A Business Travel Update from Blue Ribbon Travel   Edina  MN  55435    952-835-2724   800-206-1485 

Happy New Year!

Airline News

More Airline Consumer Protection Laws to Kick In

As of January 24, you’ll have 24 hours to change your mind—for free—even on nonrefundable airfares as long as you make that reservation at least a week before you leave. It’s part of new Department of Transportation airline consumer protection rules going into effect January 24, 2012.  Airlines also will have to promptly notify you via their websites and phone reservations of delays of more than 30 minutes or flight cancellations. And they have to include all government and taxes and fees in advertised fares which will go into effect January 26, 2012.  The airlines will be required to show all baggage fees during booking and on e-tkts.  Finally, once you’ve bought a ticket, they can’t raise the fare unless it’s due to a government tax and you agree to pay the increase. (Source: DOT)

EU’s Carbon Emission Controls Will Show Up in Increased Airfares

The European Union’s Emissions Trading Scheme, which the aviation industry and other governments oppose, means higher ticket prices for consumers. The EU is charging airlines for their carbon emissions on flights to and from Europe. Lufthansa estimates that this will cost it an extra 130 million Euros this year and Delta Air Lines is adding a $3 surcharge on tickets sold in the U.S. for flights to and from Europe. Aviation groups estimate that ETS will cost the U.S. airlines $3.1 billion through 2020. They argue that these emissions should be regulated on a global basis. (Source: press releases and industry interviews)

TSA Expands Pre-Screening to New Airports

Next up: Minneapolis-St. Paul and LAX. United Airlines is joining the program; some of American Airlines and Delta Air Lines’ frequent travelers are also eligible as well as participants in Trusted Traveler programs, including Global Entry, SENTRI, and NEXUS, who are U.S. citizens and are flying on participating airlines. Sick of that security check rigmarole of taking off your shoes and belt and pulling out your laptop and those three-ounce bottles of shampoo? The Transportation Security Administration is adding airports using the TSA Pre✓ program. If you qualify for TSA Pre✓, you volunteer information about yourself that is embedded in the bar code of your ticket. You can then go through the expedited screening lane, which means you might not have to take off your shoes or pull out your laptop. Pre✓ is now available at Las Vegas’ McCarran International. (Source: TSA)

Airline Share Prices Might Be Down, but Profits Are Good

Airline share prices are falling to levels not seen since 2009, but their profits are good, according to the International Air Transport Association’s November-December Airline Financial Monitor. What has helped is the fact that despite weak passenger travel in November, planes are flying fairly full. That’s because airlines, especially American carriers, are managing their capacity well. Average international fares are up, too, by about eight percent over last year, and that’s helping profits, too. (Source: IATA)

Fees Generate Estimated $50 Million a Year for Spirit

What do all those fees we pay airlines do for them? For Spirit Airlines, which uses them aggressively (it charges for stowing bags in overhead compartments), they translate into an estimated $50 million a year. Twenty percent of passengers use the services Spirit pays for, estimates IdeaWorks, a consulting company, and the carrier has flown 24.5 percent more passengers in the 12 months since it introduced the fee. (Source: IdeaWorks)

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Travel Alerts/Travel Warnings

Travel Alerts are issued to disseminate information about short-term conditions, generally within a particular country, that pose imminent risks to the security of U.S. citizens. Natural disasters, terrorist attacks, coups, anniversaries of terrorist events, election-related demonstrations or violence, and high-profile events such as international conferences or regional sports events are examples of conditions that might generate a Travel Alert.

Chile   01/10/2012
Philippines   12/22/2011
Senegal   12/12/2011
South Pacific Cyclone Season   12/12/2011

Travel Warnings are issued to describe long-term, protracted conditions that make a country dangerous or unstable. A Travel Warning is also issued when the U.S. Government's ability to assist American citizens is constrained due to the closure of an embassy or consulate or because of a drawdown of its staff.

Philippines    01/05/2012
Central African Republic    01/04/2012
Republic of South Sudan   12/22/2011
Syria    12/21/2011
Cote d'Ivoire   12/16/2011
Afghanistan    12/01/2011

Hotel News

Hotels Head into 2012 on Solid Footing

Hotels should see rates rise and demand increase this year, according to hotel tech company TravelClick’s December 2011 Hospitality Review. It’s basing projections on actual bookings from the fourth quarter of 2011 through the third quarter of 2012. Over the next 12 months, it sees committed occupancy as up three percent year-over-year and revenue per available room (RevPAR) going up 5.3. That should be even stronger in the first quarter, driven by individual business travelers and leisure travel. (Source: TravelClick)

High-End Hotels Expected to Do Better in 2012

Luxury and upscale hotels will do better this year than lower-priced hotels, according to PKF Hospitality Research. High-end hotels probably will see occupancies of above 70 percent both this year and next. That will exceed their long-term occupancy levels. But lower-priced hotel chains will see occupancy levels stay at below their long-term average through 2013. In 49 of the 50 markets, upper-tier hotels have passed their previous peak levels of accommodated demand, but lower-tier hotels have reached the same milestone in only 16 cities. (Source: PKF)

Car News

Introducing Hertz Mobile Gold Email & Text Alerts

Great news for Hertz Gold Plus Rewards members! Starting in 2012, you can get SMS text alerts straight to your mobile phone. Alerts let you know which car you will be driving and where it will be parked when you arrive. That way you just head straight to your car, get in and go – it’s fast and easy! Mobile Gold Alerts are currently available at most U.S. locations.  Phone-friendly email alerts are available now.  Already a Gold Plus Rewards member? You can receive Mobile Gold Alerts by simply updating your preferences here. Not a member yet? It’s free to join! Click here to join.

Holiday Rental Car Business Up 11 Percent

If you had trouble getting a rental car over the holidays, one reason was probably because reservations were up 11 percent over the previous Christmas, according to Enterprise Holdings, which owns Enterprise Rent-A-Car, National Car Rentals and Alamo Rent A Car. In the local (non-airport) rental car market, reservations were up 20 percent.  (Source: Enterprise)

Blue Ribbon Business Travel is committed to providing you with useful information on the latest developments in the travel industry. The following information has been compiled from a variety of sources and is updated monthly.