Inside Track - 2000-03-06
<B>Inside Track</B>
<B>Sherlock Resigns After Decade In NBTA Post</B>
The '90s ends on March 17 for the business travel community when Norman Sherlock officially steps down after serving a 10-year stint as executive director of the National Business Travel Association. Marianne McInerney, currently director of communications and information services, will serve as acting executive director until the NBTA board meeting at the end of March. At that time, said Colgate-Palmolive corporate travel manager and NBTA president Cyndi Perper, "I expect her appointment to be confirmed. I've worked closely with her in the past few years and she has my full support." Perper said Sherlock's decision to step down was a personal one. "Norm has worked tirelessly for the association, and has given us a consistent face and we will continue to build on that legacy. We'll miss Norman but we will carry on, and I'm very excited about the things we are doing with our educational programming, including the Into the Millennium conference we are holding in conjunction with the Institute of Travel Management in London at the end of the month."
<B><A NAME="2">Hilton Extends HHonors To Former Promus Brands</B>
This week, Hilton Hotels Corp. will announce that the brands it acquired late last year with its Promus purchase--including Doubletree, Embassy Suites and Hampton Inn & Suites--are now part of its frequent guest program called Hilton HHonors. At the same time, Hilton is taking the opportunity to announce enhancements to the program. According to industry sources, membership in an awards program remains a key determinant in business travelers selecting properties, assuming the hotel program allows a choice in a given market. Also, look for chains to continue using the parent's name as a sub-brand--as in Homewood Suites by Hilton--as a way of reminding travelers of the frequent guest program connection.
<B><A NAME="3">Midway Joins Commission Trend</B>
Midway Airlines last week introduced a new travel agency commission structure in line with most of the industry. The 5 percent commission rate, however, will not be capped.
<B><A NAME="4">Starwood Rebrands Ciga Properties As Westins</B>
Further evidence was on view last week of Starwood Hotels & Resorts's strategy to reposition its Westin Hotels & Resorts as an upper upscale brand. The company officially reflagged nine European hotels it acquired from Ciga as Westins. Included are properties in Madrid, Milan, Rome and Vienna. In the U.S. market, the same strategy saw the St. Regis Philadelphia become a Westin last month. To avoid confusion among travel buyers, Starwood pointed out that St. Regis remains Starwood's five-star brand with Westin positioned as four star.
<B><A NAME="5">Air France, Sabre Join Forces</B>
Air France last month inked a deal with Sabre that will provide the airline with an enhanced presence in the Sabre global distribution system. The agreement also resolves issues between the two companies arising from an investigation of United States and European antitrust authorities regarding the distribution of Air France's products through GDSs. "This is the appropriate time to confirm Air France's long-standing policy of CRS neutrality," said Pierre Descazeaux, the carrier's vice president of sales and distribution. "It is Air France's interest to have its products and services perfectly distributed all over the world and travel agents should select the CRS that best suits their needs, including the Sabre CRS."
<B><A NAME="6">Legend Delays Launch</B>
Dallas-based startup Legend Airlines has postponed the launch of its flight schedule to complete installations of custom-designed onboard equipment, including galleys and inflight entertainment systems. The carrier originally had planned to begin service on Feb. 29 (<I>BTN</I>, Feb. 21), but has since asked for an extension with the Federal Aviation Administration certification process. "We felt that our product was not meeting the standards set by our airline, and decided we did not want to under-deliver to our customers," said T. Allan McArtor, president and CEO. Legend has not specified a new launch date. Customers who already have booked early flights with Legend will be re-accommodated by Delta or offered a full refund.
<B><A NAME="7">Tower Files For Bankruptcy</B>
Tower Air last week filed for protection under Chapter 11 of the United States Bankruptcy Code. The financially troubled low-fare carrier said it has secured an $18 million infusion from a creditor to continue its scheduled service. Tower operates flights from its New York JFK hub to Fort Lauderdale, Los Angeles, Miami, San Francisco and San Juan, as well as Paris, Santo Domingo and Tel Aviv.