Is the reported "recovery" just the upside of the jetfuel roller coaster?
November 4, 2008
US airlines pull out of a tailspin | us.ft.com
Airlines are enjoying much lower fuel costs than they did in the summer of 2008. Perhaps the use of the word "enjoy" and the notion that recovery is around the corner is a bit like a weatherman in the middle of a hurricane talking about tomorrow's sunshine. At least that was the observation of a writer in Airline Weekly this week. When the prices were high, the airlines kicked into high gear, cutting costs, trimming schedules, parking aircraft in the desert and finding ways to charge passengers for various services, previously offered gratis. Now that the prices are low (remembering that everything is relative), will they hand off a slice of those profits to consumer? Not likely! And what will be the impact on the other sectors of the industry? The GDS companies depend on airline ticket sales for 90% of their revenues. And the hospitality industry also caters to the air traveler as their primary market. What will become of them?
Totally myopic view of the travel industry will not stimulate growth
September 9, 2008
Sector Snap: US online travel stocks mostly fall | biz.yahoo.com
Orbitz stock fell 7.2% on Thursday, largely attributed to the fact that 87% of its bookings are US domestic and 74% of their product sold is comprised of air tickets. Priceline also fell, but not as substantially. Only Expedia reported a rise in value. The following facts substantiate this observation about the online industry being myopic in its approach to the travel marketplace. • Just 15% of US overnight travel is by air • 85% is by car, motorcycle, RV or other • Just 8% of all travel in the US is for pure vacation travel to top 100 destinations • Just 26% is business travel • That leaves 66% that do day trips, weekend jaunts close to home, visit friends and family and "life event" travel (weddings, funerals, sports tournaments, graduations, family reunions, etc.) to the other 86,900 cities, towns and villages in the US. The online players (and their offline counterparts alike) virtually ignore all but the vacationing and business travelers.
Until we get to "intent-based, situationally relevant" search, there is no vision
August 25, 2008
Is Microsoft's Vision of Search Enough to Catch Google? | www.businessweek.com
We are still in the world of Search 1.0 at best. As long as search engines don't care what my intent is or what my current circumstances are, then I will still get 563,000 results when I enter Travel Tampa in a search bar. Is there anyone out there that really thinks that this is effective search?
Who will win - the device manufacturers, the carriers or the applications providers?
June 16, 2008
T-Mobile invests $6m in deCarta's location based platform | www.thestandard.com
Following Nokia's recent investment in Navteq and Apple's announcements last week about having full GPS on the iPhone, T-Mobile announced an investment in DeCarta, a leading provider of mapping tools and location based services. In the article, DeCarta CEO Kim Fennell states that he believes that Nokia and Apple will introduce their own set of location based services, but that they will be tied to a particular device. Since T-Mobile is device agnostic as a carrier, it will be interesting to see what they have planned to leverage the investment in DeCarta.
Impact of Airline Capacity Cuts on the Hospitality Industry
June 6, 2008
Hotel CEOs Lament Softening Demand, Foresee Some Discounting | www.btnmag.com
All key metrics are still up (occupancy, demand, supply, average daily room rate), but what impact will the economic downturn and reduction in airline supply have on the hospitality industry? Air travel represents less than 12% of all travel in the US today by Americans, yet all tools in the industry are air-traveler centric. Hospitality executives cite reduction in weekend demand and softening of business travel midweek. They do not look at tools (other than online itself) at playing a role in driving traffic to their brands.
International Travel to Canada is down for the same reason International Travel to the US is up YOY.
May 27, 2008
Travel to Canada hits 5th straight record low | www.thestar.com
Paraphrasing President Bill Clinton's campaign strategist, James Carville... It is the Loonie stupid! It is also the economy, price of gas. The reverse phenomenon is occurring in the US...where it is the dollar stupid!
Funding of the air traffic control system should be doen on an equitable basis
March 5, 2008
Senator Sees FAA Funding Blocked For Year Over User-Fee Issue | online.wsj.com
- Current Fee structure is illogical. Airlines pay 90% of the cost for two-thirds of the usage. - The Air traffic control system is going to get far worse with the continued growth of corporate aircraft and "very light jet" (VLJ's) -Airlines pay for 90% of the air traffic control system and use only two- thirds of the system. - This proposal being considered is based on user fees which is far more logical, and equitable.
The airline mergers is not nessarily a "done deal" ...many obstacles remain
February 6, 2008
Airline Merger could bring anything | news.enquirer.com
* Will the Bush administration or the next administration approve approve any airlines attempt to merge? * Unions and communities will fight any merger attempts. * Other carriers like American and Southwest will likewise lobby against any mergers. * Premises for mergers is not valid since there are too many profitable network carrier that are smaller than any of the individual carriers that are in play.
There is no such thing as a good airline merger
January 18, 2008
Delta delays Comair sale as it explores merger hopes | www.ft.com
*Service will get worse...I know that is hard to imagine. *Fares will go up. *Communites will loses both Hubs, flights and jobs. *If it happens it will be Delta merging with Northwest and United merging with Continental and no one want US Airways
Wyndham – Hotel, Timeshare & Vacation Ownership Competitors Face Challenging 2008
January 16, 2008
Wyndham shares tumble on profit outlook | www.reuters.com
Despite this mid December 2007 change in guidance; Wyndham should continue its leadership as the largest vacation ownership (VO) operator in 2008. Its more bargain hotel brands are likely to be more stable than its pricier competitors during any possible downturn. Many of the lodging stocks have already been slashed as Marriott and Starwood delivered reduced 3rd QTR 2007 earnings. Analysts discounted the impact of reduced business travel, the concern is how will the VO divisions of Wyndham, Marriott, Starwood, Bluegreen, perform in ‘08. Historically, (VO) is highly resilient during major economic recessions, but this slowdown is deeper and could impact upscale timeshare developers like Marriott, Starwood, Hilton, etc. The WYN Group and Bluegreen should be less vulnerable in ’08 as they offer better price/value and/or sell VO in more drive to and mid market locations. Overall, VO operators should be less impacted in ‘08 than the overall hotel sector.
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