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SOUTHWEST LEADS FARE HIKE;
ALL MAJORS MATCH. Northwest Airlines
and US Airways became the last of the major airlines to match the
industry's latest attempt to raise prices, hiking fares $20-$40
round-trip across "the bulk" of their route systems, the farewatcher
FareCompare.com said Saturday. Southwest Airlines, in an unusual
move, led the fare hike late in the week. But the traditional
non-discount carriers, besides Northwest and US Airways--American,
United, Delta and Continental--were cautious in raising fares on
routes where they compete head to head against Southwest, said
farecompare.com's Rick Seaney. The increase was the 20th attempt by
the airlines to raise fares this year, with the vast majority
succeeding. In its fare hike, Southwest raised round-trip prices
between $10 and $20, based on the length of the flight. Southwest's
fare increase goes into effect Oct. 31. (See more on fall fares and
schedules in Weekend Papers below.)
(www.FortWorthStar-Telegram.com/Business)
Delta Air Lines, citing unprecedented fuel costs, will begin adding
fuel surcharges to Award Tickets originating from the U.S. and
Canada, effective Aug. 15. Travel between the 50 U.S. states and
Canada will require a $25 surcharge and $50 will be charged for
travel between the U.S. or Canada and international destinations,
including Puerto Rico, U.S. Virgin Islands, Caribbean,
trans-Atlantic, trans-Pacific and Latin America. The fuel surcharge
will not be applied to ticketed Award itineraries or future Award
Tickets issued prior to Aug. 15, regardless of the date of travel.
(www.TravelAgentCentral.com, 6/27;
www.AtlantaJournal-Constitution.con/Business)
Checked bags are now a moneymaker for US Airways, American Airlines
and United Airlines, and officials say they're going to keep a
closer watch on how much passengers take on board as they begin
their new baggage fees. The airlines point out that the carry-on
policy came from the FAA, not the industry, and they have an
obligation to keep people from sneaking bulky bags onto planes to
avoid fees. People who are accustomed to boarding with a large
roller case might find themselves handing $15 to an airline employee
before they get through security. (AP; Pages 3A, Miami Herald;
www.LosAngelesTimes.com/Business;
www.FortWortStar-Telegram.com/Business)
Citing record-breaking oil costs at $140 a barrel, as well as a
decrease in customer demand, Northwest Airlines and its
trans-Atlantic joint venture partner KLM Royal Dutch Airlines are
suspending one international flight route and canceling two others.
Beginning Oct. 1, flights between Minneapolis-St. Paul-Paris are
suspended until March 28, 2009, and flights between
Detroit-Dusseldorf and Hartford-Amsterdam will be canceled.
Passengers with advance bookings on these flights will be offered
alternate NWA or SkyTeam Alliance flights.
Continental Airlines has announced that it is upgrading one of its
services. Effective this month, the airline will charge passengers
less--not more--to change their flight at the last minute.
Continental's new same-day policy allows passengers with restricted
tickets to change their flight within 24 hours of their original
departure for a discounted change fee. The fee is $50, or $25 for
Continental's OnePass Platinum and Gold Elite members. If there are
no seats available, passengers may still standby, in which case the
fee is charged only is a seat is cleared on the earlier flight.
Qantas Airways will hold more talks with its aircraft engineers this
week in an effort to resolve a pay dispute that has disrupted its
domestic services. A spokesman said the engineers' union pledged to
halt a series of four-hour rolling strikes at its major domestic
airports in Sydney, Melbourne and Brisbane as the sides resume talks
today. Continued action by engineers led Qantas to cancel 19 flights
among the three cities Friday. (Page B2, Wall Street Journal)
PLANET HOLLYWOOD TO LAUNCH NEW
BRANDING DIVISION. Following the
launch of is first mega-resort, Planet Hollywood International last
week announced that it has created a new division to oversee its
plans for international brand expansion. The new branch will work to
quickly expand the Planet Hollywood brand as it develops hotel and
vacation ownership properties both domestically and internationally.
As part of the announcement, Planet Hollywood named William Feather
president of Planet Hollywood Resorts Management. (PR Newswire)
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Alarmed by rising fuel costs and dwindling arrivals to the Islands,
Hawaii lawmakers are putting new pressure on the Hawaii Tourism
Authority to more aggressively sell the state. The official purpose
of a joint House-Senate committee hearing last week was to review
how the Hawaii Tourism Authority spent emergency funds in early
April after the sudden shutdown of Aloha and ATA airlines. But the
hearing quickly moved to a discussion about whether marketing
efforts by contractors like the Hawaii Visitors and Convention
Bureau are paying off. The HTA's budget for the fiscal year starting
July 1 is $88 million, with $54 targeted for marketing. (PacificBusinessNews;
www.bizjournals.com)
A record number of 28 million people visited Colorado in 2007,
contributing $9.8 billion to the state's tourism industry, local
tourism officials announced last week. The 28 million visitors were
up 4% from 26.9 million in 2006, according to a study by Longwoods
International Research commissioned by the Denver Metro Convention
and Visitors Bureau and the Colorado Tourism Office. It was the
fourth consecutive year that Colorado's tourism industry grew.
Colorado remains the No.1 overnight ski destination in the nation,
with 20% of market share. (DenverBusinessJournal;
www.bizjournals.com)
NYC & Co., New York's official tourism marketing agency, announced
two weeks of dining deals for New Yorkers and visitors. From July
21-25 and July 28-Aug. 1, more than 230 restaurants will offer
three-course prix-fixe lunches for $24.07 and three-course prix-fixe
dinners for $35.00, excluding beverage, tax and gratuity. General
reservations began Sunday at www.nycvisit.com.
WITH SUMMER barely under way, it may
seem too early for travelers to start thinking about Labor Day. But
that is when significant cuts in the airlines' fleets and schedules
will begin taking effect, making for a particularly jarring end to
summer. Across the U.S., airports from La Guardia in New York to
Oakland in California will be affected by flight cuts, bringing the
industry down to a size last seen in 2002, when travel fell sharply
after the 9/11 attacks. Overall, the cuts will reduce flights this
year by American carriers by almost 10%, industry analysts estimate,
with even deeper cuts in store for 2009. Air fares, which are up
about 17% this year on average, may rise as much as 40% within the
next four years, analysts predict. Leisure travel falls in
September, so occasional flyers may first encounter the harsh new
reality of flying at Thanksgiving, with fewer flights and
less-convenient connections. (Page A1, New York Times, Sat.)
Those planning to fly his fall are advised to have a backup plan.
For example, competition for holiday travel will be more intense
than usual. The advice is to book now. Travelers are also advised to
consider using a travel agent and to know their rights. (Page A14,
New York Times, Sat.)
THE ANHEUSER-BUSCH COMPANIES on Friday
detailed plans to make the company more valuable than the offer of
$65 a share that it rejected from is rival, InBev of Belgium, and
gave 2008 and 2009 profit guidance above analyst expectations. In a
conference call with investors, Anheuser-Busch executives reiterated
that InBev's proposal, which it rejected on Thursday, undervalued
the company and its growth prospects. The company also said it does
not plan to sell its entertainment and theme parks divisions as part
of its plan. The Busch Entertainment division owns SeaWorld,
Aquatica, Discovery Cove, Busch Gardens and six other theme parks.
(Pages B4, New York Times, Sat.; B6, Wall Street Journal, Sat.)
A NUMBER of Posh Western resorts are
facing financial woes. Promontory in Park City, Utah, which began
showing signs of distress a few months ago, joins several other
Western vacation spots facing financial uncertainty or worse,
including Nevada's Lake Las Vegas golf resort, Idaho's Tamarack
Resort and Montana's venerable Yellowstone Club. And sales are off
at other resorts in the region, according to the Rocky Mountain
Resort Alliance. Credit Suisse is trying to call in a loan at
Tamarack Resort, one of the nation's newest ski resorts, about 100
miles north of Boise. In Lake Las Vegas--a golf community 17 miles
from the Strip that defaulted on $540 million in loans--a group of
lenders led by Credit Suisse forced the development into new
ownership at the start of the year. (AP; www.HonoluluAdvertiser.com
/Business, Sat.)
HOTELS are increasingly adopting
"green" practices as they move past simply asking guests if they
prefer to keep using the same towels and sheets. Just a few years
ago, hotels that encouraged patrons to use linens and towels for
more than a day--and the guests who did so--were applauded as being
environmentally friendly. But now, experts in "green" travel say,
it's time to start trying a little harder. Only a small fraction of
the more than 47,000 U.S. hotels are enrolled in formal green
programs. So far, just 11 hotels have been constructed to the U.S.
Green Building Council's Leadership in Energy and Environmental
Design, or LEEDS, standards, and there are only 314 Energy
Star-certified properties designed to reduce energy consumption. But
other hotels are adopting such eco-friendly habits as using glass or
biodegradable paper cups instead of Styrofoam, installing carpeting
and furniture made from recycle products, and retrofitting with
low-flow showers and toilets. (www.LosAngelesTimes.com /Business,
Sun.)
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