Travel Business News - North America

AirGuide Business, June 30, 2008

Jun 30, 2008

In testimony before the House Small Business Committee, Roger Dow, president and CEO of the Travel Industry Association (TIA), said that deep frustration with the air travel process, including inefficient security screening and flight delays and cancellations, caused travelers to avoid 41 million trips over the past year. Dow pointed out that these economic losses are most harshly felt by small businesses. "Businesses within the travel sector are particularly dependent on reliable and efficient air travel. Over 95 percent of travel and tourism businesses are small businesses: 98 percent have 100 or fewer employees and 99.5 percent have 500 or fewer employees. Anything that affects air travel in the United States hits these small businesses harder," said Dow. Dow noted that security and air traffic control, which is the source of many flight delays and cancellations, are both within the purview of the federal government. He said that travelers are voters too and they are looking for a champion to stand up for the traveling public. Jun 27, 2008

In what represents the first time in a decade that the AAA has forecast a lower number of people taking driving vacations on consecutive holidays, fewer people are expected to drive or fly over the Independence Day weekend, compared to last year. The AAA expects 4.54 million Americans to fly during the holiday weekend, down 2.3% from the 4.64 million who flew last year. The Air Transport Association said that nonetheless, passengers can expect flights to be full. Jun 27, 2008

The National Tour Association (NTA) is inviting professional travel agents and buyers to participate in a one-day Buyer-to-Buyer Exchange at the 2008 Annual Convention in Pittsburgh. The Exchange gives agents access to the unique tour product offered by NTA travel packagers. NTA is pleased to offer the travel buyer program again this year. As part of the one-day program, professional travel buyers will connect with qualified NTA tour operators who offer creative and customized product ideas. NTA tour operators have been in business an average of 23 years and are among the most distinguished and diverse in the industry. They offer a mix of package types ranging from group to FIT and their tours cater to nearly every demographic from student to seniors. Jun 27, 2008

The negative effect the current airline crisis is having on leisure and business travel, as well as the travel agency industry, was underscored by testimony by American Society of Travel Agents' Senior Vice President of Legal and Industry Affairs Paul Ruden, Esq. testified at a House Committee on Small Business hearing. As these practices continue, so too will the already dire erosion in goodwill and trust between carriers and the traveling public. Viewed in light of what the FAA projects to be an increase in the number of U.S. passengers from the current 689 million to 1.1 billion per year in 2025, the convergence of these industry practices paints a frankly bleak picture. Jun 27, 2008

The American Society of Travel Agents (ASTA) has advised members that Florida Governor Charlie Crist has signed into law SB 1310 which, effective July 1, significantly increases registration fees, security bonds and potential fines for firms selling trips to any nation that has been designated by the State Department as a state sponsor of terrorism. Under the new law, if an agent located anywhere in the country sells travel to a Florida resident with any one of the five designated countries as a destination, he/she must certify in advance of the sale and pay an increased registration fee ranging from $1,000 and $2,500. Presently, Iran, Syria, Cuba, Sudan and North Korea are the only countries designated by the State Department as terrorism sponsors. Jun 26, 2008

Congress on Tuesday was expected to extend federal aviation law and excise taxes for six months. Lawmakers have not reached an agreement on FAA reauthorization legislation to modernize the nation's aging air traffic control system. The effort would shift the ground-based ATC system to a satellite-based system. Jun 25, 2008

Higher airfares, caused by the surging cost of fuel, will prompt some people to cancel summer vacations. Higher oil prices will also affect airport landing fees and revenues for hotels, cruise lines and Web-based travel agencies. Jun 25, 2008

The Airlines Reporting Corporation (ARC) isn[sup.1]t immune to the challenges facing the airline industry and has announced a 3 percent reduction in staff. ARC said its new operational cuts follow similar measures implemented in early March and reflect the industry[sup.1]s continued difficulty as evidenced in declining transaction volumes. Airline-owned ARC said it had once again revised its financial plans for 2008 and taken a number of actions including the staff reduction in response to the rapidly changing economies of the air travel market. Jun 23, 2008

Underscoring its value to travel agents, the American Society of Travel Agents (ASTA) said that with the recent addition of its Salary and Financial Assessment tool, ASTA now offers more than 50 different online tools and directories. All are designed to help members grow and run their businesses more effectively, ASTA said. [sup.3]In addition to the more than 1,000 exclusive travel agent resources found in ASTA[sup.1]s eLibrary, ASTA provides a robust collection of unique and beneficial online tools," said ASTA Executive Vice President and COO William Maloney. "Touching every aspect of an agencyis business, these tools provide financial benchmarking, salary information, specials offers and potential new business and provide access to fellow members of the association."ASTAis tool chest includes: Salary Comparison, Financial Assessment, ARC Proposed Fee Impact Analysis 2008-2011 Calculator, Airline Commission Grid, WebExchange (B2B), Cruise Line Fuel Surcharges (Chart), Airline Checked Baggage Fees (Chart), Consumer Leads, Tour Operator Member Specials, Bulletin Boards, Consumer Travel Tips, Customizable Packing Lists, E-Postcards, ASTAis Store, Industry Calendar, Travel Industry Book Store, AMSI Mart and a Buyers Guide. Jun 23, 2008