Tourism must triumph over terrorism: UFTAA chief

TravelWeeklyEast.com  -  UFTAA president D Oscar Rueda Garcia made a call for the travel industry to beat the violence of terrorism and through “dialogues and tolerance, build up a world where everyone, regardless of his religion, will have a place.” 

Garcia cited Malaysia as an example where various religions and races were harmoniously living together. 

“A new and fast developing tourism destination such as Malaysia is also the best place to launch a new UFTAA.” 

Garcia said this year’s Congress was a turning point in the life of UFTAA given the recent changes to its structure. 

The changes, he said, “indicate that we are now a confederation that brings together the continental or regional federations and through them the national associations and travel agencies of the world...” 

He also called on delegates to better work together to resolve the numerous issues facing the industry, one of which was the impasse over the new Passenger Sales Agency Agreement (PSAA). 

On the issue of airlines reducing or cutting commissions, he said it was “totally absurd in the light of any commercial relationship that the other party should be working for nothing. 

“From this congress we would like to make a call to all the airlines of the world, our representatives and, in most cases, our ‘rasion d’etre’ for them to think twice and revise their position so we can sit together, since the situation of their companies and ours leaves us no choice but to find solutions and these need to be fair and transparent, as in any contractual relationship.” 

Governments, he said, must not remain indifferent to this situation, Garcia said. 

“They cannot simply argue that this is a private sector matter and turn away from the problem affecting the tourism industry,” he said, when macro economic values such as employment and services exports were involved. 

Source: TravelWeeklyEast.com

Cendant's net profit grows 19 percent 

(AP) -- Travel and real estate conglomerate Cendant Corp. said Monday that net income increased by 19 percent during the third quarter because of the strength of its car rental and residential real estate businesses. 

The New York-based company also said it would "curtail acquisition activity" and use its cash flow to reduce debt and buy back $200 million in stock. 

The company's third-quarter results were in line with Wall Street's expectations, which were recently lowered after the New York-based company reduced its forecast by 33 percent because of the impact of low interest rates on its mortgage-servicing business. 

Cendant reported net income of $250 million, 24 cents per share, during the July-September period, compared with $210 million, or 23 cents per share, a year earlier. 
Excluding one-time costs, Cendant reported operating profit of 28 cents per share, which was in line with the expectations of analysts surveyed by Thomson First Call. 

Revenue for the period increased to $3.8 billion, compared with $2.4 billion a year ago. 
Cendant said year-on-year revenue was helped by the October 2001 acquisitions of computerized reservation service Galileo International Inc. and online travel company Cheap Tickets Inc. The company also said it benefited from higher rental car rates and increased transaction volume at its real estate franchise businesses. 

Cendant's real estate business is made up of franchised brokerages such as Century 21 and Coldwell Banker, whose services include lending and refinancing. 

Its car rental business is made up of the Avis and Budget brands. In August, Cendant agreed to buy most of the assets of bankrupt Budget, making it the nation's second-largest car-rental chain. 

"Our business segments performed at or ahead of our expectations this quarter, despite a challenging environment for commercial travel and corporate spending," said Henry R. Silverman, Cendant's chairman and chief executive. 

For the first nine months of the year, the company reported net income of $599 million, compared with $692 million a year earlier. Revenue in the January-September period was $10.2 billion, compared with $6.1 billion in 2001. 

Cendant also affirmed its fourth quarter operating earnings forecast of 29 cents per share and full-year operating earnings of $1.26 per share. 

The company announced on Sept. 25 that operating profit would decline by $175 million, or 17 cents per share, in the July-September period because of an "unprecedented" level of mortgage prepayments and refinancings. 

Explaining the writedown of its mortgage-servicing business last month, Cendant's chief financial officer, Kevin M. Sheehan, said the economic models the company had been using to estimate future earnings in its mortgage business were "not as effective" with interest rates at 41-year lows. 

Shares of Cendant rose 77 cents to close at $12.27 on the New York Stock Exchange. The company released its earnings after markets closed and scheduled a conference call for investors Tuesday. 

News @ PATA

PATA REAFFIRMS COMMITMENT TO BALI CONFERENCE
PATA President & CEO Mr. Peter de Jong has reaffirmed PATA’s commitment to host the 52nd PATA Annual Conference in Bali, Indonesia, April next year. "In difficult times like these PATA will stand by Indonesia - especially so with a top-level event such as Conference which brings a lot of travel business and public relations benefits to a destination. It is we, the travel professionals, who set the example when we continue to travel for business and pleasure  and that includes the 2003 PATA Annual Conference in Bali," he said.

PATA MOVES TO SET UP RECOVERY TASK FORCE
PATA is in the process of drawing up a shortlist of experts to be included in the tourism task force which will go to Indonesia to offer strategic help to its tourism industry. PATA is in consultation with senior Indonesian representatives of both the public and private sector regarding the timing, scope and extent of the task force’s brief. Mr. de Jong said: "With so many Balinese people’s livelihoods at stake, we must act quickly and address the new post-October 12 realities." 

UK CHAPTER SHOWS SOLIDARITY WITH BALI
The PATA UK Chapter will host a reception on the afternoon of Monday November 11 at the Bali village stand during WTM in London. Chapter Chairman, Mr. Tim Robinson said: "This event will mark our respect for those who have lost their lives, their friends and families, and will affirm the future not only of Bali, but of tourism to the Pacific Asia region." Details of the sponsors will be announced soon. Anyone wishing to contribute to the reception can contact Mr. Robinson at ContactTSR@aol.com. Tel: (44) 208-785-4719.

PAN PACIFIC HELPS VICTIMS’ FAMILIES
On October 18, Pan Pacific Hotels and Resorts President Mr. Ichigo Umehara sent a condolence message to the friends and families of the Bali bombing victims. Pan Pacific is offering special assistance to families who have to stay in Jakarta or Singapore while their family members receive local medical treatment. Visit www.panpacific.com for further information.

READ ABOUT BALI ON PATANET 
PATA members can enter the "Bali, October 12, 2002" information zone in the members-only area of PATAnet at www.pata.org. The selection of online interviews and links shows how PATA has responded to the events of nine days ago.

BUSINESS OPPORTUNITIES IN ITALY AT BIT 2003 
PATA has organised a stand at BIT, to be held in Milan, February 15-18, 2003. BIT has changed its format and is now a four-day event, starting on Saturday, February 15. Monday and Tuesday will be trade-only days. PATA welcomes Pacific Asia members to exhibit under its umbrella in order to reach the Italian market cost effectively. For more information and to register please contact PATA Europe at europe@pata.mc.
 

PATA ATTENDS FITUR 2003 
FITUR, the main trade-show in Spain, is an excellent opportunity to reach the robust Spanish market. A high percentage of decision-makers attended FITUR 2002: 48 percent of the visitors held top-management positions and 12 percent had marketing/sales management positions. PATA members promoting Pacific Asia can join the PATA stand which offers a cost-effective marketing platform to promote travel to the region. For more information and to register please contact PATA Europe at europe@pata.mc.

TWENTY-FOUR YEARS OF TOURISM EXCELLENCE
Fifteen more travel industry professionals have completed the three-week intensive course on professional tourism studies at the Executive Development Institute for Tourism (EDIT) held at the University of Hawaii  School of Travel Industry Management (TIM). Since 1978, EDIT has helped more than 450 students with industry backgrounds share tourism management knowledge in a multi-cultural environment. Further information and applications are available at www.tim.hawaii.edu/edit. Tel: (1-808) 956-4902. Fax: (1-808) 956-5378. E-mail: rsoma@hawaii.edu.

Japan acts to save Bali business

Japan is preparing to send a mission to Indonesia within days in a bid to safeguard its outbound business in the wake of the Bali bombings.

Source: TravelWeeklyEast.com

Starwood plans asset sale for Asian hotel expansion 

South China Morning Post  -  International hotel chain operator Starwood Hotels & Resorts Worldwide plans to sell up to US$ 500 million in assets in the United States and Europe to finance new acquisitions in the Asia-Pacific region. 

Chairman Barry Sternlicht said the group had identified China and Hong Kong as key destinations for its expansion. 

"We would like to shift our investment focus into Asia which probably has the best growth prospects in travel and tourism," he said.

The group owns and manages more than 750 hotels worth US$ 12 billion under brands such as Sheraton, Westin and St Regis. 

Mr Sternlicht hopes the asset sale will be completed in the next 12 months. 

The net proceeds would be used to finance new acquisitions in the region, he said. The capital would also be used to refurbish its existing hotels in the region. 

The Sheraton Hong Kong in Tsim Sha Tsui, the group's only management contract in the SAR, is undergoing a US$ 4 million renovation and is scheduled to be completed in April next year. 

Mr Sternlicht said the group would like to increase its presence in Hong Kong and negotiations with hotel owners concerning management operations and investment were underway. 

The group managed 85 hotels and resorts in the region and had about 10 properties in which it had equity investment, he said. 

Another 23 hotels and resorts with 7,300 rooms in Asia Pacific will be opened over the next two years. Six will be in key mainland cities such as Shanghai, Shenzhen, Dalian, Shenyang, Zhengzhou and Sanya. 

"If you are a growing company in hotel business, this is the market you have to focus on," Mr Sternlicht said. 

He expects to increase the company's revenue from Asia Pacific to 25 per cent from 10 per cent in the next five years. 

He declined to disclose the size of the planned investment in the region, saying it would depend on the economic recovery and the asset sale. 

"When opportunities come in, we would like to expand with our free cash instead of bank borrowings. But we are pretty bullish in Asia as the region is fast growing in population and upper-middle classes, and obviously we have here an economic engine driven by China," he said.

TravelCLICK To Partner With Pegasus Solutions on New 'Internet Hotelligence' Report 

Business Wire  -  Ray Cohen, president and co-CEO of TravelCLICK, Inc., the leading provider of data solutions to the travel industry, today announced that the company has signed an agreement with Dallas-based Pegasus Solutions, Inc. (Nasdaq: PEGS) to launch a new service: "Internet Hotelligence." This new report will aggregate Internet reservations data to provide individual hotel properties with competitive aggregated booking performance, distribution, and revenue management information from Web-based channels.

Processing tens of thousands of Internet bookings per day, it's estimated that Pegasus is the largest processor of hotel Internet reservations in the world. When completed in early 2003, this new Internet Hotelligence report is expected to be the most comprehensive competitive benchmarking tool available to the hotel industry for assessing and managing performance in the $ 5.5 billion Internet hotel booking marketplace. Under the agreement, TravelCLICK will be responsible for marketing and distributing the new product throughout the global hotel industry.

TravelCLICK's current Hotelligence report provides hotels with aggregated competitive information on electronic bookings via 450,000 travel agent terminals worldwide through the Galileo, Sabre, Worldspan, and Amadeus GDSs. It also provides information on a number of Internet sites that are powered by the GDSs. The new Internet Hotelligence will offer more robust data from many more Internet booking sources, taking advantage of Pegasus' unparalleled direct access to thousands of Internet travel sites that are today "Powered by Pegasus(TM)." As a leader in this area, Pegasus provides the thousands of sites in its Online Distribution Network with direct Internet booking connections to more than 44,000 properties around the world, delivering comprehensive hotel property information and online real-time hotel reservations capabilities.

"Our hotel clients have been eagerly awaiting the expansion of our popular Hotelligence with comprehensive Internet reservations data to complement the comprehensive GDS information that TravelCLICK already provides," said Cohen. "It's no secret that Pegasus powers a very significant percentage of Internet hotel bookings around the world, which makes Pegasus the best single source of aggregated Internet booking information available anywhere. The real news here for hoteliers is that Internet Hotelligence will allow them to better understand the booking performance of individual Web sites and travel portals for themselves and for their local competitors. That can only lead to improved decision-making for maximizing revenue from all electronic channels," continued Cohen.

"By teaming with Pegasus, TravelCLICK is leveraging our position in the hotel industry as one of the best sources for Internet distribution data. We are pleased to be working with TravelCLICK to create what we believe will be the most comprehensive information resource on Internet hotel reservations available to hoteliers," said Kevin Short, senior vice president, Pegasus Solutions. "With the continuing growth in Internet hotel bookings worldwide, this service will be a critical tool for hotel revenue management and marketing experts as they endeavor to enhance their distribution channel management."

About TravelCLICK

TravelCLICK (www.travelclick.net) is the leading provider of solutions that help hotels and other travel industry suppliers improve revenue from electronic distribution channels. The company's competitive benchmarking reports provide hotels with price and booking performance information unavailable through any other source. TravelCLICK's exclusive electronic marketing networks allow hotels and other travel related suppliers to target promotional messages to specific travel agents, consumers, and group meeting planners when they are booking travel. Established in 1996 and headquartered in the Chicago area, TravelCLICK operates in more than 140 countries around the world. The company has over 6,500 clients, including national and international companies such as Accor, Air France, Avis, Best Western International, British Airways, Choice Hotels, Fairmont Hotels & Resorts, Four Seasons Hotels & Resorts, Grupo Posadas, Hilton Hotels Corporation, Hyatt Hotels & Resorts, Kempinski Hotels & Resorts, Leading Hotels of the World, Loews Hotels, Lufthansa, Marriott International, The Peninsula Group, Radisson, The Ritz-Carlton Hotel Company, SAS, The Savoy Group, Shangri-La Hotels, Sol Melia, Starwood Hotels & Resorts, Thistle Hotels, USAirways, Virgin Atlantic and Wyndham Hotels & Resorts.

About Pegasus Solutions, Inc.

Dallas-based Pegasus Solutions, Inc. (www.pegs.com) is a leading global provider of hotel reservation technologies. Its services include central reservations systems (CRS); electronic distribution services that connect more than 44,000 hotels to the Internet and to the global distribution systems (GDS); travel agent commission processing and payment services; the Utell marketing and reservation representation service (www.Utell.com); and PegasusCentral(TM), a Web-based enterprise solution with property management applications. Pegasus' customers comprise tens of thousands of travel agencies around the world, including the top 10 largest U.S.-based travel agencies1; more than 48,000 hotel properties around the globe, including all of the 50 largest hotel brands in the world based on total number of guest rooms2; and thousands of Web sites/services have their hotel reservations Powered by Pegasus(TM). In addition to its corporate headquarters in Dallas, Pegasus has 20 offices in 11 countries, including regional hubs in Phoenix, London and Singapore. The company's stock is traded on the Nasdaq National Market under the symbol PEGS.

HYATT names g.m. of the year

CHICAGO -- Jerry Gibson, general manager of Hyatt Regency Kauai Resort and Spa, was recently awarded Hyatt's 2002 Donald N. Pritzker Award of Excellence, General Manager of the Year. The announcement was made by Scott Miller, president Hyatt Hotels Corporation, during the company's General Managers' meeting at Hyatt Regency Tamaya Resort and Spa in Santa Ana Pueblo, New Mexico. 

"Hyatt's general managers are very well regarded in the hospitality industry world wide. To achieve this award is an outstanding accomplishment," said Miller. "Jerry has played a significant role in many of our hotels over the last 22 years. His successes and commitment to Hyatt are respected and should be commended." 

Gibson began his career at Hyatt in 1980 as an assistant banquet manager at Hyatt Regency Maui Resort. During his career, he has spent time at Hyatt Regency Waikiki, Hyatt Regency Monterey and opened the former Hyatt Regency Wikoloa and Hyatt Regency Kauai Resort and Spa. In addition, Gibson served as Hyatt Resorts Hawaii Regional Food and Beverage Director. In 1995 Gibson received his first General Manager position at the Hyatt on Capitol Square and was promoted to general manager of Hyatt Regency Chicago, Hyatt's flagship city property, in 1997. 
Under Gibson's direction, the 600-room Hyatt Regency Kauai Resort and Spa was able to maintain steady occupancy rates with innovative marketing and leadership during the post September 11th months and year. He commends his 982 employees for their hard work and accomplishments. 
Gibson is an active member in the Kauai community serving on several boards including, The Hawaii Hotel Association, Poipu Beach Resort Association, Kauai Visitors Bureau, Koloa School Board, State Hotel Association, and Kauai Island Utility Cooperative. 

A native of Boston, Massachusetts, Gibson graduated from the University of Massachusetts with a degree in business administration. He currently resides with his wife in Kauai.

Currently, there are 207 Hyatt hotels and resorts around the world. Hyatt Corporation and its affiliates manage, franchise or operate 123 hotels and resorts in the U.S., Canada and the Caribbean. Affiliates of Hyatt International Corporation manage, franchise or operate 84 hotels and resorts in 39 countries. In the U.S., Hyatt worldwide reservations for individuals and groups can be reached at 1-800-233-1234. Outside the U.S., contact the local Hyatt sales office or representative. For more information about Hyatt hotels and resorts, visit Hyatt on the Internet at http://www.hyatt.com 

Hotels Results Seen Weak

(Reuters) - Slow business travel has cast a pall over many hotel companies reporting quarterly earnings this week, but financial analysts are gambling that casinos will again prove the ability to withstand tough times.

UBS Warburg on Monday set the tone for the week ahead by cutting stock price targets for nine of the 10 hotel companies it follows.

The investment firm forecast average room revenue would fall 2 percent in 2003 while management expenses rose as companies continue cutting travel budgets to lower their own expenses in the currently weak economy.

Hotels were behind target in October, typically one of the best business travel months, UBS Warburg analyst Keith Mills said, predicting many hoteliers would give glum forecasts with this quarter's earnings reports.

"Hotels are finding they are not meeting their occupancy targets. They are cutting their rates more than they thought they had to (in order) to attract business, and they are more aggressively going after small- or medium-sized group business," Mills said.

Wall Street, however, began the quarter with low expectations, so many hoteliers may actually meet quarterly earnings targets -- or at least come close, analysts said.

Hilton Hotels Corp.(HLT) is expected on Wednesday to report 10 cents per share earnings on $699 million revenue.

Starwood Hotels & Resorts Worldwide Inc.(HOT) on Thursday is expected to post 26 cents a share on $1 billion in revenue.

Discount Internet booking company Hotels.com (ROOM), majority owned by USA Interactive (USAI), is seen posting 42 cents a share profit on $252 million in revenue, Thomson First Call said.

The bad news for hotel owners started last week when Host Marriott Corp. (HMT) reported a sharply wider third quarter loss and said the current slump in business travel would extend into next year. Host Marriot is the No. 1 U.S. hotel owner.

GAMBLING THROUGH TOUGH TIMES

Meanwhile, casino operators have begun the earnings season with a whimper, but analysts expect more of a bang this week.

Park Place Entertainment (PPE), Argosy Gaming Co.(AGY) and Ameristar Casinos Inc.(ASCA) have all reported preliminary or final results that missed Wall Street forecasts, but each claimed unique problems, such as construction at Park Place's Caesars Palace, which drove away gamblers.

Harrah's Entertainment Inc.(HET) may see a small upside thanks to Atlantic City and Las Vegas, and MGM Mirage (MGG) may show strength in Las Vegas where it has managed room rates well, said Fulcrum Global Partners analyst Joe Greff.

"I think the gaming operators, their guidance can go higher on an operating basis," he said.

Harrah's on Tuesday is expected to post profit of 88 cents a share on $1.15 billion revenue. MGM Mirage on Wednesday is seen with a 47 cent per share profit on $1.02 billion in revenue, and Mandalay Resort Group (MBG) on Nov. 2 is forecast to report 53 cents a share on $638 million revenue, First Call said.

Lehman Brothers analyst Joyce Minor said casino operators had revived early in the year faster than expected. While she would be watching for comment on the different markets, she did not expect major revisions.

"Expectations have already moved up," she said.

Leading slot machine maker International Game Technology (IGT) won a deal announced on Monday to supply MGM Mirage with 7,000 cashless machines and retrofits that is expected to boost profit soon. It is expected on Nov. 6 to report earnings of 92 cents a share on $532 million revenue.