March 2010
In this issue...

• No Travel Management Company Does More Than MacNair to Find the Lowest Fares
• British Airways Strike
• April Webinar: Best Practices in International & Federal Government Contractor Travel Management
• Big Carriers Increasingly Rely on Smaller Jets
• Revenue Increase Signals Recovery for U.S. Airlines as Consumer Confidence Lifts Overseas Travel
• Official Defends Passport-Application Fee Increase
• DHS Unveils List of Airports for Full-Body Scanners, TSA Plans to Buy Shoe-Scanning Machines
• New Airline Fees and Charges Coming
• Airlines Gear up for New Rules on Tarmac Delays
• Worldwide Hotel Rates Declined 14% in 2009
• Carriers to Curb Flights at JFK as Runway is Being Rebuilt
• Airlines Report Best On-Time Arrival Rate Since 2003
• International Premium Travel Sees First Uptick in Nearly Two Years
• Vacation Hotspots by Kim Peele, Personal Travel Division Manager
  

No Travel Management Company Does More than MacNair to Find the Lowest Fares

Overall European air traffic was down 5 percent last year. At the same time, budget or low-cost-carriers were up 8.7 percent. These fares are often not found in public distribution systems. No Travel Management Company goes as far as MacNair Travel to identify the lowest fares for their customers and many do not even try. Luckily, MacNair Travel always checks for the lowest fare and we compare fares in our internal systems with those on company websites to get you the best fare. It's just another way we provide Service Excellence to our customers.

British Airways Strike

As expected the union for British Airways has set strike dates. Please read the information below. We will run reports to determine which customers may be impacted.

Unite, the trade union that represents British Airways' (BA) cabin crew, went on strike on Saturday, March 20th. The strike continued through the weekend and into Monday, March 22nd , and will resume again on March 27th-30th, 2010. British Airways has temporarily stopped selling seats on all flights operating on the strike dates. MacNair Travel has contacted all clients traveling on flights that may be affected.
In the event of a strike:

• Flights between London City and New York (JFK) will operate as normal and any changes to bookings on these flights are subject to the original fare rules.
• All long-haul flights to and from London Gatwick will continue to operate normally and any changes to bookings on these flights are subject to the original fare rules.
• For all other flights (London Heathrow and short-haul London Gatwick), until British Airways finalizes their flying schedule, if you have passengers traveling March 19 through March 31, 2010, they have the choice of re-booking or canceling and obtaining a refund.

Please note that policies are all subject to change. For the latest policies and updates, please visit http://batraveltrade.com/travel/strike-ballot/public/en_us

April Webinar: Best Practices in International & Federal Government Contractor Travel Management

Back by popular demand! Our 2010 webinars are based on topics requested by our valued customers. If you are interested in a one-on one-webinar, please let us know. Mark your calendar and sign up now!

Our next webinar will be "Best Practices in International & Federal Government Contractor Travel Management" on April 29, 2010, 12noon-1:00pm Eastern. This webinar will help you to clarify opportunities to better comply with Federal Acquisition Regulations (FAR), the Fly America Act, understand available tools, and gain insight from best practices.

You may also contact Rian Watson at 703-650-5256 or rwatson@macnairtravel.com to register.
Dial-in Information will be emailed to participants two days prior to the webinar.

Big carriers increasingly rely on smaller jets

This year, the two biggest carriers at Chicago's O'Hare International Airport will offer roughly two regional flights for every one mainline flight, according to numbers compiled by OAG for the Chicago Tribune. Experts say Chicago mirrors a larger trend toward smaller aircraft on shorter flights. "We're matching the number of seats to customer demand," says a spokeswoman for American Airlines, which, like United Airlines, has reversed its mainline-to-regional ratio during the past decade at O'Hare. (Source: Chicago Tribune)

Revenue increase signals recovery for U.S. airlines as Consumer confidence lifts overseas travel

Passenger traffic on U.S. airlines has been falling for almost two years and the industry has seen its revenue fall for 14 months in a row. However, industry data are pointing to a turnaround. Forecasts show increasing passenger demand later this year. Passenger revenue in January was up 1.4% compared with the same month last year, according to an industry group. The volume of air cargo increased 17% in December compared with the same month in 2008. Bookings to Europe by U.S. travelers are increasing, according to many tour operators, which comes as good news because many Americans had been staying home because of the recession. "Travel is the ultimate barometer of consumer confidence," said Steve Born, Globus Family of Brands' Vice President of Marketing. "Europe is up more than 50%," said Richard Launder, President of TravCorp USA. "That gets us back to 2008 levels and over. So in a sense, we've come back." (Source: Travel Weekly, Los Angeles Times)

Official defends passport-application fee increase

The State Department plans to increase the passport-application fee from $100 to $135 and introduce a new $82 fee to add visa pages to the books. The changes, which a top official from the department defended, could take effect within weeks. Brenda Sprague of the State Department said costs have been increasing because of high-tech features on new passports. Critics have blasted the proposed fee increase as "irresponsible" and "unacceptable." (Source: Los Angeles Times/Daily Travel & Deal Blog)

DHS unveils list of airports for full-body scanners, TSA Plans to buy shoe-scanning machines

On Friday, Department of Homeland Security Secretary Janet Napolitano revealed the list of 11 U.S. airports that will be the first to receive full-body scanners purchased under the American Recovery and Reinvestment Act. The Transportation Security Administration will install 450 of the machines this year, boosting nationwide deployment by more than 10 times. The Transportation Security Administration plans to purchase 100 updated shoe-scanning machines, which could make it possible for travelers to keep their shoes on at airport security checkpoints. Three years ago, such machines were deemed unacceptable, but developers say the new machines are better at detecting metal weapons and explosives.
(Source: USA TODAY, Air Transport World)

New Airline Fees and Charges Coming

Passengers who fly Continental Airlines will be given the choice starting March 17 to pay more for seats with additional legroom. The price of the extra space, which could be as much as 31 inches on larger planes, will vary depending on length of flight, date and time of flight and other factors, according to Julie King, a representative for Continental. Airlines continue to add on fees. American Airlines, following the lead of other airlines, will charge $8 for blankets and pillows in coach starting May 1. Virgin America upped its baggage fee for all checked bags from $20 to $25. First Class passengers continue to check two bags for free; Main Cabin select and Main Cabin passengers with refundable fares can check their first bag for free. (Source: Virgin America press release, American statement and Reuters, Houston Chronicle)

Airlines gear up for new rules on tarmac delays

Airline executives and analysts say new federal tarmac delay rules, which come into effect April 29, will lead to more canceled flights. Airlines will cancel service for bad weather and other issues instead of risk being fined, insiders said. The Department of Transportation can fine airlines up to $27,500 for each passenger not allowed to deplane after three hours stuck on the tarmac. "For us, that could be as much as $4.4 million for one flight," said Tim Smith, a representative of American Airlines. "No one's going to play with that. There will be many more cancellations as a result. Everyone is gearing up for this." (Source: Travel Weekly)

Worldwide hotel rates declined 14% in 2009

Hotels.com's Hotel Price Index shows travelers spent 14% less on hotel rooms last year. The survey showed rates fell 14% in the U.S., 13% in Europe, 16% in Asia and 21% in Latin America. "Despite some possible first signs of hotel prices recovering in Europe and the U.S. in the last quarter of 2009, the promotions and great value look set to continue for some time yet," Hotels.com President David Roche said.
(Source: The Wall Street Journal )

Carriers to curb flights at JFK as runway is being rebuilt

Work on a runway at New York's John F. Kennedy International Airport is prompting Delta Air Lines, JetBlue Airways and other carriers to curtail flights during the summer season, leaving passengers flying through New York fewer choices. Take-offs at the airport will be maintained at 525 daily instead of increasing to 650 this summer, the usual season total, according to Ernesto Butcher, an executive with the Port Authority of New York and New Jersey. (Source: Bloomberg)

Airlines report best on-time arrival rate since 2003

The 19 largest airlines reported that almost 80% of their flights arrived on time last year, the best rate since 2003, according to monthly federal data. In 2008, the rate was 76% and in 2003, 82% of flights arrived "on time," which is within 15 minutes of their scheduled arrival. But tarmac delays worsened in December.
(Source: USA TODAY, The Wall Street Journal, The Kansas City Star (Mo.))

International Premium Travel Sees First Uptick in Nearly Two Years

The International Air Transport Association reported that international premium travel was up 1.7 percent in December 2009 over a year earlier. That's the first increase since May 2008. Economy travel was up five percent over a year earlier. The recession hit airlines hard throughout the first half of 2009, but a post-recession upturn began in the second half. May marked the low point for premium travel while February marked the low point for economy travel. (Source: IATA press release)

VACATION HOTSPOTS
BY KIM PEELE, PERSONAL TRAVEL DIVISION MANAGER

Just a few of the many travel values available this month -

• Stop and smell the roses! MacNair Travel is working with the American Horticulture Society and has designed a one of a kind garden trip to Chicago! Join us June 16-20, 2010 for Gardens and Innovation: Chicagoland and Rockford. This tour will highlight the innovative gardens that have contributed to the greening of Chicago and will include Tiffany Dome, Baylss' Organic Garden, Sinnissippi Flower Gardens, the Frank Lloyd Wright Home and Studio and more.
• Book now, save later! Crystal Cruises is offering 2-for-1 World Cruise Fares for the entire cruise or just segments, as well as Free Air and up to $5000 per person CruiseBank spending credits - and - you will save an additional 20% off a future 2011 or 2012 cruise. Book by April 30, 2010.
• All-Inclusives on Sale! Book by March 31st and take advantage of excellent summer values. Three nights including air starts at $445 for Cancun, $545 for Riviera Maya, $555 for Jamaica, $659 for Dominican Republic per person double occupancy. Restrictions apply.
• Contact the Personal Travel Division at MacNair Travel Management at dreamtrippers@macnairtravel.com or 703-836-1101 today!
  

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Please feel free to send comments or suggestions to our editor, Tony Torres, at ttorres@macnairtravel.com.