft Orlando International Airport - Opening December 31, 2011
Orlando - aloft Orlando/Convention Center - Opening June 30, 2010
Tallahassee - aloft Tallahassee Downtown - Opening August 27, 2009
West Palm Beach - aloft West Palm Beach - Opening February, 2010
Georgia
Alpharetta - aloft Alpharetta - Opening August 1, 2010
Atlanta - aloft Atlanta Airport/Millennium Center - Opening May 1, 2011
Atlanta - aloft Atlanta Buckhead - Opening June 1, 2010
Savannah - aloft Savannah - Opening January 4, 2010
Illinois
Bolingbrook - aloft Bolingbrook - Opening June 25, 2009
Chicago - aloft Chicago City Center - Opening January 1, 2011
Chicago - aloft Chicago Millennium Park - Opening September 1, 2011
Lincolnshire - aloft Lincolnshire - Opening March 1, 2010
Oakbrook - aloft Oakbrook - Opening December 1, 2009
Indiana
Indianapolis - aloft Indianapolis Woodfield Crossing - Opening Dec. 31, 2011
Plainfield - aloft Plainfield Metropolis - Opening December 31, 2011
Kansas
Leawood - aloft Leawood - Opening April 1, 2009
Maryland
Baltimore - aloft Baltimore Fell's Point - Opening December 31, 2009
Hanover - aloft Arundel Mills - Opening April 30, 2009
Linthicum - aloft BWI Airport - Opening July 2, 2009
National Harbor - aloft Washington National Harbor - Opening March 5, 2009
Minnesota
Minneapolis - aloft Edina - Opening January 1, 2010
Nevada
Las Vegas - aloft Las Vegas - Opening January 1, 2011
New Jersey
Mount Laurel - aloft Mount Laurel - Opening September 1, 2009
Woodbridge - aloft Woodbridge - Opening March 2, 2010
New York
aloft Brooklyn/Downtown - Opening March 1, 2010
Buffalo - aloft Buffalo Airport - Opening January 15, 2010
Long Island City - aloft NYC - By the Bridge - Opening December 31, 2010
New York - aloft Harlem - Opening June 1, 2010
North Carolina
Asheville - aloft Asheville Downtown - Opening April 1, 2010
Chapel Hill - aloft Chapel Hill - Opening March 1, 2010
Charlotte - aloft Charlotte Ballantyne - Opening January 1, 2010
Raleigh - aloft Raleigh-Durham Airport Brier Creek - Opening March 1, 2010
Oklahoma
Tulsa - aloft Tulsa - Opening February 15, 2010
Pennsylvania
Harrisburg - aloft Harrisburg - Opening March 1, 2010
Philadelphia - aloft Philadelphia Gateway - Opening July 1, 2011
Rhode Island
Providence - aloft Providence - Opening February 1, 2010
South Carolina
Greenville - aloft Greenville Airport - Opening February 1, 2010
Texas
Austin - aloft Austin at the Domain - Opening November 3, 2009
Dallas - aloft Dallas Downtown - Opening July 1, 2009
Houston - aloft Houston - Opening May 1, 2009
San Antonio - aloft San Antonio Airport - Opening March 5, 2009
San Antonio - aloft San Antonio Downtown - Opening December 1, 2009
San Antonio - aloft San Antonio Northwest - Opening May 1, 2010
Virginia
Chantilly - aloft Dulles South - Opening June 1, 2009
Winchester - aloft Winchester - Opening April 1, 2010
Wisconsin
Green Bay - aloft Green Bay - Opening March 26, 2009
Madison - aloft Madison - Opening June 1, 2010
Milwaukee - aloft Milwaukee Downtown - Opening December 1, 2009
Canada
Toronto - aloft Toronto Downtown - Opening December 1, 2009
Vaughan - aloft Vaughan Mills - Opening October 31, 2009
Laval - aloft Laval - Opening March 1, 2010
Europe
Belgium
Brussels - aloft Brussels Schuman - Opening September 1, 2010
Middle East
Abu Dhabi - aloft Abu Dhabi - Opening September 1, 2009
Asia Pacific
China
Foshan - aloft Nanhai-Foshan - Opening January 1, 2011
India
Ahmedabad - aloft Ahmedabad, SG Road - Opening April 1, 2010
Bangalore - aloft Bangalore, Whitefield - Opening April 1, 2010
Chennai - aloft Chennai, OMR-Sholinganallur - Opening January 1, 2010
Coimbatore - aloft Coimbatore Singanallur - Opening December 1, 2010
Thailand
Bangkok - aloft Bangkok-Sukhumvit 11 - Opening January 1, 2010
Bangkok - aloft Bangkok-Sukhumvit 26 - Opening January 1, 2011
Bangkok - aloft Silom - Opening March 1, 2010
Is there something they know that we don’t? According to their website, there are 19 aLoft properties currently open, primarily in the U.S. Over the next three years, they plan on opening 73 additional properties, 13 of which will be located outside the U.S. Curiously enough, of these 92 current or proposed projects, only one will be in Europe (see list below).
While traditional upscale chains such as Four Seasons, Ritz-Carlton and Hyatt are refining their signature properties to cater to the upscale crowd, aloft is taking a decidedly different approach. With loft-like urban design, tech-savvy amenities, a social atmosphere and trendy launch parties, complete with fashion shows and DJ’s, aloft marketers are actively courting the younger, hipper Gen X & Y business travelers. aloft also chose to launch their brand in Second Life, an online virtual 3D ‘world’ that caters to younger, tech-savvy professionals, which allows users to navigate the spatial environment online using an avatar. See the video belowClearly aloft is a long-term bet, one that Starwood has made, and won, on a number of occasions in the past. Think back to when The W Hotel chain was launched ten years ago. No one had ever heard of it and it was a huge departure from their traditional Sheraton and Westin-type properties. But they pulled it off and revolutionized the ‘urban’ trend in hotel design. The chips are still on the table on that bet, but the odds of it paying off look pretty good at the moment. Given the W Hotels success, their marketers and designers are not resting on their laurels, but rather continually updating and reinventing each property to remain edgy.
If history serves as our guide, Starwood’s aloft bet will win big.
Description from an aLoft Press Release:
“Guest rooms feature the brand's signature nine-foot ceilings, oversized windows and the ultra-comfortable bed, as well as oversized walk-in showers and amenities created by Bliss Spa. Each aLoft room is also a combination of high-tech office and entertainment center equipped with wireless internet access and a one-stop connectivity solution for multiple electronic gadgetry all linked to a 42" flat-panel, HDTV-ready television.
aLoft offers atmospheric public spaces where guests can mix and mingle, read the paper, work on laptops, play a game of pool or grab a drink with friends at the re:mix communal lobby area and w xyz bar. The re:charge fitness center and splash pool give travelers options to de-stress and re-energize, while re:fuel by aloft offers sweet, savory and healthy food, snacks and beverages to grab & go, 24-hours a day. Aloft is also committed to the environment and launched a see green program, which promotes ecologically friendly practices, products and services both inside and outside the hotel.”
CURRENTLY OPEN
United States
Arkansas
Rogers - aloft Rogers-Bentonville
California
Rancho Cucamonga - aloft Ontario-Rancho Cucamonga
Colorado
Aurora - aloft Denver International Airport
Illinois
Rosemont - aloft Chicago O'Hare
Massachusetts
Lexington - aloft Lexington
Minnesota
Minneapolis - aloft Minneapolis
North Carolina
Charlotte - aloft Charlotte Uptown at the EpiCentre
Oregon
Portland - aloft Portland Airport at Cascade Station
Pennsylvania
Philadelphia - aloft Philadelphia Airport
South Carolina
North Charleston - aloft Charleston Airport & Convention Center
Tennessee
Franklin - aloft Nashville-Cool Springs
Texas
Frisco - aloft Frisco
Irving - aloft Las Colinas
Plano - aloft Plano
Virginia
Ashburn - aloft Dulles North
Chesapeake - aloft Chesapeake
Glen Allen - aloft Richmond West
Canada
Montreal - aloft Montreal Airport
Asia Pacific
China
Beijing - aloft Beijing, Haidian
FUTURE OPENINGS
United States
Alabama
Homewood - aloft Birmingham Soho Square - Opening April 2, 2009
Arizona
Chandler - aloft Chandler - Opening December 1, 2009
Glendale - aloft Glendale - Opening April 15, 2010
Phoenix - aloft Phoenix-Airport - Opening September 24, 2009
Tempe - aloft Tempe - Opening March 26, 2009
California
El Segundo - aloft El Segundo - Opening June 1, 2010
Colorado
Broomfield - aloft Denver, Arista Northwest - Opening May 1, 2009
Glendale - aloft Cherry Creek - Opening March 1, 2010
Delaware
Wilmington - aloft Wilmington - Opening February 1, 2010
Florida
Aventura - aloft Aventura - Opening March 1, 2010
Bay Harbor - aloft Bay Harbor - Opening June 1, 2010
Jacksonville - aloft Jacksonville Airport - Opening June 1, 2009
Orlando - aloft Orlando International Airport - Opening December 31, 2011
Orlando - aloft Orlando/Convention Center - Opening June 30, 2010
Tallahassee - aloft Tallahassee Downtown - Opening August 27, 2009
West Palm Beach - aloft West Palm Beach - Opening February, 2010
Georgia
Alpharetta - aloft Alpharetta - Opening August 1, 2010
Atlanta - aloft Atlanta Airport/Millennium Center - Opening May 1, 2011
Atlanta - aloft Atlanta Buckhead - Opening June 1, 2010
Savannah - aloft Savannah - Opening January 4, 2010
Illinois
Bolingbrook - aloft Bolingbrook - Opening June 25, 2009
Chicago - aloft Chicago City Center - Opening January 1, 2011
Chicago - aloft Chicago Millennium Park - Opening September 1, 2011
Lincolnshire - aloft Lincolnshire - Opening March 1, 2010
Oakbrook - aloft Oakbrook - Opening December 1, 2009
Indiana
Indianapolis - aloft Indianapolis Woodfield Crossing - Opening Dec. 31, 2011
Plainfield - aloft Plainfield Metropolis - Opening December 31, 2011
Kansas
Leawood - aloft Leawood - Opening April 1, 2009
Maryland
Baltimore - aloft Baltimore Fell's Point - Opening December 31, 2009
Hanover - aloft Arundel Mills - Opening April 30, 2009
Linthicum - aloft BWI Airport - Opening July 2, 2009
National Harbor - aloft Washington National Harbor - Opening March 5, 2009
Minnesota
Minneapolis - aloft Edina - Opening January 1, 2010
Nevada
Las Vegas - aloft Las Vegas - Opening January 1, 2011
New Jersey
Mount Laurel - aloft Mount Laurel - Opening September 1, 2009
Woodbridge - aloft Woodbridge - Opening March 2, 2010
New York
aloft Brooklyn/Downtown - Opening March 1, 2010
Buffalo - aloft Buffalo Airport - Opening January 15, 2010
Long Island City - aloft NYC - By the Bridge - Opening December 31, 2010
New York - aloft Harlem - Opening June 1, 2010
North Carolina
Asheville - aloft Asheville Downtown - Opening April 1, 2010
Chapel Hill - aloft Chapel Hill - Opening March 1, 2010
Charlotte - aloft Charlotte Ballantyne - Opening January 1, 2010
Raleigh - aloft Raleigh-Durham Airport Brier Creek - Opening March 1, 2010
Oklahoma
Tulsa - aloft Tulsa - Opening February 15, 2010
Pennsylvania
Harrisburg - aloft Harrisburg - Opening March 1, 2010
Philadelphia - aloft Philadelphia Gateway - Opening July 1, 2011
Rhode Island
Providence - aloft Providence - Opening February 1, 2010
South Carolina
Greenville - aloft Greenville Airport - Opening February 1, 2010
Texas
Austin - aloft Austin at the Domain - Opening November 3, 2009
Dallas - aloft Dallas Downtown - Opening July 1, 2009
Houston - aloft Houston - Opening May 1, 2009
San Antonio - aloft San Antonio Airport - Opening March 5, 2009
San Antonio - aloft San Antonio Downtown - Opening December 1, 2009
San Antonio - aloft San Antonio Northwest - Opening May 1, 2010
Virginia
Chantilly - aloft Dulles South - Opening June 1, 2009
Winchester - aloft Winchester - Opening April 1, 2010
Wisconsin
Green Bay - aloft Green Bay - Opening March 26, 2009
Madison - aloft Madison - Opening June 1, 2010
Milwaukee - aloft Milwaukee Downtown - Opening December 1, 2009
Canada
Toronto - aloft Toronto Downtown - Opening December 1, 2009
Vaughan - aloft Vaughan Mills - Opening October 31, 2009
Laval - aloft Laval - Opening March 1, 2010
Europe
Belgium
Brussels - aloft Brussels Schuman - Opening September 1, 2010
Middle East
Abu Dhabi - aloft Abu Dhabi - Opening September 1, 2009
Asia Pacific
China
Foshan - aloft Nanhai-Foshan - Opening January 1, 2011
India
Ahmedabad - aloft Ahmedabad, SG Road - Opening April 1, 2010
Bangalore - aloft Bangalore, Whitefield - Opening April 1, 2010
Chennai - aloft Chennai, OMR-Sholinganallur - Opening January 1, 2010
Coimbatore - aloft Coimbatore Singanallur - Opening December 1, 2010
Thailand
Bangkok - aloft Bangkok-Sukhumvit 11 - Opening January 1, 2010
Bangkok - aloft Bangkok-Sukhumvit 26 - Opening January 1, 2011
Bangkok - aloft Silom - Opening March 1, 2010
Wednesday, December 3, 2008
FICP comes out Swinging
The Financial and Insurance Conference Planners stepped up to the plate in a big way recently, offering their take on the recent bad press generated by AIG and others.
From FICP's website:
"Financial and Insurance Conference Planners (FICP) has followed with much interest the press coverage of excessive spending of certain financial institutions on meetings and events.
We strongly believe in scrutinizing the ethical, moral and financial stability of all publically held companies. FICP does not support irresponsible and excessive corporate spending, especially during times of economic distress. But we would also like to offer our perspective on the relevance and value of corporate meetings, conferences and incentive programs, many of which have been planned long in advance of any financial trouble, and many of which are vital to helping companies focus their human talent on the future.
FICP is the leading association of meeting and conference planning professionals within the financial and insurance marketplace, representing $600 million annually in hospitality-related business. Our members pride themselves on producing meetings and conferences that generate strategic business results. We’d like to set the record straight on the meeting and event business.
Meetings get results. They firm up partnerships and inspire success. The strategic collaboration of individuals and companies is a proven mechanism for developing business solutions and increasing productivity. When economic times are tough, it’s vital for employees to be able to come together to share ideas and skills, to create solutions and set long term strategic goals. Sales conferences and performance incentive programs in particular are powerful business tools. Such events motivate top performers to go even further, as well as provide training opportunities for up-and-coming professionals.
According to the Meeting Professionals International Foundation / George P. Johnson EventView study, Fortune 1000 'Chief marketing Officers' view meetings and events as having the highest return on investment of any marketing channel or initiative. In exceptionally competitive and unstable market conditions, strategically focused meetings, events and sales conferences boost business and deliver results.
Publicly traded companies must be held to high standards in regards to how stockholder investment is spent. Now more than ever, business organizations must demonstrate greater fiscal responsibility and cut costs. But cancelling meetings, sales conferences, events and incentive programs would be both short sighted and irresponsible. These are vital functions to a corporation’s success."
What do you have to say to that Press???
From FICP's website:
"Financial and Insurance Conference Planners (FICP) has followed with much interest the press coverage of excessive spending of certain financial institutions on meetings and events.
We strongly believe in scrutinizing the ethical, moral and financial stability of all publically held companies. FICP does not support irresponsible and excessive corporate spending, especially during times of economic distress. But we would also like to offer our perspective on the relevance and value of corporate meetings, conferences and incentive programs, many of which have been planned long in advance of any financial trouble, and many of which are vital to helping companies focus their human talent on the future.
FICP is the leading association of meeting and conference planning professionals within the financial and insurance marketplace, representing $600 million annually in hospitality-related business. Our members pride themselves on producing meetings and conferences that generate strategic business results. We’d like to set the record straight on the meeting and event business.
Meetings get results. They firm up partnerships and inspire success. The strategic collaboration of individuals and companies is a proven mechanism for developing business solutions and increasing productivity. When economic times are tough, it’s vital for employees to be able to come together to share ideas and skills, to create solutions and set long term strategic goals. Sales conferences and performance incentive programs in particular are powerful business tools. Such events motivate top performers to go even further, as well as provide training opportunities for up-and-coming professionals.
According to the Meeting Professionals International Foundation / George P. Johnson EventView study, Fortune 1000 'Chief marketing Officers' view meetings and events as having the highest return on investment of any marketing channel or initiative. In exceptionally competitive and unstable market conditions, strategically focused meetings, events and sales conferences boost business and deliver results.
Publicly traded companies must be held to high standards in regards to how stockholder investment is spent. Now more than ever, business organizations must demonstrate greater fiscal responsibility and cut costs. But cancelling meetings, sales conferences, events and incentive programs would be both short sighted and irresponsible. These are vital functions to a corporation’s success."
What do you have to say to that Press???
Tuesday, December 2, 2008
Atlantis, The Palm - Dubai
November 20 marked the grand opening of the most ambitious hotel property in the world, Atlantis, The Palm in Dubai (the sister property to the famed Bahamas hotspot). Where else but Dubai could such an ambitious project garner so much attention while flying in the face of the world’s economic crisis? The amount of detailed and coordinated planning that went into the grand opening party may have just set the bar at its permanent height.
PALM JUMEIRAH ISLAND
Rising from the warm waters of the Arabian Gulf, this ultra-luxurious resort was built on 113 acres of reclaimed land, perched atop the revolutionary Palm Jumeirah. The Palm Jumeirah, a series of manmade islands designed to assimilate a 17-frond palm tree, spans five kilometers (3.35 miles) and is regarded by many as the eighth wonder of the world.
THE RESORT
Boasting 360 degree views of the ocean, restaurants from acclaimed chefs and an incredible marine habitat that is home to more than 65,000 exotic sea creatures, Atlantis, The Palm, is already considered amongst the most luxurious resorts in the world. Offering something for everyone, this resort features “Aquaventure” – a 42-acre waterpark with the “Zigguret” Centerpiece that touts a 30 yard vertical drop; “The Lost Chambers” – where you can journey through a labyrinth of chambers to experience a fascinating underwater world, the 11-acre “Dolphin Bay” with its innovative Education Center, and the “Ambassador Lagoon” with hundreds of species of exotic marine life. Atlantis, The Palm also offers an array of fun-filled activities for children of every age and its Spa and Fitness Center offers treatments from all over the world.
Between the Royal Towers, Imperial Club, and Lost Chambers Suites, the property boasts nearly 1,400 guest rooms, 166 suites, 17 bars and lounges and a myriad of aquatic activities from beaches, pools, waterfalls and water sports. While the innovative Neptune and Poseidon Suites feature underwater accommodations with stunning aquatic views, it’s top floor Bridge Suite costs around $26,000 per night!
For your meeting needs, The Atlantis Conference Centre comprises more than 18,000 square feet of floor space. The largest area, The Atlantis Ballroom, is a flexible space that can divide into five separate areas. Two junior ballrooms, two boardrooms, a traditional Majlis (gathering) area and a generous pre-function space provide ideal venues for small groups or break-out areas for larger conventions.
THE GRAND OPENING PARTY
A week before Thanksgiving, 2,000 VIP guests gathered in the lobby of the Atlantis to sip Dom PĂ©rignon and enjoy a spectacle that no one could have imagined. Outside, A-list celebrities from Robert De Niro, Lindsay Lohan to Michael Jordan walked the red carpet and took in the opulent surroundings.
The festivities, produced by renowned event pro Colin Cowie, kicked off with an unprecedented HD video projection sequence introduced by Bollywood star, Priyanka Chopra, who rose from the stage as The Goddess of Atlantis.
Designed by Jean Michel Jarre in Paris, the visual display used the 200 yard-wide Royal Towers as a screen to visualize the story of Atlantis, making it the most ambitious HD video projection on a standing surface to date. You must CLICK HERE to see the AMAZING video of the festivities (best viewed in full screen mode-you will be captivated).
Pop-singer Kylie Minogue, reportedly paid $4 million to perform, took the stage just before the sky lit up with the world’s largest fireworks display, large enough to be seen from outer space. The stunning exhibition, designed and created by international pyrotechnic experts, the Grucci family, stretched across the full 320 miles of Palm Jumeirah landscape, lighting up the entire island and Atlantis resort, creating a display visible from space. It has been estimated that the fireworks ceremony was anywhere between seven to ten times larger than those of the Beijing Olympics Opening Ceremony! Custom-made shells had been shipped in from across the globe, creating a light spectacle, set off from over 716 firing locations around the island including 400 balconies at the resort.
Guests can also venture off-property to experience the Region’s largest Indoor Ski Resort, Ski Dubai, located in the Mall of the Emirates, or Dubai’s other waterpark, Wild Wadi in Jumeirah Beach. Other nearby sites to see are the Burj Al Arab, the world’s only 7 Star Hotel and the iconic structure that epitomizes Dubai, Burj Dubai, the world’s tallest building, and the famous Dubai Marina.
While room rates are most certainly going to be quite high compared to other proerties around the world, the experiences offered and the memories gained will surely make the Atlantis, The Palm is an ideal selection for an unforgettable incentive.
PALM JUMEIRAH ISLAND
Rising from the warm waters of the Arabian Gulf, this ultra-luxurious resort was built on 113 acres of reclaimed land, perched atop the revolutionary Palm Jumeirah. The Palm Jumeirah, a series of manmade islands designed to assimilate a 17-frond palm tree, spans five kilometers (3.35 miles) and is regarded by many as the eighth wonder of the world.
THE RESORT
Boasting 360 degree views of the ocean, restaurants from acclaimed chefs and an incredible marine habitat that is home to more than 65,000 exotic sea creatures, Atlantis, The Palm, is already considered amongst the most luxurious resorts in the world. Offering something for everyone, this resort features “Aquaventure” – a 42-acre waterpark with the “Zigguret” Centerpiece that touts a 30 yard vertical drop; “The Lost Chambers” – where you can journey through a labyrinth of chambers to experience a fascinating underwater world, the 11-acre “Dolphin Bay” with its innovative Education Center, and the “Ambassador Lagoon” with hundreds of species of exotic marine life. Atlantis, The Palm also offers an array of fun-filled activities for children of every age and its Spa and Fitness Center offers treatments from all over the world.
Between the Royal Towers, Imperial Club, and Lost Chambers Suites, the property boasts nearly 1,400 guest rooms, 166 suites, 17 bars and lounges and a myriad of aquatic activities from beaches, pools, waterfalls and water sports. While the innovative Neptune and Poseidon Suites feature underwater accommodations with stunning aquatic views, it’s top floor Bridge Suite costs around $26,000 per night!
For your meeting needs, The Atlantis Conference Centre comprises more than 18,000 square feet of floor space. The largest area, The Atlantis Ballroom, is a flexible space that can divide into five separate areas. Two junior ballrooms, two boardrooms, a traditional Majlis (gathering) area and a generous pre-function space provide ideal venues for small groups or break-out areas for larger conventions.
THE GRAND OPENING PARTY
A week before Thanksgiving, 2,000 VIP guests gathered in the lobby of the Atlantis to sip Dom PĂ©rignon and enjoy a spectacle that no one could have imagined. Outside, A-list celebrities from Robert De Niro, Lindsay Lohan to Michael Jordan walked the red carpet and took in the opulent surroundings.
The festivities, produced by renowned event pro Colin Cowie, kicked off with an unprecedented HD video projection sequence introduced by Bollywood star, Priyanka Chopra, who rose from the stage as The Goddess of Atlantis.
Designed by Jean Michel Jarre in Paris, the visual display used the 200 yard-wide Royal Towers as a screen to visualize the story of Atlantis, making it the most ambitious HD video projection on a standing surface to date. You must CLICK HERE to see the AMAZING video of the festivities (best viewed in full screen mode-you will be captivated).
Pop-singer Kylie Minogue, reportedly paid $4 million to perform, took the stage just before the sky lit up with the world’s largest fireworks display, large enough to be seen from outer space. The stunning exhibition, designed and created by international pyrotechnic experts, the Grucci family, stretched across the full 320 miles of Palm Jumeirah landscape, lighting up the entire island and Atlantis resort, creating a display visible from space. It has been estimated that the fireworks ceremony was anywhere between seven to ten times larger than those of the Beijing Olympics Opening Ceremony! Custom-made shells had been shipped in from across the globe, creating a light spectacle, set off from over 716 firing locations around the island including 400 balconies at the resort.
Guests can also venture off-property to experience the Region’s largest Indoor Ski Resort, Ski Dubai, located in the Mall of the Emirates, or Dubai’s other waterpark, Wild Wadi in Jumeirah Beach. Other nearby sites to see are the Burj Al Arab, the world’s only 7 Star Hotel and the iconic structure that epitomizes Dubai, Burj Dubai, the world’s tallest building, and the famous Dubai Marina.
While room rates are most certainly going to be quite high compared to other proerties around the world, the experiences offered and the memories gained will surely make the Atlantis, The Palm is an ideal selection for an unforgettable incentive.
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