Global distribution system competitors Amadeus and Sabre Holdings last week said they have filed with the European Commission to form a joint venture to provide an automated, multi-GDS payment, processing, clearing and reconciliation platform for non-air segments. Amadeus North America director of marketing Owen Wild said the companies anticipate the launch of the platform to be "pretty close to concurrent" with EC approval, expected in the third quarter, when the companies said they will provide more detail. "The intent of the joint venture is to establish an industry-standard solution to improve and better meet the requirements of the travel industry with payment efficiencies, increased automation, and improved interoperability" for non-air segments including hotel, rental car and rail, the two companies said in a statement. "There are industry standards in the air market that bank settlement plans and ARC address," a Sabre spokesperson said. "There are no industry standards for non-air transactions."
Advito Sees Higher 2008 Air, Hotel CostsAverage published airfares next year will rise 6 percent to 10 percent from 2007 levels, including by 3 percent to 5 percent domestically, said Bob Brindley, vice president for the Americas for BCD Travel's consulting subsidiary Advito, in offering some early insights into Advito's industry forecast, which the firm will release later this year. Because of an increase in corporate air discounts, 2008 corporate fare hikes will be closer to 5 percent to 7 percent. Global hotel rates are expected to increase 4.5 percent on average, said Maria Chevalier, Advito vice president of business intelligence. "Although in some areas there is a drop in demand, with the hotels being so sophisticated in the management systems and managing tighter, you are still going to see some increases," she said.
Hilton Stockholders Set To Vote On Blackstone BuyHilton Hotels Corp. this month announced that its stockholders will meet in Beverly Hills, Calif., on Sept. 18 to vote on The Blackstone Group's proposed acquisition of the company. Hilton's board of directors last month approved a $26 billion offer from Blackstone for the 2,800-property chain, the biggest acquisition of a hotel company in history
(BTN, July 9). U.S. antitrust authorities this month approved the transaction. Hilton and Blackstone, which owns more than 100,000 hotel rooms in the United States and Europe following acquisitions in recent years, expect the deal to be complete by year-end.
Three Carriers Unveil Joint Corporate Booking PortalContinental, Delta and Northwest airlines last month said they have launched a new corporate booking tool, called SkyCorp Direct, in conjunction with Amadeus and G2 SwitchWorks, allowing corporate customers to book the three carriers' content for free and also reserve other air, car and hotel content for a $5 transaction fee. Representatives from the carriers said G2 SwitchWorks would handle Continental, Delta and Northwest bookings and ticketing, as other reservations will flow through the Amadeus global distribution system. The carriers said they have signed "dozens" of corporate clients to implement the tool for travelers. The airlines are targeting the small and midmarket, but said the tool would support customers of all sizes. Continental said it would sunset its corporate portal and migrate clients to SkyCorp Direct, while Northwest and Delta said they would continue to support customers on their respective portals.
New York State Enacts Air Passenger Bill Of RightsNew York State on Jan. 1, 2008, plans to enact a passenger bill of rights, becoming the first state to require airlines to provide passengers with "food, water, fresh air, power and working restrooms on any flight that has left the gate and been on the tarmac for more than three hours." Gov. Eliot Spitzer this month announced signing the legislation to "ensure airline passengers on severely delayed flights out of New York airports are provided with basic customer protections." The law establishes the Office of the Airline Consumer Advocate within New York's Consumer Protection Board to oversee carrier compliance and field passenger complaints. Noncompliant airlines face fines of up to $1,000 per passenger.
Frontier Airlines CEO Potter To Exit Next MonthFrontier Airlines president and CEO Jeff Potter will step down on Sept. 6 to head Executive Resorts, a provider of luxury vacation homes. Frontier said its board of directors is searching for a replacement. Potter joined the carrier in 1995 as vice president of marketing. After a year as president and chief executive officer of Kansas City, Mo.-based Vanguard Airlines beginning in 2000, Potter returned to Frontier as COO and became CEO in 2002. Frontier said Potter would remain on its board.