Airlines..

American Express Study Sees Fares Staying Low
Despite the continued rise in fuel costs, U.S. companies are seeing the lowest average airfares paid since 1999 primarily due to low-cost carrier pressure on popular routes. That's according to new data from eCLIPSE Advisors, a subsidiary of American Express Business Travel, which produces the Business Travel Monitor, a benchmarking service. Fares are at their lowest since 1999, since the launch of the BTM in 1999. Increasing competition between legacy and low-cost carriers is putting downward pressure on fares in a growing number of markets, according to Michael Boult, COO of eCLIPSE Advisors. (Source: American Express press release).

Americans Weight Gain Costs Airlines
Here´s something to make you think twice about having another Christmas cookie or cup of eggnog. Americans gained an average of ten pounds each in the 1990s, and the Centers for Disease Control estimates that that extra weight cost U.S. carriers an additional 350 million gallons of fuel in 2000. In 1995, the Federal Aviation Administration set the recommended average weight of adult passengers used in calculating aircraft loads at 180 in summer and 185 in winter. In May 2003, in response to a January 2003 commuter crash in which passenger weight and baggage may have been a factor, the FAA ordered airlines to temporarily add 10 pounds to the assumed average weight of passengers when calculating aircraft loads. (Source: CDC, American Journal of Preventative Medicine).

Possible Flight Attendant Job Action
Flight attendants are considering an industry-wide job action that could affect 26 carriers should carriers now in Chapter 11 abrogate their collective bargaining agreements with flight attendants. One of those carriers, US Airways, has asked federal bankruptcy court for permission to void its contracts with flight attendants and other unions, reducing retiree health benefits and terminating the retirement plans of current employees. The Association of Flight Attendants-CWA has already mailed out 5,000 strike authorization ballots to US Airways flight attendants and is preparing similar ballots for United Airlines, ATA and Hawaiian Airlines. The job action would be the AFA´s CHAOS (Create Havoc Around Our System), surprise work stoppages on different flights, dates and locations. The AFA hopes to have ballots back from US Airways attendants by mid-December; what the courts will rule remains to be seen. (Source: Business Traveler, AFA-CWA).

American Cuts South Florida Fares
American Airlines has simplified its South Florida fare structure, cutting walk-up fares by as much as 85% off previous walk-up fares with no minimum stay requirement. The highest such fares are $499 to $699, depending on the mileage, and most are far lower. One-way tickets for non-stop trips to and from Miami are also available; all Saturday night stay requirements have been eliminated. American has also halved penalty change fees from $100 to $50. For details on the new pricing out of Miami, Fort Lauderdale and West Palm Beach airports, please visit American Airlines . (Source: American Airlines press release).

Fuel Costs Force Fare Hikes
In response to high fuel prices, Frontier Airlines is raising its $299 fare cap -the top price for fully refundable, walk-up fares-in eight of its markets and in an additional four Florida markets on a seasonal basis. The revised cap will represent approximately a 6.7 percent increase in its highest fares. The airline expects the new cap to affect just three percent of its customers. United Airlines matched the prices hikes on Denver routes. Additionally, as of February 1, 2005, Frontier will discontinue service between its Denver International hub and Washington-Dulles International. The airline is also dropping its single non-stop Los Angeles Int'l Airport flights to Philadelphia Int´l Airport as well as Kansas City International Airport on February 23, 2005, and will serve those cities with connecting flights. (Source: Frontier Airlines press releases, USA Today).

Bye-'Bye Business Class?
Aer Lingus is the latest airline to announce plans to drop its business class cabin in Europe, and the Irish flag-carrier won´t be the last. In 1991 more than 60 percent of British executives flying to the Continent traveled business class. But by 2006 British Airways estimates the figure will drop to 15 percent. Few employees outside the boardroom can justify spending $1200, the current BA business return fare to Paris, to sit in front of the curtain. The popularity of these high-fare tickets has fallen. Most business travelers no longer perceive these tickets as providing value for money, say researchers for the Air Transport Group, at Cranfield University. (Source: The Australian).

Hotels

Backlash Against Increasing Hotel Rates
Business travelers are starting to fight back against soaring hotel room rates. Rooms have risen 12 percent in New York; 12 percent in Detroit; 7 percent in Los Angeles, 6 percent in Houston. Companies that spend millions a year on hotels are asking their travelers to downscale. Some are using limited-service hotels; others ask their travelers to use AAA, senior citizen or other price breaks they may qualify for. Some have found a corporate apartment can save as much as 40 percent over a hotel room. Hotel rates have risen so much that lodging has been singled out as a key driver of inflation. The Labor Department says lodging costs jumped 2.7 percent in September, contributing to the largest monthly increase in core inflation since April. Hotel costs are expected to rise 7.5 percent next year, vs. 5 percent for business airfares, a National Business Travel Association survey finds. (Source: USA Today).

Poolside and Beachfront WiFi
More hotels and resorts are making it possible to lounge by the pool or even sit on a beach and surf the Web. Among the hotels and resorts offering such service: Four Seasons resorts in Los Angeles, Newport Beach, Santa Barbara, Aviara (near San Diego), Punta Mita, Buenos Aires, Mexico City, Shanghai, Maldives and Singapore; Loews Santa Monica Beach Hotel, Hilton Hawaii CHECK, the Westin Beach Resort Key Largo, The Cliffs at Shell Beach, Pismo, CA., Four Points by Sheraton Destin-Fort Walden Beach, FL., the Lodge at Pebble Beach, CA., the Marina Beach Marriott, Marina del Rey, CA. (Source: Loews press release , Four Seasons public relations and EZGoal WiFi Hotspots).

Busiest Airports Offer Healthier Choices.

The nation´s busiest airports are offering travelers healthier dining choices, according to a report by the Physicians Committee for Responsible Medicine. PCRM nutritionists surveyed 12 of the busiest U.S. airport, evaluating the availability of healthy entrees. Three-quarters of the airports have improved their scores over last year and 85% offered a healthy option (low-fat or vegetarian) in at least half of their restaurants.

• Miami moved from fifth to first place.
• Detroit placed second with what it calls its "Heart Smart" plan.
• Denver came in third, Chicago, fourth, New York´s JFK was fifth and Atlanta placed sixth.
• Las Vegas came in last for the second year in a row.

More travelers are turning to airport restaurants during layovers or in response to airline cutbacks in onboard meals. The PCRM report described most airlines´ buy-on-board options as high-fat sandwiches with a cookie. PCRM suggests that travelers look for non-dairy, vegetarian options, such as veggie burgers or bean burritos. (Source: PCRM press release).

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