Government to implement reward system for airports

May 31st, 2010

In an interview with London’s Evening Standard, Philip Hammond, the new Transport Secretary has announced cash rewards for airports that score high on parameters such as security, queue length, and car parking. This statement was a direct reference to Hammond’s prediction that the profitability of Britain’s airports in the future will rest heavily on the passenger experience they impart.

Hammond expects operators like BAA to receive the altered airport policy positively. He wants the instatement of a higher authority that can command an operator like BAA to invest efforts in improving customer service. He believes that only better customer experience can help advance the profits that such operators generate.

Hammond cited an instance such as the one where BAA had worked towards building Terminal 5 as worthy of a reward. However, according to the transport secretary, there is still scope for improvement at Heathrow. Hammond believes that the aviation industry should work in cohesion towards projects such as Heathrow, which still has some distance to go before it attains world-class standards.

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IATA chief condemns government’s aviation sector policies

May 31st, 2010

Chairman of the International Air Transport Association(IATA) and Cathay Pacific’s chief executive, Antony Tyler has strongly criticized the new UK government’s decision to not construct a third runway at Heathrow. The IATA chief has also condemned the Tory-Lib Dem government’s plan to switch from Air Passenger Duty (APD) to a per-plane tax, which he believes would benefit short-haul carriers than long-haul ones.

While comparing the British aviation policy with that of Asian countries like China, Tyler cited that aviation policy in UK needed the impetus of growth-oriented policymaking. He stated that such progressive policies had contributed significantly to Chinese air fleet’s growth and a substantial increase in its air-traffic routes.

Chairman of VisitBritain, Christopher Rodrigues, however, supported the government stating that it was committed to both domestic and international tourism’s growth. Rodrigues stated that detractors of the government needed to understand that tourism policies are not controlled by the tourism ministry alone, but had denser implications. The VisitBritain chief added that any additional taxes levied on the aviation sector would have only a minor effect on its profit margins.

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New bill aims at bettering airport facilities introduced

May 30th, 2010

The government is making a renewed effort to perk up facilities at existing airports. A new bill introduced in this regard, by the Queen, is an affirmation of this fact. The airport economic regulation bill intends to curtail pointless regulations, address the issue of increasing competition and make available better offers for passengers. There are also plans to construct a high speed rail network, the timeline for which was, however, not divulged.

The bill follows the decision taken by airport operator BAA to withdraw its applications for additional runways at Heathrow and Stansted airports. The decision of the BAA was a consequence of the coalition government’s reluctance to fund further expansion of airports.

The government also aims to change the existing system conceived by the Civil Aviation Authority, which sets limits on the amount that airlines can be charged for using the airports.

The Queen also announced that an additional bill, essential to actualizing the clauses mentioned in the airport economic regulation bill, would be introduced soon.

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London hotels affected hugely by the ash cloud crisis

May 30th, 2010

A research conducted by PFK Hotel Consultancy Services shows that occupancy in London reduced drastically during the ash cloud crisis. An occupancy drop of 7.6% was registered in April 2010, as compared to April 2009. This steep decline is attributed to the fact that travellers were forced to revoke their plans to travel to the UK capital, owing to the unanticipated calamity.

Despite hotels charging 7.9% higher room rates, the ratio of room occupancy to the average achieved room rate dropped by 0.3% to clock £93.20.

Partner for Hotel Consultancy Services at PFK, Robert Barnard reiterated the fact that hotels in UK have had to bear the maximum brunt of the crisis. However, the overall picture in UK does not portray such a dramatic slide. Hotels outside London for instance, registered an average rise of 1.7% rise in occupancy, but a 3.6% fall in room rates.

Cities like Birmingham have displayed a rise in both occupancy and room rates, while Manchester registered a 2.3% increase in occupancy last month, compared to the same period last year. The average room rates in Manchester, however, fell by 0.7%.

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Travellers ready to cut down on other expenditures to satiate holiday plans

May 25th, 2010

Travelocity’s latest poll with TakingTheKids.com revealed that holidays have today come to occupy a significant place in the lives of travel lovers.

The survey shows that travel enthusiasts are ready to trim down other expenditures such as eating out and purchases and deploy a range of methods to save on money and set out on that planned vacation of theirs. Sixty seven percent are willing to cut back on expenses such as entertainment and eating out, while 29 percent and 17 percent respectively are ready to forgo gifting and charitable donations to take a vacation.

Despite the recessionary trend that the economy is witnessing, travellers are looking to leverage the attractive travel deals that are coming their way, to satiate their travel desires.

Travelling at off-peak times, avoiding holidays, driving instead of flying, holidaying close to home, picking destinations based on price and taking kids out of school are some of the most popular money-saving techniques cited. A large percentage of respondents have quoted kids as a significant component of vacation planning.

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CAA moves its petition to the Supreme Court

May 24th, 2010

Dismissing the Civil Aviation Authority’s (CAA) petition against Travel Republic over an alleged violation of Atol regulations, the High Court upheld the not-guilty ruling pronounced by Westminster Magistrates’ Court last year. Lord Justice Elias’s certificate of permission, however, grants the CAA the right to take the case to the Supreme Court, a privilege that it plans to utilize.

Defending CAA’s decision to register the case, a CAA spokeswoman stated that protecting consumer interest has always been CAA’s main concern. The spokeswoman added that if the Supreme Court accepts the case, it will have to decide whether or not the passengers, in the cited case, were entitled to receive Atol protection for their entire holiday. The whole case broaches the topic of uniform protection of consumer interest for different holiday packages.

The spokeswoman also expressed CAA’s satisfaction over the Divisional Court’s decision to endorse the case as one of public importance. She reiterated that such a declaration was imperative for the case to be heard by the Supreme Court.

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TMC joint ventures estimated to increase

May 24th, 2010

A theory postulated by the members of the group Advantage Travel Centres suggests that the business travel industry in UK will witness an increasing number of joint ventures, as the economy of the country perks up.

In a survey conducted prior to the consortium’s annual conference, bosses of many Travel Management Companies (TMC) have predicted less number of business travel agencies in the future.

The number of mergers and acquisitions had dipped alarmingly in UK during the period of downturn, with many potential sellers expressing their reluctance to do business in a period of low valuations. However, in the last 18 months, many TMC owners have reorganized their businesses. Consequently, there are more companies in better buying and selling positions.

The survey also revealed the perception of members that the demand for independent TMC’s would increase in the future. Smaller firms, however, believe that it would be difficult for them to combat the aggressive discounting policies of competition and that they would consequently have to fight with suppliers to arrive at the best rates.

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Ash crisis triggers sudden decline in passenger volume

May 21st, 2010

TTA Worldchoice has reported a sudden end to a period of double-digit passenger growth, following the ash cloud crisis.

The autonomous agency group’s Managing Director, Simon Hargreaves reported that the travel industry witnessed a steep decline in passenger volume after the six-day flight ban that followed the ash cloud interference in April. Prior to this, the industry was seeing a year-on-year increase of more than 20% in the last five consecutive months. For an industry that was on the path of steady growth, this sudden dip came as a rude shock.

Higher booking prices, better performing high end market and a struggling family and mass market are the trends that mark the travel industry currently. Hargreaves however believes that the family market would help rally the industry out of its current downturn. According to Hargreaves, the quality of family products on offer coupled with the readiness of families to take two holidays a year will help bolster this market. He urged the agents to push families into taking multiple trips.

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Overseas conference to be organized for TTA/Worldchoice members in 2011

May 20th, 2010

Despite ruling out plans of reorganizing a joint conference of TTA/Worldchoice members in 2010, the consortium has chalked out plans to hold the overseas conference in 2011. As for this year, TTA/Worldchoice plans to hold some smaller events in the UK for its members.

The association is jotting down venues to organize the three-day overseas conference next spring. It is speculated that the event will take place in a sunny location in the Mediterranean.

The tradition of an annual overseas convention is more popular amongst members of Worldchoice than TTA. However, this seeming familiarity that Worldchoice harbours hasn’t stopped the organizers from conducting the event as a joint affair. The TTA/Worldchoice joint conference held in the UK last year was organized in a format more familiar to TTA agents.

Worldchoice has not conducted a private overseas conference for just its members since it became a part of the Triton super-consortium in 2006. Since confirming its membership at Triton, Worldchoice members have attended the three Triton conferences in Tenerife in 2006, Portugal in 2007 and Majorca in 2008.

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ABTA believes that airport expansion will harm UK severely

May 18th, 2010

The coalition government’s plan to ban airport expansion has met with criticism from the Association of British Travel Agents (ABTA).

Mark Tanzer, CEO, ABTA, said that the government needs to reflect on the overall capacity needs of the UK, before it arrives at a final decision on individual airports. He asserted that vetoing any airport expansion would only harm the UK PLC severely, without adding any considerable environmental advantages.

Welcoming the government’s plans to adopt a per plane tax, an important clause in the ABTA proposal, Tanzer stated that the association had always believed in an impartial taxation system that was more in sync with aircraft efficiency. Tanzer also said that the tax should be discontinued once the EU Emission’s Trading Scheme comes into effect in 2012.

The association plans to meet up with the new transport minister Philip Hammond and the other newly inducted government officials, with an intention of working closely with the bureaucracy to address the expectations of the travel industry.

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