Other industry news for the week

***‘Shop’ shape***

Millennium Hotels and Resorts in Boston and New York City have partnered with Macy’s to provide guests with a holiday shopping experience.

The “Macy’s Shopping” package will be available to guests staying at the Millennium Bostonian Hotel in Boston; the Millennium Broadway Hotel in New York, and the Millennium UN Plaza Hotel, also in New York.

The package, good from November 1 through January 1, includes a 15% savings pass at Macy’s , a complimentary makeover by Clincique and a backpack to carry souvenirs home, among other offerings.

*** Southwest profit rises***

Southwest Airlines posted a higher quarterly profit, outperforming its larger and older rivals.

Dallas-based Southwest said third-quarter earnings rose to $106 million from a net income of $75 million a year ago.

Revenue rose nearly 12% to $1.55 billion from $1.39 billion.

Southwest, however, which recently eliminated agent commission costs, also predicted its overall costs will rise the rest of this year.

Other airlines have also been reporting profits, though less than Southwest.

Codeshare partners Northwest and Continental Airlines, for example, both also posted profits. Northeast reported a $42 million net profit following a $46 million loss a year ago. Continental’s quarterly gain of $133 million included $100 million from selling 17 million shares of stock.

For both Continental and Northwest, the third quarter was the second consecutive quarter of net profitability. Their numbers, however, were helped by a cash infusion from the federal government.

*** Check-in: less than 45 seconds ***

Starwood Hotels & Resort’s Worldwide Inc., in testing its new check-in kiosks, found guests can take less than 45 seconds to complete their transaction by simply swiping their credit card.

Self-service kiosks similar to airline versions have been installed at the chain’s 1,215-room Sheraton Boston Hotel and the 509-room W New York — Times Square.

Following what it called a successful pilot test, Starwood plans to deploy similar kiosks in a number of hotels next year.

The kiosks use Galaxy’s next generation Lightsped ® property management system. Guests simply swipe their credit cards, which confirm a reservation and issue a key.

*** Airfares up ***

A study by American Express concluded short haul airfares will increase by up to 1% in 2004, while long haul fares will up even more, 4% or so.

The company said fares stayed down this year because of the combined impacts of Sars, the war in Iraq, rising oil prices and terrorism. Fares will go up because of increased demand for air travel.

The study found Europe to be the only region where economy and domestic fares should go down next year. The reason was attributed to no-frills carriers, about a dozen of which captured almost a third of the market share in Europe. That number is expected to continue to go up.

*** Island hopping ***

Palm Island Resort, known as Florida’s only true out island accessible only by boat, is celebrating its 20th anniversary with “Celebrate Our Anniversary” packages.

The three-day, two-night package includes a beach villa, a welcome cocktail, dinner, and a golf car to use on the island, where no motor vehicles are allowed.

The cost is $450 for two people in a one-bedroom, or $545 for four in a two-bedroom. The offer is good from September 15 to December 14, with blackout dates of November 23-27.

The island’s location is west of Charlotte Harbor on the Gulf of Mexico in southeast Florida.

*** Self-service airline check-in ***

Speed Check (SM), described as the nation’s first common-use, self-service check-in kiosks, debuted at McCarran International Airport in Las Vegas.

Alaska Airlines was among the first group of carriers offering the service. The new system allows Alaska customers to check-in at one of more than 40 SpeedCheck kiosks in high traffic areas of the airport.

Some of Alaska Airline passengers are already familiar with self-service because the new system in Nevada is similar to the Alaska Airlines Instant Travel Machine (ITM), the airline’s own self-service check-in kiosk.

SpeedCheck will initially target only passengers traveling with carry-on items, but plans are underway for a second phase to allow bag-carrying passengers to use the system.

*** Fodor’s choice ***

Fodor’s Travel Guides selected their top 20 hotels, many of which are not opulent or well-known, but all of which offer unique experiences.

The top 20 include the Alamo Square Inn in San Francisco; Buckhorn Inn in Gatlinburg, Tennessee; the Inn at Irving Place in New York, New York: the Soniat House, French Quarter in New Orleans; and the Don Gaspar Inn in Santa Fe, New Mexico.

*** Best in business ***

Intercontinental the Barclay New York was named North America’s leading business hotel at the World Travel Awards.

The 686-unit hotel won against such leading places as the Hyatt Regency McCormick Place in Chicago, the Fairmont Hotels in San Francisco and Boston, and the Hilton New York.

The hotel is among the oldest in New York’s east side.

Travel agents in over 200 countries around the world cast their votes in the travel awards.

*** Travel business opportunity ***

Advice for growth-minded destination and tourism companies: higher market shares are possible by defining customers in terms of how they perceive themselves, rather than talking to customers about overall destinations.

That advice comes from branding experts at Stealing Share, a marketing and brand planning firm.

Said Tom Dougherty, senior strategist at the Greensboro, NC-based company: “Just about every segment of the destination and tourism industry is missing the opportunity to uncover brand positions that will allow them to steal share.”

Few industries have been hit as hard because of 9-11, he added, but the response for travel companies has been to tell consumers why they should take a vacation instead of advising them on where to go.

The company based its findings on an analysis of marketing approaches by various segments of the tourism industry.

*** New business practices ***

Southwest Airlines’ decision to eliminate commissions is not unexcited and illustrates how travel agents need to continue to adopt new business practices, according to American Society of Travel Agent’s President and CEO Richard M. Copland.

He said those moves should include niche specialization and “streamlining agency operations.”

“The key is adaptation,” he said at the ASTA convention in Miami.

*** AAA’s half dozen ***

AAA President and CEO Robert L. Darbelnet offered six suggestions to ensure a bright future for the travel industry during a speech at the Travel Industry Association’s 2003 Marketing Outlook Forum in Austin, Texas.

He said: “We might as well get used to the price-sensitive, more knowledgeable shopper who is looking for a short vacation, and is comfortable booking close to the departure date.”

His six suggestions:

Stop complaining. Despite everything, the travel business still has a lot of upside.

Advertise. Find ways to promote the US to foreign tourism.

Get out of the tax collector role. Stop encouraging taxes on travelers, who are a “plump target for tolls and a minimal threat at the polls.”

Help ensure travelers get real value so they are encouraged to come back.

Recognize the diverse segments of the market and tailor your own offerings.

Collaborate with each other in the realization that a successful trip requires the success of multiple travel elements.

*** The French, Oui…no? ***

Nothing controversial about offering custom art and architecture tours. But then Terry Seligman started offering European barge vacations, particularly to France.

“A lot of my friends wouldn’t even visit France on a bet,” she said. She was referring to the recent clashes between France and the US over the Iraq war.

As a result, the French barge canal business has been down.

But in the case of Ms Seligman, she said, “I love the French and respect their ability to have different opinions.”

From a business sense, she also thinks attitudes are changing.

“I think France in 2004 is going to be a very popular destination again. Americans have short memories and I think we’ll see an upturn in the barge business there,” she said.

Inquiries about her new offerings have been on the upswing, she said.

Ms Seligman operates TerryTours Art and Travel based in Sausalito, CA.

Her various art and architecture tours have made her familiar with Paris and the rest of France, which is one reason she started offering barge trips.