For Travel Industry, a Year to Forget

By JOE SHARKEY – New York Times

I’ve been on 180 flights so far this year," said Thom Nulty, who had just stepped off another one in Washington yesterday afternoon. "That means I've spent every other day on an airplane, including weekends," he said.

Mr. Nulty, 57, recently announced his retirement as president of Navigant International, the Denver-based travel-management company. A former executive with American and Continental airlines, Mr. Nulty has long been regarded as a prominent and always quotable figure in the business-travel industry. The fact that he is calling it quits — to spend more time with his family, he says — says something about the air travel industry as it nears the end of another bad year.

It says, in a sentiment echoed by industry executives, mileage kings and queens, flight attendants and pilots, that air travel simply isn't as much fun as it used to be.

The year nears its end with almost one-third of the domestic airline industry's capacity in bankruptcy, as represented by United Airlines' nearly 20 percent market share and US Airways' 10 percent share.

An epoch, meanwhile, is commemorated today with the 99th anniversary and the start of the centennial commemoration of the first powered flight by the Wright Brothers in 1903.

It's an occasion for celebration, naturally, but also one that will prompt industry cynics to recall the wisecrack often made by the investor and lifelong aviation buff Warren E. Buffett. Mr. Buffett has joked that from the perspective of strictly financial-performance prudence, shooting down the Wright Brothers would have made more sense than encouraging them. In its 100 years, that is, the airline business has not made one nickel of profit over all.

I asked Mr. Nulty to reflect back on this year. What stands out?

"Other than the fact that one out of every three passengers is now riding around on an airplane owned by a company that's in the middle of bankruptcy reorganization, the most significant event, certainly for the travel trade, was that airline commissions actually did really go to zero this year," he said.

In corporate and leisure travel, travel agents big and large "have all converted to a fee-for-service business model, so that the commission reduction down to zero has really ended up being a price increase for customers," he said.

"The airlines, meanwhile, are doing everything they can to try and crank revenues up, and they're losing ground every step they take."

Any bright spots? Absolutely, said Mr. Nulty. Southwest Airlines has for years been an example of a low-cost airline that can prosper in the worst of times. But this year, a relatively recent start-up, JetBlue, and other longer-established discount airlines like Frontier Airlines have shown they can establish traction in both the leisure and business travel markets, he said.

Asked to define one thing that stands out among the numerous abominations, annoyances and other negatives surrounding air travel this year, business travelers themselves overwhelmingly put at the top of their lists the "use it or lose it" rule changes that airlines announced in September.

The rules, which make it more expensive to reuse a nonrefundable ticket if it isn't used for the original flight, were intended to penalize the large numbers of business travelers who abandoned top-dollar fully refundable business fares for nonrefundable advance purchase discount fares starting last year.

"The airlines seem to be determined to chase their best customers away," said Michael Sommer, a technology consultant in Jacksonville, Fla., who said he had two million frequent-flier miles on United Airlines alone.

Other frequent fliers cited a worrisome trend they see developing in the industry, as some major airlines have recently begun signaling that currently generous policies for awarding frequent-flier program status-level mileage might be tightened next year.

Typically, airlines award frequent-flier miles, which business travelers often value less for free trips than for their value toward qualifying for yearly status levels with benefits like free upgrades, based on the number of miles flown, period. Last week, however, Delta Air Lines said that next year, passengers who fly on the cheapest discount fares will earn a half-mile in status-level credit for each mile flown, while those flying the most expensive coach fares will earn a mile and a half.

Other airlines have not copied Delta's move so far. In fact, several have recently made it easier for customers to buy extra miles to add to their elite-status accounts, usually at about $25 for each 1,000 miles. But with fewer big planes being flown, and revenue squeezes worsening, many industry experts say that tighter restrictions are coming across the board next year on status miles and the availability of upgrades.

Mr. Sommer, meanwhile, does have one good year-end thought about an airline, United. A week ago, he boarded a plane and found on his seat a personalized letter — "hand-signed and hand-typed, which I could tell because it had a typo in it," he said — from the inflight service manager for United at Philadelphia International Airport.

"It was a note thanking me personally for being a valued customer," Mr. Sommer said. "O.K., big deal, a letter, right? But let me tell you, I'm going to remember next year that a United employee took the trouble to do that. It'll remind me that I've always considered United's inflight service, including its flight attendants, one notch above the rest."

We'll continue with this year-end review next week, and I hereby invite readers to send me their own comments on what was memorably good and what was memorably bad about business travel this year, in the air or on the ground.

Bali Hoteliers hold the line

TravelWeeklyEast.com  -  Bali’s hoteliers are divided over when their business will return to good health, and when they should relaunch their products with advertising and promotion.

Estimates vary between February, and the October 2003 anniversary of the Bali bombings. Brad Kirk, general manager of the Bali Hyatt, speaking on behalf of the 45 members of the Casa Grande group of luxury hotels, said it was wrong to assume Casa Grande was doing nothing, despite a collective decision not to offer deeply discounted room specials to the FIT market.

He said "so-called friends in the industry" had tried to exploit the situation by attempting to secure long-term room contracts at low rates.

"But hoteliers are holding the line, and this is the first time in five years that I've heard Bali's tourism industry speak with something of a consolidated voice," Kirk added.

Pat Phanekham, general manager of the Balihai resort, said any advertising before March-April would not be effective. The threat of a Middle East conflict was another cloud over-hanging a tourism recovery, he said.

"It can't be left to the private sector to promote Bali – we need government funding.

Individual hotels are having a tough time, most are continuing to pay their full-time staff, so we will need dollars to go out and promote the destination," said Phanekham.

Richard Bussiere, general manager of the Sheraton Laguna resort, said the Japanese market had been very supportive with visiting travel industry people and media returning from Bali with positive stories about the island's security.

There were no signs yet of a recovery in the Australian market. "The Australian are still hurting – it's too early for them," Bussiere said.

New appointments at BHA

Caterer.com  -  Andrew Guy, chief executive of City Centre Restaurants, has been elected chairman of the British Hospitality Association's (BHA's) national executive.

He succeeds Peter Taylor, managing director of the Town House Company, Edinburgh.

Guy's previous role as vice-chairman will be taken by David Williams, director of the family-owned Ambassador Hotel in Llandudno, north Wales. Williams is a past chairman of BHA Wales and is currently chairman of North Wales Tourism.

Also today, the BHA has elected Paul Dermody, chief executive of De Vere Hotels, as chairman of the BHA Council.

The 14-strong council is made up of chief executives of the largest companies in the UK hospitality industry.

Dermody replaces John Wilson, chief executive of Millennium & Copthorne.

Source:  Caterer.com

Employee Self-Service Applications

By Christina Morfeld

Much to the dismay of Human Resources professionals worldwide, HR activities tend to be dominated by "administrivia" – paperwork, telephone inquiries, and drop-in visits. These demands often force HR staff members to be reactive – rather than proactive – in their pursuits. One benefit of implementing an employee self-service (ESS) application is that HR groups are freed up to play more strategic roles in their organizations.

Chances are, many of your processes are already automated: An employee completes a form – vacation request, beneficiary change, training registration, etc. – then that same information is entered into the appropriate database by HR. Multiply that by the number of HR transactions processed in a week, a month, a year... Quite a duplication of effort, isn't it?

An ESS, on the other hand, allows employees to make changes directly to the system. More importantly, employees are given the opportunity to explore "what if..." scenarios before committing to a change: What if I increase my payroll deductions? What if I switch insurance carriers? What if I use five vacation days? What if I select different mutual funds for my 401K? You get the picture.

Once an employee makes a change, his or her personnel record is updated instantaneously.

The types of transactions supported by ESS applications are almost limitless. Besides benefit and payroll issues, they can be used to automate procedures related to internal job postings, time and attendance reporting, and training enrollment, to name just a few.

In addition to transactional capabilities, ESS applications can provide employees with a wealth of useful information (hence the frequently-used term "knowledgebase"). An organization's plans, policies, and procedures are transformed into meaningful answers to its employees' inquiries. With the use of a search mechanism and/or site map, employees can easily locate the information they need. Once there, they have the option of "drilling down" to more specific information or jumping to linked pages that contain related information.

Two attributes of ESS applications make them especially powerful: (1) intuitive approach to the information and (2) personalization of content.

Employees oftentimes know exactly what they are looking for: Their co-pay amount, number of unused personal days or taxes withheld from last week's paycheck. Other times, however, an employee experiences something in his or her personal or professional life – marriage, birth of a child, serious illness, layoff, retirement, etc. – and is not aware of the steps that should be taken as a result. The "life event" approach characteristic of many ESS applications addresses this issue. By simply selecting his or her specific circumstances, the employee will be presented with a comprehensive "to do" list. This list, which is generally not limited to work-related tasks, is often supplemented with a directory of related resources and links to useful websites.

The information provided by the ESS is based on the employee's profile. If, for example, the details of a certain benefit are contingent upon the employee's status (part-time vs. full-time, salaried vs. hourly, active vs. leave of absence, staff vs. management, union vs. nonunion, etc.), the employee will have access to only that data which relates specifically to him or her.

These two characteristics of ESS applications – intuitiveness and personalization – provide employees with a level of knowledge rivaling that which results from a face-to-face meeting with an HR representative. Not only are their specific questions answered but issues not previously considered may also be brought to light.

Additional benefits of an ESS include:

• All of an organization's information is in one place; the need to reference multiple documents and/or databases is eliminated.
• Many ESS applications can be customized so that the interface matches that of an organization's corporate intranet; the transition from one system to the other will be seamless to the employee.
• The information can easily be kept current; there is no longer a need to sift through the Employee Handbook and its fifteen addendums to find the most up-to-date policy on xyz.
• The need to print and distribute paper-based manuals is eliminated; think of all the money that can be saved on postage!
• The information is available 24x7 and anywhere that the employee has an Internet connection. This allows him or her to view and discuss options with family members prior to making decisions.

Some organizations, of course, have the information technology resources to build an ESS in-house. For those that do not, there are dozens of companies whose sole business is developing these knowledgebases.

Some ESS suppliers target organizations of a specific size; that is, their product may be better suited (and priced) for small companies or large ones. Other suppliers may offer multiple products, each designed with organizations of a particular size in mind. Suppliers may also differ in the depth of any needs analysis performed, the extent to which their product can be customized, the level and nature of assistance provided during implementation, and the availability of ongoing technical support once the system is installed.

It is, therefore, extremely important that you "do your homework" to identify the supplier and ESS product that best meets the needs – and budget – of your organization. When done right, the rewards can be tremendous!

Copyright © 2000-2002 Christina Morfeld and Affinity Business Communications, LLC. Originally published by Suite101.com. All rights reserved.

Christina Morfeld is president of Affinity Business Communications, a provider of high-quality instructional design, technical writing, and content development solutions. Whether writing to instruct, inform, or persuade, our work is reader-focused, benefits-oriented, and results-driven.

Contact us at 203-445-9964 or info@affinitybizcomm.com , or visit our website at http://www.affinitybizcomm.com  to learn how we can increase your firm's sales and effectiveness!

Bali downturn likely to be prolonged

TravelWeeklyEast.com  -  Interim  figures obtained by balidiscovery.com show November arrivals to Bali slumped to only 31,377 direct foreign arrivals, a figure down 57 percent from November 2001.

Balidiscovery.com said that bearing in mind the lingering effects from 9-11 on 2001's figures for November, and averaging November arrivals for the three years 1999-2001 (90,238), the November 2002 arrival totals represented a massive 65 percent drop in business from the average for that month.

The figures also show:

·         The 2002 downturn in Bali's tourism business was much more acute, deeper, and may in fact prove to be more prolonged than the slump following the 9-11 terror attacks in the United States one year earlier.

·         The 2001 slump botttomed out in November that year with arrival figures to Bali improving steadily until they actually managed to outpace the early 2001 arrivals in May of 2002.

·         The recovery from the 2001 US terror attacks was complete and total dating from May 2002, with May-September logging in record high arrival totals in each of those months.

Pacific Islands Well Placed To Lead World Tourism Growth

The Pacific Islands are well placed to attract some of the displaced demand from south-east Asian resort destinations during this period of political uncertainty, according to Jones Lang LaSalle Hotels.  The firm’s latest report FocusOn Pacific Islands, addresses the limited analysis available on the regions’ tourism and hotel markets.  It covers the major markets of Fiji, the Cook Islands, Samoa, French Polynesia, Vanuatu and New Caledonia. 

According to the report, long-term international arrivals (1991 to 2001) to these markets have increased at an average rate of 4.4% pa, surpassing the global average growth rate of 4.0% pa.  The Pacific Asia Travel Association (PATA) predicts tourism arrivals to Fiji, the Cook Islands and Vanuatu will grow at above average rates to 2004. 

“During this period of political uncertainty, we anticipate the Pacific Islands will attract some of the displaced demand from resort destinations across south-east Asia” said Troy Craig, Senior Vice President, Jones Lang LaSalle Hotels.  “The islands’ proximity to the lucrative markets of the US west coast, south-east Asia and Australia/New Zealand represents a great opportunity for the region to grow tourism at even faster rates than have been achieved over the past decade.”

A major factor in favour of these destinations is their relatively unspoilt natural environments, allowing the region to directly benefit from the prolific demand for diving holidays.  Needless to say, preservation of this pristine natural environment will be critical if the region is to benefit from expectations of continued strong growth in diving holidays over the longer term. 

The future of tourism development in the region will also depend on greater air connectivity and capacity, as well as increased competition to drive down airfares.  “Some of the Pacific Islands have suffered at the hands of limited air capacity making those seats that are available expensive when compared to competitive resort destinations around the world” said Mr Craig.

Historically, the region has also lacked sufficient international hotel brand presence that is essential in attracting higher yielding tourists.  “International brands are looking to gain a stronger foothold in the Pacific Island markets.  This will improve the overall level of service in the region and in doing so, improve its reputation as an international ‘value for money’ destination” Mr Craig concluded. 

www.joneslanglasallehotels.com 

Australian meeting industry leaders remain optimistic about the future

AsiaTravelTips.com  -  In a year book-ended by the twin tragedies of 9/11 and the Bali bombings, the leaders of Australia’s meetings, incentive and exhibition associations remain upbeat about the future. In the lead up to the region’s largest industry event, AIME 2003, the 11th AsiaPacific Incentives and Meetings Expo, they provide their views on the state of the meetings industry.

Ms Jenny Lambert, Chief Executive of the Meetings Industry Association of Australia (MIAA), remains optimistic and notes that conference activity reflects the wider economic picture.

“The general view is that the association market is continuing to hold up very well. Having said that, all that basically means is that the events are going ahead, although going ahead with substantial numbers,” said Ms Lambert.

“Certainly there are some question marks as to whether delegate numbers are meeting expectations. However, all in all, everybody is pretty optimistic about the association market.”

Associations such as MIAA have an important role to play in developing the industries they represent. Ms Lambert is particularly excited by a recent lobbying effort by the MIAA and such other organizations as the Association of Australian Convention Bureaux (AACB) and the Business Events Council of Australia (BECA) to establish a federal business events corporation.

“We think a business events corporation would be a very step forward. It would mean that the promotion internationally at a federal level would come out from under the umbrella of the ATC, where it is currently a very small slice of the pie, and be given a much larger prominence to promote business events and the importance of business events.”

Another issue of concern to the MIAA is airline capacity, which has the effect of limiting growth both in domestic meetings and international conventions and congresses coming to Australia.

“That’s probably having the most profound effect on our industry at the moment,” said Ms Lambert. “Whatever happens with the airlines has a major impact on our industry.”

Graeme Selby, President of the Exhibition & Event Association of Australia (EEAA), supports the view that while some corporates may be nervous about the future, it is tinged with the perception that the best is yet to come.

“There is certainly a sense of caution in the marketplace. What we have seen is some evidence that companies, whilst they are continuing to support exhibitions, might be temporarily reducing the levels of their commitment.

“I think they’re appreciative of the exposure they get at these events and they see them as quite accountable in uncertain times but like many companies they’re watching their bottom line and may be approaching exhibitions in a more cautious way than they might have in the past,” said Mr Selby.

“I think organisers with strong, well-established events have been less affected than those that might be at the margins. If any components of our industry have been impacted, it might be those lesser shows where some exhibitors feel that if they don’t participate, it’s not going to have a huge impact on their sales and marketing exercises. At times like this, they tend to remain with the mainstream events.

“Exhibitions, like any marketing medium, can be cyclical. And exhibitions do reflect the industries they represent. Personally, however, I feel very positive about the future of exhibitions.”

The creation of the Incentive Marketing Association (IMA) from the AustralAsian Incentive Association (AIA) marks the beginning of an exciting period for the industry body. 

Virginia Trautwein, Regional Chairman of the Incentive Marketing Association, said the IMA’s launch has been well accepted with a membership base that now concentrates on practitioners who design, administer and reward incentive programs.

“There are some suppliers in the industry who weren’t sure they fitted into the scenario but they now realise they do.” said Ms Trautwein.

The newly-reformed association is leaner and refocused and is working hard to create real business benefits for members. Member accreditation and continuing education are important aspects of the association.

“The industry is growing and IMA represents the industry well,” said Ms Trautwein.

EEAA, MIAA and IMA will each run educational seminars at AIME 2003 at the Melbourne Exhibition Centre, 18 & 19 February.

Source:  AsiaTravelTips.com  

HSMAI Foundation Focuses Research On Defining Value Drivers For Business, Leisure Hotel Customers

While the hospitality industry generally operates on the assumption that the traditional value items such as price points, location and personal service continue to be the key drivers affecting customer choice, the changing paradigms in almost all facets of consumer behavior suggest that the value drivers for purchases of hospitality services may also have undergone a shift in recent years.

To assess the new value drivers for hotel customers, the HSMAI Foundation, sponsored by its Corporate Membership Program, spearheaded a research project to provide a better understanding of the nature and evolution of the value drivers among business and leisure customers of the hotel industry in the United States. The study’s secondary objective was to explore the customer perceptions related to travel and hotel safety following the terrorist attacks on Sept. 11, 2001 and subsequent events.

Whereas the “core offering” of a hotel – price, room and location – still account for about 70% of the choice criteria, approximately 30% of the selection process is led by new value drivers such as technology, loyalty points and customization options. “In an era of high speed competition where hospitality services have become more or less commodities, and hotels are fast becoming indistinguishable from each other, hotels have to be quick to adapt to the new and changing requirements of their customers in order to win their business,” according to study researchers.

“Sales and marketing executives can no longer take anything for granted in allocation of funds for customer acquisition or retention,” stated Cindy Estis Green, managing partner of The Estis Group and chair of the HSMAI Foundation.
She added: “In this quickly changing landscape, understanding what drives customer behavior is crucial, and knowing it is a moving target makes its study even more important for the sales and marketing professional. HSMAI corporate members strongly support the ongoing study of topical and timely issues like this.”

A detailed recap and analysis of the report appears in the fall issue of the HSMAI Marketing Review. Subscriptions are included in the HSMAI membership or are available for $65 annually. HSMAI members can access additional copies for no charge through the online store at www.hsmai.org. Non-members can purchase copies of the HSMAI Marketing Review recap for $10 via the HSMAI web site.

Methodology:

To address the project objectives, the research team – directed by Professor Rohit Verma (University of Utah), Professor Chekitan Dev (Cornell University) and Professor Gerhard Plaschka (DePaul University) – conducted an online national hotel choice survey to capture the individuals’ (both business and leisure travelers) preferences with respect to value-added features offered by upscale, mid-range and economy hotels. The survey questioned respondents’ frequency of hotel stay during the last year, about their most recent trip, their views about technology, and a series of hotel choice scenarios. Using experimental design procedures, a selected number of customized hotel scenarios were generated for each individual respondent. 

Each hotel choice scenario contained a list of features (i.e.: weekday and weekend price, loyalty program options, and various hotel facilities, technology and customization options) offered by three generic hotels – one upscale, one mid-range and one economy. The respondent was asked to choose one of the three hotels (including the choice of “none”) described in each hotel offering.

Changing Paradigms:

To respond to changing market needs, an increasing number of hotels have either initiated or proposed offering a wide variety of “new” value drivers, such as Internet reservations, high-speed in-room Internet access, enhanced frequent user programs and customization.

However, a hospitality operator cannot afford to implement all best practice initiatives in all areas of hotel management to be “everything to everybody,” nor use experimental learning approaches by utilizing “spray & pray” tactics.
Therefore, to maximize the gain from the introduction of new value drivers, hospitality companies need to develop an understanding of market preferences prior to the addition of new services to their existing offerings. It is important to examine whether the product and service offerings actually add value for customers while at the same time remain economically viable to the organization, the study concludes.

HIGHLIGHTS:

· Amenities are becoming important value drivers, especially to economy travelers
· Loyalty programs are nice to have, but don’t drive choice, although they are more important for business travelers
· Price is the most important value driver for upscale business and leisure travelers
· Eating options are not highly valued by business travelers
· Customization counts more for leisure travelers
· Leisure travelers value technology just as much as business travelers
· Boutique hotels are valued over traditional hotels by both segments
· Leisure travelers value hotel points over air and retail
· Hotel guests see value of in-room kitchen facilities
· All travelers value childcare options
· Business travelers value shuttle service as top amenity
· Video surveillance and photo ID checks are highly desired
· Hotel guests on average seem to be willing to pay about a 10% premium for security

SURVEY RESULTS:

Value Drivers for Business Travelers:

Core offerings along with price, amenities and loyalty programs account for 80% of the relative utilities in all three markets (economy, mid-range, upscale). Core amenities, location, price and loyalty programs are the critical value drivers for the economy segment. For the mid-range segment, the relative importance for various value drivers is similar to that in the economy segment except for a relatively higher utility for hotel location and type. Price seems to be the primary value driver followed by type/location of the hotel for the upscale segment.

Value Drivers for Leisure Travelers:

Within the economy segment, the primary value drivers are the amenities available. Price becomes more important for the mid-range segment although the relative importance of other value drivers mostly remains unchanged compared to the economy segment.

Loyalty Programs:

For business travelers, retail points and airline miles seem to be equally attractive choice drivers. Leisure travelers, however, would prefer to accumulate hotel points over shopping or airline miles.

Dining Options:

Business travelers assign the greatest importance to restaurant facilities among the three types of eating options, while leisure travelers consider free breakfast and availability of in-room kitchen facilities more than the availability of restaurants.

Office Facilities and Technology Options:

Office facilities and technology options only account for 5-10% of the total weight in the decision-making process.

Hotel Amenities:

Hotel amenities account for 20-30% of the choice. For business travelers, the most important feature seems to be shuttle service to and from airports, while swimming pool facilities and fitness centers are secondary, but equally important for them. For leisure travelers, the two most important hotel amenities are a swimming pool and access to childcare facilities.

Willingness to pay extra for enhanced security measures:

Avg. % higher
Leisure 10.75
Business 7.73
All 9.97

CONCLUSION:

The study recognizes that while being aware of some of the key value drivers for the hotel industry, it is only one part of the equation. To be successful, firms need to understand their own distinctive competencies, operational strengths and limitations and choose the product/service delivery strategy that not only satisfies the customer but also is in line with their own capabilities and overall direction.

The logical next step would be to tie in customer demands with the operational capabilities of a firm to determine the optimum mix of service delivery options to maximize its value both to the customer and to its stakeholders.

Funding for this study was from the members of the 2001 HSMAI Foundation Corporate Membership Program, which include: Accor, American Golf Corporation, Bass Hotels and Resorts, Best Western International, Cendant Corporation, Choice Hotels International, Citicorp Diners Club, Disneyland Resort, Fairmont Hotels & Resorts, HotelRevMAX, International Association of Convention & Visitors Bureaus, Irma S. Mann Strategic Marketing, John Q. Hammons, Manhattan East Suite Hotels, Marriott International, MeriStar Hotels and Resorts, Millennium Hotels and Resorts, Omni Hotels, Opryland Hotels, Passkey.com, Prime Hospitality, PriceWaterhouseCoopers, Radisson Hotels & Resorts, RealTime Hotel Reports, Ron Volper Group, Smith Travel Research, Sonesta Hotels, Resorts & Nile Cruises, Starwood Hotels & Resorts, TravelClick, Inc. and Wyndham International. The HSMAI Foundation Corporate Membership Program is now open for 2003 membership.

The HSMAI Foundation was established in 1983 to serve as the research and educational arm of the Hospitality Sales & Marketing Association International. Its mission is to expand and enhance the educational opportunities available to hospitality sales and marketing executives and to increase the amount of in-depth research conducted on behalf of the profession.

For more information on HSMAI or the HSMAI Foundation, contact the Hospitality Sales & Marketing Association International, 8201 Greensboro Drive, Suite 300, McLean, VA 22102, phone (703) 610-9024; fax (703) 610-9005. You can also visit the web site at  www.hsmai.org 

Marriott Launches Wireless Internet Access at 400 Hotels

/PRNewswire/ -- Marriott International, Inc. announced today that it plans to install wireless high-speed internet access at 400 hotels in the United States, the United Kingdom and Germany. It is the largest deployment of wireless high-speed internet access in the hotel industry, and the new service will be available at select Marriott, Renaissance, Courtyard, Residence Inn, TownePlace Suites, Fairfield Inn and SpringHill Suites hotels. Marriott is working with STSN, Marriott's preferred high-speed internet access provider, to offer the service. High- speed wireless service will be available in hotel lobbies, meeting rooms and public spaces and will complement the current in-room high-speed internet access.

The announcement comes after an extensive 7-month test, conducted by Marriott and STSN, involving the San Francisco Marriott, San Francisco Airport Marriott, Irvine Marriott, Salt Lake City Marriott Downtown, and Residence Inn Salt Lake City Cottonwood. "Many of our guests have expressed an interest in wireless internet access. Providing business travelers and meeting attendees the ability to work in a wireless environment with convenient online access during conferences and group meetings creates a distinct competitive advantage," said Lou Paladeau, Marriott's vice president of technology business development.

To access wireless high-speed internet access at a Marriott property, the guest simply turns on a wireless-enabled laptop and accesses the Internet. A purchase page then appears on the computer screen and customers can enter their billing information.

Complete instructions on how to access Marriott's high-speed wireless service are available at http://www.stsn.com . The service will also be supported by a 24-hour, toll-free customer assistance line. Pricing for the new wireless service is under review and has not been announced.

Japan:  Discount travel agents take the unwary for a ride

The Japan Times - Marco Solas was looking forward to getting out of Tokyo and spending some time with his family back in Britain -- until the discount travel agency that was handling his ticket went belly up, leaving him stranded and out of more than 200,000 yen.

Solas, an assistant English-language teacher at a junior high school, recently made round-trip reservations for himself and his girlfriend through Beyond Ltd., a Tokyo travel agency dealing in discount airline tickets.

He paid 208,520 yen for the pair of tickets by mid-November and was due to depart on Dec. 20.

But on Nov. 28, Solas received a notice from Beyond, informing him that it had gone bankrupt. The travel plans of Solas and about 310 others, mostly foreigners, who had reserved tickets through the Shibuya Ward-based firm are now in limbo.

The agency failed to transfer its customers' ticket payments to a wholesale agent, and the would-be travelers must cough up the full amount again if they want to get out of Tokyo. Solas says he simply cannot afford it.

"Our Christmas is basically wrecked," he said. "I don't know what we're going to do."

Solas' case provides a glimpse into the life-or-death competition among Japan's discount air-ticket sellers, which are suffering amid the sluggish economy and fallout from the Sept. 11, 2001, terrorist attacks in the U.S.

Beyond blamed its bankruptcy on a "drastic drop in sales due to recent social situations," including "competition for low-price airfares and the frequent occurrence of terrorism incidents." But sources close to the company laid the blame squarely on the shoulders of Beyond President Mohammed Hai.

"(Hai) was too optimistic about his outlook," said Yasusada Kimura, a lawyer who represents the failed firm. "He hired seven employees, when he only needed two or three people for the kind of business he operated."

Hai set up the agency 4 1/2 years ago. The firm's liabilities now total some 40 million yen, Kimura said.

Hai, whose nationality is unknown but is originally from Bangladesh, could not be reached for comment.

A former employee of Beyond who declined to be named said that after the firm opened a branch in Yokohama in late September, the staff there had little to do for more than a week as the phones rarely rang.

But Beyond's case is symptomatic of a wider problem, industry sources said.

Many travel agencies that depend heavily on sales of discount air tickets stand little chance of making it in the current harsh business climate, the sources said.

Over the past several years, overheated price competition has forced many agencies out of business. A few specializing in discount tickets have thrived, but the ever-narrowing profit margins are weighing heavily on many, according to experts.

Wholesalers made international discount air tickets available in the late 1960s, when they began contracting with airlines to buy seats in bulk at discounted prices. The deals are made on condition that agents use the tickets only as part of group package tours.

Unlike regular tickets, discount tickets come with various restrictions, including being nonrefundable and unchangeable. As demand for discount tickets grew, wholesalers started selling them separately to individual travelers. The premise that such tickets must be part of a package that includes, for example, hotel accommodations has also fallen by the wayside.

Discount tickets occupy murky legal territory. Their prices are not fixed and remain negotiable between wholesalers and airlines.

Discounted fares meanwhile contributed to the surge in the number of Japanese traveling overseas. The number of outbound tourists continued to grow even after the bubble economy burst, from 10.9 million in 1990 to nearly 16.8 million in 1997.

A manager at a midsize travel agency in Tokyo said many agents started up about 10 years ago, when the sales volume of discount tickets was on the rise and margins from ticket sales averaged around 15 percent.

In the last four or five years, however, the number of overseas travelers has leveled off, and margins began thinning as competition grew.

Then came 9/11. The attacks dealt a severe blow to Japan's travel industry, which was already reeling from sluggish consumer spending.

The manager of the midsize agency said: "We buy a ticket to Seoul from a wholesaler for 28,000 yen, add 1,000 yen on it and sell it for 29,000 yen. But then we find someone else is offering the same deal for 28,500 yen, with only a 500 yen margin."

According to the All Nippon Travel Agents Association, a 6,000-member group of small and midsize travel agents, the amount of money it refunded to customers through a legally mandated compensation scheme as a result of bankruptcies of its members was 267 million yen in fiscal 2001 -- more than triple the 76 million yen returned in 1991.

The Japan Association of Travel Agents, an industry body of mostly major travel agencies, reimbursed 260 million yen to customers affected by the failures of 17 of its members in fiscal 2001. This figure is well down from the 1.06 billion yen refunded in fiscal 1998, when two major banks went under.

The association came to the aid of customers of 28 travel agents, including big names like Jetour Corp. and Shiki-no Tabi Co., which caved in to the winds of recession.

Industry sources said that some of the travel agents currently running massive advertising campaigns in newspapers and magazines may be struggling to stay afloat.

"We must keep operating and get new customers (so we can pay our current debts)," a small agent said, adding that his company is in the same boat as Beyond.

The customers affected by the Beyond bankruptcy are also victims of the voucher system, which is unique to Japan. The standard practice by travel agents here is to take customers' cash for fares and only issue a travel voucher -- not the actual ticket. Customers present their vouchers at the airport and are then given their tickets.

Industry sources cited various reasons as to why this practice is prevalent.

A key factor is that many travel agents in Japan are not accredited by the International Air Transport Association, a trade body representing the airline industry worldwide. Retail agents must buy tickets from IATA-accredited agents, which are entitled to issue the actual tickets.

Many retail agents meanwhile try to hold on to the money as long as possible.

For example, when customers pay the balance three weeks ahead of departure, agencies can then use that money to meet other payment obligations. The agents only pay the money to wholesalers and have them issue tickets just three days before takeoff.

"It is common sense in any business to charge early and pay late," said Yusaku Kawakami, president of Ascent Co., a small travel agency in Tokyo's Minato Ward.

By having travelers pick up their air tickets at the airport, travel agencies can avoid the trouble of customers forgetting their tickets or losing them before departure, Kawakami claimed. Some companies mail tickets to customers if they ask, he added.

Travel vouchers, which simply list the names of passengers and the flights booked, have no financial value and are not acknowledged by wholesalers or airlines unless they are accompanied by money from retail agents.

Travel agencies registered in Japan fall into three categories, depending on the size of their business. Beyond, capitalized at 7 million yen, was in the third category.

By law, a third-category agent must put up a refund guarantee of at least 2.5 million yen with its home prefectural government so it can reimburse customers in case of bankruptcy. But by the time this is divided between the 310 eligible customers of Beyond, the dividends per person will be negligible.

Solas said he is networking with other people in the same boat to put up a united front against Beyond, and plans to file a criminal complaint with police over what he claims is fraudulent business activity.

Air ticket deal too good to be true?

Here are some pointers provided by travel industry sources on how to avoid trouble when buying discount air tickets from travel agencies.

Is it safe to do business with an unfamiliar travel agent offering a great bargain?

Compare the price with those of other agencies. Use caution if the agency is offering an exceptionally cheaper deal than others. While genuine bargains exist, it is also possible that a cash-strapped agency is making a last-ditch attempt to lure customers.

How can one tell if an agency is sound?

Make sure the agency is registered; if the registration number does not appear on their ads, call them to ask their number. There have been several cases of unregistered agents being arrested for operating a travel agent business.

If concerned about an agency's financial footing, ask if it can issue tickets before departure. While most discount air ticket agencies in Japan use vouchers, legitimate agencies will mail tickets to customers or hand them over in advance if so requested.

What course of action is available if a travel agent goes under?

All registered travel agents in Japan are required to put up a certain amount of money to reimburse customers in case they go bankrupt. The amount differs by the size of the business.

How long does it take to get money back, and will reimbursement be paid in full?

Unfortunately, the reimbursement process typically takes more than a year, and the amount of money a customer can reclaim averages 5 percent of the amount paid, or less, experts say.

The Japan Association of Travel Agents and the All Nippon Travel Agents Association each have an additional customer compensation scheme for member firms that have voluntarily paid a fee.

Who should be contacted?

Call JATA at (03) 3592-1266 or ANTA at (03) 5401-3600, in Japanese. They will mail you forms to fill out for reimbursement procedures if your agent is a member of either industry group.

If your agent is not a member of either group, contact the local prefectural government section in charge of travel agencies. The Tokyo Metropolitan Government contact number is (03) 5320-4769.

Note that few such offices can handle calls in English or other foreign languages.

NZ Queenstown hotel best in world

Nzoom.com  -  It used to be one of Queenstown's (New Zealand) best known watering holes but these days the Eichardt's hotel is attracting attention from around the globe.

An American writer who rates hotels for the rich and famous has named it the best in its class.

After the floods of 1999, the 130 year-old Queenstown icon was gutted as part of a major refurbishment. That new look helped the Eichardt's take the 2002 title of the world's best new small hotel.

The accolade was bestowed by renowned US Travel writer Andrew Harper. Harper travels incognito, like an international spy, always paying his own way and that helps add to his international reputation.

Harper does not appear on camera but he told ONE News that in addition to the location and luxurious surroundings, Eichardt's service was the icing on the cake.

But a night of luxury at Eichardt's does not come cheap.

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