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

Airline News

The Transportation Security Administration (TSA) has published the Final Rule for the new Secure Flight passenger-screening program

The stated intent of this program is to streamline and simplify the watch list matching process in a way that minimizes false matches and protects passengers' personally-identifiable information. Under Secure Flight, airlines will receive passenger information either directly or from travel agents and transmit that information to TSA for watch-list comparison. Following this screening, TSA will then electronically notify the airlines whether each passenger may receive a boarding pass. The Secure Flight Program will be phased-in in several stages over the coming year. Selected airlines have volunteered to implement the program beginning in mid-January, 2009. Other domestic carriers will be required to participate, beginning in May and June, with international carriers joining in late 2009. Under Secure Flight, the following data must be collected for transmission to the airlines, which will, in turn, transmit the passenger data to TSA for pre-flight screening.  Other available information will also be collected, including a passenger's "Redress Number" (a TSA-issued code given to certain passengers whose names have triggered "false positive" matches to watch lists in the past); and passport type, number, and country of issuance.

1. Last Name
The passenger's last name must be collected. The name should match the government-issued identification the passenger intends to present at the airport prior to boarding.
NOTE: the government-issued ID is the controlling document; in all cases of doubt about the key information to collect, refer to the ID that will be used at the airport. If the collected information matches exactly that document, the passenger should be cleared to receive a boarding pass.

2. First Name
The passenger's first name must be collected. If the passenger's first name appears as a single character (e.g., "F. Scott Fitzgerald") on the passenger's government-issued ID, then that single character may be recorded. If, on the other hand, the passenger's ID includes a longer name, then that full name-and not the abbreviation-must be recorded (e.g., the first name of a passenger whose ID bears the name "Francis Scott Fitzgerald" may not be recorded as "F").

3. Middle Name
Mandatory if available. If the passenger does not have a middle name, or if the passenger's government-issued ID does not include a middle name, this field may be left blank.

4. Date of Birth

5. Gender
TSA will accept only a single-character response of M or F.

*Please note that Blue Ribbon Travel will start to request this personal data from all passengers in 2009 to update profiles for submission to the airlines, and that passengers who decline to provide this information in advance of their travel plans will face-at a minimum-additional screening and delays at the airport, likely to include being denied boarding.

Delta keeps American Express as miles reward card

Changes are in store for Northwest Airlines' frequent fliers who use a U.S. Bank credit card to earn miles. Delta Air Lines, which acquired Eagan-based Northwest in October, said Tuesday that American Express will be the credit card that its frequent fliers use to earn points for travel. Delta and American Express already had been partners, and the new deal will bring $1 billion to Delta in contract improvements through 2010. The move is expected to help American Express sign up more merchants to accept its card in the Midwest. Northwest passengers who use a U.S. Bank-issued Visa credit card to earn WorldPerks miles eventually can apply for an American Express credit card. The two frequent-flier programs are set to merge in late 2009. Until then, Northwest passengers can continue to earn miles on their U.S. Bank cards, and all of their Northwest WorldPerks miles will transfer to the Delta SkyMiles program.

New WorldPerks Award Structure
Northwest will introduce a third mileage award level to synchronize award prices with Delta. The new mileage award requirements will offer three tiers of award availability and more award travel options in Coach Class. Effective for award tickets issued on/after January 15, 2009, the new award structure has three tiers starting at 12,500, 20,000, and 30,000 miles for one-way travel (based on roundtrip purchase) within the US 48, Alaska and Canada to destinations worldwide. Awards not originating or terminating in the US 48, Alaska, or Canada often require more mileage.

United starts selling one-time access to elite-level check-in, security, and boarding

“Premier Line” is the latest in the “Travel Options by United” series of a la carte services available for purchase. Premier Line, starting at $25 per passenger each way, will let passengers: check in at the (generally shorter) business class line; use the (generally shorter) elite/first class security line; board in Seating Area 1, earlier than non-elite coach passengers.

US Airways is bringing back Preferred bonus miles

US Airways is bringing back Preferred bonus miles and 500 mile segment minimums for Preferred members. We’ll also be awarding retroactive Preferred bonus miles and segment minimums for Preferred member flight activity. Retroactive mileage credit will be reflected in the December 2008 e-Statement.

Global Air Travel Keeps Falling
IATA (the International Air Travel Association) said that global air travel dropped for the second month in a row, with international passenger traffic down 1.3 percent compared to October 2007. That was a smaller decline than September’s 2.9 percent drop. North American traffic declined 0.8 percent; Asia Pacific traffic was down 6.1 percent, European traffic was up 1.8 percent. IATA’s head, Giovanni Bisagnani, said that recession is now the biggest threat to airline profitability. (Source: IATA press release).
 

Fewer Planes in the Air Boost On-Time Performance
The airline industry’s capacity cuts, resulting in fewer flights operating daily, have contributed to the improvements in on-time performance shown above. Notably, in September, when the share of flights arriving on time rose to 84.9%, carriers implemented the bulk of the large capacity cuts announced at the height of the summer’s oil-price surge. (Source: Wall Street Journal)

Trend: "Premium Economy" Offers More Comfort but Still Coach
As tightening travel budgets restrict first and business class bookings, interest in the "premium economy" class is resurfacing. A dozen international airlines flying to the U.S. now offer extra legroom, wider seats and seats that recline lower in premium economy cabins at a cost that’s slightly more than coach but notably less than business class. Some carriers even include better meals, early boarding, access to faster airport security lines, and other amenities.   (Source:  The Wall Street Journal)

United Makes It A Little Easier to Pay Baggage Fees and Buy Extra Leg Room
More airlines are making it a little easier for consumers to pay baggage and other fees. United Airlines canceled its previously announced plans to increase the domestic second bag fee from $25 to $50 one way, and now lets you pay your baggage fee in advance on its website instead of at check-in. You can now upgrade online instead of at check-in to Economy Plus, which starts at an additional $14 one way for up to five additional inches of legroom.  Next spring, your travel agent will be able to book your baggage and upgrade you to Economy Plus.   Northwest Airlines is another carrier that now lets you pay your baggage fee in advance when you check in online; Spirit Airlines discounts your baggage fees when you pay online. Look for more airlines to make it easier to pay a variety of fees in advance, either through your travel agent or on their website. (Source: United, Northwest and Spirit press releases).  

Lufthansa Launches “Lufthansa Italia” Brand
Lufthansa has launched its new “Lufthansa Italia,” which it is billing as a blend of Lufthansa’s reliability and quality with Italian flair. It will begin flying a fleet of six aircraft in February between northern Italy and major European destinations. It ultimately plans to operate its own Italian airline. It will first operate to Paris and Barcelona, and then will add Brussels, Budapest, Bucharest, Madrid, London and Lisbon. (Source: Lufthansa press release). 

Delta Realigns Fees for Customers on Delta and Northwest Flights
Delta Air Lines, which recently acquired Northwest Airlines, is aligning the fee structures of the two carriers. It has dropped award ticket fuel charges instituted to cope with soaring fuel costs and reduced the cost of telephone reservations from $25 to $20. It has eliminated curbside check in administrative fees and aligned the two carriers’ baggage fees.  In addition, Delta now offers passengers Coach Choice seats for an additional fee when they check in online 24 hours before departure. These are certain aisle, window or exit row seats.  (Source: Delta press release).

Car News

Car Rental Customer Satisfaction Continues to Decline
Customer satisfaction with renting cars at airports has declined considerably for a second consecutive year, according to the J.D. Power and Associates 2008 Rental Car Satisfaction Study. The study looks at six factors: costs and fees, pick-up process, rental car, return process, reservation process and shuttle bus/van. Overall satisfaction declines significantly from 750 points on a 1,000-point scale in 2007 to 734 in 2008. Staffing and operational cuts are hurting service, according to the study. Enterprise ranked highest for the fifth year in a row, followed by Hertz and Alamo. (Source: J.D. Power press release).

Avis Budget Ups Rates $3 Per Day

Avis Budget Group said it is upping its retail car rental rates by $3 per day and $20 per week at all airport and selected off-airport locations. The company said the rate increase was a response to escalating costs affecting the car rental industry. Hertz raised its rates in the U.S. and Europe at the end of October. (Source: Avis Budget Press release)

Hotel News

Hospitality Industry Confronts Impact of Economic Downturn
Occupancy and Revenue per Room levels for U.S. hotels continue to decline through the first week of November (latest available data) though ten top markets posted brisk growth in occupancy levels, room rates and Revenue per Room through October.  Hotels in the United Kingdom as well as in Europe overall registered Revenue per Room declines based on sliding occupancy levels. The hotel construction pipeline grew 28% worldwide at the mid-year point (latest available data) although signs point to a developing fall-off and in the U.S., the number of guestrooms under construction decreased by 5% in October.

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.