<B>InsideTrack</B>
<B>DOT to Reissue IATA Corp. ID Decision 'Very Soon'</B>
The U.S. Department of Transportation expects "very soon" to reissue its decision on the International Air Transport Association's global client identification code program (<I>BTN</I>, June 26). The agency approved the program, but then informed IATA that its approval was not to be considered effective because DOT failed to reference all industry comments on the issue, including one submitted by the American Society of Travel Agents. "It's now on hold, but we will soon be reissuing the order," said DOT spokesman Bill Mosley. "Technically, it's as if the order never had been issued. We want to move very quickly on it, so it should be out very soon." Many corporate travel managers, led by National Business Travel Association president Cyndi Perper, oppose the new identification number.
<B><A NAME="2">Continental, E-Travel Link To Go Live Today</B>
Corporations who use E-Travel's ETLink direct access product today will have access to their negotiated rates with Continental. The two companies have been working together for a while and finally are ready to go live with the system. ETLink already provides customers with direct access to Hertz and Amtrak (<I>BTN</I>, Aug. 2, 1999). "We would like to take $200 per trip out of the overall cost, which includes processing, settlement costs, etc.," said John Ackerman, CEO of E-Travel. "We are on target to do that in the next few years and it will really add up for the larger companies." Meanwhile, Continental is in discussions with GetThere.com to create similar direct access. "All areas of distribution are trending down except credit card and GDS fees," said Jim Young, Continental's managing director of distribution planning. Young said Continental this year will pay $160 million in GDS fees and envisions those costs to increase to $225 million in five years with fee increases. "The GDSs have a public utility mentality without a public utility commission overseeing them," he said. Young said one large corporate account actively is "investigating" FlightPay, Continental's pay-at-lift program which will focus on high-frequency "shuttle-type" markets. To make such a direct model fly, Young said the carrier needs deeper e-ticket penetration, airport gate readers, training for airport employees and accounting modifications. "There also needs to be predictability in pricing," he added. "Fares would have to be nets and completely separate from other negotiated rates."
<B><A NAME="3">GetThere Buys ATS for Web Faring Engine</B>
GetThere.com on Thursday said it paid $13.5 million for Automated Travel Systems Inc., the software vendor that developed such products as ResFAX for travel agencies. GetThere said it bought the company mainly for its Internet-based low fare search system, which will bolster the planned direct connections with suppliers that will circumvent the GDSs (<I>BTN</I>, June 26). GetThere spokesman Dan Toporek called the ATS faring engine "quite a bit more robust" and faster than what the GDSs offer. He said the plan is to continue supporting ATS's other businesses, at least in the short term. The acquisition also helps GetThere to expand its New York City presence.
<B><A NAME="4">Amadeus, Lotus Partner for Corp. Travel Products</B>
Kicking off a partnership focused on corporate travel, Amadeus Global Travel Distribution and Lotus Development Corp. last week said they established the Travel Management Competency Centre in Sophia Antipolis, France. Staffed by "development, design and marketing professionals" from both companies, the Centre will create "integrated corporate travel management solutions operating on Lotus messaging and collaboration systems and tailored to a company's size and needs," according to a press statement. Further details on which products would be considered were not available.
<B><A NAME="5">Deluxe Hotel Sector Benefiting from Robust Economy</B>
While the lodging industry has shown signs of softening in the past 12 months, the deluxe segment has managed to do quite well. According to Jason Ader, lodging analyst for Bear Stearns, deluxe hotels across the country benefited from the continued strong economic conditions. As a result, they maintained their pricing leverage and increased revenue per available room by 5.7 percent through April compared with the prior year. By contrast, RevPAR for the entire full-service sector, which is comprised of upper upscale, upscale and midprice properties with food and beverage along with the deluxe group, grew only 3.8 percent.
<B><A NAME="6">New York Hotel Market Hits Peak Occupancy</B>
Negotiating for hotel rooms in New York is going to remain daunting for 2001. According to PricewaterhouseCoopers, occupancy rates for the Big Apple in April stood at 89.1 percent, the highest in 20 years. That translated into an average room rate of $245 before taxes, nearly 12 percent higher than prior year.