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

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October 19, 2004

Business Travel Expenses Will Rise
An increase in business travel next year will drive up airfares and hotel room rates, though stiff competition from low-cost airlines will temper those price hikes, according to the latest American Express Global Business Travel Forecast. Globally, short-haul airfares, including domestic U.S. flights, will rise zero to 3 percent on average, while international business fares will jump 2 percent to 5 percent and hotel room rates will increase by 1 percent to 3 percent, according to the report released Monday. "The business-travel industry is certainly in recovery mode, though the pace varies depending on the country and the region," said Matthew Davis, director of global consulting for American Express, in a conference call. CBS Marketwatch | Posted 6:35 a.m.
• For Business Travel, It's A Recovery (NY Times)
• Release Of Amex Survey Results (Business Wire)

Yeah, and they've been talking "recovery" for at least three years now. I'll believe it when I see it.

TSA Overpaid Boeing For X-Rays
Boeing Co. received at least $49 million in excessive profits on a $1.2 billion contract to supply explosives-detection systems to hundreds of the nation's airports, the Department of Homeland Security's inspector general reported yesterday. The Chicago-based company won the bidding for the Transportation Security Administration contract in June 2002 to install X-ray machines and trace detection devices at more than 400 airports by Dec. 1, 2003. The contract was expected to be worth $508 million, but it was extended and increased to $1.2 billion. "It was a TSA problem, this was the contract they agreed to," said Clark Kent Ervin, the department's inspector general. "Boeing was not the lowest bidder; it was the highest bidder in terms of total cost and in terms of the fees." Washington Post | Posted 6:45 a.m.

'Secure Flight' Too Secret, Group Says
As the deadline for public comments on a revised screening system for airline passengers nears, a public-interest group is demanding disclosure of information on the system, with the goal of fostering more informed commentary. But it is unclear whether the information on the system known as Secure Flight will be disclosed in time for potential critics to react to in their letters to the Transportation Security Administration. The deadline for comments on how to screen passengers is a week from Monday. Pre-implementation tests for the system are scheduled to begin before the end of the year, according to TSA. GovExec | Posted 6:50 a.m.

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Stupid Slogans - Travel industry advertising is a joke. Who is coming up with all of these stupid slogans, anyway? I'm stuck in an airplane at the end of the runway in Chicago for four hours when a flight attendant reads an announcement that concludes with, "It's time to fly." My blood begins to boil as I want to yell up to her, "Honey it was time to fly four freakin' hours ago." How about, "You are free to move about the country." Yeah, in a cattle car. I walk through the airports or watch commercials on TV and laugh at the ridiculous advertising that must be costing fortunes. Featured all-new story from Travelcomment.com | Posted 7 a.m.

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Business Travelers Still Love Legacy Carriers - These days, most everyone wants to bash the old-line carriers. But they're still No. 1 with an important group: business travelers. We know because you told us. In BusinessWeek's first online survey on air travel, we asked subscribers and Web site visitors about their preferences, including their favorite and least-favorite carriers. Some 1,250 of you logged on to businessweek.com over the past six weeks to vote. Your faves? United, the top pick of nearly 1 in 5, with American Airlines, its bigger rival, in second. The worst? Their nemesis, the no-frills giant, Southwest. BusinessWeek | Posted 7 a.m.

Minister To Cruise Lines: Benefit May Be 'Myth' - Barbados’ Tourism Minister, Noel Lynch, says the jury is still out on the real impact of cruise ships on the Caribbean. Lynch made the remarks yesterday, during day two of the 27th annual Caribbean Tourism Conference (CTC-27) in Aruba. During a discussion on the future of the cruise sector in the Caribbean and the role of cruising in driving new business to the region, the minister was quite adamant and non-apologetic in his comments that “There needs to be a lot more done to study the socioeconomic impact on the people of our islands. I would like to urge that we have one study collectively commissioned together to get rid of these myths.” HBN | Posted 7:05 a.m.

Your Waiter May Be Living In Poverty - When you're relaxing by the hotel pool browsing the cocktail menu, spare a thought for the staff who wait on you: they may well be working long hours for poverty wages, says Tourism Concern. The organization is campaigning for major tour operators to audit their supply chains to ensure they are not profiting from exploitation. Observer | Posted 7:10 a.m.

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