- January 2009
- Current Events
- Travel Tips
- Supplier News
- Regional
- International
- Government/Legislation
- Technology
- Industry Trends/Innovation
- Supplier Spotlight
- Supplier Promotions
- Spotlight on Leisure Offers
Current Events
-
Airlines more prepared for challenging economy
According to industry analysts, despite the current economic situation, the airline industry is actually in a better position to weather the storm than are several other industries. When fuel prices climbed this summer, the airline industry took a proactive approach: they kept planes grounded, reduced flights and added additional fees to baggage and food; all of which helped them save money before the economy plummeted. The industry’s quick action prevented them from taking more drastic measures.
Now, even though fuel prices are down, many airlines will continue with their newly established practices (i.e., fees) in order to preserve those additional sources of revenue. Forecasters predict travel demand will continue to decrease in 2009. In response, airlines are continuing to slash ticket prices in an effort to entice travelers worldwide. As a result, passengers may find some packed planes in the months ahead. However, analysts predict the industry will be in a better position in 2009 with its full capacity and lower fuel prices.
Sources: ABC News, dallasnews.com
Hotel reflagging not uncommon
Recently, it has become fairly common for hotels to go through a reflagging. “Reflagging” is a travel industry term for rebranding.
There are a few key things travelers should know about a reflagging. First, it does not necessarily mean anything is wrong with the property. Second, any loyalty programs that previously were honored with the former chain will no longer be valid at that particular property. Additionally, room rates will generally change. If a hotel has changed brands to a more expensive brand, room rates will reflect the change.
While these key factors are important to know, reflagging is not a new phenomenon. It is simply a business practice that is becoming more commonplace in these economic times. Travelers should be aware of this practice in order to ensure the hotel they select is within their company’s preferred hotel policy.
Sources: Washington Post, allbusiness.com
