Virtuoso Travel Network sees travel market comeback

by Tom Johansmeyer on

The latest study from the Virtuoso Travel Network sees international leisure and luxury travel on a pleasant trajectory, providing a glimmer of hope for the beleaguered travel market. Corporate travel, on the other hand, continues to lag, but that’s a function of the economy and companies that will err on the side of fiscal conservatism for a while.

The member survey by Virtuoso, which consists of travel retailers, reports that 39 percent of respondents se international leisure travel as most insulated from broader econmic pressures, and stays of three-to-five days have continued to go strong (according to 21 percent of respondents). Few see the long vacation and corporate segments as resilient – only 18 percent and 13 pecent, respectively. But, more than half see both the corporate and leisure markets bouncing back in the next six months.

“Many people are not aware that travel represents the world’s largest service industry; that it makes up 9.4 percent of the world’s GDP and 220 million jobs worldwide. Travelers benefit the world economy and deepen world understanding. We are happy to help people travel again while benefiting countries that rely on tourism revenue,” said Virtuoso CEO Matthew D. Upchurch, CTC.

Eighty-one percent of Virtuoso members have reported a year-over-year increase in future bookings, and 80 percent report that sales are up over the last three month.

Business travelers on the brink of scoring free internet access

by Tom Johansmeyer on

Having to pay for internet access in hotels is nothing more than moronic. If the revenue is such a big deal, hotels should just slap the $9.99 — or whatever it is — onto the room rate and tell us they’re giving it away for nothing. But, nothing’s worse than spending $250 a night and having to pay another fee to connect to the web, which you’re going to have to do even if you’re on vacation, let alone traveling for business.

The slump in the travel business is giving business travelers more negotiating leverage, which they are using to score free access to the web. The need to put heads in beds, and business travelers still command the big budgets. Back in my corporate travel days, I’d spend $1,000 or more simply on the room … every week. Most leisure travelers don’t come near that on an annual basis — and my spend was modest compared to executives with the approval to satisfy more discriminating tastes.

So, you’d think hotels would want to keep business travelers happy, right? And since internet access is what’s most important to this group of hotel buyersSome upscale hotels, like the new Andaz chain from Hyatt, are rolling internet access into their rates, while major chains such as Hilton, Marriott and Starwood are giving in to business traveler demands but not changing their policies (to avoid setting a precedent they’ll be stuck with when the market recovers).

For the hotel business, giving up the internet money isn’t easy. The industry is at its 20-year low point, with revenue per available room-night (RevPAR) off 17 percent last year. The top properties suffered RevPAR declines of 24 percent. So, when Toni Hinterstoisser, general manager of the Andaz Wall Street, calls internet access charges “an easy way to make money,” it’s clear that the fee is a hard one to give up. Easy money is the best kind when the travel market is in the tank.

Some business travelers benefit from the recession

by Tom Johansmeyer on

A growing number of business travelers is trading the appellation “road warrior” for “day tripper.” Tighter corporate travel budgets are prompting these frequent fliers to complete their roundtrips in one day, rather than assume the expenses of a hotel stay and meals while on the road. Also, it comes with the perk of not being able to entertain, which cuts travel expenses further. These jaunts tend to involve flights of no more than three hours, even though some people are going coast-to-coast and back without bothering to check in to a hotel.

For some, it isn’t just a case of budgetary discipline, though that factor will never disappear in a recessionary environment. Business travelers are also drawn to the notion of being able to get home at night. Even a late-night arrival means plopping your head on your own pillow and having breakfast with the family.

Of course, these one-day runs are grueling. Even for a two-hour flight, you have to get to the airport an hour early, and unless you live right next to the airport, you’re probably looking at another hour to get there. So, to catch a 6 AM flight, you’re leaving the house at 4 AM (with a wakeup of around 3:30 AM at best), and you’re not touching the ground at your destination until 8 AM … assuming there are no delays. Depending on traffic and distance, you get to the office at 9 AM and work the entire day. To catch a 7 PM flight, you leave the office at 5 PM to get there an hour early. After two hours in the air (again, assuming nothing goes wrong), you’ll probably get home by 10 PM. That’s an 18-hour day; it’s tough.While the actual cost savings is being questioned, in my experience, it’s substantial. In 2003 and 2004, I made frequent runs from Boston to New York. With the rate my company had with the Delta Shuttle, coming home at night was a no-brainer. On longer trips, the savings may not be as substantial — as you have a higher fare and likely a less expensive hotel than you’ll find in Manhattan — but you’re still looking at more than $200 a night, assuming a $150 room and meal expenses.

The cost savings, however, may come at the expense of your health. Some experts see this sort of aggressive travel as rough on your body … and I can tell you it’s a bit rough on the spirit, too. But, if you have enough time between one-day runs, it isn’t so bad at all.

And, don’t worry: even though you lose the hotel points, you’ll still pick up the miles.

A gloomy travel market for 2010 will follow an ugly 2009

by Tom Johansmeyer on

Everybody seems to want the travel market to recover next year, but it looks like more time will be spent in yards, instead. According to a new USA Today/Gallup poll, only 16 percent of us are going to hit the skies or crash in hotels more than we did in what will go down in history as a dismal 2009. Close to a third said they are going to spend less time in guestrooms and cramped plane seats. The main reason, of course, continues to be the state of the economy.

Slow improvements to the economy, according to some industry analysts, should push demand for tickets and hotel rooms higher – not to mention services related to the convention and meetings business. But, the baseline is set pretty low, with 2009 having been so weak. American Express, the largest travel agency in the world, doesn’t see a recovery coming anytime soon.

The bar has been reset, and it’s low. It will stay low for a while.

The big beast to be tamed in the travel market, doubtless, is business travel. Until the corporations start to send people on the road more liberally, the airlines, hotels and other businesses involved in travel will continue to feel the squeeze.

What’s going to happen by sector? See below.

Airlines: Industry analysts see hints that the market is turning, with demand for seats up year-over-year (by month) since May. United Airlines sees “a very encouraging trend line,” and US Airways notes a steady improvement. But, the latter continues that a decline of 30 percent to 35 percent in corporate spending has been a drag, and November was the first month in which it was up year-over-year. And, November 2008 wasn’t a tough month to beat.

Analysts believe that “even a modest rise in the USA’s gross domestic product,” says USA Today, will kick the airlines back into profitability. Gary Kelly, CEO of Southwest, isn’t that optimistic, telling the newspaper, “Business travel still lags, and I don’t know that I’m comfortable in reporting that we’ve seen any improvement in that market.” He doesn’t expect business travel to bounce back next year.

Hotels: What can I say that Melanie Nayer hasn’t? Not much, really. The past year has been miserable, with PricewaterhouseCoopers reporting occupancy plunging to 55.2 percent this year, from a 2006 peak of 63.3 percent. Next year, it’s expected to tick up only to 55.8 percent.

Room rates fell precipitously in 2009 relative to 2008, causing an average decline of 16.4 percent in the industry’s average revenue per available room-night. PwC expects 2010 to be worse than 2009, conflicting with the Business Travel Monitor report from American Express. But, there’s room for both views. Leisure travelers will have to spend a bit more, but hotels in business-heavy markets will still win some favorable pricing.

Conventions: Look for a slight increase next year – again, relative to a brutal 2009. For the good news about the conventions, you’ll have to wait until 2011 and 2012, says Roger Dow, president of the U.S. Travel Association. Through the end of 2010, approximately 40 percent of corporate and association meeting planners, reports USA Today, are likely to postpone or sink off-site meetings for the next year.

Gadling’s gift guide for the frequent / business traveler

by Scott Carmichael on

Unlike what many people think, business travel is not the jetset playboy lifestyle the TV makes it appear to be. You are frequently stuck in bad hotels, flights are delayed or canceled, and the little spare time you have, is wasted to create expense reports.

In this Gadling gift guide, we have compiled some of the best business traveler kit on the market. Some are there for your entertainment, others just help get some work done more efficiently, leaving more time for fun.

(Photo from Flickr/garybembridge)Callpod Fueltank Duo

As we become more dependent on our gadgets, we also become dependent on battery life lasting as long as a work day. The Callpod Fueltank won a spot in the Gadling top 10 gadgets of 2009 – and rightfully so. It can charge 2 gadgets at the same time, using the same power tips as on the Callpod Chargepod multi-device charger.

Price: $49.95
Product page: Callpod Fueltank


The Art Of Shaving travel kit

When you are on the road a lot, you tend to miss the comforts of home. One way to pamper yourself (or a loved one) is with some nice travel friendly toiletries. The Art Of Shaving produces a lineup of high quality shaving products, as well as some great travel friendly sized kits.

Their TSA friendly shaving kit contains a badger hair shaving brush, pre-shave oil, shaving cream and some after-shave balm. That way, even in the crappiest of hotels, you’ll be able to get a really nice comforting shave.

Price: $50
Product page: The Art Of Shaving

Briggs & Riley Baseline 20″ Upright

Frequent travel requires good reliable luggage. When you start traveling for business is when it is usually the best time to dump that old $40 rolling bag you got when you were 18. The Briggs & Riley Baseline collection consists of some great looking luggage, designed for the rigors of the airport and overhead compartment.

Price: From $259
Product page: Briggs & Riley Baseline Collection
Gadling review: September 2009

Moshi voice control alarm clock

The Moshi voice control travel alarm clock is the cure for the common hotel alarm clock. Most hotels provide an alarm clock that requires a complicated array of button presses to get the time set correctly – and if you are lucky, it will actually work. The Moshi clock lets you program the time, and alarm using your voice. With simple commands you get the right wake up time programmed. It can even tell you the temperature in your room.

Price: $24.95
Product page: Moshilifestyle.com
Gadling review: November 2009

NeatReceipts Moible Scanner + filing system

The NeatReceipts system is perfect for people who have to deal with the hassles of complex expense reporting. Instead of collecting all your receipts in a plastic bag, you simply scan them with the portable scanner, and let the filing software take care of the rest. At the end of your trip, you let the software produce a report, ready to file and speed up your reimbursement.

In addition to expense report creation, the scanner and software can scan regular documents and business cards.

Price: $199.95
Product page: NeatReceipts

HP Mini 5101 Business class netbook

The HP Mini 5101 builds on the runaway success of netbook size computers, but adds a touch of business friendly features. A specially coated full-size keyboard, 3D driveguard protection and options for integrated 3G make this the perfect companion for someone that wants to travel lighter, without compromises.

Price: From $399 (depending on configuration)
Product page: HP Mini 5101
Gadling review: November 2009

Sling Media Slingbox Solo

Even the most workaholic business traveler needs some entertainment every now and then – and the Slingmedia Slingbox can be the perfect tool to accomplish that. This $180 devices takes your home TV signal, and streams it directly to your PDA, iPhone, laptop or Blackberry, anywhere in the world you can get online. You get full control over your home cable box or TiVo, and even get remote access to a TV guide.

Price: $179.99
Product page: Sling Media Slingbox Solo

hField Technologies Wi-Fire

Crappy Wi-Fi signals are one of my biggest hotel pet peeves. It doesn’t matter how upscale the brand, when you have a room with limited Internet connectivity, it can screw up your entire evening. The hField Technologies Wi-Fire adapter clips to your laptop screen (or sits on a table), and greatly boosts your ability to pick up a signal. In some cases, by more than 10x.

Price: $59.99
Product page: hField Technologies
Gadling review: September 2009

Plantronics Voyager Pro

Forget about every experience you ever had with a Bluetooth headset. The headsets of yesteryear were usually horrible for the listener, and the wearer. In some cases, the Plantronics Voyager actually sounds better than using your handset. Stylish design, great battery life and dual noise canceling microphones make for a very reliable headset. Of course, no amount of stylish design can prevent you from looking like a dork – so only wear your headset when you actually need to.

Price: $99.99
Product page: Plantronics Voyager Pro

Aaxa Technologies P2 Pico Projector

Gone are the days where you had to drag a 20lb projector through the airport in a flight-case. The Aaxa P2 is about the size of the iPhone, and produces enough light to display your presentation in a moderately dimmed room. And at the end of the day, you pop in a MicroSD card and watch some movies in your hotel room.

Price: $359.99
Product page: Aaxa Technologies P2
Gadling review: December 2009

Ipevo Skype phones

If your travels take you outside your local calling area, or anywhere else where a simple phone call costs a buck a minute, then you have probably already found the joy of Skype. Ipevo make a line of great Skype hardware, from the most basic handset, to a full conference phone with DSP noise cancellation.

Price: From $14.99
Product page: Ipevo
Gadling review: October 2009