Issue #28 -- January 21, 1999
**************************************
Financially, 1998 was a Very Good Year
**************************************
This week, many U.S. airlines reported their financial results for the fourth quarter and for the full year, 1998. And as expected, the results are stellar. In fact, for many of the airlines, the results are the best ever.
This is good news for company management (bonuses and stock options), shareholders (stock price appreciation) and employees (job security). Conspicuously absent from the winners circle, though, is the traveling public itself. Many flyers in fact feel that their airlines' success has been at the expense of their customers.
* The fuller planes, which translate into increased revenue for the airlines, translate into increased claustrophobia and less inflight service for flyers.
* Fuller flights also mean fewer upgrades for frequent flyers.
* Airlines' constant conniving to reduce salary costs and increase employee productivity has resulted in a generally demoralized workforce that often seems constitutionally unable to deliver anything more than the most cursory customer service. Never mind strikes, slowdowns and guerilla protest actions.
* And in many cases, inflight meals have been downsized practically to the point of disappearance.
In other words, the higher revenues and lower costs which have allowed the airlines to fare so well on their bottom lines, go hand in hand with a real decrease in the quality of the travel experience itself.
Am I suggesting that we should return to the high-service (good), high-cost (bad) days before the airline industry was deregulated? No. What I am suggesting is that the balance between two apparently incompatible goals--efficiency and customer service--has tilted too far in the direction of one, at the expense of the other. And given their financial health, the airlines can well afford to address that imbalance, restoring customer service to its rightful place as a guiding principle, rather than an afterthought.
**************************
Travelocity's 1998 Results
**************************
Also reporting 1998 financial results this week was Sabre, parent of online travel agency, Travelocity.
Online revenue in 1998 for The SABRE Group's consumer-direct products, including Travelocity.com, was $285 million, more than double that of the previous year.
Taking Travelocity as a proxy for online travel sales generally, 1998 looks to have been a very good year for cyber-bookings. And all indications are that 1999 will be better still.
>> More <<
Travelocity
*******************************
United to Acquire America West?
*******************************
On Wednesday, United and America West issued separate statements confirming... well, confirming that something is afoot.
United's statement was short and unequivocal: "United Airlines confirms that it has expressed to America West Airlines an interest in a possible acquisition of America West."
America West's statement, by contrast, was rambling and ambiguous: "America West Holdings Corporation said today that it has been contacted by a number of airlines expressing interest in possible transactions ranging from a strategic alliance to a merger or similar business combination.
"There can be no assurance that America West will engage in discussions or enter into an agreement with any other company regarding a possible transaction. America West will have no further comment unless and until it enters into any such agreement or determines not to pursue such transactions. Etc."
Clearly, United is in pursuit. And, reading between the lines, America West is playing the would-be-temptress to United's ardent suitor. If that is indeed the situation, is it a good thing or a bad thing?
From the standpoint of America West's shareholders and employees, it's a good thing. Both these groups would be better served in the long run by United's management team.
From the consumer standpoint, it's a mixed bag. I have no doubt that overall customer service would improve under United's aegis. What's troubling (and will likely be of concern to the Department of Justice as well) is the anti-competitive implications of the nation's largest airline absorbing a competitor.
Whatever the pros and cons, once United and America West agree on financial terms, there remain two significant hurdles to an outright acquisition: the deal must be endorsed by United's unions and by the Department of Justice, both of which are likely to have concerns.
>> More <<
o United
o America West
************************
OAG Travel Award Winners
************************
Results of the 1999 OAG Travel Awards are in. Among the highlights:
> Airline of the Year
1st place - Emirates
2nd place - Singapore Airlines
3rd place - Air Canada
> Airport of the Year
1st place - Singapore Changi
2nd place - Cincinnati
3rd place - Copenhagen
> Best Transatlantic Airline
1st place - Virgin Atlantic
2nd place - British Air
3rd place - KLM
> Best Transpacific Airline
1st place - Singapore Airlines
2nd place - Qantas
3rd place - Japan Airlines
> Best North America Airline - Short Haul
1st place - Air Canada
2nd place - Continental
3rd place - American
> Best North American Airline - Long Haul
1st place - Air Canada
2nd place - Continental
3rd place - American
> Best North American Airport
1st place - Cincinnati
2nd place - Denver
3rd place - Orlando
> Best North American Frequent Flyer Program
1st place - Continental OnePass
2nd place - American AAdvantage
3rd place - United Mileage Plus
Established over the last 16 years as a barometer of the views of UK business travelers, OAG Worldwide relaunched the awards for 1999 and extended the voting to frequent travelers around the world.
Voters - subscribers to OAG print and electronic travel information products including the OAG Pocket Flight Guides, OAG Flight Planners and OAG FlightDisk - represent corporate business travel globally, according to OAG.
All collection and analysis of data was developed and carried out by ACNielsen International Research, one of the largest research consultancies in the world. The methodology was developed specifically to ensure that all airlines and airports, irrespective of size, competed on a level playing field, and the analysis of votes cast was conducted under strict market research codes of practice.
OAG Worldwide, a division of Reed Business Information and a member of the Reed Elsevier plc group, publishes travel information products in print and electronic format under the OAG brand, including OAG Pocket Flight Guides, OAG FlightDisk, OAG HotelDisk, OAG World Airways Guide and OAG Desktop Flight Guide. OAG Worldwide's data is also transmitted to the world's global distribution systems used by travel agents, airlines and associated organizations throughout the world.
Additional survey results (and there are many other categories) can be viewed on the OAG website, referenced below.
>> More <<
OAG online
****************************
Delta Elite Status... Faster
****************************
Members of Delta's SkyMiles program can reach elite status (Medallion, Gold Medallion, Platinum Medallion) for year 2000 faster when flying first or business class between January 15 and March 15, 1999. During the promotion period, the class of service bonus (50% for first, 25% for business) will be counted toward elite qualification. Normally, only "base miles" (actual flown miles) are counted in the elite calculation.
In addition to Delta's own flights, flights on Austrian, Sabena and Swissair also count toward elite status, including the class of service bonus.
>> More <<
Delta
*******************************
United Shuttle Speeds Deplaning
*******************************
We've been reporting on United's efforts to better manage carry-on baggage. Among other operations issues, those efforts address ontime performance: fewer carry-ons means less time boarding, which translates into fewer departure delays. To their credit, United is also looking to streamline the arrival side of the trip.
With the goal of minimizing arriving passengers' time and effort needed to get from the airplane to curbside, United Shuttle plans to introduce two-end deplaning operations in several of the markets it serves throughout the West. In tests conducted in Los Angeles and San Francisco earlier this month, the operation succeeded in getting passengers off the plane quicker and more conveniently, and also helped improve on-time performance.
Two-end deplaning speeds passengers' exit from the aircraft by allowing those in the front to exit as usual through the front door, while passengers in the rear of the plane exit via the back door. From the back door, passengers go down a flight of stairs, enter the Commute-a-Walk (a covered, portable walkway that extends to the rear of the aircraft) and proceed to the terminal. Passengers onboard the aircraft have the option of deplaning from the front of the plane, if they wish.
According to United, passengers responded enthusiastically to the test and as a result, the carrier plans to make two-end deplaning operations standard on Shuttle flights in Los Angeles and San Francisco, and will introduce the procedure and Commute-a-Walk equipment at several other western market airports by summer 1999.
>> More <<
United
***************************************************
ClickMiles for Software, Department Store Purchases
***************************************************
ClickRewards continues expanding its roster of partners offering ClickMiles for online purchases with the addition of beyond.com, an online software retailer, and macys.com, the department store's online incarnation.
Both are offering 500 ClickMiles for purchases of $100 or more. Restrictions apply.
If you're not familiar with ClickRewards, it's a miles-for-purchases program, which rewards members with ClickMiles for online purchases at participating cyber-retailers. ClickMiles can be redeemed, one for one, for airline miles in all major U.S. programs.
>> More <<
ClickRewards
*************************************
Swissair Offers Up Valentine Discount
*************************************
Just in time for Valentine's Day, Swissair is offering a special promotional discount of $50 off per person for select European Escapes packages purchased by February 14, 1999.
Swissair's European Escapes packages provide passengers with a four day/three night hotel stay (based on double occupancy), daily breakfast and round-trip economy airfare. Book now for Valentine's Day and travel by March 31, 1999 to receive a $50 per person discount. The following cities and starting prices are being offered via Swissair's special Valentine's Day offer:
Amsterdam: Prices start at $487
Athens: Prices start at $648
Berlin: Prices start at $443
Zurich: Prices start at $539
Nice: Prices start at $492
Paris: Prices start at $486
Rome: Prices start at $570
Geneva: Prices start at $539
Salzburg: Prices start at $539
Prices do not include fees, taxes and airport charges of up to $53 and reflect pricing from JFK and Newark International airports. Swissair's Valentine's Day offer is available from other U.S. gateways for supplemental fees. Restrictions may apply and rates are subject to change.
>> More <<
To book a Swissair Valentine's Day European Escape, call Swissair Vacations at 800-273-8406.
*************************
British Midland Discounts
*************************
British Midland has reduced fares on 33 European routes from London for travelers who book tickets through January 27, 1999. According to the airline, the reductions represent a total savings of more than $16 million on 330,000 seats systemwide.
Bargain hunters will be able to fly to Paris, Amsterdam, Dublin, Brussels, Edinburgh, Glasgow, Belfast and Manchester from London for just $80 round-trip. The round-trip fare from London to Oslo, Copenhagen or Cologne is $129. To Nice, Frankfurt or Palma it is $161. Fares to Prague start at $210 and to Warsaw at $226. Fares include all taxes and are subject to fluctuations in the rate of exchange.
Tickets are non-refundable, non-changeable and must be booked seven days in advance of departure. There is a minimum stay requirement of two days, or a Saturday overnight, and maximum stay restriction of 30 days. Travel must be completed by March 31, 1999.
British Midland operates over 1,500 flights per week to 33 European destinations in 13 countries and is the second largest airline at London's Heathrow Airport.
>> More <<
To book British Midland, contact your travel professional or British Midland at 1-800-788-0555.
**********************
Men are Tidy Romantics
**********************
At least they are Down Under.
That's one of the findings of a just-released survey conducted by the Novotel hotel group.
Men tend to leave rooms tidier and appear to have a stronger romantic streak, but are also found naked and locked out of their rooms more often than women. The staff survey on customer habits in the Novotel group's 21 hotels in Australia and New Zealand also found that the most common items men left behind were mobile phone chargers, while women tended to forget their underwear and other clothes. Eight Novotel hotels reported that men on average left their rooms cleaner than women, however the fairer sex were more likely to hang up their towels than males. Novotel spokesman Peter Hook said while the survey might raise some eyebrows, it showed that hotels were a catalyst for different behavior.
"One of the most interesting things is that men generally leave their rooms tidier than women," Mr. Hook said. "But this makes perfect sense because why would a woman, who is probably called on to do most of the cleaning at home, clean up in a hotel room that they've paid for? Perhaps as well, men tend to feel a bit guilty and tend to tidy up."
In the romantic stakes, men were the instigators of most requests for flowers, chocolates, champagne and candlelit dinners. Men also showed a growing interest in massages, with a strong preference for female masseurs, while women were less likely to ask for a specific sex. The prime users of adult movie channels were men and they were found naked and locked out of their rooms more often than women. However, hotel staff were happy to report that men did tip more than women by a wide margin.
In their eating and drinking habits, the norm ruled, with men using the bar fridge more often than women, and - almost universally - the favored beverage was beer, Mr. Hook said. Meanwhile, women preferred to sip on mineral water, with wine and a gin and tonic. Men preferred eating club sandwiches while the ladies liked snacking on a Caesar salad. The survey also found that women were becoming more assertive in their hotel demands and were more likely to request services from the concierge and upgrades than males. But men appeared more obsessed with frequent flyer points and business-related demands, although they slept through wake-up calls more often than their female counterparts. It was found that more women (60 per cent) took "souvenirs" than men.
Tidy romantics running naked through hotel corridors tipping profusely. Must be a southern hemisphere thing.
***************
Site Suggestion
***************
This week's website suggestion is a travel site with an angle. The site is iVillage's travel channel. And the angle is gender: iVillage is geared towards women. It's "The women's network."
One of the buzz words among Internet marketers is community. As in: "You want your website to engender a sense of community among visitors." iVillage takes that dictum seriously, and executes it well. Even the name--iVillage--connotes togetherness, intimacy. They've got message boards, resident experts in a number of different travel areas, destination info from Frommer's, and more. Their "Question of the Week," in honor of Valentine's Day, is: What's the most romantic spot on earth?
Check it out!
>> More <<
iVillage.com
Until next week...
|
