GLG News by Airline Global Distribution System Experts

Chicke FitzgeraldChief Executive OfficerSOLUTIONZ HOLDINGS

The downward trend on air ticket sales continues for the agency channel

January 22, 2010

Analysis of:Air Ticket Sales for 2009 were down 17.29% | www.arccorp.com

Year over year air ticket sales through the travel agency channel (both online and offline) declined 17.29% in 2009.  Total sales were $65.8b, with $29.9b from domestic fares and $25.6b from international fares (with the balance being taxes and fees).  There are 15,928 agencies in the US and 188 airlines.  The number of agencies declined 10% from 17,673 in 2008.  This is due to continued consolidation and to some extent, the closure of the low end agencies that cannot survive in today's economy.  The number of airlines grew from 173.  Who knew?   The number of transactions (aka tickets) only declined 5.48%.  International sales as a percentage of total declined just slightly to 39%.  The average price of an international ticket declined 16% to $700.47 and a domestic ticket declined 12% to an average of $298.93, which signals an increase in sales through the top 4 online sites.

Chicke FitzgeraldChief Executive OfficerSOLUTIONZ HOLDINGS

All three key metrics in hospitality are down for 2009 - No surprises there

January 22, 2010

Analysis of:US hotel industry ends '09 with double-digit RevPAR drop | www.hotelnewsnow.com

The three top metrics in the hospitality industry are revenue per available room (RevPAR), occupancy and average daily room rate (ADR).Revenue per available room fell 16.7 percent to US$53.71 during 2009, according to year-end reports from Smith Travel Research.The industry’s occupancy fell 8.7 percent to 55.1 percent for the year and average daily rate dropped 8.8 percent to US$97.51.  None of the top 25 markets showed any growth in these top 3 metrics.

Tom BottsPartnerHudson Crossing

Priceline's New TV Ad Brings Revenue Management 101 to the People

January 20, 2010

Analysis of:Priceline.com Focuses On Hotel Savings In New Advertising Campaign | finance.yahoo.com

Today, Priceline.com launched a new TV ad campaign featuring a new Shatner side-kick known as "Big Deal." Not only is the Big Deal big, but he also appears to have a deep understanding of hotel revenue management.

Robert BartonPresident,Chief Operating OfficerFRANCHISE SERVICES OF NORTH AMERICA INC

The Koreans remain aggressive

November 18, 2009

Analysis of:Honda Targets Return To Pre-Crisis Profitability | online.wsj.com

The 2010 year is shaping up to be a very interesting one for fleet purchasers. The Detroit Big 3 have all dramatically scaled back their fleet programs. Part of the void created by this has been filled by the Koreans.

Tom BottsPartnerHudson Crossing

EXPE and CHH Kiss and Make Up

November 12, 2009

Analysis of:Expedia and Choice Hotels International Sign New Long-Term Agreement | www.prnewswire.com

After a particularly ugly public battle, Expedia Inc and Choice Hotels International have hammered out a new deal

Tom BottsPartnerHudson Crossing

Texas Cities vs. PCLN, EXPE, OWW et al: A Draw at Best

November 3, 2009

Analysis of:Texas Cities Win $20M Verdict in Tax Case | dallas.bizjournals.com

Late last week, a jury in San Antonio delivered a verdict on a class-action suit against the major OTAs that was brought by around 170 cities in Texas. The verdict against Expedia, Orbitz.com, Travelocity and Priceline.com is for $20M plus court imposed penalties and interest.

Tom BottsPartnerHudson Crossing

Choice Hotels International and Expedia: We've Seen This Movie Before

October 19, 2009

Analysis of:Growing Tension Between Hoteliers, OTAs | www.hotelsmag.com

Choice Hotels International and Expedia are in a tiff resulting in Choice brands not displaying on Expedia and Hotels.com

Christopher DanePresidentHRG-Executive Travel Associates

Hotels RevPar decline - It is more than just the economy coming out of recession

July 20, 2009

Analysis of:Reservations Mount Over Hotel Stocks | www.businessweek.com

While the economy plays a significant role in hotel RevPar results, their is much more to it than just that. "Events and Meetings Management" (EMM)-still no signs of life. Corporate travel budgets are typically built in the fall for following calendar year-so no growth until next year at the absolute earliest...MAYBE! If you have a decline in air service you are going to have a decline in RevPar...it is that simple...and the hotels should have seen it when airlines first announced those cuts.

Christopher DanePresidentHRG-Executive Travel Associates

Cuba is not the "end all, be all" for the cruise industry

July 20, 2009

Analysis of:Cruise companies rise on sector's surge, U.S.-Cuba talks | www.reuters.com

1. Cuba will create a boom for the cruise industry....not really.2. If passed if will be several years before implemented.3. Cuba needs a lot of infrastructure work to support this potential move.4. Benefits other than cruise lines...entire Cuban economy, local hotels and building industry will have the biggest positive impact...could also lead to the demise of Castro and socialism.

Tom BottsPartnerHudson Crossing

New York City Tax Changes: At Least it Isn't Retroactive

July 6, 2009

Analysis of:NYC to OTAs: We Want Tax on Retail Not on Net Rate Amount | hudsoncrossing.blogspot.com

Potential hit on future OTA earnings How far will it expand beyond NYC?

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