THE BUSINESS TRAVEL MAGAZINE I 39 The Review ➔ Clock ticking on cheap sleep
HRG'S latest hotel survey reveals that average room rates have begun to increase across 12 of its 50 focus cities, though some markets – the Middle East in particular – are still suffering. Recovery rates are more pronounced in Asia, where markets such as India and China are experiencing higher levels of economic growth compared to Europe and North America, where there’s a mixed picture. Rates in financial markets such as
New York and Chicago have shown relatively flat growth, while from January to June rates across the UK fell by one per cent on the previous year. Regional markets in particular felt the sharp end of the decline, with rates in Manchester, Leeds, Bristol, Edinburgh and Glasgow all falling by four per cent or more. London was the only UK city to record an increase, with rates rising by one per cent after a four per cent slump last year. Double digit falls, meanwhile,
were posted in Bahrain, Qatar and Oman, but the biggest turnaround came in Abu Dhabi, where 38 per cent growth in the first half of 2009
THE LOWDOWN IN BRIEF
• A NEW exhibition and conference for PAs and office managers takes place this month at London's Earls Court on September 21st-22nd. Called Office, the event will feature over 150 exhibitors with a large contingent from the business travel sector including Britannia Hotels, Clarendon Serviced Apartments, Co-operative Travel Management, Corporate Traveller, Heathrow Express, HRS, the Rezidor Hotel Group, Streetcar, Unique Venues of London and, of course, The Business Travel Magazine. The event is free to attend for pre- registered delegates but there are charges to join the seminar and master class educational sessions. See
www.officeshow.co.uk for more information.
has swung to a 26 per cent fall in room rates for the first half of 2010. HRG’s director of global hotel relations, Margaret Bowler, says, “Expectation is high for further recovery in rates. We have seen companies reviewing and consoli- dating their travel programmes to secure lower hotel rates through increasing their market share with a preferred hotel supplier, and we continue to help corporates navigate a complicated market.” She continues, “In addition to
CWT FIGURES HINT AT RECOVERY
CARLSON Wagonlit Travel posted better than expected results for the first half of 2010, recording an eight per cent rise in both air and rail transactions year on year. The TMC also saw transatlantic
travel increase by 30 per cent and overall long-haul travel rise by 22 per cent. Domestic air travel, however, fell by five per cent, perhaps reflecting a general shift to rail travel within the UK, or simply the series of testing circumstances that the industry has faced so far in 2010. “It has been an encouraging
year thus far, even with snow, strikes and ash,” says Nigel Turner, CWT’s director of public sector and industry affairs. “We predicted the year to be flat, but we have seen business travel coming back.” He adds, “In profile by sector we
are seeing an almost reversal year on year. Public sector expenditure is in decline, with corporate spend starting to return to 2008 levels.”
There is also evidence for a return to the front of the plane, with overall long-haul business class bookings up 33 per cent and premium economy up 28 per cent. Growth in premium bookings was particularly high on transatlantic routes, where business class was up 40 per cent and premium economy up 41 per cent. First class rail travel bookings
were down six per cent in Q2 across CWT’s top 20 destinations, though overall rail travel is faring better, says Turner, citing London to Manchester, Edinburgh, Glasgow, Paris and Brussels. “We are seeing the continuation
of the trend of modal shift. Overall transactions are up in Q2, but looking at the split, air transactions are down on all five routes while rail is up. This is a trend that we have seen, tied into the decline of domestic UK air bookings, and one we predict that will continue, particularly given the plans of the coalition government.”
lower pricing and in many cases last room availability, corporates have been able to negotiate added value items – or unbundled items as the airline industry puts it – within their rates, such as food and beverage discounts, free wifi access and reduced parking charges. “However, it is inevitable as
the industry recovers that yield management will come back into play and suppliers will seek to further unbundle their pricing to gain maximum revenues.”
US INTRODUCES $14 ENTRY FEE
FROM September 8th all visitors travelling to the US under the visa waiver programme must pay a $14 fee at the time of application under the new Electronic System for Travel Authorisation (ESTA). Although the online ESTA system became mandatory in January 2009 – replacing the previous green I-94W card normally issued onboard – a fee has only been introduced this month. Applications made before September 8th are not subject to the fee and are valid for travel for two years, as are those lodged after that date. ESTAs can be applied for at
https://esta.cbp.dhs.gov and are typically authorised within minutes of submission. The $14 fee goes towards US travel and tourism promotion.
• TRAVEL and security monitoring platform Voyage Manager is now available to the corporate market. The programme has been in development for two years and enables business users to monitor employee travel, notifying managers of security alerts and keeping travellers informed of any developing dangers or risks.
• THE European Travel Buyer Awards are open for entries until October 1st, with the winners to be crowned at a gala dinner on Monday 7th February on the eve of London's Business Travel & Meetings Show. The awards recognise corporate travel managers that are genuine pioneers in their field, having managed innovative and ultimately successful travel and meeting programmes. Categories include Best Travel Policy Compliance Programme; Best CSR Initiative in a Travel Programme; Best use of Technology; Best Innovation in a Meetings Programme; Best Innovation in a Travel Programme; and National Travel Buyer of the Year. See
www.etbawards.com.
• THE Stanwell Hotel has opened close to Heathrow’s Terminal 5, claiming to be the airport’s first boutique hotel following a multimillion pound refurbishment and expansion project. The hotel originally opened in 1951 but now features 54 rooms, Zamora’s restaurant, the Atrium bar and the Knyvett meeting rooms for up to 50 delegates. It is the first property from the Inn-genious Group. The hotel's general manager, Kate Green, says, “We are able to offer residential guests, business delegates and Heathrow passengers a new and exciting boutique hotel experience.”
36 I THE BUSINESS TRAVEL MAGAZINE
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