Wednesday, July 27, 2011

Airlines Announce More Capacity Cuts

Major airlines are further reducing capacity and raising fares again to offset fuel costs which seem to be here to stay.

Higher fares, more user and ancillary fees, and fuel surcharges will probably add another 5-10% to the average airline fare for the balance of 2011.

www.premieretravel.com

Tuesday, July 26, 2011

The Tax Mess On Airline Tickets

Due to inaction by the U.S. Congress, the Federal Aviation Administration (FAA) reauthorization bill was not passed. As a result, the FAA began experiencing a partial shutdown at midnight on Friday, July 22, 2011.

As a result of this "inaction", airlines, while you were sleeping, immediately implemented fare increases to offset any potential savings for travelers.

Business Travel Coalition and Travel Management Companies (TMC's) are raising the issue that travelers who are traveling during the shutdown may be due tax refunds for taxes already paid when they purchased their tickets for travel prior to July 22.

Premiere Travel will be keeping track of these taxes paid by our clients in the event that a determination is made that refunds are due, and will file any necessary paperwork and claims on their behalf.

www.premieretravel.com

Saturday, July 23, 2011

Airlines Rush To Raise Fares As Taxes Expire

Not wasting one moment, American and USAirways among others, raised their fares to offset the expected savings that travelers should realize when Congress failed to pass legislation to keep the FAA running.

At 12:01 on July 23, airlines were not required to collect taxes, and so to avoid "confusion" and "inconvenience", some airlines raised their fares effectively wiping out any break for the traveler.

www.premieretravel.com

Thursday, July 21, 2011

Delta to Tighten Grip on LaGuardia and USAirways on Reagan National

The U.S. Department of Transportation rubber-stamped a deal between Delta and USAirways allowing carriers to swap slots at Reagan National and New York LaGuardia Airports.

With minimal adjustments, Delta will control half the slot pairs at LaGuardia and USAirways will tighten its hold at National.

Both airports are ultra-congested and the only opportunities for growth is through slot swaps by airlines.

www.premieretravel.com

Sunday, July 17, 2011

Better Disclosure of Airline Fees on Horizon

The U.S. Department of Transportation will require airlines to break down and disclose the revenue they derive from ancillary fees and report 14 additional categories that are currently tucked away under one large category.

Very soon, your airline ticket breakdown may resemble the sticker price of an automobile.

By disclosing these fees, which include the sale of items such as beverages, meals, pillows and blankets, airlines may be required to collect/pay federal excise taxes of 7.5% on some of these services resulting in more complications.

www.premieretravel.com

Tuesday, July 12, 2011

Airlines Not Doing Well in this Customer Survey

The Atlantic Survey published recently for the "19 most hated companies in America" was not too kind to domestic airlines. Four carriers made it all the way to the "Top 10" portion of the list of 19.

Excessive fees, delays, poor customer service were the main reasons airlines competed with banks, cable and phone companies for this undesirable designation.

To see the survey, please click on the link below:
http://www.theatlantic.com/business/archive/2011/07/the-19-most-hated-companies-in-america/241344/

www.premieretravel.com

Friday, July 8, 2011

The Future of Travel Distribution

As the second half of 2011 is under way, many important changes are already under way in how travel information, content and distribution will be shaping up in the near future.

The Travel Management Company (TMC) channel has lagged in keeping up with the technological advances. Global Distribution Systems (GDS) that agencies have relied on for so long, have not adapted to the changes in the airline distribution model and how content is offered.

It was only a matter of time before the latest innovations in information technology would offer some exciting opportunities that would revolutionaize travel as we know it today.

Organizations such as Openaxisgroup.org, with key membership and support from many major airlines is already out promoting the XML based electronic messaging structure for airline system connectivity worldwide.

American Airlines is the first carrier that is spearheading the movement to this great exciting technology with their "Direct Connect" that will transform the travel distribution ways for a better and more efficient future.

For corporate clients, it would be a welcome change in integrating all services and ancillary fees under one easily understood and clear format. It would represent a "one stop shop" geared to serve the specific needs of travelers.

www.premieretravel.com