Inside Track - 1996-09-16

By AUTHOR / September 15, 1996

<H1>Inside Track</H1>Europeans Discuss Agent-Run CRS

A consortium of European travel agencies will meet with European Union officials this week to discuss the possibility of building an alternative reservation system run by agents, for agents. The group's secretary-general, Michel de Blust, said the network would incorporate existing CRSs, but also include additional information-on smaller hotels, as well as on such topics as destinations and safety-to allow agents to move into a more consultative role.

Virgin Offers Online Booking

Virgin Atlantic plans to offer offer real-time Internet booking on its Website this month. The carrier also is starting curbside checkin for its upper-class passengers at London Heathrow Airport. Airline representatives will join passengers in their Virgin-provided limos for processing of the appropriate checkin documents and baggage tagging. Passengers can then move directly to the carrier's airport lounge.

AmWest Restructures Sales Staff

A shake-up of the sales force at America West includes the resignation of manager of corporate sales Dennis DeMilio, who also is president of the Arizona Business Travel Association. The restructuring comes amid reports that the carrier is undergoing operational troubles due to its quick expansion, as well as a warning to investors that third-quarter profits will not be as healthy as expected.

Chavoya Leaves EDS

Arthur Chavoya, president of EDS' Global Travel Services Industry business, left the travel industry last week to accept a position as president and CEO of a publicly held Dallas company; no further information was available at press time. Chavoya has been with EDS for 10 years, and headed the GTSI unit since 1994. Last year, BTN named him one of the 25 most influential executives in the travel business.

WTP Eyes Acquisitions

Looking for greater presence in the top 25 U.S. markets, Atlanta-based WorldTravel Partners expects to target the Northeast, Midwest and West Coast to further expand its agency base during the upcoming fourth quarter. WTP executive vice president Danny Hood said the agency is eyeing $30-50 million agencies in Houston, Los Angeles, Chicago, New York, Boston and Stamford, Conn., with Philadelphia and Pittsburgh as secondary targets. "We've got on-sites in these areas now, but we feel like we need a little more 'bricks and mortar,' " said Hood.

REd Lion Bagged By DoubleTree

Doubletree Corp. has agreed to acquire Red Lion Hotels Inc. in a a cash-and-stock merger valued at approximately $1.2 billion. The deal, announced late last week and expected to close by year's end, will render Phoenix-based Doubletree the nation's fifth-largest hotel management company. Vancouver, Wash.-based Red Lion's corporate clients include Boeing, Hewlett-Packard and Macintosh. "We approached Red Lion management because we knew that Red Lion's high-quality properties throughout the western United States would enhance our existing lodging portfilio and help bring us the critical mass we need to become the preferred national full-service lodging brand," said Richard M. Kelleher, Doubletree president and CEO. He expects the merger, which adds 55 Red Lions to the 179-property chain, to help double Doubletree's earnings in 1997.

BTI To Open N.Y. Res Office

BTI Americas has decided to open a global reservations center in New York. Among BTI's New York accounts are Wall Street financial giant Bear Stearns and a new $30 million consolidation for a customer whose name remains confidential. The Big Apple GRC will be up and running by the end of September, BTI said.

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