Travel industry battered by world crises says CNN

by Kraig Becker on

A recent report from CNN says that the spate of world crises that have occurred in the first three months of the year has hit the travel industry especially hard. Natural disasters and political unrest have left many travelers rethinking their plans or cancelling trips altogether as they scramble to avoid a host of issues across the globe.

The earthquake and tsunami in Japan, coupled with fears of radiation and a potential nuclear meltdown in power plants there, has significantly reduced demand for travel to that country. It has gotten so bad that Delta Airlines has announced that they are cutting capacity to Tokyo’s Narita International Airport by as much as 20% through May, and suspending flights to another regional airport altogether.

Similarly, travel to Northern Africa and the Middle East has also dropped significantly as political upheaval has spread across that region. It hasn’t just been the airlines that have felt the pinch however, as disruption in travel to Bahrain, Tunisia, and most importantly Egypt, has put a dent in the cruise industry too. According to Carnival Cruise Lines more than 280 of their cruises have seen a change in their itineraries thanks to issues in the Middle East. They estimate a loss of $44 million so far, and the region hasn’t stabilized just yet.

The Middle East unrest has brought another unwelcome side effect to the travel industry as well. Any threat to the distribution of oil means an increase in prices, which is always passed on to the consumer. Soaring oil prices has led to an increase in the cost of airfares, and the dreaded term “fuel surcharge” has reared its ugly head once again too. With the busy summer travel season still ahead, it seems unlikely that oil prices will be coming down again anytime soon.

2011 is certainly off to a turbulent start. If the first few months are any indication, we could be in for one very memorable, but chaotic, year. Has any of the recent global calamities caused you to change your plans? Are you now going elsewhere because of recent events? Worse yet, have you canceled your plans to travel this year altogether?

Vegetarian passenger tosses meat at flight attendant

by Justin Delaney on

One of the simple truths about air travel is that the food is usually somewhere between sub-par and awful. Sure, there are exceptions, but these are unlikely oases in a desert of damp sodium-rich indelicacies. Unless you are posted up in first class on Singapore Air eating pan-seared Chilean bass in bouillabaisse broth with capsicum confit and zucchini pasta or one of their many other haute options, you will likely be eating a mass-produced goo concocted by scientists rather than chefs.

It seems a brief food revolt began and subsequently ended on a Continental Airlines flight from the Dominican Republic yesterday. According to MSNBC, the flight was bound for Newark, and a vegetarian passenger was served a meat dish that offended her greatly. Instead of politely returning the meal, disgust consumed her. She tossed the meaty tray at a flight attendant in a display of disorderly resentment. Upon landing, the port authority greeted the plane, but the flight attendant declined to press charges.

flickr image via mr wabu

Delta Air Lines announces Delta Assist for Facebook

by Justin Delaney on

Delta Assist on Twitter has been a winning investment for the nation’s largest carrier. By utilizing the social networking site, Delta has been able to cater a niche customer service product to a vociferous audience — a product well lauded by the travel community.

Now, they’re taking that success to Facebook. With the program that launches today, Delta plans to be the world’s first mover in what could one day be a standard in customer service – completely comprehensive customer support without having to leave the social networking site. A special tab will be used within Facebook to allow for customers to communicate their service issues with Delta representatives.

Reached for comment, Allison Ausband, the VP of sales, reservations, and customer service for Delta, said:

“Our Facebook community told us that in addition to listening, we also needed to offer a way for customers to give feedback and get help with any travel issue. This feedback challenged us to reshape our online customer support strategy to establish Delta Assist as a comprehensive social media customer support program operating beyond just Twitter and into other social media channels where our customers are engaged.”

On the surface, this is a small change to a moderately comprehensive customer service approach being pioneered by Delta. But it’s an indicator of the industry movement. More and more people online are using social media as a means to communicate as consumers, and if Delta can see this demand quickly and respond to it then they’re going to quickly have an advantage over the competition.

flickr image via eisenbahner

Condor airline to offer service from Frankfurt to Seattle

by Kraig Becker on

Condor, a German based budget airline, has announced that it will begin offering service between Frankfurt and Seattle starting in June, with twice weekly flights that will give travelers more affordable options for visiting Europe this year. The new service is expected to begin on June 23, with flights taking place on Monday and Thursday of each week, running through October. This new route is in addition to Condor’s other North American flights, which which includes regular service to Las Vegas and Fort Lauderdale in the U.S., as well as Calgary, Vancouver, and Whitehorse in Canada.

The addition of Condor to the Seattle-Tacoma (Sea-Tac) airport brings a 23% overall increase in seat capacity between that region and Europe. That boost will come just in time for the summer and fall travel season, which is expected to be a busy one once again this year. In the summer of 2010, airlines operating between Sea-Tac and Europe filled 90% of their seats, and traffic is only expected to grow in 2011.

Condor is well known for offering very affordable flights throughout Europe and for running unique promotions. For instance, they’ll regularly offer cheap airfares from German airports to a surprise destination that isn’t revealed until after travelers book their flight. Those flights can cost as little as 49 euros ($66) each way for cities in Europe or 199 euros ($268) both directions for destinations further abroad. As for flights between Seattle and Frankfurt, bookings in July are currently running about $1200, which is roughly $450 cheaper than flying the same route with Lufthansa.

Right now, there are no plans to continue operations after October, but that could change in 2012 as Condor continues to upgrade and expand its international fleet to cover more destinations and carry more passengers. Either way, it is nice to have more options for air travel, and competition is certainly a good thing for consumers.

[Photo credit: Makaristos via WikiMedia]


Five business travel challenges for small companies to overcome

by Tom Johansmeyer on

Regardless of economic conditions, owning and running a small business isn’t easy. It’s always tough to find clients, allocate your funds effectively and maximize your bang for the buck. And, business travel is a big part of this. When you go out on the road, you know you’re committing some serious cash to the endeavor, and you want to make sure you get as much value out of it as possible.

Part of this has nothing to do with what you’re spending: you want to make sure the reasons for your business trip are smart. But, you also need to keep an eye on the expense side of this to ensure you aren’t spending unnecessarily. Business planning covers the first aspect of this, and travel planning addresses the second.

So, how can white collar travel folks spend more intelligently on business travel? Here are five ideas:

1. Forget brand: are you loyal to a particular airline? Cut those ties. Sure, you’re thinking that accumulating miles can get you free business travel later … and there is some truth to that. However, you could be spending more than the price of a ticket when working toward that benefit. Also, there may be constraints on when you can take free travel.
2. Stay a little loyal, though: even if you aren’t buying on loyalty, you should still enroll in the loyalty programs for every airline, rental car company and hotel you use. It may take longer to accumulate benefits when you spread your purchases around, but the free perks you receive won’t come at the (literal) expense of your travel budget.

3. Shop around a bit: time is money, and the hours you spend looking for a flight are hours you could sink into other business activities. So, look at your effective rate per hour (i.e., how much your time is worth). Let’s say, for example, that an hour of your time is worth $100. If you could spend an hour to save $250 on a flight, that’s a good return – swallow the pill and do some comparison shopping for airfare and room rates.

4. Look at alternatives to airline loyalty: some online travel agencies have loyalty programs. Remember to join them, as you can accumulate benefits with them as well as with the airlines. As with airline choices, though, don’t choose a particular booking site just to accumulate points. Cash comes first!

5. Play the credit card game: use a branded credit card to make your travel arrangements. Choose one for the airline you use most. So, if you have a Delta card and wind up flying American Airlines every now and then to save money, you’ll still accumulate some benefits with Delta. Just don’t forget to pay the card off at the end of the month!

[photo by codepo8 via Flickr]