2012

September 3, 2012 R&R Partners Comment

DOMESTIC

Tourism in Hawaii is on pace for record gains

Hawaii’s tourism officials forecast another banner year for the tourism economy as it announced that the number of visitors as well as per-visitor spending from the first half of the year were both on pace to beat 2011 levels. Visitor arrivals were up 9.8%, to 4.7 million, and expenditures rose 20.8%, to $8.4 billion.

AIRLINE

Spirit to add Los Cabos service

Spirit Airlines will launch nonstop daily service between San Diego and Los Cabos, Mexico, on Nov. 8. The flight will be supplemented by a daily connecting flight from Dallas/Fort Worth to San Diego, launching on the same date.
In addition, Spirit will begin nonstop service four times a week between Dallas/Fort Worth and Los Cabos in June 2013.

JetBlue widens markets for upgraded Go Pack offering

JetBlue Airways has reintroduced its Go Pack travel deal, which has been expanded to include 32 markets. The new package offers fliers 10 nonstop one-way flights for a fixed price, and the travel window has been extended to three months.

United will launch 787 Dreamliner service in November

United Airlines plans to inaugurate service aboard its first Boeing 787 Dreamliner on Nov. 4. The carrier will fly domestic routes on the Dreamliner for a month before launching international service on Dec. 4. United has ordered a total of 50 Boeing 787-8s.
http://www.ausbt.com.au/united-s-boeing-787-dreamliner-flies-from-november-4-on-domestic-usa-routes-international-flights-start-november

Hawaiian Airlines seeks to add route from Big Island to Tokyo

Hawaiian Airlines has applied to the Transportation Department for daily service to Haneda Airport in Tokyo from Hawaii’s Big Island. The airline has proposed a nonstop route between Kona International Airport and Haneda Airport that could begin by March.

CRUISE

Princess Cruises announces start of construction of new ship

Construction has begun on a new Princess Cruises ship, the Regal Princess, the cruise line has announced. Set to launch in spring 2014, the 3,600-passenger vessel will follow the debut of the Royal Princess in June 2013. Both are part of a new class of ships for the cruise line.

Disney Cruise Line, Texas port reach 2-year deal

Disney Cruise Line will be launching voyages aboard the Disney Magic from the Port of Galveston, Texas, for at least two years under a new agreement that includes a one-year renewal option. Disney says it has scheduled 38 cruises from Galveston during its first operating year.

This Week in Travel & Tourism — 8/20/2012

August 27, 2012 R&R Partners Comment

INTERNATIONAL

Mexico City efforts include medical tourism, green programs

Mexico City is on the move with new initiatives and programs designed to garner specific market segments, capitalize on the destination’s myriad offerings and showcase its total product line. The city’s minister of tourism, Carlos Mackinlay, said that “tourism is a key economic generator of Mexico City,” representing 7% of its gross domestic product.

DOMESTIC

USTA will highlight importance of travel at political conventions

The U.S. Travel Association has announced its Vote Travel 2.0 plans for the upcoming Republican and Democratic national conventions. The multipronged initiative seeks to inform policymakers about the crucial economic role of travel and tourism. “We are pushing a message that will stay with attendees — that the travel industry generates $1.9 trillion in economic output and includes 14 million of U.S. jobs — and without it, the conventions wouldn’t be possible,” said Blain Rethmeier, U.S. Travel’s senior vice president for public affairs.

AIRLINE

Interjet applies to serve six U.S.-Mexico routes

Mexican carrier Interjet applied to the Department of Transportation for authorization to begin service on six U.S. routes. The routes are: Mexico City-Orange County, Calif.; Guadalajara-Orange County; San Jose del Cabo-Orange County; Toluca-Houston, Toluca-Chicago and Toluca-Las Vegas. Aeromexico and Volaris serve Las Vegas from Mexico City. Toluca is a secondary airport serving Mexico City.

JetBlue reportedly will boost flights to Colombia

JetBlue Airways is looking to increase its flights to Colombia, a newspaper based in Bogota, Colombia, reports. Portafolio also reported that JetBlue will add a route between Bogota and Puerto Rico in 2013. The carrier is also considering flights to Cali, Medellin and Barranquilla, the newspaper says.

Southwest explores flying outside continental U.S.

Southwest and Transport Workers Union’s Local 556 are waiting to see if flight attendants approve a measure that would allow the airline to fly routes to Hawaii, Alaska, Puerto Rico and non-U.S. destinations. The union president says the deal would be a launching pad for the airline to plan for growth.

Window, aisle preferences could cost you

Airlines including US Airways, Spirit, American and Delta are imposing fees for window and aisle seats, two popular flier preferences. According to 2012 data from Expedia, 21% of customers chose window seats, while 20% preferred to sit along the aisle; the rest had no preference.

Airlines could continue to test demand with fare increases

A successful fare hike on trips shorter than 500 miles by Southwest Airlines could signal more airfare increases this year. “I think they are testing demand and they will continue to do it for the rest of the year,” said Rick Seaney, founder of the travel website Farecompare.com.

CRUISE

Agents are getting more online options for cruise training

More cruise lines are launching online cruise-training programs to improve agents’ skills in selling their products, this feature says. Training modules include destination education, brand orientation and sales and marketing training.

Cunard announces world itineraries for its 3 Queen cruise ships

Cunard Line has unveiled the 2014 world-cruise itineraries for its three Queen vessels — flagship Queen Mary 2, Queen Victoria and Queen Elizabeth. Queen Mary 2 is set to visit 19 countries around the world with overnight port destinations including Hong Kong, Dubai, and Cape Town, South Africa. Queen Elizabeth will visit Japan for the first time with port calls in Kobe, Kochi, Nagasaki and Yokohama. Queen Victoria will traverse the globe on a 116-day sailing that will visit 40 ports in 19 countries.

Carnival tries out drinks program about the Carnival Victory

Carnival Cruise Lines is holding a trial run of its “My Awesome Bar Program,” giving passengers access to a variety of alcoholic and nonalcoholic drinks for about $50 a day including tips. The package is available to passengers 21 and older aboard the Carnival Victory.

MGM

MGM Resorts proposes $800 million Massachusetts resort

MGM Resorts International has proposed building an $800 million entertainment-retail resort in Springfield, Mass., that would have 250 hotel rooms and 89,000 square feet of gaming space, as well as 200,000 square feet of retail and restaurant space.

ETC.

Hotels take up growing juice trend

Juice bars and juicing-themed packages are popping up in hotels in response to the growing wellness trend, this feature says. “Hotels have taken notice that their travelers, especially those that spend time in the spa, are looking to keep their bodies healthy on the road. These clients are not interested in spending time and money detoxing in the spa only to fill up on unhealthy, processed food,” said Linden Schaffer, director of wellness-travel firm Pravassa.

Google ignites speculation with Frommer’s acquisition

Google’s announcement last week that it would purchase Frommer’s, the iconic publisher of print and electronic travel guides, touched off a wave of speculation over the search giant’s motives and what the move might portend for the travel industry.

This Week in Travel & Tourism — 8/6/2012

August 13, 2012 R&R Partners Comment

DOMESTIC

Strong leisure business is driving hotel growth in Miami

Strong media attention and an influx of tourists from Latin America are driving up leisure-hotel demand in the Miami market, this feature says. Hoteliers and foreign investors have taken note of the growth and are looking to increase their presence in the market, experts say.

AIRLINE

Interjet starts New York-Mexico City service

Interjet launched daily service between New York JFK and Mexico City. Introductory roundtrip fares through Aug. 31 start at $349, including two checked bags up to 55 pounds each. New York is Interjet’s third U.S. gateway, following Miami and San Antonio.

AA launches baggage-delivery service

Beginning today, American Airlines customers can bypass the airport baggage claim and have their bags delivered to their home, office or hotel. AA has partnered with Bags VIP Luggage Delivery to launch the service, which is available in most major U.S cities, except Las Vegas. The service also is available in the Bahamas, Aruba, Dublin and five Canadian cities (Calgary, Montreal, Toronto, Ottawa and Vancouver).

This month, WestJet is all about Disney

This month, WestJet is serving up snacks, cartoons, movies, and more — all with a Disney theme. The promotion coincides with deals for stays at Walt Disney World, Disneyland and Disney’s Aulani resort in Hawaii. Travelers who book vacations before the end of October through WestJet Vacations can get a price guarantee and a refund if the fee goes up 21 days before departure.

OTA

OTA stocks take hit due to gloomy forecasts

Gloomy projections about the next two quarters sent stocks of online travel agencies tumbling, even for those that reported positive quarterly results. Priceline, which Wednesday reported strong second-quarter numbers — revenue up a hefty 21% and net income soaring 37% — still saw its stock fall 17% after CEO Jeffery Boyd gave lower-than-expected projections for the third quarter because of the eurozone crisis.

CRUISE

Norwegian Cruise Line unveils restructuring of reservations team

Norwegian Cruise Line’s reservations team will undergo restructuring that will turn each member into a “universal reservation agent” capable of handling all types of calls, the company said during a webinar this week for travel agents. “As you call in, you don’t have to call in a group booking to one department and call in a FIT booking to another. We want to make it as efficient for you as possible,” said Crane Gladding, a Norwegian senior vice president.

LGBT

LGBT travelers get new gay-centric hotel-search website

World Rainbow Hotels has launched a website aimed at providing LGBT travelers a database of “genuine” gay- and lesbian-friendly hotels, this feature says. Searches can also be sorted according to consumers’ budgets. “Too often hoteliers claim their establishment is ‘gay-friendly’ but then fail to deliver on their promise. Gay and lesbian consumers want more than a rainbow flag in the window. They want to feel genuinely welcome as gay and lesbian individuals and they want to know that the hotel’s staff understands their travel concerns,” said Nicolas Wijnants, brand director at World Rainbow Hotels.

ETC.

Investment in California parks paying off, says Disney CEO

After having pumped more than $1 billion into the Disneyland Resort’s Disney California Adventure, Disney appears confident that its plan to reinvigorate the theme park has worked. Since the June opening of Cars Land at Disney California Adventure, attendance has been up, along with guest satisfaction, said Disney CEO Bob Iger during the company’s third-quarter conference call. He said Disneyland Resort set an attendance record for the third quarter.

This Week in Travel & Tourism — 7/16/2012

July 23, 2012 R&R Partners Comment

INTERNATIONAL

Latin America proves lucrative for U.S. airlines

For most U.S. carriers, flights to Latin America have proved profitable, financial data filed with the Department of Transportation show. During the first quarter, flights to Latin America returned a 5% operating margin, compared with a 4% operating margin for domestic flights.

International visitor spending in U.S. in May up 8%

International visitors to the U.S. in May spent $13.9 billion on tourism and travel-related activities, up 8% from a year earlier, the U.S. Department of Commerce reported Friday. For the first five months of 2012, international tourism spending is up 12% and has created an $18.4 billion trade surplus for the U.S.

Spas very important for Chinese travelers, says Hilton

Chinese tourists are more than twice as likely to factor in whether a hotel has an on-site spa in their booking decisions than Americans, Hilton Hotels & Resorts said in a report released Tuesday.

DOMESTIC

Average jet-fuel costs in May were the same as a year ago, DOT says

The average fuel cost for U.S. airlines was $3.03 a gallon in May, the same price as a year ago, but down 3.2% compared to April prices, the Department of Transportation says. The total fuel consumption on scheduled flights in May was 1.37 billion gallons.

AIRLINE

Customer service is at heart of American Airlines’ Twitter strategy

Dealing with American Airlines via Twitter can be downright enjoyable, Darren Booth writes. The company uses the microblogging site to disseminate information and answer customers’ questions, and it does so with a refreshingly “sincere and human approach,” he writes. Jonathan Pierce, the airline’s director of social media communications, says “our team is empowered by relating to customers, finding connections and being authentic in every response. We make sure there’s a face and voice behind each post.”

United plans 10 new routes

United Airlines announced plans to launch year-round and seasonal service to several new international and domestic routes. International routes are subject to government approval. New routes include daily, year-round service between its San Francisco hub and Taiwan, beginning April 9; daily, year-round service between San Francisco and Paris, beginning April 11; three daily flights between Denver and Williston, N.D., beginning Nov. 4; and daily service between Washington Dulles and San Salvador, El Salvador, beginning Dec. 19.

Hawaiian Airlines will add nonstop flights to New Zealand

Hawaiian Airlines has announced that it will add three nonstop flights per week between between Honolulu and Auckland, starting in March. The move will make the airline the only U.S. carrier flying to the New Zealand city. It believes that New Zealand is an untapped market, noting that the number of visitors to Hawaii from New Zealand has dropped 30% since 1999, when more nonstop flights were offered from Auckland, this feature says.

CRUISE

Carnival’s stricter sales policy draws more praise than criticism

When it goes into effect Aug. 1, Carnival Cruise Lines’ ban on using cash-equivalent value-adds as booking incentives will be among the tightest such policies in the industry. Even so, agents greeted the policy change with more praise than criticism after it was announced in early July.

ETC.

Baby boomers lead rise in multigenerational travel

Complex multigenerational vacations are on the rise, influenced by a growing number of retiring baby boomers with dreams of making memories and plenty of money to make it a reality, this feature says. Popular family tourist activities around the world include tracing the route of explorers Lewis and Clark in Montana, a culture-laden cruise along Alaska’s Inside Passage and a safari across the Tanzanian Serengeti.

Hertz adds Porsche to Prestige lineup

Hertz added Porsche Panamera sport sedans to the lineup of high-end cars in the Hertz Prestige Collection at select locations in California, Nevada and Florida, saying it’s the first major U.S. rental brand to offer Porsches. Hertz also will become a sponsor of a Porsche racing team. Panamera prices start at about $75,000. http://www.travelweekly.com/Travel-News/Car-Rental-News/Hertz-adds-Porsche-to-Prestige-lineup/?a=usa&cid=eltrvegas

This Week in Travel & Tourism — 7/2/2012

July 9, 2012 R&R Partners Comment

INTERNATIONAL

Los Cabos launches marketing campaign

The Los Cabos Convention & Visitors Bureau launched a new marketing campaign targeting North American travelers. Highlighted by a series of print and digital ads, the campaign promotes activities and vacation offerings for visitors.

DOMESTIC

Tourism volume, spending in Hawaii set record growth in May

Hawaii experienced record gains in visitation and tourist spending in May, welcoming 622,899 visitors and gaining $1.1 billion in tourism revenue, the Hawaii Tourism Authority says. Tourists from the East and West coasts as well as from Canada and Japan contributed the most to the growth.

Airlines increase capacity to Hawaii by 12.6% in Q3

Airlines will offer almost 2.7 million seats on nonstop flights to Hawaii this quarter, the Hawaii Tourism Authority says. The airlines are increasing capacity by 12.6% for the third quarter, compared to the same quarter of last year. Alaska, Allegiant, Hawaiian and United airlines recently added flights to Hawaii.

AIRLINE

Delta and United reduce capacity amid demand concerns

Delta Air Lines and United Airlines in the past week alone reduced on a combined basis “about 1% of their seats” for the second half of the year, according to Rodman & Renshaw analyst Dan McKenzie, who cited “the darkening economic outlook” as the trigger for the cuts in capacity.

Families finding it tougher to sit together in-flight

If you want to sit next to family or friends the next time you fly, better not leave it up to chance at the airport.With some airlines no longer allowing families with young children to pre-board, and others putting a premium price on more of their seats in economy, it’s getting harder to score seats together without paying extra.

CRUISE

Children can sail free on select Norwegian Cruise Line voyages

Norwegian Cruise Line has launched a limited-time special offer allowing children 17 and younger to be booked for free. The deal encompasses select sailings from three to 20 nights, with destinations that include Alaska, the Panama Canal and the Mediterranean.

Upcoming Norwegian Breakway will feature “Rock of Ages” musical

Norwegian Cruise Line has announced that the hit Broadway musical “Rock of Ages” will be performed on its upcoming ship, the Norwegian Breakaway, alongside another Broadway show, “Burn the Floor.” The Breakaway, which is scheduled to debut May 2013, will also feature a circus show, “Cirque Dreams & Dinner — Jungle Fantasy in the Spiegel Tent,” as well as performances by comedy group Second City and a “Howl at the Moon” dueling piano show.

ETC.

Olympics can spell boom or bust for hotels in host cities

The Olympic Games undoubtedly represent a significant boost for the tourism and hotel industry of the host city, even helping to establish the presence of former host cities such as Salt Lake City and Beijing on the global travel market, this feature says. However, some cases also serve as a warning for future host cities, including that of Turin, Italy, which faces oversupply in the face of muted tourism demand, and of Athens, Greece, which experienced a business decline when the country’s economy slumped.

This Week in Travel & Tourism – 6/11/2012

June 19, 2012 R&R Partners Comment

INTERNATIONAL

EU emissions dispute could lead to higher airfares, official says

International airfares could rise if countries opposed to a planned expansion of the European Union’s emissions-trading scheme make good on their promise to retaliate, this feature says. Retaliatory measures could include reductions in flight frequency, banning EU airlines from the airspace of opposing countries and imposing fees on EU carriers that use airports in opposing countries.

AIRLINE

United follows Delta in raising baggage fee

United Airlines has raised its fee for a second checked bag on trans-Atlantic flights to $100 from $70. Delta Air Lines announced a similar increase in January to $100 from $75, or to $80 with online check-in. An industry analyst notes that the price increase comes in the face of falling fuel prices and a tenuous outlook for the European Union’s economy. United, however, attributes the fee change to “an increase in costs associated with carrying bags, such as fuel and handling.”

CRUISE

Norwegian cruise sale bases savings on state residency

Norwegian Cruise Line has introduced a cruise sale promo that offers savings for passengers based on the state in which they live. Passengers who book between now and Sunday can save up to $1,000 for cruises to destinations such as Hawaii, the Bahamas and Alaska.

Scenic Cruises unveils all-inclusive river sailings for 2013

Scenic Cruises is touting the “first truly all-inclusive luxury river cruising experience” it will provide in its 2013 schedule for Europe river cruises. The itineraries include new shore activities and dining options for passengers, who will get free Wi-Fi, beverages, private butler service and themed dinners.

OTA

Tourico Holidays implements AA’s direct connect

Online travel wholesaler Tourico Holidays said it is using American Airlines’ direct connect to book the airline’s fares and ancillary products.

Carnival overhauls loyalty program

Carnival Cruise Lines revamped and rebranded its loyalty program into a five-tier structure called the Very Important Fun Person Club, or VIFP. The new categories are based on the number of cruise days sailed, rather than the previous number of cruises.

ETC.

The Changing Face of All-Inclusives

Wave goodbye to your grandmother’s all-inclusives. The concept that once just meant a buffet along with a bed now encompasses just about anything a client desires on a vacation.

Broadcast trends – ‘talk’ isn’t cheap

April 25, 2012 Jill Glavich, Media Buyer/Planner Comment

This fall’s new daytime talk shows have a few things working in their favor, notably the recovering ad market. The absence of Oprah means advertisers have millions of dollars in play for high quality daytime talk shows.

Katie Couric’s new show is expected to fetch ad rates just shy of Dr. Phil and Dr. Oz, who have the highest ratings and rates of the daytime talk genre. Couric is the most recognizable of the new hosts and is very well liked by TV viewers.

Jeff Probst is expected to fetch the next highest rates and ratings with his new CBS produced show. Working in his favor is the notoriety from having hosted ‘Survivor’ for 12 years. He has a built-in fan base and a potential platform to promote his talk show.

Ricki Lake is back on the talk show scene. Her new show will be similar in tone to Oprah, unlike her previous talk show which was in the mold of the ‘conflict’ shows like Maury and Springer.

Steve Harvey will also have a show this fall. Harvey is coming off of a successful stint hosting the syndicated ‘Family Feud.’

The outlook for these shows is good in terms of generating solid CPMs.

Brazil garners attention for ad spending

March 30, 2012 R&R Partners Comment

As increasing attention in global marketing is being focused on the Latin American market, Brazil, sitting at the #6 economy in the world, has shown particularly astronomical increases in media growth and ad spend, with 2012 projected to surpass all existing bench markers.

IBOPE reports that in 2011, total ad spend in Brazil went up 16% to top 88.3 reales, the US equivalent of $51 billion, an increase of about 8% from 2010.

Leading the pack in terms of ad spend was free TV, with about 53% of total spend. Meanwhile, while pay TV has grown 118% since 2008 (the audience is currently 40 million strong), ad spend is only about 7%. Total TV spend is down a few percent from 2010, as heavier emphasis has been placed on digital.

Both IBOPE and IAB Brasil report that 5.3 billion reales (US $3 billion) was the total ad spend for online in 2011. This is a significant 69% increase compared to 2010, during which advertisers spent 3.1 billion reales for online advertising. Interestingly, 50% of Brazil’s 2011 online ad spend went to search and the other 50% was for display.

As a result of increased digital spend and activity, heavy-hitting American brands have opened up shop in Brazil— Netflix, Google, Facebook and Yahoo, to name a few. These companies now compete with top Brazilian brands like UOL, iG and Globo.com. Still, 75% of the page views in Brazil are generated by just 7 Web sites: AOL, Earth, iG, Globo.com, Google (including search, YouTube and Orkut), Microsoft Live and Yahoo. Additionally, 31.1 million Brazilians visit e-commerce sites every month; coupon sites alone grew 379% in visitors between May 2010 and May 2011.

Sitting at a surprising number two in ad spend in Brazil in 2011 was newspaper, while magazines ended up slightly behind pay TV.

From a consumption standpoint, newspaper circulation yielded a 3.5% increase in circulation and a 7% increase in subscription since 2010. In fact, 11% of the Brazilian population reads the newspaper every day. Meanwhile, magazines subscriptions were up 5% year over year, and subscriptions doubled!

The following is a survey of media outlets Brazilians most admire:

Free TV network: TV Globo
Pay TV channel: GNT, which is from the Globosat cable network
Magazine: Veja
Radio network: CBN
Internet portal: Google

Join us for our weekly #RRchat

March 28, 2012 R&R Partners Comment

Hey you! Yes, you, the one reading this blog entry in between checking your Twitter stream and Facebook and all of the other things that you probably are not paid to do, but weave into your workday to keep it interesting.

We’re not knocking you. Social media and surfing the web ARE part of the workday in some ways, because they’re great tools to use to keep up with industry news, trends, and engage in discussion with both clients and other ad folks. At least that’s how you justify it to your boss while you look at pictures of cats using bad grammar.

Since you’re online all day anyway, make it productive — join us Friday from 3-4 p.m. Pacific time for our weekly Twitter discussion about all things advertising. Follow @rrpartners on Twitter and each week, you can give us your thoughts and insight on three short marketing-themed questions. Be sure to use #RRchat in your replies so we can retweet and holler back.

To give you a head start, here are the questions we’ll be tossing out to the Twittersphere this week. Read over them, formulate your responses and get ready to have some fun banter with other marketing agency tweeps!

Question 1: Do you think if a brand has a social presence, you are more likely to purchase from that brand over one that doesn’t? What’s the value in a brand name?

Question 2: Facebook may be rolling out a dating component. Would you date on FB?

Question 3: A recent study says Klout may not be an accurate view of your social influence. What do you think?

Don’t forget the #RRChat hashtag, and hope to see you every Friday from 3-4 p.m. Pacific!

Digital Content Developer/Social Media Specialist Sal DeFilippo contributed to this article.