Spotlight on . . . Corporate Travel: A Buyer’s Market The economic slide has created a buyer’s market for business travel, according to an American Express analysis of domestic international air, car and car rental prices for the full year of 2008 and first quarter of 2009.   Airfares, which had been up 7% for domestic and 6% for international fares in 2008, began to slide in the fourth quarter of 2008 and that continued into the first quarter of 2009. First quarter domestic fares are down 9%, and international fares are down 12% from the first quarter of last year. Average international hotel rates showed year over year decreases of 12% in the first quarter. Car rental costs increased slightly in 2008 but stabilized in the first quarter. (Source: American Express press release) Vacation Suite Deal to Alaska Last-Minute Savings! Celebrity Cruises has given Summit Travel a limited number of cabins at significant discounts on your choice of four close-in sailings (June 12, 19, 26 or July 3, 2009). Enjoy a luxury verandah suite, including Personal Butler Service at OVER 50% SAVINGS! Prices from just $1,599 per person. Celebrity offers the TOP RATED luxury cruise experience in Alaska! We have a limited number of cabins available. Please call one of our Vacation Specialists at (800) 638-0600 or visit summitcruisevacations.com. Prices are per person, double occupancy. Valid on select June and July 2009 sailing of Celebrity Infinity. Subject to availability. Some restrictions apply.    Send to a Friend Forward this issue of Business Travel Update to a friend.  Newsletter Sign Up Sign up another email address for Business Travel Footnotes. Email Address:

Airlines

Airfares Cheaper Through Agencies

Airfares booked last year through corporate travel agencies cost on average $61 less than identical itineraries booked through airline Web sites or online travel retailers, according to a Topaz International study. Comparing the same itinerary publicly available online with fares booked through travel management companies, Topaz found agency fares were either the same or less costly nearly 92% of the time, down slightly from the nearly 95% rate reported in 2007.

Topaz has conducted the research annually since 2001, finding that agencies consistently offer lower fares than publicly available retail sites. "Even while agency airfares are higher only 8.44 percent of the times, for every $10 million of air spend this represents lost savings of over $100,000 each year," Topaz president and CEO Brad Seitz said in a statement. "Not only does this add up very quickly, it provides great opportunity for improvement to your travel program by eliminating this leakage." (Source: Topaz International)

Airlines Cut Fares

JetBlue Airways trimmed $100 off some of its nonrefundable fares. Air France introduced a lower priced business “leisure” fare for the summer and Continental Airlines cut BusinessFirst fares to Asia. JetBlue dropped nonrefundable fares from $599 to $499 on 24 of its transcontinental routes. Air France is offering a 60-day advance purchase business fare to 25 popular destinations in Europe and the Middle East. Sample roundtrip fares: New York-Paris, $2,222, Houston-Madrid, $2,622 and Chicago-Zurich, $2,458. Continental is now offering fares from the New York area to Shanghai, Beijing, Hong Kong and Tokyo starting at $3,076. (Source: Air France, Continental, JetBlue press releases).

Earn Up To Triple Miles On United
Register and earn up to triple Elite Qualifying Miles on qualifying United flights in United First® (F,A,P), United Business® (C,D,Z) and full-fare United Economy® (Y,B). Or, earn double EQM on qualifying flights in all other eligible classes of service. Registration is required prior to travel. Members registered for this offer prior to it being updated to triple Elite Qualifying Miles do not need to register again. A full description of the promotion can be found at www.united.com/eqmoffer. (Source United press release)

Delta, Northwest Merge Frequent Flyer Programs in SkyMiles Card

American Express has launched a marketing campaign to build awareness for the SkyMiles cards in key Delta hubs that were formerly Northwest hubs within the U.S. including Detroit, Minneapolis/St. Paul and Memphis. The Northwest WorldPerks and Delta SkyMiles frequent flyer programs are merging, but Northwest members will have to apply for a Delta SkyMiles Credit Card from American Express to continue earning miles both from credit card purchases and from flying. American Express is expanding benefits in the program, so that card members can earn and redeem miles in more ways and places, including the ability to earn double miles on all Delta- and Northwest-operated flights. Gold and Platinum Delta SkyMiles Credit card members and Delta Reserve card members, who now earn Double Miles on virtually every dollar of spend with Delta, can also earn Double Miles on all purchases made with Delta’s wholly-owned subsidiary, Northwest. (Source: American Express press release).

Customs Deactivates Older NEXUS Cards

U.S. Customs and Border Protection canceled old NEXUS cards for current NEXUS members on May 1. CBP has been mailing new NEXUS cards, a card that simplifies border crossing for pre-approved, low-risk travelers, to all members since November. The new cards have enhanced security features and allow U.S. and Canadian citizen cardholders to comply with the documentary requirements of the Western Hemisphere Travel Initiative. All members must activate their new cards within 30 days, verify and update their U.S. mailing address by going to https://goes-app.cbp.dhs.gov/. NEXUS members should destroy their old cards after activating their new ones. (Source: Customs press release).

Hotels

As Demand Tightens, Hotels Work Harder to Keep Guests Happy

Hotels are renewing their focus on customer service, especially when it can attract and serve priority customers, according to a recent Ernst & Young industry survey. Although three quarters of hotels said they are meeting their budgets, their concerns over decreasing demand (rated the biggest challenge today by 82% of respondents) and decreasing average daily room rate (the second greatest challenge, according to 56% of respondents) mean they are all trying to manage costs more tightly and institute better practices. Expect to see more travel blogs and other web-based resources and a greater emphasis on green initiatives and social responsibility programs, all part of an effort to imprint their brands on you. (Source: Ernst & Young press release).

Summit Travel Group is committed to providing you with useful information on the latest developments in the travel industry. The preceding information has been compiled from a variety of sources and is updated monthly.

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