This week in Travel and Tourism — 5/7/2012

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DOMESTIC

New national tourism strategy aims to be boom for industry

The Obama administration’s unveiling of the first-ever National Travel and Tourism Strategy has been met with praise from sectors of the travel and tourism industry. The initiative seeks to enhance coordination between the industry and the federal government regarding policies through a new national travel and tourism office. The strategy also aims to launch various steps that would boost international tourism in order to reach a goal of drawing 100 million foreign visitors to the U.S. each year by 2021.

McCarran menu of int’l flights expanding

The world is coming to Las Vegas, with the help of some major international airlines that will be initiating service in the next couple of months.

INTERNATIONAL

Opening of new Berlin airport delayed indefinitely

Lufthansa and Airberlin are scrambling to rearrange their newly expanded flight schedules after Tuesday’s announcement that the opening of the city’s unified airport, Berlin Brandenburg International, has been postponed indefinitely.

AIRLINE

American Airlines outlines comeback strategy

American Airlines says it plans to increase usage of domestic code-shares and boost international travel to 44% of passenger totals by 2017. AMR Corp., American’s parent, filed for bankruptcy protection last year. American said in a memo to employees that it would also use more regional jets to better fit demand in smaller markets as part of its efforts to boost annual revenue by $1 billion within the next five years.

Airlines scale back programs for unlimited flying

“Lifetime” memberships for unlimited flying have proved too costly for airlines. According to the Centers for Disease Control and Prevention, the average lifespan for an American is 78.5 years. However, some airlines offer flexible flying packages for a limited amount of time, such as months or years.

Spirit new bag charge prompts calls for greater fee transparency

The Consumer Travel Alliance is aiming an appeal for wider airline fee transparency at the Department of Transportation in the wake of a new baggage fee from Spirit Airlines. The group criticized Spirit’s $100 charge for carry-on bags checked at gates, calling it a “wake-up call” for the department.

CRUISE

Costa bolsters safety procedures

Costa Cruises has implemented measures aimed at enhancing passenger safety — a result of the loss of 32 lives following the capsizing of Costa Concordia. At a press conference and interview with Travel Weekly aboard the 3,800-passenger Costa Fascinosa on Monday, Costa President Gianni Onorato said, “We will never forget the victims and those who suffered in his tragedy” when the Concordia ran aground.

OTA

Priceline continues rapid growth

Strong international hotel sales pushed Priceline.com’s profits up 74%, with the online travel agency reporting first-quarter income of $182 million. Priceline said international bookings increased 54%, driven by strong results from European sites Booking.com and Agoda.com, as well as strength from domestic car rentals.

ETC.

TravelWeekly.com debuts hotel and cruise searches

TravelWeekly.com has launched two new search features on TravelWeekly.com: Hotel Search and Cruise Search. The search options integrate information from the Hotel and Travel Index and Official Cruise Guide databases, respectively, and are accessible from any page on TravelWeekly.com via the “Cruises” and “Hotels” tabs on the right-hand section of the main navigation bar.

Microsegmentation allows targeted offerings for consumers

Technology has created new methods for businesses to classify potential clients’ behaviors based on factors as seemingly trivial as their Web browsers and then fashion offerings that would be most appealing, this feature says. This opens up new opportunities for businesses to match their products with consumers’ preferences and offer a consistent level of service at every interaction.

Plans progress on nation’s first in-airport liquor store

McCarran Airport is poised to welcome what is reportedly the first in-airport liquor store located outside of a duty-free area. The 1,350-square-foot Liquor Library will occupy space at the south end of the Terminal 1 baggage claim area. Its principals said they will invest more than a half-million dollars in the project, with plans to be open by early fall.

This week in Travel and Tourism — 4/30/2012

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INTERNATIONAL

Jamaica draws more visitors in 2011 despite drop in U.S. arrivals

Jamaica reported 1.95 million stopover visitors in 2011, an increase of 1.6% from 2010, according to the Jamaica Tourist Board. U.S. arrivals totaled 1.26 million, a 1.4% decrease. Cruise arrivals numbered 1.13 million, a 23.7% increase. Latin America led the visitor surge in 2011, recording a 23.4% increase in stopover arrivals. The main markets were Argentina, Brazil, Chile, Colombia, Ecuador, Mexico and Panama.

AIRLINE

Low-cost carriers see double-digit growth in 2011

Leading low-cost carriers enjoyed double-digit revenue growth in 2011 and collective passenger numbers rose nearly 12%. The latest Airline Business low-cost carrier survey showed revenues grew strong at virtually all of the more than 30 carriers 2011 financial results were available for. Southwest Airlines remains the largest budget operator by revenue and passenger numbers. Its revenues jumped nearly 30% to $15.7 billion when accounting for its 2011 acquisition of fellow low-cost carrier AirTran. Excluding the merger, its revenues were up 6%. Passenger numbers reached 135 million.

Delta to buy oil refinery

Delta Air Lines through a subsidiary company agreed to acquire from Phillips 66 a Philadelphia-area oil refinery.

Delta subsidiary Monroe Energy, which plans to close the transaction by the end of June, will invest $250 million in the acquisition, refinery improvements and related sourcing and marketing agreements with Phillips 66 and BP.

CRUISE

15% of wealthy travelers plan to cruise this year

The spring 2012 survey by the American Affluence Research Center found that a lower percentage of people in wealthy households plan to cruise this year. “Plans to cruise during the next 12 months declined from 18% of the wealthiest U.S. households in the fall 2011 survey to 15% in the new survey. This decline is consistent with the softness in first-quarter bookings reported by the industry, but it still shows good potential for cruise sales,” a statement from the center said.

Norwegian Cruise Line reports improved first-quarter earnings

Norwegian Cruise Line reported stronger year-over-year earnings for the first quarter Monday morning. The Miami-based cruise operator, the world’s third-largest, made a $3.3 million profit in the quarter that ended March 31, compared to a loss of $7.9 million during the first quarter of 2011. Revenue increased from $495.5 million in the first three months of 2011 to $515.4 million this year.

OTA

TripAdvisor shares surge after Q1 report

TripAdvisor’s first-quarter profit increased 1.8% from a year earlier, as a jump in revenue from click-based and display-based advertising offset the effect of higher selling, technology and administrative costs during the company’s first full quarter as a public company.

ETC.

Billionaire promises to build Titanic II by 2016

An Australian billionaire said Monday he’ll build a high-tech replica of the Titanic at a Chinese shipyard and its maiden voyage in late 2016 will be from England to New York, just like its namesake planned. Weeks after the 100th anniversary of the sinking of the original Titanic, Clive Palmer announced Monday he has signed a memorandum of understanding with state-owned Chinese company CSC Jinling Shipyard to build the Titanic II.

This Week in Travel and Tourism — 4/23/2012

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DOMESTIC

New York looks to China and Brazil for big tourism growth

New York aims to boost tourism’s annual economic impact by almost 45% during the next three years by increasing marketing efforts in South America and the Asia-Pacific region. Between 2011 and 2015, the number of annual visits from China and Hong Kong will jump 51% to 494,000, while the number of annual visits from Brazil will rise 45% to 1.02 million, projected NYC & Company, New York’s tourism-marketing organization.

U.S. prepares to launch $150M tourism marketing drive

A $150 million campaign to encourage foreign travelers to visit the U.S. is set to begin in May, led by the U.S. Travel Association. The program spans a variety of media and marks the country’s fist coordinated attempt to market itself to the international traveling community.

AIRLINE

United Continental posts $448 M Q1 loss

United Continental Holdings reported a $448 million net loss for the first quarter, compared with a $213 million net loss for the same period last year. The loss includes $162 million in special costs “primarily” related to United’s integration of Continental Airlines, according to the carrier.

JetBlue Q1 profit up tenfold

JetBlue Airways reported a $30 million first-quarter net profit, up from $3 million for the first three months of 2011.

JetBlue’s average quarterly one-way fare increased 6% year over year to $159.93, the carrier’s “highest quarterly average fare ever,” according to CFO Mark Powers. First-quarter passenger unit revenue grew 8% year over year on a 12% increase in capacity.

Delta, US Airways expect profitable summer on strong Q1 results

Delta Air Lines and US Airways posted profits of $124 million and $48 million, respectively, compared with losses in the previous year and predicted a strong summer travel season based on steady demand growth. Observers are predicting that airlines will try for further airfare increases to capitalize on the strong demand.

CRUISE

Carnival Glory’s extended Boston sailings will continue in 2013

Carnival has unveiled plans to extend a series of sailings from Boston for the summer 2013 season. The schedule this summer will comprise four- and five-night voyages to Canada aboard the Carnival Glory. Starting June 2013, the Glory will undertake three seven-night cruises.

Norwegian’s Partners First program marks successful first year

Norwegian Cruise Line plans to build on the positive feedback that its Partners First initiative received in its first year through changes that would further simplify agents’ operations, said Andy Stuart, Norwegian’s executive vice president of global sales and passenger services. Planned changes include expanding Partners First Weekends, a restructuring of the in-house reservations department and a shift from offering amenity points for agents to dollars.

ETC.

Winner of Etihad contest will double salary

Etihad Airways, flag carrier of the United Arab Emirates, has launched a promotion under which it will match one U.S. travel agent’s salary ($90,000 limit).

This Week in Travel and Tourism – 4/16/2012

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INTERNATIONAL

MGM eyes Toronto for sprawling integrated resort and casino

MGM Resorts International has begun reaching out to Toronto officials to put forward a possible resort-casino project in the city. The potential $2 billion to $6 billion project could include hotels, convention space and restaurants. “It’s an amazing market, it’s an amazing city. We’d be prepared to invest an awful lot in the development of the concept,” said Alan Feldman, a senior vice president at MGM.

AIRLINE

Southwest’s AirTran to Keep Fees Three Years After Merger

Southwest Airlines Co. (LUV), the only major U.S. carrier without bag-check and rebooking fees, will keep those charges at its AirTran Airways unit into 2014, three years after the two combined. That’s the target date to fully integrate AirTran into its Dallas-based parent, and the fees will stay in place until then, Chief Executive Officer Gary Kelly said today in an interview.

AirTran to launch Orange County’s first Mexico service

AirTran will launch once-daily service from John Wayne Airport in Santa Ana, Calif., to Cabo San Lucas and Mexico City on June 3. It is the airport’s first Mexico service.

CRUISE

Cruise lines and tour operators eat costs of higher fuel

As gas prices flirt with the $4-per-gallon mark for the first time since 2008, the travel industry is anxiously bracing for signs of what impact higher fuel costs will have on summer travel. While airlines have been steadily increasing fuel surcharges for transatlantic flights and raising domestic airfares to cover costs, tour operators and cruise lines interviewed for this report said they are still absorbing the additional costs. None were yet willing to say they planned to implement fuel surcharges this year.

Norwegian Getaway to sail from Miami year-round

Norwegian Cruise Line will base the 4,000-passenger Norwegian Getaway year-round in Miami when the ship enters service in the spring of 2014.
Theme Cruising Gains Popularity

Travel agents should seize on the growing popularity of theme cruises, which offer an opportunity for agents to attract first-time cruisers and increase their client base, travel sellers say. Suppliers are joining the trend with special-interest voyages, featuring a wide range of themes, including bowling and classical music.

ETC.

Airlines lose fewer bags, arrive on time more often in February

The nation’s largest airlines set new records in February for the best on-time arrival rates and the lowest lost luggage rates. The airlines had some help in providing such improved service: February’s weather was unusually mild across the country, and airline industry experts say airlines are losing fewer bags because passengers are packing less luggage to avoid bag-check fees. In February, 86.2% of the flights flown by the nation’s airlines arrived on time, up from 74.5% in February 2011 and 83.7% in January of this year, according to Department of Transportation data released Thursday.

This week in Travel and Tourism – 4/9/12

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DOMESTIC

Atlantic City, N.J., group plans $20M campaign to draw tourists

Nonprofit group Atlantic City Alliance is launching a $20 million marketing campaign aimed at promoting the New Jersey city’s nongaming tourist attractions to leisure travelers. Carrying the tagline “Do Anything. Do Everything,” the initiative will include advertisements in major cities. “We have to reposition Atlantic City as a tourism destination,” said Liza Cartmell, president of the alliance.

Delta breaks ground on $160M LaGuardia hub makeover

Delta Air Lines Inc. broke ground Wednesday on a $160 million renovation and expansion of its hub at New York’s LaGuardia Airport. The project includes a 630-foot connector bridge linking Terminals C and D, a new Delta Sky Club in Terminal C and expanded security lanes in both terminals.

INTERNATIONAL

Mexico tourism officials report recovery

Mexico has taken a beating over the past several years, ever since the triple whammy of drug violence, the H1N1 flu scare and a prolonged recession that curtailed travel in the countries that supply the bulk of its tourism. But if the Tianguis Turistico at the end of March is any indication, the country’s tourism industry has bounced back in a big way.

AIRLINE

Allegiant Air to Start Hawaii Flights

The ultradiscount-airline business is spreading to the lucrative market of Hawaii, as Allegiant Air plans to start low-cost service to Honolulu from Las Vegas and Fresno, Calif. Parent company Allegiant Travel Co., which focuses on selling vacation packages along with its cut-rate airfares, is entering one of the nation’s biggest vacation destinations after two years of planning.

Pinnacle’s plan: Smaller operation would fly for Delta Air Lines only

Former managers of Memphis-based Pinnacle Airlines Inc. spent four years expanding and diversifying it into a $1 billion regional airline holding company. Through Chapter 11 bankruptcy filings this week in New York, their successors seek to roll back the clock and return to serving a single master, Delta Air Lines.

OTA

IBM research: OTAs, suppliers are misreading buyers’ values

Growing consumer dissatisfaction with online travel agencies (OTAs) and suppliers’ websites offers traditional agents and agencies an opportunity to pick up market share, according to a recent IBM report. In an executive report titled “Travel 2020: The Distribution Dilemma,” IBM researchers said that fewer than half of leisure and business travelers believe they’re getting a fair value for their travel dollar when they book online.

CRUISE

Carnival introduces George Lopez-branded comedy club

The Carnival Miracle launched year-round Caribbean sailings from New York on Thursday, offering several new dining and entertainment options for Carnival Cruise Lines. Making its Carnival debut is the Punchliner Comedy Club presented by George Lopez. The comedian serves as Carnival’s “curator of comedy,” acting as a consultant on the hiring of comedians.

ETC.

Pinterest draws attention of agents, suppliers

More members of the travel industry are looking at the new social media tool Pinterest and recognizing its potential for marketing, this feature says. “The advantage Pinterest has is simple: pictures,” said Meghan Peters of social media news website Mashable.com. “Its photocentric design appeals to even the most casual social media user. … The site has quickly struck a chord with a mainstream audience, a difficult feat for a new social network.”

Free Wi-Fi is most desired amenity, survey says

Note to hotel owners: Americans really like free Wi-Fi. The most important amenity for prospective U.S. hotel guests is free wireless Internet access, Expedia’s Hotels.com division said, citing its survey of prospective U.S. travelers. Of those polled, 38% said free Wi-Fi was “a must when choosing hotel accommodations.” By comparison, 25% of those surveyed said free breakfast was essential, while 18% chose free parking as the most desired amenity. Room service came in at just 2%.

Innovation

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Innovation

After attending ad:tech and seeing a series on innovation, I was inspired to think outside the proverbial box.  Many of the examples that were shown were interesting, but the ones I found most impactful were the ones that paired medias that you wouldn’t traditionally think would work together.  The following are just a few examples of how advertisers who have produced innovative campaigns and tactics that were attention grabbing and buzz worthy.

Showtime’s “The Franchise” & Foursquare

To promote the July 15 premiere of reality series “The Franchise: A Season With the San Francisco Giants,” Showtime partnered with the Major League Baseball to create a billboard display that dispensed baseballs, some signed by Giants, when people checked in on Foursquare at the MLB Fan Cave storefront in Manhattan. For those who automatically shared their Foursquare posts to either Twitter or Facebook or both — roughly a quarter of people on Foursquare — a “Franchise” ad and tune-in message was automatically sent to those social-media accounts.  I liked this execution for its simplicity – traditional OOH paired with Foursquare’s check-in.

Coca-Cola’s “Chok”

In Hong Kong, Coke was trying to target teens, which they learned were spending more time on their phones than watching TV.  They created an app that allowed teens to play a game called “Chok” when a specific Coke commercial aired.  Just 15 hours after the campaign launched, the “Chok” app had become the number 1 free app at the Apple store. It remained number 1 for another week and by the end of the third week, there were more than 300,000 unique downloads.

:15 Promo Spot:

:30 Interactive TV Spot:

Converse Domaination

Converse used a fairly common paid media, SEM, but in a very unique way allowing them to engage with their teenage audience in a manner that was personal to them.