Inside Track - 1997-04-28

Carey To Buy Manhattan Intl.

Carey International, one of the nation's largest sedan and limousine companies, plans to acquire New York-based Manhattan International for $14.2 million, of which $7.1 million would be paid in cash. Carey filed an initial public offering to the Securities and Exchange Commission on March 3, stating it would pay $11.8 million of the sale price using the proceeds from the offering of its common stock. It also would assume $3.7 million of Manhattan International's debt.

The acquisition would greatly strengthen Carey's presence in metropolitan New York, where Manhattan maintains a fleet of 125 sedans and limos and has established partnerships with Virgin Atlantic Airways, Aer Lingus, and exclusive hotels including The Four Seasons and The Plaza. Both companies maintain an extensive network of affiliates, which in some cities are the same company. But should the merger go through, Manhattan International would retain a separate identity for at least a year.

Other ground-transportation mergers are being discussed, said Wayne Smith, executive director of the National Limousine Association, but he declined to name the firms.


More To Say On Hotel Folio Standard

Interested parties have until May 9 to offer any comments on an industry standard designed to ease the process of posting folio data to hotel property management systems. The American Hotel & Motel Association's Hospitality Industry Technical Integration Standards Advisory Committee extended the comment period to allow vendors more time to perfect them, said Thierry Roch, vice president of industry standards for the AH&MA. The standard is expected to be released at the National Restaurant Association meeting in May. It will then be up to PMS vendors to use the standards in software and to make it easier and cheaper for hotels to post room, minibar, restaurant, gift shop and other charges to the master accounting system.


Northwest-Toyota Deal In Works?

Northwest Airlines could be signing an exclusive corporate contract with Toyota and its global suppliers within the week. Responding to an Aviation Daily report of an impending deal, Northwest CEO John Dasberg said, "the Toyota contract is a done deal-so far." The pact, which initially could generate $20 million in revenues for Northwest, is part of the airline's strategy to increase corporate market share in Japan. The Minneapolis-based carrier has a similar deal in place with Honda. Pressed further about Toyota and any other contracts with Japanese buyers, Northwest spokesman Jon Austin said, "we're talking to them, but we're not going into detail until a deal is confirmed." Toyota has remained silent. "We're unaware of it, and it would be premature to comment," said Denise Grant, travel services manager for Toyota Motor Sales USA.


United Connection Moving To Web

United Airlines next month will release a Web-based version of the United Connection booking software. As one of the last major airlines to debut a Web-based booking module, United intends to make its site one of the most user friendly, with weather provided by its own meteorologists. Unlike some of its competitors that have licensed booking engines from Microsoft or other vendors, United's booking engine is home grown.


ACTE Ups Membership

Led by a surge of Europeans, membership in the Association of Corporate Travel Executives has grown more than 30 percent in the past year to 1,550, association president Earl Foster is to report at the group's annual meeting in Chicago this week. Travel managers make up about 40 percent of that number. Twenty-five percent are Europeans, 18 percent are Canadians and the remaining 57 percent are from the United States.