<B> Inside Track</B>
<B>Silverman Takes Cendant Helm</B>
Henry Silverman last week was unanimously elected chairman of Cendant Corp. following the resignation of Walter Forbes. Silverman, who will remain as chief executive officer and president, was previously CEO of HFS Inc., which merged with CUC International in December to create Cendant. Cendant also owns hotel brands including Days Inn and Howard Johnson. "Henry Silverman represents the most dynamic force in that organization," said analyst Ted Mandigo, of T.R. Mandigo & Co. in Chicago.
Forbes' resignation resulted from investor and internal pressures resonating from discrepancies in the company's first quarter 1998 revenues. Silverman's appointment "is a confidence builder because he was responsible for HFS' growth over the years," Mandigo said.
<a name="story2"><B>NWA Pilot Negotiators Stalled</B>
The National Mediation Board on Thursday declared an impasse in contract negotiations between Northwest Airlines and its pilots, initiating a 30-day "cooling-off" period after which pilots are free to strike if no agreement has been reached. In May, the pilots showed their support for a strike.
<a name="story3"><B>Maritz To Unveil Website Offering </B>
St. Louis-based Maritz Travel Co. plans to debut a new turnkey travel home page as one of many applications in its technology toolbox early next year. But to gauge concensus on exactly what a travel Website should include--from travel policies to preferred vendor listings to expense reporting details--Maritz plans to show a prototype of the software at its booth at the National Business Travel Association trade show in Orlando this week. The agency has been helping corporate customers develop customized travel Websites for some time, but now predicts a demand for a simple and standardized product.
<a name="story4"><B>New Consultant Di Vincenzo Seeks ROI</B>
Taking a buyout from Rhone-Poulenc Rorer, former travel manager Gary Di Vincenzo is starting a travel consulting business in King of Prussia, Pa. "We are moving into a new era of managing travel as a return on investment," he said. "Some may think that this is a gross exaggeration, but I am convinced that 25-30 percent of travel is unnecessary and not contributing to the corporation's bottom line. Taking on this frontier of untapped savings is my strong suit." During his 26 years at the pharmaceutical firm, Di Vincenzo moved up from being a helicopter pilot to manager of aviation and finally to global travel manager.
<a name="story5"><B>Pegasus Incentivizes Online Booking</B>
Pegasus Systems Inc. through Dec. 1 is offering a $1 incentive for each net hotel reservation booked through its TravelWeb site to agencies using its HCC commission service. The "bonus buck" is in addition to the standard commission the agency would typically receive from a hotel. Pegasus officials expect the incentive primarily to move more leisure travel bookings to the Web, as most agencies servicing large corporations have productivity clauses with GDSs preventing them from making bookings on outside sources.
Pegasus is funding the promotion with revenues it began collecting in April, when it started charging hotels a 5 percent commission for reservations made through TravelWeb. Other travel-related Websites are charging 10 percent, Wacaser said, while the GDSs charge $3.50-$5.
<a name="story6"><B>Hyatt Installs Web TV</B>
Hyatt International has installed Web television in its Sydney, Australia, property for online use starting in September. The technology will be available in the hotel's 158 upgraded guest rooms and suites. Television sets will be equipped with a infrared cordless keyboard and Internet access. Hyatt also is considering installing the technology in new properties as they come online, officials said.