by Karen Goodwin

Is the price right?

Online travel buyers shift to supplier sites

When you buy travel online, are you more drawn to individual airline, hotel and car rental Web sites, or to online travel agencies? According to research company comScore, you’re slightly more attracted to travel supplier Web sites, whose sales increased 21 percent in 2005 versus 19 percent growth at online travel agencies. Overall, Internet travel sales grew a healthy 20 percent in 2005 to $60 billion. Not surprisingly, airline tickets accounted for two thirds, or $40 billion, of online travel sales last year. The comScore survey also found that travel shoppers planning leisure trips visit an average of three sites looking for the lowest prices and best deals. The study also showed that shoppers display little loyalty to sites where they previously booked travel, unquestionably making online travel shopping’s mantra “price, price, price.”

Taxi!

Fuel costs could force cutback in travel spending

You may be taking fewer business trips next year, or at least substituting taxis or even (gasp!) public transportation for airport limo rides, according to the National Business Travel Association. The organization forecasts that next year’s corporate travel budgets could be reduced if fuel prices remain high. Nearly two thirds of the 1,700 corporate travel managers surveyed said that increased fuel prices are impacting their travel purchasing. About 52 percent said fuel price hikes have added an average of $51–100 to the cost of a domestic business trip. As a result, 38 percent of travel managers said they are asking or requiring travelers to consolidate multiple trips into one, while 34 percent said they are encouraging or requiring less air travel. High gas prices have also led travel managers to renegotiate deals with preferred ground transportation providers, as well as start requiring employees to take taxis to the airport instead of chauffeured private sedans; and, depending on the destination, to use public transportation instead of renting cars. If only you could walk to all of your business appointments.

The price of luxury

U.S. hotels raise rates, experiment with new amenities

The U.S. hotel industry, which went into a slump after 9/11, is rebounding with record profits, and the future looks bright. The flip side: Stronger demand means you’ll be shelling out more for a room. The average daily room rate this year is expected to rise 5.6 percent to $96.69, according to PricewaterhouseCoopers. However, some cities—including New York, San Francisco, Honolulu and Boston—could see increases of 7 to 10 percent, the firm says. From January to April, the average daily rate at U.S. luxury hotels rose to $274.70, up $21 from the same period in 2005. But as rates rise, so do guest expectations. That’s why hotel capital spending is also way up: The industry is forecast to invest $5 billion in 2006 on improved beds and bedding, flat-screen TVs, high-speed Internet access, cordless phones, self check-in and checkout, in-room exercise equipment, enhanced lighting and branded amenities and products. “Hotels are responding with amenities that are generally better in quality and often offer guests more than they might expect at a particular price level,” says PricewaterhouseCoopers.

For example, Westin Hotels is trying to carve out a niche with “eMusic,” customized soundtracks featured in Westin’s 124 hotels and resorts worldwide—“to help people discover some of the greatest and most diverse music in the world.” Westin’s signature digital music offerings can be heard in the lobby and in rooms as part of its new “Sensory Welcome” program. Starwood Hotels has partnered with celebrated chef Jean-Georges Vongerichten to create upscale “world-class” restaurants for its luxury hotel brands W, Westin, Le Meridien and St. Regis, as well as free-standing restaurants outside of Starwood’s hotels.

Bed and no breakfast—or anything else

Entrepreneur offers a no-frills hotel experience

A weak U.S. dollar and high prices in Europe can lead to fewer business trips across the pond. But now the entrepreneur behind European low-cost carrier easyJet has come up with an alternative: cheap, no-frills lodging called easyHotel. If you’re willing to blaze a new trail to save your company some cash—and you can fit into a coffin-sized room and shower—then easyHotel may be for you. The company has two franchises in London (with another planned by the end of 2006) with basic rooms (including bathroom) starting at about $56 a night. Air-conditioned rooms are a miniscule 60 to 80 square feet, and those with windows run nearly $20 extra per night (though your view may be of a brick wall). You’ll have to forego a flat-screen TV, bedside chocolates and a newspaper outside the door. At easyHotel, just watching the TV is an additional $7.50 per 24 hours, and you’ll also pay an extra $17 a day for the luxury of housekeeping. Rooms do come with one towel, a bar of soap and bed sheets—but forget about elevators, bellhops, lobby luggage storage and even a closet. And for that matter, there’s no Wi-Fi or on-site restaurant. Room service? Don’t make me laugh!

Lest you scoff, the man behind the concept, Sir Stelios Haki-Ioannou, was recently knighted by the Queen for services to entrepreneurship. The first franchised easyHotel opened in Basel, Switzerland, in September 2005, and the company said a Dubai-based investment house has signed a master franchise agreement to open 38 hotels across 16 countries in India, the Middle East and North Africa within the next five years. The easyhotel.com site also lists other properties in more than 100 countries.

For $70 a night in central London, you’ll get a room at a one-star property where you’ll share a bath with other guests—something that Europeans are more willing to do than most Americans. Similarly priced two- and three-star hotels (with ensuite facilities) are typically located in nearby suburbs, but close to public transportation. However, for around $150 a night, you can snag a room at the Comfort Inn Notting Hill, a three-star property listed “in very good condition.”

In brief

United and American are both ending service to Chicago’s Midway Airport, on September 5 and September 1, 2006, respectively … Qantas’ Australian Airlines brand has ceased and is now operating under the Qantas name. However, Qantas is launching leisure-oriented Jetstar airlines in November … W Hotels will open its first hotel in South America, the 205-room W Santiago, in 2008 … Dubai, the adopted home of Michael Jackson, plans to build the world’s largest hotel in a resort development located outside the UAE’s Dubai City. The entire development will have 29,000 hotel rooms, including the gargantuan 6,500-room Asia Asia hotel. The project’s first phase, including Asia Asia, is slated to be operational by 2010 … Don’t look for Richard Branson’s low-cost carrier Virgin America to begin operations before 2007. Virgin America says objections raised by several U.S. airlines have bogged down the U.S. Transportation Department review process … Here’s a toast to Regent Seven Seas Cruises (formerly Radisson Seven Seas): The cruise line has announced an inclusive liquor policy for 2007, offering select complimentary wine and spirits at all bars and restaurants fleet-wide on every sailing. Just steer clear of the railings.

_______________________________

Have a question or comment? Email Executive Travel at editor@executivetravelmag.com.