Posts Tagged ‘travel industry’

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Independent travellers to be given more rights by EU

Thursday, November 26th, 2009

The European Commission has just announced new regulations which will extend the same protection given to holidaymakers who book their trips through a travel agent to those who book independently. The new rules are to be put into place to protect travellers from the perils of something going wrong on their independently booked holiday such as below standard service or an airline going into insolvency.

Travellers who decide to construct their own holiday itinerary by booking various services such as airline tickets and car rental from different websites will now have the right to cancel tickets and apply for refunds in the same way as holidaymakers who book a package deal can.

Meglena Kuneva, a consumer commissioner with the European Union said that the new rules were needed so that customers as well as travel companies could all now know that they were being treated equally. She said that everyone had the right to be protected from the problems of companies such as airlines going bust. Research by the commission suggests that a large percentage of consumers who put together their own travel itinerary believe that they are protected if anything goes wrong. At present this is not the case and it has been estimated that the average amount of money lost by holidaymakers when something does go wrong is around €600.

The new measures of protection are scheduled to be put into practice some time next year after the commission has had a chance to consult both members of the travel industry and consumers.

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Climate talks held in London

Wednesday, October 21st, 2009

Representatives of the world’s largest carbon polluters had begun two days of informal talks in London on Sunday, in a bid to map out common ground just under two months prior to a key UN climate change conference in Copenhagen.

The 17 nations that make up the Major Economies Forum (MEF) met with developing nations and UN representatives in an attempt to iron out some of their differences before the summit in December.

British Energy and Climate Change Secretary Ed Miliband said that the powerful nations represent about 90 percent of global emissions.

He continued by saying that the Copenhagen talks will attempt to agree to a new global climate treaty to replace the Kyoto Protocol which will expire in 2012.

The MEF was launched earlier this year by US President Barack Obama on the back of an initiative by predecessor, George W. Bush to speed up the search for common ground among the most polluting world economies.

The London talks will explore emissions cuts, the protection of forests and climate finance, for which British PM Gordon Brown has claimed that 100 billion dollars each year is required to help developing countries fight climate change.

Brown will speak at the MEF meeting on Monday and warn of the possible consequences of failing to reach common ground in December.

The MEF countries include Australia, Brazil, Canada, China, the EU, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, South Africa, Britain and the United States.

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World Travel Awards recognises Avis

Thursday, October 1st, 2009

Major player in the US car hire industry, Avis Rent-A-Car has been distinguished by more than 160,000 travel industry professionals as the Leading Car Hire Company in North America at the World Travel Awards.

The awards, held in Orlando Florida, were established in 1993 to acknowledge and recognise excellence in the world tourism and travel industry.

The executive vice president of sales and marketing for Avis Budget Group was delighted over the award, saying that the company appreciated the recognition of the international travel community as North America’s leading car hire firm.

He went on to say that the award honours the many employees who try harder every day for their clients as well as uphold Avis’ commitment to travel professionals and educational development in the sector.

He also said that the company’s Club Red travel rewards program as well as their Avis Agent training program gave travel agents all the resources and tools required to be successful at their jobs.

President and founder of the World Travel Awards, Graham Cooke, said that the thousands of votes were cast by travel industry professionals from around the globe, and the awards were regarded as the highest achievement in the travel industry, proving Avis’ place as a leading car rental company.

In addition to providing travel professionals with the right tools to give the customer a better experience, Avis also offer an extensive range of products and services to help save time and to maximise productivity.

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American Airlines expects drop in traffic

Monday, September 21st, 2009

The world’s largest airline, American Airlines, announced late last week that it expects September traffic to drop by 16.4 percent from August, as capacity drops by 9.7 percent.

Carriers generally reduce their schedule after the Labour Day long weekend, and other airlines have been making cuts too.  This year’s autumn schedules have been significantly lighter, as airlines try to match consumer demand.

American says that it expects third quarter unit revenue — revenue divided by capacity — to drop 14.5 percent to 15.5 percent compared with the same period last year.  The whole operation, including regional airlines, is expected to fall 14.3 percent to 15.3 percent.

Meanwhile, American is anticipating costs to rise from August to September, however, not as much as previously expected.  Excluding fuel and special items, the costs are expected to rise from 8.43 cents per available seat mile in August to 9.08 in September.

The airline has said that the increase is due to the reduced capacity, pension costs and the costs from efforts to improve reliability.  The costs would have risen even higher if not for cuts in smaller passenger-related expenses, foreign exchange and other cost-reduction strategies.

Airline financial analyst Hunter Keay wrote in a note that American’s drop in passenger revenue was less sever than competitors, due to the fact that the airline did not expand into new international markets last year where the recession has tightly gripped the air travel industry.

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Europcar and Swiss International continue partnership

Friday, September 18th, 2009

Swiss International Airlines and Europcar have announced that their partnership agreement, active since 2003, will be on going following a renewal of the partnership, allowing car hirers and passengers to continue receiving preferred rates and offers.

Passengers flying on Swiss International Airline will continue to enjoy preferred rates and an upgrade on their rental vehicle through Europcar.

Passengers are able to book both services online and take advantages of discounts through both company’s websites, which is available in French, Italian, English and German language

Swiss Miles and More members will also be able to receive benefits from the ongoing arrangement throughout the year, allowing Swiss International passengers to enjoy exclusive Europcar services in Switzerland including valet parking and reserved car spaces in Switzerland including airports in Basel, Geneva and Zurich airports.  Passengers simply need to hand in their car keys at the Europcar counter and retrieve their car from the same spot following the trip. .

Guirec Grand Clement, the Global Sales and Marketing Director at Europcar International, said that Swiss International Air Lines is a very important travel industry partner for Europcar. He went on to say that by renewing our partnership, both companies will be able to work together to offer even more value for travellers. This is good for travellers in Switzerland and beyond.

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Hotels drop room rates worldwide

Wednesday, September 16th, 2009

A new report has shown that across the world have been forced to slash in order to attract customers as the global recession takes its toll on the travel industry.

The survey compiled by Hotels.com showed that rates in Sydney are on average 30 percent cheaper than a year ago, rates in Auckland have tumbled 40 per cent, while in Singapore they have fallen by 35 per cent and New York by 30 per cent.

The biggest slump in accommodation rates was seen in Moscow, with the average price of a room dipping by 52 percent, whereas rates rose by 12 percent on the resort island of Capri.

David Roche, president of Hotels.Com said he was expecting 2009 to be a year of dramatic price reductions across the world and, so far it has been.

On the other hand, the massive cuts have had an impact on stimulating the tourism industry, as long-haul travel is on the rise.

Hotels.com Asia Pacific managing director Johan Svanstrom said that long-haul inbound travellers would see lower hotel rates to help offset the perceived expense of getting there.

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American may invest in Japan Airlines

Monday, September 14th, 2009

American Airlines has said that it may purchase equity in Japan Airlines in order to prop up the ally following forecasts of its fourth loss in five years.

American, the world’s second largest carrier, also plans to expand code-sharing with Japan Airlines, its Oneworld alliance partner, according to sources.

The airline has received three government bailouts since 2001 with the most recent in June.   The company has also been in talks on possible stake sales to Delta and Air France-KLM.   It is reported that the carrier is planning to seek 250 billion yet ($2.8 billion) to rebuild its operations.

An analyst at Shinsei Securities believes that the government doesn’t care about who gives the airline money, but Japan Air Lines would rather receive the money from a non-competing airline.

American spokesman Charley Wilson declined to comment on reports of an investment in Japan Airlines.

Code-sharing with the Japanese airline would allow American or Delta more cities within Japan and the ability to sell Japan Air flights direct to customers.  Alliances such as SkyTeam and Oneworld let airlines expand their networks by pulling in more passengers and sharing the revenue.

Japan Airlines recorded a 99 billion yet loss in the first quarter of this year, the most in the last 6 years as the business and leisure travel industry has suffered the most since World War II.

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Airlines ramp up swine flu prevention

Monday, September 7th, 2009

The airline industry ramping up measures to reduce the risk of transmission of swine flu by stowing pillows and blankets and issuing disinfectant wipes.

William Schaffner, head of preventative medicine at Vanderbilt University medical school said that aircraft cabins have been renowned for spreading infection from one part of the world to another, as proven by the SARS epidemic

He also doesn’t believe that much can be done, as the airline industry has had to fight the pandemic, as well as global downturn in the travel industry.

Over 10 percent of flights between the US and Mexico have been cancelled since September last year, according to the Official Airline Guide.

Although the airline industry has no desire to play doctor, they are ready to stop a flight if need be, as the US Centre for Disease Control has set up a stringent policy on dealing with passengers who show symptoms of swine flu.  One such measure is to deny boarding to any passenger showing signs of a serious communicable disease, and that reporting of patients whose diagnosis has been confirmed.

Southwest Airlines spokesman, Paul Flaningan said that crew were trained to respond to sick passengers at the gate and in flight, and to work closely with medical personal to identify the appropriate course of action.

As a precaution, some airlines including Virgin American and Southwest have scrapped issuing blankets and pillows on some flights.

A Virgin America spokeswoman said that the airline has began issuing antibacterial hand-wipes and gels for use for guests and crew, as well as offering masks for those who request them.

In Asia, authorities have attempted to use specially designed cameras to detect passengers who have the illness, but experts believe that machines are not perfect.

Most other airlines have been painting a different picture on the swine flu pandemic, claiming that there is no greater risk of travelling by air than by using public transport, as the air inside the cabin is completely exchanged with air outside between 10 to 15 times per hour.

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Travel agent’s hit by direct discounting

Friday, September 4th, 2009

Travel agents are facing the brunt of the downturn in the tourism industry due to operators offering direct discounts to the public.

Travel agency owner Susan Watt shut down her shop two days ago, claiming that it was impossible to compete with cruise lines and operators selling direct to the public.

She said that issues were obtaining tickets for customers and cash flow was a problem and it was difficult to operate when the operators were undercutting net prices.

The cruise industry was particularly highlighted by Watt’s complaints, saying that customers were booking their cruises elsewhere and purchasing train tickets from her travel agency.

She said that there wasn’t much point in selling a £3000 cruise for only a £5 profit.

Watt plans to enter the travel industry again at some point and hopes that other travel agents don’t get forced into the same situation; however it seems inevitable that others will.

Other travel agents to close their doors include Kippax in Leeds, Cambulslang Travel in Glasgow, and Newbury cruise specialists Windsor & Neate, which all ceased trading since the downturn in the travel industry hit.

Retail claims coming from the failure of any of the agencies will be handled by Cega, the ABTA’s claim partner.

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Airlines losing $1 billion a month

Wednesday, September 2nd, 2009

The International Air Transport Association says that airlines are likely to have lost more than $6 billion (£3.7 billion) in the first half of this year.

This number, an average of $1 billion a month, is twice the amount IATA forecasted in December that the airlines would lose in the whole of this year.

Carriers that made losses between April and June at a time when they would usually make 50 percent of their annual profits, IATA said.

However, the association says that passenger and freight numbers have already started to improve.

The two rose more than 3 percent in July from June, but will remain well below levels seen at the same time as last year.

IATA said that there had been a material improvement in July, but the future path is likely to be volatile and recoveries could be slow.

Throughout the world, European and Asian airlines fared the worse, with 12 airlines in Europe losing more than $1.1 billion, and Asian airlines losing about $1.6 billion between the months of April and June.

The global recession has had a significant effect on the travel industry, with business and leisure customers cutting back on travel, and companies transporting less cargo.

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