Airlines

Big Carriers Take Fourth Quarter Hit
Cumulative fourth-quarter losses at the nation's biggest airlines are expected to exceed $2 billion because of the high price of jet fuel and the industry's inability to raise fares, according to the Associated Press. A surge in jet fuel prices offset improving economic conditions that had bolstered travel demand in the last three months of 2004. The Air Transport Association estimates that U.S. carriers spent an additional $6 billion for jet fuel in 2004, an almost 40 percent increase over 2003. Fierce competition from budget carriers such as Southwest Airlines and Jet Blue compounded the problem for some airlines. The growing number of seats available nationwide pushed down already unprofitably low fares. (Source: Travel Commerce Report).

Frequent Flyer Miles Could Be World’s Leading Currency
The total stock of unredeemed frequent flyer miles is now worth more than all the U.S. dollars in circulation worldwide today, estimates The Economist, the British newsweekly. It calculates that by the end of 2004, almost 14 trillion frequent flyer miles had been accumulated. Since airlines sell these miles to credit card companies at two cents a mile and their value can be anywhere from a penny to a dime when used to buy tickets or upgrade, The Economist figures their total value is more than $700 billion. That’s more that all the U.S. dollars and coins now in circulation not counting the dollars in bank accounts.

Other Carriers Match Delta’s Fare Structure
Delta Air Lines’ introduction of its new SimpliFares last month, which capped last-minute coach walk-up fares at $499, eliminated the Saturday night stay requirement and halved the cost of ticket-changing fees, have had a ripple effect. American Airlines, the world’s biggest airline, matched much of the new SimpliFares structure. Continental, Northwest, United and US Airways have matched some elements of SimpliFares as well. The result, a substantial drop in the fares business travelers pay, according to The Wall Street Journal, which reported that business fares on the top 40 routes flown by major airlines are down by a third from a year ago, using an analysis done by fare experts Harrell Associates. (Source: Wall Street Journal, Best Fares)

Southwest Announces Code Sharing Flights Out of Midway
Southwest Airlines has announced fares for its new flights that are part of its agreement with ATA Airlines, which includes code-sharing and additional gates at the airport. Among the connections Southwest passengers from select cities will be able to connect to via Midway: Boston Logan, Denver International, Southwest Florida International (Fort Myers/Naples), Honolulu International, Minneapolis/St. Paul International, LaGuardia, Newark International, San Francisco International, Sarasota-Bradenton, St. Petersburg/Clearwater International and Ronald Reagan Washington National. (Source: Southwest Airlines Press Release).

Airlines Add Trans-Continental Service
While other airlines are leaving the trans-continental market, Song and Jet Blue are expanding their coast-to-coast service. In May and June, Jet Blue will add new coast-to-coast flights between California and New York, Washington, D.C., and Boston. Out of JFK, it is adding a second daily roundtrip to Ontario and San Jose, a third daily to San Diego, a sixth daily to Oakland and an eighth daily to LA/Long Beach. From Washington Dulles, it is introducing new daily service to San Diego, adding a third daily to Oakland and a fourth daily to Long Beach. It is also adding new daily service from Boston Logan to San Jose and third daily roundtrips to Oakland and Long Beach. Song, Delta Air Lines’ low-fare carrier, will launch 15 daily flights between New York’s JFK and three West Coast business destinations this year. It is offering direct, non-stop flights to Los Angeles, San Francisco and Seattle. By summer’s end, Song will have seven daily roundtrip flights to Los Angeles International, five to San Francisco International and three to Seattle-Tacoma International. It will begin phasing in the new service in June.

Hotels

In-Room Fitness Service
Hilton and Marriott are making it easier for their guests to work out in their rooms with two new fitness programs. Marriott’s new “Great Health-Fit for You” offers complimentary in-room fitness options. They include a portable exercise device and video for full-body aerobic and strength training, a Travel Trainer kit with resistance tubes and instructions for improving strength, balance and energy and the BodyWedge21, which uses an incline to target abs, buttocks, thighs, triceps chest and lower back. It comes with 21 different exercises.
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Hilton has teamed up with Bally Total Fitness to provide guests with access to trainers and by offering an in-room “mini-gym” designed by Bally. Guests can check out, at no charge, a Hilton Travel Fit Kit, which includes a yoga mat, elastic exercise bands, resistance tubing and two sets of hand weights, with basic instructions from Bally. For a small fee, Hilton also provides in-room treadmills. To make a date with a Bally trainer, guests simply call their hotel to make an appointment.
Westin Hotels’ Westin Workout Powered by Reebok, introduced last year, includes an in-room yoga- and Pilates-inspired component. Hyatt is developing an in-room fitness program as well.

AmeriSuites To Become Part of Hyatt Gold Passport Program
Now that Global Hyatt Corporation has completed its acquisition of AmeriSuites hotels, it has announced that, beginning April 1, AmeriSuites guests will be able to earn points towards free stays at both Hyatt hotels and AmeriSuites through the Hyatt Gold Passport frequent guest program. Up until April 1, guests will continue to earn Prime Rewards points for their stays at the hotels. AmeriSuites is an all-suite, upscale limited service brand. (Source: Hyatt press release)

Rail

New Rail-to-Air Connection in Milwaukee
Amtrak opened a $6.8 million passenger rail station at Milwaukee’s General Mitchell International Airport last month. The station serves passengers connecting to the airport along with rail-only passengers using Amtrak’s Hiawatha service, which operates seven daily roundtrips between Chicago and Milwaukee. A free shuttle connects the airport to the rail station. Travelers can now take the train from Chicago, its northern suburbs, Milwaukee’s southern suburbs or downtown Milwaukee to the airport. Amtrak’s success with its rail-to-air connection at the Baltimore-Washington International Airport (BWI) station demonstrates the potential of the Milwaukee station. Other Amtrak airport rail stations in the U...S. include the California Burbank-Glendale-Pasadena Airport and New Jersey’s Newark Liberty International Airport. (Source: Amtrak press release),

Industry Alert…..
In-flight Water Quality

The Environmental Protection Agency released its second round of aircraft drinking quality data. The findings—that 17.2 percent of 169 randomly collected samples were contaminated with total coli form bacteria—mean the EPA will continue to scrutinize in-flight water quality. It also suggests that passengers with compromised immune systems or others concerned about water quality may want to request canned or bottled beverages and refrain from drinking tea or coffee on board unless it’s made with bottled water.

The EPA sampled water on domestic and international passenger aircraft nationwide in November and December. In its first round of sampling in August and September, it found that 12.7% of the collected samples tested positive for total coli form bacteria. Two samples tested positive for E.coli. (Source: EPA news release)

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