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Dear Traveller
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Southwest Airlines and Canada's
WestJet have announced their intention to begin a codeshare
arrangement by the end of next year. Southwest said it would sell
WestJet inventory through its website and WestJet will presumably
offer a reciprocal arrangement.
Potentially, this offers the
Canadian company further access into the United States, with the
possibility of extending into shared ground handling, corporate
account cultivation, frequent flyer programs and purchasing.
Southwest is the largest carrier in
the U.S.A in terms of number of passengers carried and the sixth
largest airline in terms of revenue. The proposed WestJet alliance
would be its first venture into foreign markets.
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Research shows travel agents get the best
deals.
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Recent Research has proven what we
have been saying for some time - using a travel management company
saves you money versus using public internet sites. This is
particularly true in tough economic times, when suppliers are
offering discounts in order to maintain volumes and utilize capacity.
You want proof? For the past seven
years Topaz International, a Portland Oregon based consultancy, has
studied the cost of airfares booked by corporate travel management
companies (such as TTI) versus various public internet sites, such as
Orbitz, Expedia, Travelocity, and airline direct websites. The
results from 2007 found that travel management companies saved their
customers an average of $56 per ticket compared to public internet
sites.
Why is this? First, from the
technology perspective, travel management companies are ahead of the
curve vs. travel websites, because of their specialized computer
systems. The travel specialist is able to focus on saving money
because their information systems can quickly tell them where the
best deals are. Examples include knowing consolidator rates to take
advantage of volume discounts; taking advantage of long term
relationships with hotel chains to gain preferred rates, and tapping
into "hidden extras" such as complimentary shuttles that
can significantly impact the cost of travel.
Topaz International continues to
conduct independent studies measuring the performance of corporate
travel programs against alternative distribution channels. In the
meantime, it seems public internet based on-line services continue to
be significantly more expensive to the traveler.
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Advice for packing carry on bags
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 Our friends at Polk Majestic Travel
Group in Denver Colorado have recently published some excellent
advice for packing carry on baggage. This from their President,
Andrea Shpall, who has not checked a bag in years.
1.Don't look at the clothes in your
closet thinking you are tired of wearing the same old clothes. They
are going to be worn in a new place and seen by people who have never
seen them before. 2.Create your travel wardrobe in two colours, one
of which is black. Mix and match to create options. 3.First choose
outfits for your most important events, such as that special dinner,
and choose just one outfit per event. You don't need multiple outfits
to choose from. Build the rest of your wardrobe around the clothes
you have to bring. 4.Bring clothes that travel easily - lightweight
and made of materials that don't wrinkle and won't show fatigue if
you wear them more than once.
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Attention all Laptop users
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 Please be aware that US Border
Protection officials are now authorized to examine, copy and even
seize travelers laptop computers - even without reasonable suspicion.
This authority has been recently confirmed by an Appeals Counrt in
the United States. As a result, the Association of Corporate Travel
Executives (ACTE) recently issued a warning to its members that we
should all take note of.
Their warning states:
1) That you should not carry any confidential, personal information
that you do not want examined by third parties on your computer - or
other electronic devices. This includes financial data, photographs,
and email stored on computers, wireless phones, Blackberries, or
iPod-type devices.
2) That you should limit the amount of proprietary business
information you carry on your computer, and, if necessary, it should
be transmitted before crossing the border so you have access to it in
the event your unit is seized.
3) If your laptop also serves as your major home computer, get
another one for travel purposes.
They also note that they are not
advising travellers to hide data from U.S. border authorities, but to
take steps to minimize the impact of its loss, or the inability to
access it, in the event it is seized.
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Weekend Getaways Close To Home
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 With air fares and fuel surcharges
on the increase, this month we thought we would focus on destinations
closer to home - places within an hour or so flying time - offering
something different to the discerning traveler. The North Eastern
United States offers many such destinations, suitable either for a
weekend getaway or a longer stay if you desire.
Take, for example, the city of
Pittsburgh - an unusual choice you might think and perhaps a
destination that immediately comes to mind. However, the city and its
environs offer some exciting and rewarding opportunities for the
vacation traveler
Pittsburgh itself offers theatre
and music to suit a variety of tastes, as well as a large variety of
interesting restaurants and other night life. The Warhol Museum is
located on the edge of the downtown core and is one of four
fascinating Carnegie Museums, the others featuring Natural History,
Art and Science. The latter is currently showing the Titanic
Artifacts exhibition which ran at the Ontario Science Centre last
year, while the Museum of Art is home to such famous paintings as
Monet's Water Lilies.
Within an hour's drive of the city,
you can be in the beautiful and historic Western Pennsylvania
countryside. A large part of the Laurel Highlands, approximately 60 miles
to the southeast, has been acquired over the years by the Western
Pennsylvania Conservancy. After fifty years under their care, this is
an area of outstanding natural beauty. As well as excellent white
water rafting on the Youghiogheny River, visitors to the small town
of Ohio Pyle will enjoy a location free of modern trappings such as
fast food outlets. Indeed, walking through Ohio Pyle is like
travelling back 50 years. Ardent hikers can enjoy the ever changing
scenery along the nearby 70 mile Laurel Highlands Hiking Trail,
which, in the winter, also offers outstanding cross country skiing.
The highlight of the area is two
houses by the legendary 20th century architect Frank Lloyd Wright.
The most famous, Fallingwater, has been described as "unquestionably
the most famous private residence ever built," and the American
Institute of Architects has voted it the "best all-time work of
American architecture." Built in 1935 for the family of
Pittsburgh department store owner Edgar J. Kaufmann, the house is
cantilevered over a waterfall, providing a dramatic setting that
almost defies belief. The house is unique in that it was bequeathed
to the Western Pennsylvania Conservancy complete with all its
original furnishings and works of art, so the visitor sees the
property as it was used and occupied by the Kaufmann family for 25
years. Fallingwater attracts over 125,000 visitors per year, so it
can be quite busy during peak vacation periods, especially in the
fall when the surrounding forest is in full colour. However,
corporate events and small exclusive tours are available, and these
in-depth tours are recommended to the discerning traveler.
Just seven miles away, another
Lloyd Wright designed house is also open to the public. Kentuck Knob
was built in the 1950's on the summit of a hill, overlooking the
Laurel Highlands. Today, it is owned by renowned art collector Lord
Palumbo, and offers the visitor a glimpse of a smaller, more intimate
Lloyd Wright home in a setting of outstanding natural beauty. The
venue is also available for small corporate events or private
dinners.
Of course, the area is also steeped
in history, dating back to before the Civil War. Those interested in
17th and 18th century American history can enjoy visiting such
historic places as Fort Ligonier, and Friendship Hill National Park.
All the places mentioned in this
article will accommodate children aged 6 and up, so are also suitable
for a family vacation. If you are interested in visiting the
Pittsburgh area or one of the other fascinating U.S. cities close to
home, contact your TTI vacation travel specialist.
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Rocky's Rant - The Impact of $130 Oil
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Are you suffering from
oil-price-crisis overload? I know that hardly a day goes by without
some new bad- news story, and most industries are feeling the impact
of the current high price of oil. However, few have experienced such
dramatic change as the airlines, and I thought it appropriate to
share some industry forecasts so you can better understand the impact
on you - the business traveler.
Current forecasts predict that the
worldwide airline industry is in for some challenging times.
According to research commissioned by the Business Travel Coalition
(BTC), every $10 increase in the price of oil adds $4 billion in
costs worldwide. If the price of oil continues at $130+ per barrel,
they forecast airlines will need to shed 80,000 employees and park
1,000 aircraft within a year. This would place some airlines in
danger of bankruptcy - particularly those with significant legacy
costs.
The airlines themselves are caught
between a rock and a hard place. Much of the recent growth in air
travel has been fuelled by the availability of low-cost fares and
carriers have generated their profits from the high load factors -
Air Canada reported a record 83.2% as recently as May. However, with
fuel surcharges now making up as much as 25% of the ticket price,
less people are travelling, reducing loads and negatively impacting
revenues and profits.
We've seen the results already.
Airlines have started parking planes and cutting staff. Air Canada
recently cancelled 10 routes, including their Hamilton to Montreal
and Ottawa services, and will be making further seasonal reductions
in the fall. South of the border, the picture is even worse, with BTC
predicting that 150 airports in the U.S. are at risk of losing
services altogether!
How will all this affect us here in
Canada? Well, the good news is that the two main Canadian carriers,
Air Canada and Westjet, are in better shape financially than many U.S
carriers. However, we can still expect some impact, especially if
traveling extensively to and from the USA.
Here are some predictions for the
next 12 months if the price of oil remains above $100 a barrel.
1.The worldwide airline industry will undergo rationalization with
the stronger airlines becoming stronger and the weaker airlines
disappearing off the map. Internationally, British Airways and
Lufthansa have enjoyed record profits recently and appear to be in
better shape than their US counterparts.
2.Air Canada and Westjet will continue to dominate the Canadian
skies.
3.All carriers will continue to adjust flight frequency and capacity
to maintain as high a load factor as possible. Individual flights may
be cancelled where loads are light, so passengers may experience
occasional delays due to so called "equipment problems."
4.Businesses will tighten travel policies and look to their travel
management supplier for new ways to help keep costs under control.
5.Service levels in some airlines will deteriorate as the fight for
survival takes precedence over keeping customers happy. Lighter
passenger loads may mean longer lines at the airport because check-in
staff will be reduced to save costs. ains above $100 a barrel.
Fortunately, there is also some
good news. We expect hotels and car rental agencies to reduce prices
to maintain market share and occupancy rates. And, leaving aside fuel
surcharges, most Canadian passengers will suffer less impact than our
friends south of the border.
What can you do to minimize the
impact of $130+ oil?
1.Be sure to book all air travel through an accredited travel agency
so that you are protected in the case of being stranded. Travel
agents carry insurance to get you home and will assist you by making
alternate arrangements. Booking using an airline's on-line website
carries no such protection.
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