GLG News by Airline Global Distribution System Experts

Tom BottsPartnerHudson Crossing

United and Aer Lingus - will it work?

January 22, 2009

Analysis of:Aer Lingus and United Announce Partnership | www.earthtimes.org

Today's WSJ is reporting that Aer Lingus and United are pairing up beyond their existing codeshare routes to/from the Emerald Isle to launch a new nonstop route from Washington Dulles (IAD) to Madrid (MAD). The flight will be operated by an Aer Lingus A330 aircraft and crew. Made possible by the recent open skies liberalization accord between the US and the EU, this new flight will be interesting to watch for a number of reasons......

Ken HeitCruise and Travel ExpertAdventure Travel / Signature Travel Network

Trouble on the high seas

January 21, 2009

Analysis of:Cruise trouble on the high seas | blogs.usatoday.com

Prices are being drastically reduced on cruises for 2009 Bookings are down for the wave season signaling trouble ahead Cancellations are up and the booking window is getting very close in

Chicke FitzgeraldChief Executive OfficerSOLUTIONZ HOLDINGS

We need to better understand the entire automotive industry ecosystem

January 12, 2009

Analysis of:U.S. Drivers Keep Autos Longer, Shun Showrooms on Job-Loss Risk | www.bloomberg.com

I was on the phone the other day with a colleague from Freescale and I was frankly surprised to hear that the decline that they are seeing in their production/demand is due to the automotive meltdown.  Because I'm only peripherally involved in the industry (through GPS and indash infotainment), I really didn't think through that car manufacturers were a primary consumer of semi-conductors. 

Chicke FitzgeraldChief Executive OfficerSOLUTIONZ HOLDINGS

As oil continues its decline, can it prop up the travel industry's slumping profitability picture?

January 12, 2009

Analysis of:Oil Prices Hit $86 a Barrell | www.msnbc.msn.com

Jet fuel is one of the top 3 cost items for airlines. Since the summer of 2008, the price of oil has declined from $140 barrel to under $40 a barrel today.  This should be very good news for investors in airline stocks, as it should directly flow to the bottom line if airline ticket prices hold steady. Likewise, cruise lines' profitability is closely tied to this volatile commodity and the major players in the cruise industry could benefit from the continued decline in pricing. But right now, what we face is a need to stimulate travel, which is normally done through price reductions.  Will these suppliers pass on the cost reductions to consumers?

Chicke FitzgeraldChief Executive OfficerSOLUTIONZ HOLDINGS

The travel ecosystem is shifting, beginning with the GDSs and online players

January 8, 2009

Analysis of:Expedia Vet Takes Orbitz Helm, Sabre Vet Takes Travelocity Wheel | www.btnonline.com

Both Orbitz and Travelocity this week announced new leaders at the helm.  Both have cut costs substantially due to reduced revenues and profitability.  Orbitz now has a technology savvy, operationally capable, marketing focused executive who is talking already about social media, which implies new models afoot for the OTA.  Orbitz had been outpaced by Expedia and Travelocity in the advertising model/social media capabilities, but does it really help them to do a "me too" offering to match Trip Advisor and iGoUGo? Just weeks ago, Amadeus founding CEO Jose Tazon stepped down in favor of his number two, David Jones, who had been the de facto day to day leader for some time, as Jose managed board and investor relationships with their private equity owners, BC and Cinven. Sabre puts its own COO at the helm of Travelocity, not replacing him in the Sabre organization, but instead splitting his job amongst his peers.  Is it time to go from 3 GDS companies down to two? 

Chicke FitzgeraldChief Executive OfficerSOLUTIONZ HOLDINGS

The lines of travel distribution are blurring

December 30, 2008

Analysis of:New Report Evaluates Trends in Online Travel Market | www.travelagentcentral.com

The PhoCusWright report that spawned this article reports that the online travel distribution market has shifted to 61% being sold via supplier sites (otherwise known as consumer direct) and 39% is sold via online travel agents. Suppliers are trying to wring more dollars out of frequent, loyal bookers, which means increased focus on personalization, loyalty and community. OTAs, by comparison, are trying to wring any dollars out of their mass of unconverted lookers, as the almighty transaction gives ground to eyeballs and emerging advertising-based lines of business.

Robert BartonPresident,Chief Operating OfficerFRANCHISE SERVICES OF NORTH AMERICA INC

If you bailout the manufacturers, you better open up the credit markets so cars can be bought.

December 17, 2008

Analysis of:Democrats Claim Agreement On Auto Rescue Deal | online.wsj.com

The following is the text of a letter I penned and sent to Washington this past monday in my capacity as President of the American Car Rental Industry

Robert BartonPresident,Chief Operating OfficerFRANCHISE SERVICES OF NORTH AMERICA INC

Shrinking is good, but is it enough?

December 8, 2008

Analysis of:Pursuing U.S. Aid G.M. Accepts Need For Drastic Cuts | www.nytimes.com

Fixing the manufacturing process is simply not enough Clearing the pipeline to allow for product distribution upon completion is critical

Chicke FitzgeraldChief Executive OfficerSOLUTIONZ HOLDINGS

What will happen to the gaming industry as travel to Las Vegas declines?

December 5, 2008

Analysis of:Travel Numbers see steep decline [in Las Vegas] | www.klas-tv.com

Las Vegas has always enjoyed occupancy rates higher than the national average, but in the last few months, the economic situation plaguing the country has hit them hard.  Occupancy is down to 84%, which rivals post September 11th levels.  In the month of October, Las Vegas had a drop of 13% year over year, or nearly a half a million visitors.  Historically there has been a direct correlation between occupancy and gaming revenues.  That correlation weakened somewhat in the 90s when Las Vegas attempted to become a family destination.  Now that the city is squarely back in the "Sin City" role, the tie between hotel occupancy and gaming is very strong again. Factors to watch: - Air capacity and frequency declines - Visitor statistics - Occupancy rates - Proportional gaming revenue declines

Chicke FitzgeraldChief Executive OfficerSOLUTIONZ HOLDINGS

Financial markets react to the historic election of Obama - what of the travel industry?

November 6, 2008

Analysis of:Asia cheers Obama win, but Europe down | robots.cnnfn.com

With the economy as a clear priority of the new administration, the world markets reacted to the election of Barack Obama, with investors voting with their wallets. In Asia, the Nikkei, the major index for the Tokyo Stock Exchange, closed up 4.5%. South Korea's Kospi composite index finished with a 2.4% advance, according to Dow Jones. The Hang Seng index in Hong Kong ended up 3.7%. The Australian All Ordinaries index was up almost 3% at its close and the markets in Taiwan and the Philippines ended lower. European stocks and U.S. futures fell after Democrat Barack Obama was projected to have been elected President of the United States. London's FT-100 and Paris' CAC-40 eeach fell more than 2%, while Germany's Dax was about 1.5% lower. It remains to be seen how the markets will close today in Europe and how the US markets will react. But it is the longer term results that will matter.

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