Palmer Getting Out Of There
GetThere president Jeffrey Palmer will be leaving the company at an unspecified time, as Sabre by year-end integrates it with Travelocity, GetThere told its customers in a letter last week. For the quarter ending in September, Sabre last week reported GetThere's corporate trip volume grew 33 percent year over year while reductions in its supplier business kept overall revenues flat. Total transactions rose 26 percent. Sabre said 125 clients now are using GetThere's new DirectCorporate Release 6. The company sees 35 percent revenue growth in 2004 for the businesses now known as GetThere. Meanwhile, Travelocity Business has added more than 100 clients since its August launch, Sabre said.
Amex, Klm Partner On Corporate Payment
KLM Royal Dutch Airlines in the first quarter of 2004 plans to introduce a co-branded payment card for corporate clients. The American Express KLM Corporate Card will replace KLM's own Traxxer product, a Universal Air Travel Plan vehicle developed with Dutch Bank ABN Amro that will be phased out during the next 12 months. Amex and KLM said the new card product, targeting small and medium-size customers, will offer various hard- and soft-dollar benefits. American Express already offers co-branded corporate cards with American Airlines, Air Canada and Qantas Airways. American Express and KLM early next year will launch a co-branded consumer card centered on the airline's frequent flyer program.
Lufthansa, US Airways Launch Codeshare Flights
Ahead of full participation in the Star Alliance scheduled for early 2004, US Airways yesterday began codeshare cooperation with Star founder Lufthansa German Airlines. The bilateral relationship includes Lufthansa services between Frankfurt and Berlin, Boston, Dusseldorf, Hamburg, Philadelphia, Nurnberg and Stuttgart, as well as Lufthansa flights between Munich and Berlin, Dusseldorf and Hamburg. In return, Lufthansa will add its code to US Airways flights between Philadelphia and 14 domestic destinations, as well as US Airways service between Frankfurt and Charlotte, Philadelphia and Pittsburgh. The first wave of codeshares also will cover US Airways service between Pittsburgh and Boston, and between Philadelphia and Munich. Oct. 26 also marks the first stage of frequent flyer reciprocity and joint airport lounge access.
Gov't ETravel Contracts Up In The Air
A contract dispute could delay the General Services Administration 's Etravel initiative's goal to begin rolling out a government-wide end-to-end travel solution by year-end. After awarding the Etravel contract in August to Northrop Grumman Corp. and Carlson Wagonlit Government Travel, GSA this month reopened the contract process after Electronic Data Systems protested the awards. The General Accounting Office is reviewing the process and expects to make a decision by Dec. 8. "Congress said the Etravel contracts could not be exclusive and that government agencies had to be able to have other options," an EDS spokesperson said. As the contract stands, government agencies can choose between either Northrop or Carlson.
Qantas Plans Low-Cost Unit, Seeks AirNZ Alliance Options
Qantas Airways next May plans to launch a new low-cost carrier to strengthen its domestic market position against the likes of Virgin Blue. The still nameless operation will field a fleet of at least 23 aircraft by mid-2005. Qantas in the next few weeks will discuss with Air New Zealand the prospects for their proposed alliance following rejection by New Zealand regulators. Australian regulators also have objected. "We still believe a Qantas-Air New Zealand alliance is in the best interests of aviation in this region," said Qantas CEO Geoff Dixon. "There are simply too many airlines in the world today."
Boston, Detroit, Minneapolis Lag in Hotel Recovery
With the U.S. hotel industry showing signs of strength overall, Boston, Detroit and Minneapolis St. Paul out of the top 25 markets continue to under-perform. Revenue per available room for August, for example, fell 12.4 percent, 11.7 percent and 11.5 percent, respectively, compared with a year earlier, according to Smith Travel Research. Buyers negotiating for 2004 rates in these cities can expect hotels to be particularly receptive. Rounding out the bottom five on the list were Denver and New Orleans.