May 2005 |
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| We understand that hotels are entitled to a reasonable rate increase, but I'd like to keep a lid on price increases as much as possible. There's no way we want to go back to the days when spending was a bit out of control." Coley in 2005 found the cost of her hotel program rose disproportionately to her air program. "Airline prices have come down so much, while hotel prices have gone up," According to Coley. "As a result, the gap between the percentage of the travel dollar spent on air and the percentage spent on hotel is closing. We haven't had a reduction in our hotel rates since 2001. Approximately 30 percent of the travel dollar is spent on hotel, I'd say, though it varies with the city you're going to." Travelers still tend to think of air as the big-ticket item. The surprise in 2005 was that the cost of a three-or four-night hotel stay could be significantly higher than the cost of the airfare. The way the market's taking off, that's only going to continue in 2006. Key business travel cities in 2004 were the first to see occupancy and room rates accelerate. "Demand and stronger pricing in 2005 are spreading into secondary markets and there has been little resistance to double-digit increases in average daily rate," said JP Morgan Chase analyst Harry Curtis. Most of the incremental pricing has occurred Monday to Wednesday nights implying the strength is in transient bookings, where demand has not been elastic. More frustrating in 2005 than specific rate increases, has been many hotels' disregard for long-term buyer relationships and you can expect even higher rate increases for 2006. What they don't understand is that the hotel business is cyclical," Davidson said. "Then in a couple of years when occupancy and room revenue are down, they'll want to know why we don't value the relationship." One Montreal buyers strategy in 2005 was to consolidate the number of hotels they negotiated with in key markets as a way of driving market share. Any concerns this buyer had about not being able to get rooms on peak nights have been assuaged—as least so far—by having last room availability built into the agreements. Bjorn
Hanson, head of the hospitality and leisure practice at PricewaterhouseCoopers,
has warned buyers to expect 2006 rate negotiations to be more intense
than this year. "Look for a much more difficult environment,"
Hanson said. "Hotels are looking for this to be their biggest rate
increase in four years. Some are trying to make it the biggest increase
in corporate rates ever." Consequently, buyers can expect hotels
to negotiate strenuously. "They saw the power shift in their favor
sometime during the third quarter of 2004 and their training sessions
have been geared with this in mind ever since," Hanson said. Read
the whole article. |
AirAsia flight AK 694 will depart Johor Bahru at 14:20 on Tuesdays, Thursdays, and Saturdays, and arrives at approximately one and a half hours later in Sibu at 15:55 The return flight AK 695 departs Sibu at 16:.20, and arrives at 17:50 in Senai international Airport, Johor.
The Travel Smart Insurance package, is co-branded. The product will be available for sale and distribution from all Gulf Air offices in Bahrain by 1 June 2005. The product will also roll out in Gulf Air sales offices in the UAE and Oman during the coming months. The product provides comprehensive, all-in-one insurance benefits that a passenger would require. Certain covers such as medical, baggage, sub-aqua, over-land travel and hazardous sports may be selected upon passengers request.
Destination
& Fare : Booking Period : 10 May – 31 August 2005 Travel ex-SIN : 10 May – 31 August 2005 Conditions apply. Contact BTI for more information. page 2 >> |
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Negotiating Tougher: Buyers Revising Hotel
Strategies For 2006. By Bruce Serlen, 
