<B>InsideTrack</B>
<B>AA Focusing On E-Commerce</B>
Top American Airlines officials told BTN that the carrier presently is looking at outside vendors to provide an extranet solution for its global partners. The carrier also has a taskforce exploring all e-commerce options and functionality that "will ensure the Oneworld Web site remains competitive." Enhancements are expected soon. In other AA news, the codesharing partnership with Japan Airlines will expand throughout the spring. Meanwhile, the carrier is evaluating changes to its business class cabins and expects to have an "important announcement shortly."
<A NAME="2"><B>Extended-Stay Segment Shows Strength</B>
According to Deutsche Banc Alex. Brown, the extended-stay segment outperformed both its core lodging index and the broader stock market last month, posting a 19.7 percent total return. Making up Deutsche Banc's extended-stay index are Candlewood, Extended Stay America, Homestead Village and Suburban Lodges of America. The concept, which began in the mid-1970s with Residence Inn by Marriott, largely was underdeveloped until an unprecedented explosion began in early 1997, said Bear Stearns. Supply has more than tripled since that time. Deutsche Banc attributes the rise in the extended-stay index not to any spike in demand, but to the anticipated buyout of Homestead Village.
<A NAME="3"><B>Online Travel Sales To Quadruple</B>
Wall Street analysts at Bear Stearns are predicting that online travel product sales will quadruple by 2003 to $29 billion. While this will be nearly four times its 1999 sales volume, Internet traffic still will represent only about 10 percent of all travel sold. Nevertheless, Bear Stearns' analyst Jason Ader is predicting a "fierce battle between travel suppliers and online travel agencies to control the lion's share of this market." Corporate travel buyers, watching the skirmish play out, still have their own priority: getting the negotiated rates online.
<A NAME="4"><B>Bass Acquisition Rumors Continue</B>
Rumors persist that U.K.-based Bass Hotels & Resorts will be in an acquisition mode following the impending sale of its brewery business (<I>BTN,</I> April 3), and that it is on the lookout for a U.S.-based hotel company. Current speculation centers on Starwood Hotels & Resorts Worldwide as the would-be candidate. Fueling the speculation is the fact that other European hotel companies have been in a buying mode lately. Spain's third largest hotel company, Barcelo Empresas, for example, acquired 16 properties in the United States earlier this month. Ironically, Starwood will manage 14 of them, 13 as Four Points, its midprice brand.
<A NAME="5"><B>Starwood Upgrades Sheraton</B>
Meanwhile, Starwood Hotels & Resorts Worldwide has begun an extensive two-year renovation program of U.S. Sheratons at a cost of $350 million. At issue for current travel buyers is the lack of consistency in the product--that business travelers checking into one Sheraton or another wouldn't know what level of quality to expect. Guest room upgrades will focus on creating a more classic, upscale look: more wood, less vinyl, according to Starwood's senior design guru.
<A NAME="6"><B>Travelsavers To Issue Co-branded Card</B>
Travelsavers and First USA will issue a Travelsavers Platinum Visa Business Card that will be marketed through Travelsavers agencies nationwide. The card offers small and midsize companies a low interest rate, a credit limit up to $100,000, free quarterly reports and business and travel discounts worth thousands of dollars through free enrollment in the Travelsavers Travel Club. Betty Tilton, vice president of corporate sales and marketing, said the card will be aimed at small, growing technology companies that may not consider a card for a small base of travelers. "That's the beauty of this," said Tilton. "These are companies that may spend $2 million each year flying to Asia. We're building a real niche for our agencies."
<A NAME="7"><B>BA, Amadeus Seek 10-year Information Technology Deal</B>
British Airways, following its divestiture of Galileo shares last summer, currently is negotiating a 10-year agreement with the global distribution system Amadeus. Once completed, the deal would call for Amadeus to handle BA's flight booking, departure and inventory, as well as contracts with other carriers now handled by BA subsidiary Speedwing. BA said its existing IT system "would have required continuous investment in upgrading to ensure it was compatible with the airline's evolving business needs." The arrangement will streamline BA's efforts with Oneworld partners Iberia, Finnair and LanChile, which presently use Amadeus for their IT needs.