AAA Corporate Travel Newsletter January 30 th, 2015 Concur Travel New User Interface goes live January 31 On January 31, Concur will officially transition your Concur Travel site to their NEW User Interface, for ALL travelers in your company. Concur hopes to accomplish the following, with this enhanced user interface in place: 1. Modernize the user experience and increase usability of Concur applications, while maintaining the ability to apply and enforce company policies 2. Implement features and functionality that provide clients with maximum benefits for their Travel and Expense needs. 3. Allow effortless navigation and access to features on the web and mobile devices Please share this information with your administrative support team and travelers...user Guides from the Travel Arranger perspective and Traveler perspective are provided: AAA Corporate Travel Services, 1/30/2015 Traveler New User Interface Guide Travel Arranger New User Interface Guide AA Projects $5 Billion In Fuel Savings But Holds To Pricing, Capacity Plans American Airlines executives on Tuesday said they have no plans to adjust pricing or capacity in response to lower fuel costs, marking a unanimous commitment among the three U.S. legacy carriers on the matter. As the only airline among the legacy carriers that does not participate in fuel hedging, AA is seeing the most direct benefit from lower fuel prices. For 2015, the carrier projects it will see more than $5 billion less in fuel expenses year over year, all of which will go directly to its bottom line, American Airlines Group CEO Doug Parker said during the company's fourthquarter earnings call on Tuesday. Even so, that will not change its pricing strategy. "Pricing is tied to demand, and demand remains strong," Parker said. "That's what we should base our pricing on, not our cost structure." Parker touted a similar line on capacity. AA plans to increase domestic capacity 3 percent and international capacity 1.5 percent year over year in the first quarter, but the carrier couldn't
pump that up even if it wanted to, he said. "Our infrastructure would not be able to handle additional capacity above current plans for at least 18 months," Parker said. During the fourth quarter, AA's operating revenues were $10.2 billion, up 1.8 percent compared with combined operations of AA and US Airways for the same period in 2013. Net income for the quarter was $597 million, compared with a loss of almost $2 billion for the two carriers in the fourth quarter of 2013. For the full year, AA's net income was $2.9 billion, compared with a loss of $1.2 billion for the two carriers in 2013. Consolidated revenue passenger miles declined slightly year over year during the quarter as capacity increased 1.7 percent, leading load factor to decline 1.6 percentage points year over year to 80.1 percent. Passenger revenue per available seat mile (Prasm) declined 1 percent, and yield increased 0.9 percent, AA reported. AA president Scott Kirby noted that PRASM was lower than expected due in part to increased competition from "an unusually high and concentrated number of new starts" by competitor carriers, including Southwest Airlines' growth out of Dallas Love Field following the expiration of the Wright Amendment. Even so, Kirby said the carrier is seeing strength from its corporate accounts, including double-digit percentage PRASM increases in New York during the quarter. AA also continues the consolidation process with US Airways this year. It plans to finish consolidating the two airlines' frequent-flyer programs later in the spring, to be on a single operating certificate within the first half of this year and to consolidate the reservations program in the latter part of the year, according to executives. Business Travel Executive, 1/27/2015 JetBlue Preps New Fare Bundles For Second-Quarter Debut JetBlue Airways is readying its three-tiered bundled fare structure, which excludes free checked bags at its lowest level, for launch in the second quarter of this year, executives said during the carrier's fourth-quarter earnings call on Thursday. JetBlue's IT team, along with technology partners Datalex, IBM and Sabre, already have been testing the platforms to manage the new fare structure, JetBlue president Robin Hayes said. Frontline employees also will begin training on the new structure this quarter, he added. First announced in November, JetBlue's three-tier structure will include no free checked bags at the lowest level, one free checked bag at the middle level and two free checked bags with the most expensive fare. The higher-tier fares also will carry more flexibility and TrueBlue frequency-program bonuses. Hayes, who succeeds outgoing CEO David Barger next month, said the tiered structure would add "at least $65 million in incremental operating income in 2015 and more than $200 million annually by year-end 2017."
During the fourth quarter, JetBlue reported net income of $88 million, up from $47 million in the fourth quarter of 2013. Passenger revenues during the quarter increased 6.9 percent to $1.3 billion. For the full year, net income was $401 million, compared with $168 million in 2013. Traffic during the quarter increased 8.5 percent as capacity increased 7 percent year over year, leading to a load factor increase of 1.2 percentage points to 82.1 percent. JetBlue's average fare during the quarter declined 1.6 percent year over year to $166.17, and passenger revenue per available seat mile remained about flat. Hayes noted JetBlue's premium-class Mint product, which will expand this year, continued to perform well during the fourth quarter. Operating margins on routes with the Mint product improved twice as much as those on other transcontinental routes, which already were among JetBlue's best-performing routes, he said. As other major U.S. airlines have similarly indicated, Hayes said the carrier has no plans to bump up capacity in response to lower fuel costs. While JetBlue expects capacity during the first quarter will be up 11 percent to 13 percent year over year, that largely is a factor of severe weather forcing cancellation of about 4,100 flights in the first quarter of 2014. Business Travel News, 1/29/2015 Airbnb Usage To Surpass Hotel Cos., But Not For Business Travel Airbnb bookings are on track to outpace the largest hotel companies within a few years, although the room-sharing platform is unlikely to become a major player in the business travel space anytime soon, according to a research note published on Friday by Barclays. In terms of size, Airbnb already has overtaken the largest hotel companies. During the past year, the number of rooms available through Airbnb has grown from about 300,000 to about 1 million, Barclays European leisure analyst Vicki Stern wrote in the note. By comparison, as of the 2014 BTN Business Travel Survey, the largest hotel company measured by rooms, InterContinental Hotels Group, had a portfolio of about 687,000 rooms. While there is not a direct comparison by size not all of Airbnb's listings are available yearround, for example its listings could double within the next year, according to Stern. She estimated that Airbnb's current bookings are about 37 million room-nights per year, about one-fifth of what IHG sold last year, but its growth could have it outpacing IHG's bookings within two or three years. Even so, it will remain mostly a leisure player during that time, with only about 10 percent of Airbnb bookings currently used for business travel, she added. "There is currently no regulation applied to Airbnb hosts regarding fire safety, food hygiene and insurance," Stern wrote. "This is a key difference to hotels, which are required to adopt strict health and safety regulations, and this is one key reason why we believe the majority of business[es] would be reluctant to send employees to Airbnb accommodation instead of a hotel."
As to its impact on overall hotel performance, the note concluded that it currently is negligible. Many of the bookings are for large groups or events that would not have been accommodated by hotels anyway, for example. Given Airbnb's growth trajectory, however, "we do not find the lack of an impact so far particularly reassuring," she added. Business Travel Executive, 1/16/2015 Virgin Australia dropping fuel surcharges for US flights Virgin Australia said it will reduce ticket prices for flights from Australia to the US in response to lower fuel prices. Taking effect on Friday, January 23, fuel charges for economy and premium economy fares are being cut by A$40 (about US$32) and business class fares will fall by A$50 (US$40). "These reductions reflect the benefits of the decline in global oil prices along with the negative impact of the depreciating Australian dollar," Virgin said, adding that it expects fuel costs to remain at lower levels for some time. Crude oil prices have fallen below US$50 a barrel from a high of about US$115 a barrel in June 2014. In fact, fuel surcharges are effectively being scrapped on Virgin Australia US flights. It said it will now incorporate the fuel charge for US flights into its base fare, in line with all other domestic and international routes in its network. "Fuel costs for those airfares are treated in the same way as other operating expenses and incorporated into the base fare, rather than being charged separately as a fuel surcharge," the airline said. Virgin Australia operates daily departures from Brisbane and Sydney to Los Angeles. Fuel surcharges on rival Qantas lights to the US are an average A$680 (US$550) per round trip in economy and A$780 (US$630) in business class. Travel Mole, 01/20/2015 US airports post record for international traffic in 2014 International travel to and from US airports was at a record high in 2014, the US National Travel and Tourism Office said. Airports handled 197.3 million passengers last year, an increase of 7% from 2013. The report said 86.4 million US travelers flew overseas which was also up by 7% although US airlines' share of the international market dropped to 52%. Foreign owned carriers accounted for 95.2 million passengers, which was a year-over-year increase of 10% from 2013.
Figures show United Airlines was the top US carrier on international routes, handling over 30 million passengers, the equivalent of American Airlines and US Airways combined. New York JFK remained the busiest international gateway airport, carrying 28.4 million passengers, way out in front ahead of Miami and Los Angeles. The report's findings showed Houston's George Bush Intercontinental Airport was the fastest growing international gateway, recording a 10% increase in passengers. International tourism globally in 2014 was also at a record high with the UNWTO or World Tourism Barometer estimating a 4.7% increase to 1.138 billion international overnight journeys. UNWTO forecasts a positive outlook with another 3-4% rise in 2015 for international tourism. Travel Mole, 01/20/2015 Hyatt Announces Centric, a New Full Service Lifestyle Brand Hyatt Hotels Corporation has introduced Hyatt Centric, a new, full service lifestyle brand designed for business and leisure travelers. The launch marks the sixth brand Hyatt has introduced since 2006. More than 15 Hyatt Centric locations, comprised of open and previously announced hotels, will debut this summer in some of the world s most popular cities, including New York, Paris, Atlanta, Chicago and Miami. The Hyatt Centric name was inspired by the brand s mission of putting its guest at the center of the action in the best destinations. True to its promise, From listening to our guests, we learned there was opportunities to better meet the needs of a large group of travelers that we call Modern Explorers, said Mark Hoplamazian, president and chief executive officer, Hyatt. These travelers are looking for a cosmopolitan vibe in the center of the action, so we worked to test various elements in real time, in real hotels over the past two years. Hyatt Centric is the culmination of that work. Modern Explorers are a multigenerational group of travelers who view their hotel as the hub of their travel experience. Their expectations are simple, but their standards are high and they want their experience to be intuitive and smart, explained Kristine Rose, Hyatt vice president of brands. They want options and all the must-haves from a full service hotel but without any fuss or complications. The Hyatt Centric name comes from the brand s mission of putting its guest at the center of the action in the best destinations. Each hotel will offer a unique take on its location with artwork, furniture, food and beverages that allows guests to get an authentic feel for the destination. The brand aims to offer a simple, welcoming environment that delivers the essentials in the easiest, most streamlined way possible. Hyatt Centric hotels will offer a balance of advanced digital capabilities combined with a staff of knowledgeable associates to aid guests in their discovery of the destination. Business Travel Executive, 1/28/2014