Buyers Benefit In Chicago Deals
<B> Buyers Benefit In Chicago Deals</B>
By Deborah Mora
Travel agents booking rooms for the Hyatt Regency McCormick Place have been receiving increased commission payments since December under a temporary program in place at the hotel. The incentive program runs through the end of March and entitles agents to a 20 percent commission payment, which is double the amount agents currently are receiving.
Mike Phares, director of sales and marketing for the Hyatt Regency McCormick Place, said one reason the program was created was to fill the increase in room occupancies in the market. "In addition to this being an opportunity to create an even greater awareness of Hyatt Regency McCormick Place, this incentive is also our way of showing our appreciation to the many agents who have worked so closely with our hotel since its opening," said Jerry Simmons, general manager.
Since its opening in June 1998, the 800-room hotel owned by the Metropolitan Pier and Exposition Authority has sold more than 71,000 room nights. The agreement will continue through the end of March and Phares said so far the results have been favorable.
In January, the hotel had a generation of 1,500 room nights from the travel agent market, while February generated more than 2,500 room nights. Agents will receive the increased commission only for room nights occupied during this time. After the program ends, Phares said, Hyatt does not plan to increase the rates available to travel agencies after that time for the traveler.
"We have competitively priced our rate available to travel agencies lower against comparable hotels in Chicago," Phares said. "Therefore, the traveler 'wins' with lower accommodation costs, the agency 'wins' with a higher percentage of commission and the hotel 'wins' with increased revenue."
In other Chicago news, a deal is in the works for Amtran Inc., the holding company of American Trans Air Inc., to take over the rest of Chicago Express Airlines' stock. The agreement, which was announced in late February, is expected to be completed before the end of March. ATA officials will not comment on how much the agreement is worth.
A partnership between ATA and Chicago Express--a privately owned commuter airline--is not new. The airlines entered a codesharing agreement in June 1996 to connect ATA's Chicago-Midway gateway with other Midwestern cities while expanding its service to Chicago Express passengers.
"Chicago Express has enabled us to provide nationwide service to cities such as Lansing, Des Moines, Dayton Grand Rapids and Madison, which are outside ATA's route structure," said Ken Wolff, ATA's CFO. "As Chicago Express grows, we look forward to connecting even more Midwestern cities."
ATA, which has been operating for 26 years, offers service from Chicago-Midway and Indianapolis to 24 cities including five Florida cities, Hawaii, New York, Los Angeles, San Francisco, Las Vegas, Phoenix, Dallas, Denver and San Juan.
The images of both airlines will not change; airfares will not increase; and Chicago Express will retain its name for commuter service, while ATA will remain ATA. However, in the future, larger aircraft will be added to Chicago Express's fleet.
In another move toward growth, the airline announced that effective May 1, it will begin nonstop service between Philadelphia and Midway. ATA will offer three nonstop weekday flights and two daily weekend flights to Chicago.