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E L L I O T T ' S TRAVEL NOTES
Travel news, opinion and analysis

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October 1, 2004

Survey: Business Travel Recovering
It should be good news for the struggling airline industry -- a new survey shows that corporate travel managers plan to increase spending next year and put more business fliers in airline seats. But a rebound in business travel won't necessarily translate into a financial recovery for the major hub airlines. While the report, written by Smith Barney travel analyst Michael Rietbrock, predicts a "solid recovery in business travel demand," it also notes that most companies plan to increasingly focus on finding cheap fares. "The problem for the airlines is that increased demand is not yet triggering improved pricing," said airline analyst Dan McKenzie of Smith Barney in a separate note to investors Thursday. "Consequently, we think unit revenue recovery performance will remain weak looking ahead to 2005." Star-Telegram | Posted 6:35 a.m.
• Leisure Traveler Sentiment Rises (TIA)
• Survey Projects Biz Travel Hotel Rates Will Jump (BTN)

Just one question: what took corporate travel managers so long to finally say "enough" to the fare gouging? In a sense, aren't they the proverbial unindicted coconspirators in this equation, who kept an uncometitive business on life support during the late 1990s? Perhaps.

Southwest May Consider D/FW Service
Southwest Airlines Co., which for years steadfastly avoided service from sprawling Dallas/Fort Worth International Airport, may be softening its stance. The discounter's chief executive said Thursday that executives are closely watching how D/FW fills gates soon to be left vacant by Delta Air Lines Inc. "It is definitely a situation that we are monitoring," Gary Kelly, who was named Southwest's CEO in July, said in an interview. "It remains true that we don't want to serve this region from D/FW for a variety of reasons. We want to continue to serve the Dallas-Fort Worth region from Love Field, and nothing has changed there in terms of our desires." However, Mr. Kelly said, the airline could take a fresh look at D/FW Airport because of the opportunity presented by Delta's decision to pull its hub. The Dallas Morning News | Posted 6:45 a.m.

Cendant Buy Benefits Orbitz Founders
The five major airlines that founded Orbitz Inc. stand to gain hundreds of millions of dollars from the sale of the company at a time when the carriers are counting every penny. Cendant Corp. yesterday announced it will acquire Orbitz, an Internet travel agent, for $1.25 billion, or $27.50 a share. That offer comes at a time when the founding airlines, AMR Corp., UAL Corp., Delta Air Lines Inc., Northwest Airlines Corp., and Continental Airlines Inc. are each struggling to return to the black. UAL is in bankruptcy, Delta is trying to cut costs to stave off bankruptcy, and AMR is working to rebuild after narrowly avoiding bankruptcy last year. New York Sun | Posted 6:50 a.m.

Manitoba Hotel Guests Go Up In Smoke - The Manitoba Hotel Association is banking on humor to boost business. Launched yesterday, the Smokers Still Welcome promotional campaign features "the new Manitoba smoking jacket" -- a heavy parka smokers will likely need if they want to step outside for a butt in the dead of winter. Table cards featuring the parka and other reminders of the provincewide butt ban have been distributed to bars, lounges and restaurants in the province. Winnipeg Sun | Posted 7 a.m.

Baggage Handlers Strike At Gatwick - Hundreds of baggage handlers began a 24-hour strike at Gatwick Airport on Thursday to protest pay conditions and the suspension of a union official. Managers and other staff members loaded luggage to make up for the 600 striking workers employed by baggage handling company Servisair. IHT | Posted 7:05 a.m.

Agent Files Suit Against Love - Rocker Courtney Love was sued Thursday by a travel agency that claims she ordered nearly $50,000 in airline tickets, but wouldn't pay. The lawsuit says Love asked the company to book tickets, hotel reservations and other travel arrangements for herself, her family, agents and staff last year. She authorized payment to her credit card, but later withdrew authorization and sent checks, the lawsuit alleges. AP | Posted 7:10 a.m.

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• Off the Record ... The sale of Orbitz to Cendant must be stopped. Not because there is anything anticompetitive about the proposed acquisition (regulators must sign off on the deal, and they will). Not because a lot of people, including some of its current and former managers, are getting obscenely rich. Rather, it's because I don't see that this corporate marriage is in the public interest. I've asked Cendant to tell me how this transaction is going to benefit consumers. It didn't. Orbitz' 14D filings are incredibly vague about the benefits to travelers. "The larger company will have greater resources and scale to grow and develop enhanced offerings and more choices for customers," Orbitz says. Whatever that means. Why am I not writing an op-ed and sending it out to my syndicate? Because after talking it over with a few informed analysts and insiders, and monitoring the apathetic media coverage of this deal, I've concluded that no one cares enough to publish anything. Posted 7:15 a.m. | Send us your comments.

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