Monday, December 29, 2008
He's been described as the real "local hero", the man who stood up to a cocky billionaire and refused to sell his home to make way for the "world's greatest golf course".
But though Michael Forbes, a fisherman and quarry worker, said "no" to the wealthy industrialist Donald Trump, he may have to get used to the sight of him across the sand dunes they both covet just north of Aberdeen.
Though Trump once described Forbes's home as a disgrace, he has apparently decided to move in next door, upping the ante in a neighbour's dispute that has gained notoriety across the world.
After two years of defiant jousting with the New York-based property tycoon, Forbes has learnt that Trump intends to convert Menie House, the 14th century listed manor which sits next to the proposed resort, into his family's "official Scottish residence".
On top of that, Trump's advisers have signed a legally-binding outline planning agreement for the £1bn golfing and holiday resort that could envelop Forbes's 23-acre plot.
It could take until 2010 before building work begins, but the work of finally designing the 500-home housing estate, 36 luxury villas, 450-bed hotel and high-rise timeshare flats has started in earnest.
Forbes, however, remains as pugnacious as ever.
In his first interview since Trump formally agreed to the Scottish government's terms, Forbes insisted he intends to stay.
"I won't be moving. He's made a fool of the government, he's made a fool of the council, but he won't make a fool out of me. They know to keep away from me now."
The ill-will between the two men began when Trump's team first tried to buy Forbes out. His home, his mother's mobile home and his sprawling collection of decrepit outbuildings and rusting tractors is in the middle of Trump's resort.
After Forbes refused Trump's offers, which rose to £450,000 for the land and a promise of work for Forbes, the tycoon's temper boiled over in October 2007, when he described Forbes's land as a "disgrace" and "disgusting". That immediately entrenched Forbes's resistance, and made him an instant celebrity.
Forbes is now getting fan mail from across the world, including cheques which he doesn't cash. One Canadian woman writes to him every week. "They keep telling me to keep up the good fight. They just can't stand Trump: everything he touches turns to rubbish. I have never ever had a bad letter; it's really good, like."
Forbes believes the global recession will hit Trump's plans far more severely than the developer will admit. "I don't think it will ever start because I don't think he has the money - no-one else has money - so why has he got some? If Trump is a billionaire, so am I."
But if construction does start, Forbes is apparently planning a campaign of resistance. Rumours are circulating among his neighbours that Trump will surround Forbes's land with a high fence. Forbes has cryptically hinted that he plans to respond.
"I will keep all that quiet just now," he said. "Oh aye. I always have something up my sleeve."
Forbes is now embroiled in another dispute with a neighbouring family, the Hewisons.
Their immaculate villa and outhouses are surrounded on two sides by Forbes's land. "They [are] itching to sell, but they can't sell because I own everything around them, but Trump won't be interested in them unless I sell," he said.
However Mark Hewison, who runs a local driving school, believes Trump will eventually get his own way.
"I'm sure at the end of the day, Mr Trump will get everything he wants and requires, and he will just develop around it," Hewison said. "He will keep gathering up all the pieces of the jigsaw."
"If we don't sell it to the Trump Organisation, the property will still be worth a fortune in the middle of that development. Wouldn't another American want to have the same postcode as Donald Trump's Scottish residence?"
Trump's project director at the Menie estate, Neil Hobday, said they had no plans to reopen negotiations with either Forbes or Hewison for their land - they would build around it.
But he confirmed the recession was influencing their planning.
The resort's timeshare blocks and housing estate, which will be sold off to finance the entire development, have to be built in phases under the planning agreement. But it could take more a year to complete all the designs and get formal planning consent - and that would allow Trump to buy more time.
It will be "at least 12 months before the first shovel hits the ground," Hobday said.
"The market has changed quite dramatically, I think we all know that; catastrophically in some places and some countries," he added. "We're not looking at a very attractive market just now. We would be hopeful that when we start building these things, the market will have returned."
http://www.guardian.co.uk/world/2008/dec/29/donald-trump-scotland-golf-course
Monday, December 29, 2008
Travel companies are reducing their rates and introducing a number of special package deals that include free places for children, extra holiday weeks and flights without supplement charges.
They are also telling customers that this may be the only time to find a holiday bargain for the coming year. Most travel operators have cut capacity for 2009, due to the economic downturn, which likely means that there will be few if any last-minute bargains to be had.
Thomas Cook has announced that anyone booking a holiday by February will be offered a 10 per cent discount, in addition to as much as £400 in early booking savings. First Choice is featuring £200 savings on holiday bookings for summer 2009.
Airlines are joining in the attempt to lure customers who are concerned about money during these difficult economic times. British Airways and Virgin have announced price reductions on a number of long-haul services, and foreign airlines operating out of the UK, such as Emirates and Lufthansa, have followed suit.
The steep discounts offered by tour companies are coming as the pound continues to weaken against the euro and US dollar, and holidaymakers are put off by the thought of taking long overseas breaks in the coming year.
Early bookings for Spain have decreased by 22 per cent over last year, reports Co-operative Travel, the largest independent travel agent in Britain. But bookings to Turkey are up by 8 per cent and to Egypt by 49 per cent, as travellers seek destinations that offer better value for their pound.
http://www.asap.co.uk/news/travel-operators-launch-early-booking-price-war-5634030.html
Monday, December 29, 2008
HONOLULU (AP) — The pilots on board a go! airlines flight that overshot the Hilo airport last February have admitted they fell asleep in the cockpit while the plane was on autopilot.
The pilots stopped responding to air traffic control communications about halfway through Flight 1002 from Honolulu to Hilo on Feb. 13, 2007, a recently released 11-page report by the National Transportation Safety Board said.
Air traffic controllers had other planes, including another go! jet and a Continental Airlines plane, attempt to contact the flight, but they were unsuccessful.
The report says there was an 18-minute gap from about 9:40 until 9:58 a.m. when no one was able to communicate with Flight 1002 by radio.
Instead of landing at Hilo as scheduled, Flight 1002 passed over Hilo International Airport at 21,000 feet and continued straight for nearly 30 miles past the airport over the open ocean.
Phoenix-based Mesa Air Group, which owns go! airlines, fired both pilots after the incident.
The flight took off from Honolulu at 9:16 a.m. carrying 40 passengers, a flight attendant and the pilot and co-pilot.
When he woke up, the first officer realized the plane was off course, and checked to make sure there was enough fuel before waking up the captain.
When asked by flight controllers whether they had experienced an emergency, the captain replied, "No, we must have missed a hand-off or missed a call or something."
After the plane landed in Hilo at 10:15 a.m. the captain initially told controllers that they had selected the wrong radio frequency. The controllers told the pilot they would be reporting the incident to Mesa Airlines, the parent company of go! Airlines.
The pilots discussed the incident and decided they could fly the plane back to Honolulu. But when they landed in Honolulu, they removed themselves from duty.
The report notes the pilots were under some stress.
One factor was that the flight attendant assigned to work their first flight that day was late. This meant the flight crew had to rush their first three flights to get back on schedule.
The pilot told investigators he may have let his guard down after he caught up with the schedule.
"Working as hard as we had, we tend to relax," he said. "We had gotten back on schedule, it was comfortable in cockpit, the pressure was behind us. The warm Hawaiian sun was blaring in as we went eastbound. I just kind of closed my eyes for a minute, enjoying the sunshine, and dozed off," he told investigators.
The 53-year-old pilot of the plane, who is not named in the report, also told investigators he had never inadvertently fallen asleep before, but admitted to regular napping while in flight.
After the incident, the captain was diagnosed with severe obstructive sleep apnea, a condition that his physician said could cause "significant fatigue."
Sleep apnea causes people to stop breathing repeatedly, preventing a restful night of sleep.
The 23-year-old first officer, who is also not named, said he had never fallen asleep before on a flight. But on Feb. 13 he entered what he described as a sleeplike state where he could "hear what was going on but could not comprehend or make it click."
The flight attendant on the plane said she wore a watch but did not recall whether she looked at it during the flight. She said she did not notice anything unusual and did not feel there was anything unsafe.
The captain said he went to bed between 8 and 9 p.m. on Feb. 12 after working from 5:40 a.m. to 2:47 p.m. He woke up at 4 a.m. on Feb. 13 and did not have breakfast, but snacked on cookies with his first officer later in the morning.
The first officer worked with the captain on Feb. 12 went to bed at 9:30 p.m. He woke up at about 5 a.m. and had a pastry for breakfast.
The report didn't identify the pilots by name.
The Federal Aviation Administration identified them as Captain Scott Oltman and First Officer Dillon Shepley when it suspended their licenses in September.
The FAA suspended Oltman's license for 60 days and Shepley's for 45 days.
http://www.usatoday.com/travel/flights/2008-12-28-go-sleeping-pilots_N.htm
Monday, December 29, 2008
It's only taken three months, but we've finally got some answers from timeshare outfit Diamond Resorts International.
This lot have sparked fury by yanking up maintenance fees by 40 per cent in a year.
In some cases that amounts to an annual bill approaching £1,000. You could buy a decent holiday for that, without being tied to the same company and resorts.
Some readers who have contacted us are so dismayed by the price hike that they're considering dumping their timeshares.
There's not much point trying to sell them, because who's going want to buy a huge millstone like an annual bill of a grand?
We first asked Diamond Resorts chairman Stephen Cloobeck what was going on in September and he hasn't got back.
But we've finally heard from president Simon Crawford-Welch, who told us: "The increase in maintenance fees is a necessary move in today's environment to ensure we offer our members the quality of accommodation and vacation experience which they deserve.
"These increases were approved by the various homeowner committees and boards and were implemented with the full support and consent of those entities."
Not sure that the fee increase really has such wide - spread support, as just one comment on our Diamond Resorts blog from Robert and Lorraine Cooper suggests.
"We too have contacted Diamond to say we cannot afford to pay the 2009 fee," they say.
"We did however have a response saying that basically unless we are declared bankrupt, are over 75 with health problems affecting our income, or dead (for which they need a death certificate!) then we have got to pay.
"Surely if enough of us refuse they will have to listen to our complaints."
Meanwhile we've had no answer from Diamond to our latest question: How much is it planning in increase maintenance fees next year?
http://blogs.mirror.co.uk/investigations/2008/12/answers-some-anyway-from-diamo.html
Friday, December 26, 2008
Interval International, a leading provider of vacation services, announced the addition of the Grand Luxxe Residence Club® Nuevo Vallarta in the Riviera Nayarit to its global vacation exchange network. The resort is being developed by Vedanta Capital Group and is the first property in its new luxury tier. Other Grand Luxxe Residence Club projects will follow in Mexico’s prime tourism destinations.
“This group has been one of the leading vacation ownership developers in the world for many years as a result of its reputation for delivering high-quality products and services,” said David C. Gilbert, executive vice president of resort sales and marketing for Interval International. “We’re thrilled they have chosen Interval as they expand their impressive portfolio with Grande Luxxe Residence Club Nuevo Vallarta, which promises to be their finest product offering to date.”
“We have selected Interval as our exchange partner for our first luxury resort, and in doing so, are pleased to join some of the best-known hospitality brands and independent developers in the vacation ownership industry,” noted Felipe Ramirez, chief executive officer of the Vedanta Capital Group. “Our members now will have the opportunity to vacation in a broad array of high quality resorts around the world.”
The Grand Luxxe Nuevo Vallarta will be set amidst beautiful landscaping and overlooks Banderas Bay, a 30-mile wide stretch of water surrounded by tropical jungles and lush rain forests. Each villa will be appointed with elegant furnishings crafted from specially selected woods, granite countertops, as well as upscale appliances and electronics.
The Grand Luxxe Nuevo Vallarta will provide an ideal setting for visitors to enjoy sun, sand, and surf, in a tranquil atmosphere away from crowds and congestion. Located only 20 minutes north of Puerto Vallarta airport, guests can enjoy numerous onsite amenities such as restaurants, a spa, a gym, a swimming pool, and multiple water sports. Nearby Puerto Vallarta retains the unique charm of a seaside Mexican village, although it has developed into a cosmopolitan, international tourist destination, with stylish shops, a bustling municipal market, varied gourmet restaurants, and nightclubs.
http://www.thetimeshareblog.com/interval-international-adds-grand-luxxe-residence-club-nuevo-vallarta-to-its-global-vacation-exchange-network/
Friday, December 26, 2008
SEATAC, Wash. – At least 25 passengers and crew on an Alaska Airlines flight were treated Wednesday after de-icer fumes filled the cabin at Sea-Tac Airport.
The accident left many passengers with irritated eyes and vomiting, but none of them wanted to get off the plane after waiting days to catch a flight to their holiday destination.
At about 8:30 a.m., the fumes filled the cabin of Flight 528 bound for Burbank, Calif. The 143 passengers and six crew members started smelling strong fumes as the de-icer was being applied to the plane.
"All of a sudden, all of this billowing smoke was coming out of the vents and then we were kind of locked in there for like a half-an-hour after that. And when they finally let us out of the gate, a lot of us were nauseous,” said passenger Bob Vitti.
Airport officials say the de-icer is a standard product that's used frequently, but that it’s meant only for the outside of an airplane.
"So if somehow fumes may have come in through maybe a air system, filtration system, or another way, those fumes could've been something that was a slightly toxic or irritating to folks' eyes and throats,” said Sea-Tac Airport spokesman Perry Cooper.
The plane returned to the gate, where airport medics briefly evaluated 18 passengers, giving some eye washes. All the passengers had numbers written on their hands as they were being checked by paramedics.
Following Alaska Airlines policy, the six crew members and one non-working Alaska flight attendant were taken to nearby Highline Medical Center where they were checked out and released about an hour later.
“I think the pilot got the worst of it,” said passenger Arianna Morgan.
Many passengers, like Morgan, had been waiting for days for a flight out of Sea-Tac, delayed by unusually bad winter weather.
“They said that if they thought that I was getting sick, they wouldn’t let me on the plane. So, I went to the bathroom and I got sick in the bathroom so they wouldn’t see that,” said Morgan. “I didn’t want to go to the hospital because I knew I wouldn’t get home for Christmas.”
Despite the scare, every passenger decided to re-board a replacement flight and landed safely in California.
The FAA and Alaska Airlines are investigating what caused the fumes to get into the plane.
http://www.msnbc.msn.com/id/28380709/
Friday, December 26, 2008
Timeshare resort developer Bluegreen Corp. will raise up to $100 million through a stock offering, according to a filing with the Securities and Exchange Commission.
The Boca Raton-based company (NYSE: BXG) filed a prospectus on Dec. 16, saying it would issue an amount of common stock, preferred stock, debt securities and subscription rights to purchase additional common stock or other securities in the company. The amount hasn’t been determined yet.
The transfer agent is BNY Mellon.
Bluegreen said it would use the proceeds from the sale for “general corporate purposes” or to acquire or invest in other companies or assets.
The company has been shedding hundreds of employees as it reduces its focus on making new sales, which were hampered by the difficulty of obtaining buyer financing.
Bluegreen shares were up 2 cents to $2.56 in morning trading. The 52-week high was $12.54 on July 22. The 52-week low was $1.50 on Dec. 5.
http://www.bizjournals.com/southflorida/stories/2008/12/22/daily27.html
Friday, December 26, 2008
Reductions in airfares of 25 per cent and more are being offered by airlines in an attempt to bring customers back to air travel as the effects of the economic downturn are expected to be worsened by a post-holiday slump.
British Airways, for example, has announced a return fare to New York for as low as £259 and has also reduced the fare on flights to 75 other destinations.
Virgin Atlantic has said that its sale prices will be £1 lower than BA on many of its long-haul destinations, including Los Angeles and Chicago in the US.
Seat sales are an annual event at the end of the Christmas holiday season, but this year analysts believe that they are part of the ongoing battle among airlines to fill their planes during worsening economic conditions.
The real extent of the discounts is masked, however, by airport fees and taxes and airline fuel surcharges. Without these extra charges, the airfare for transatlantic travel is actually around £100 return, which is a level that has not been seen since the 1980s.
Return fares to India have also been deeply discounted following the terrorist attacks in Mumbai in November. BA has cut fares to Calcutta by £71, down to £359, to Delhi by £121, to £359, to Mumbai by £91, to £329.
Foreign airlines operating out of the UK have followed suit, offering discounted fares as well.
http://www.asap.co.uk/news/carriers-in-britain-launch-airfare-price-war-5634018.html
Sunday, December 21, 2008
British Airways and Qantas have said they are unable to agree on terms for a proposed merger they had hoped would help them cut costs during the downturn in the airline industry and the global economy.
“Despite the potential longer term benefits for Qantas and BA, the airlines have not been able to come to an agreement over the key terms of the merger, at this time,” the airlines said in identical statements released on Thursday.
Earlier this month the two carriers revealed that they were in discussions regarding a consolidation that could help both cope with the global financial crisis that has led to a sharp drop in passenger demand.
Thursday’s statements indicated that the two airlines would continue cooperating on their joint business operating between the UK and Australia through the oneworld alliance. The alliance joins 10 international airlines in a code-sharing partnership.
Alan Joyce, the new Qantas chief executive, issued a warning two weeks ago that there was no guarantee that the consolidation with BA would occur. What he said at that time was that a merger could be beneficial, but a number of factors had to be considered.
The discussions were focused on a “dual-listed company structure,” allowing each carrier to retain its name and its branding. No other details were released, except that the Australian government required Qantas to remain under majority Australian ownership.
http://www.asap.co.uk/news/british-airways-and-qantas-end-merger-talks-5634002.html
Sunday, December 21, 2008
Thomas Cook’s chief executive is predicting that as many as 15 British travel companies face collapse in the coming three months.
Manny Fontenla-Novoa, the Thomas Cook CEO, is saying that the January-March period is a time when cash flow is at its lowest point in the year, and that those companies without adequate banking facilities will be in a struggle to survive.
According to figures released by the Civil Aviation Authority (CAA), 33 travel operators failed in 2008, which is eight more than failed in 2007. In addition, 26 airlines collapsed.
“If companies can survive the next three months they should be fine, but this period is crucial,” Fontenla-Novoa said.
The travel executive added that a number of airlines are also in danger of failing during the economic downturn, but did not elaborate on which ones he thought were most at risk.
Countries hit hardest by the weakening pound have been Greece and Spain, as the pound and euro have approached parity. Countries outside the euro zone have seen a sharp rise in the number of visitors from the UK, with Thomas Cook reporting bookings to destinations such as Turkey being up by 20 per cent over last year.
http://www.asap.co.uk/news/thomas-cook-predicts-collapse-of-15-travel-operators-5633996.html
Sunday, December 21, 2008
John Gaylord, an elementary school principal at the Seoul Foreign School in Korea, will be checking into the Hilton's new timeshare product, The Grand Waikikian Resort, tomorrow, but he could not resist a sneak peak yesterday at his little piece of Hawaii in the sky.
"Hawaii's a fabulous place to travel to. It's been the top leisure place of many years and for good reason," said Gaylord as he surveyed the city, ocean and Diamond Head views from one of the lanais in his penthouse unit.
Gaylord said he and his wife fell in love with Hawaii all over again last Christmas during his first visit to Oahu in 30 years. Since then, the couple has returned to the islands three times in one year and showed their newfound aloha for Oahu with the purchase of one of Hilton's spacious penthouse units, he said.
The economy might be soft and Hawaii's visitor industry may be down, but it's hard to equate these facts with the enthusiasm for the opening of Waikiki's first purposely built timeshare.
More than 200 owners and other guests will join Gaylord tomorrow for the official grand opening, which celebrates a real market anomaly. All other timeshare products in Waikiki, except for the Grand Waikikian, were converted from older apartments or hotel buildings, and these days the credit crunch has ensured that few timeshare projects are making it out of planning.
But Mark Wang, president of Hilton Grand Vacations, said he's not worried about timing.
"We're 27 percent sold — that's actually ahead of pace," Wang said. "We thought we'd only be about 20 percent sold out by this time."
Japanese empty nesters and multi-generational travelers have gravitated to the product, which has also seen strong interest from buyers on the U.S. West Coast and other parts of North America, Wang said.
While Wang said the average buyer has spent $60,000 a week, the project's higher-end product has seen good pickup.
"The $300,000 weeks have sold out during this release," said Bryan Klum, executive vice president of Asia/Pacific for Hilton Grand Vacations. "The people who are traveling are the ones that want to come."
The 331-unit Grand Waikikian by Hilton Grand Vacation Club is the company's fifth timeshare development in Hawaii and finest offering to date. The company also runs two others on Oahu and two on the Big Island.
Suites at Hilton's newest offering retail for $45,000 to $300,000 for one-week stays at the one, two and three bedroom units. Each suite features an outdoor lanai, full kitchen, washer and dryer, complimentary high-speed wireless Internet access, flat-screen TVs, deep soaking tubs, upscale furnishings and rich wood and stone details. The resort will also have a 5,000-square-foot pool, scheduled for completion in January that will offer a waterslide, waterfalls and swim-through grotto terraces.
In deference to the luxury market, there are also five penthouse floors, offering a separate check in-area, concierge and lounge. On the penthouse floors — from 35 to 39 — suites are appointed with amenities designed to appeal to the project's primary Japan market. These suites feature Japanese house wares and Jacuzzi tubs for extended soaking.
"We are trying to make the Japanese buyer feel very comfortable with our product," said Dione T. Lewis, the Grand Waikikian's general manger.
The timeshare also features a pre-arrival and post-departure lounge, Lewis said. Guests at the lounge can unwind and take showers before checking in or after checking out of the property, she said.
Grand Waikikian Snapshot
Location: 1811 Ala Moana Blvd.
Online: www.grandwaikikian.com
Architect: Group 70 International
General contractor: Dick Pacific Construction Co.
Interior designer: Carl Ross Design
Size: 331 total units, ranging from one to three bedrooms
Cost: Unit weeks sell from $45,000 to $300,000
Sales: 27 percent sold
Not an owner?
The Grand Waikikian is offering a Mahalo package for hotel guests wishing to book at the property. One-bedroom suites with a separate pull-out couch and as full kitchen run $349 a night. Kamaaina bookings are 20 percent off.
Reservations: www.hiltonfamilyhawaii.com or (800) 446-6677 and ask for plan code H9.
http://www.starbulletin.com/business/20081219_Waikikis_Grand_opening.html?page=1&c=y
Wednesday, December 17, 2008
Interval International, a leading global provider of vacation services, and Southern Sun Hotel Interests (Proprietary) Limited (“Southern Sun”), a leading hotel group in the region, today announced they have entered into a long-term, exclusive affiliation agreement. This includes Southern Sun’s six existing Lifestyle Resorts, representing one of the largest vacation ownership programmes in Southern Africa, as well as any future developments added during the term of the agreement.
In addition to the affiliation, Southern Sun has selected Interval to provide a comprehensive package of customised services, including programme-design support and back-office points-based reservation services. This seamless integration will leverage Interval’s global infrastructure and complement Southern Sun’s resources. Interval specialises in working with resort developers to create vacation ownership programmes of every configuration, including points-based club products.
“We are honoured to have the opportunity to provide a wide range of value-added services for Southern Sun’s owners. The company has been a major player in the region’s vacation ownership industry for many years and we look forward to working with Southern Sun, as they take their already successful business to the next level,” said Craig M. Nash, chairman, president, and chief executive officer of Interval Leisure Group, parent company of Interval International. “We are also very pleased to offer our members the chance to visit these quality resorts in Southern Africa, a destination that’s known worldwide for its one-of-a-kind vacation experiences set amidst spectacular scenery.”
Graham Wood, managing director of Southern Sun said, “We are extremely proud of our partnership with Interval International. The two teams worked incredibly hard to make this dream a reality. Going forward, we will be able to offer our Lifestyle Resort owners true world-class service excellence and a wide variety of choice on a global scale.”
Southern Sun Lifestyle Resorts division operates a multi-location vacation ownership programme with six properties situated at destinations including Garden Route, KwaZulu-Natal, and Mpumalanga. The programme currently comprises approximately 33,000 members, or more than eight percent of the country’s existing timeshare owners, who own in excess of 43,000 vacation ownership weeks. These consumers will benefit from the services to be provided by Interval under this agreement, which commences in February 2009.
According to the Timeshare Institute of Southern Africa (TISA), some 400,000 owners hold weeks or points for timeshares in the country and a recent survey revealed that nearly two-thirds of respondents feel that timesharing has increased the amount of time they spend on holidays. With the affiliation of Southern Sun, Interval has gained a strong platform for future growth in the region. Alex Bosch, executive director of TISA said, “We are excited to have a company of the magnitude and reputation of Interval significantly enhance its presence in South Africa. This is a truly positive development for the industry and provides real choice in the marketplace.”
http://www.thetimeshareblog.com/interval-international-wins-southern-sun-exchange-business/
Wednesday, December 17, 2008
Budget carrier easyJet is defying the economic turning and adding new services from Gatwick to Cyprus, Dubrovnik, Naples and Santorini.
The airline’s new services to Croatia, Cyprus, Greece and Italy will commence in the spring of 2009. Service to Larnaca, in Cyprus will be offered from the end of March, while the Dubrovnik, Naples and Santorini flights will start in May.
Last week, airports operator BAA announced that Gatwick passenger numbers had dropped by 13.5 per cent over November of 2007, but easyJet is still seeing a potential for growth at the second-largest airport in the UK.
“EasyJet has grown dramatically at Gatwick over the last few years and this will further strengthen our position at Gatwick, which is our biggest single airport base,” said easyJet’s general manager for the UK, David Osborne.
The airline will also be launching a new service to Nice, France, from the east Midlands airport beginning in April.
Other airlines have also announced expansion in services in the midst of the current financial crisis. CityJet will launch new flights from London City to Amsterdam from 5 January; VLM will commence daily service from London City to Rotterdam and Eindhoven from 12 January.
http://www.asap.co.uk/news/easyjet-adds-new-routes-despite-downturn-5633991.html
Wednesday, December 17, 2008
Malaysia-based budget airline AirAsia announced on Tuesday that it would be offering 100,000 free tickets to Thailand as part of a special marketing effort to support the tourism in that country, which has suffered from recent anti-government demonstrations.
The popular low-cost airline said that it was collaborating with Thailand’s tourism authority to help bring tourists and business travellers back to the country by “reinstating the core message that it is now safe to travel back to the Land of Smiles.”
Under its marketing campaign called “Get Your Baht To Thailand,” which is a play on the unit of Thailand’s currency, AirAsia will be giving away 100,000 free tickets on flights to Bangkok from Cambodia, China, Indonesia, Myanmar, Singapore and Vietnam, as well as on flights within the country.
Passengers will be responsible for paying only taxes and administrative fees. In November, AirAsia removed all fuel surcharges from its flights.
“We hope that this campaign will instil the confidence among travellers and also help to boost tourism which is vital at this juncture,” said the group’s chief executive Tony Fernandes.
Tickets are available only on the AirAsia website from 17-19 December, for travel scheduled between 6 January and 31 March 2009.
AirAsia operates approximately 400 international flights each week connecting Thailand with other countries in Southeast Asia and with China. Its Thai affiliate, Thai AirAsia, operates 378 weekly flights.
http://www.asap.co.uk/news/airasia-offering-free-tickets-to-thailand-destinations-5633993.html
Monday, December 15, 2008
The timeshare vacation home, that status symbol of the American middle class, has been hit by a double whammy amid the global credit crisis.
Credit for consumers to finance timeshare purchases is harder to come by, and the securitization market for hotel companies selling bonds backed by timeshare deals has mostly closed its doors.
"In the last few months, sales have really dropped off a cliff -- consumer credit is really disappearing in a lot of ways," said Jeremy Glaser, lodging industry analyst at investment research firm Morningstar.
"The syndication (securitization) market has all but gone," said lodging industry veteran Bjorn Hanson of New York University.
This is a double dose of bad news for big hotel firms like Wyndham Worldwide Corp, Marriott International Inc and Starwood Hotels & Resorts Worldwide Inc, for which timeshare had become a big earner in recent years.
Wyndham said on Monday it will cut about 4,000 jobs as it shrinks its timeshare business to reduce its reliance on a shaky securitization market.
Wyndham expects to reduce vacation ownership interest sales in 2009 to $1.2 billion from expected gross sales of $2 billion in 2008 by eliminating sales offices and marketing programs.
Marriott International's third-quarter profit fell 28 percent as timeshare slowed. Marriott has warned that 2009 will be tough and that its timeshare investment spending is expected to decline to reflect weaker demand.
Starwood also reported declining revenues from timeshare in the third quarter. Starwood said it closed three sales centers and was reducing overhead to fit lowered expectations for the business.
GLOOMY
The timeshare industry has not heard such bad news for a long time.
Timeshare sales in the United States grew from about $2.7 billion in 1997 to $10.6 billion in 2007. But 2008 sales are unlikely to set the heather on fire.
"We don't think 2008 will show much growth," said Howard Nusbaum, president of the American Resort Development Association.
"We kind of feel like victims -- the inability to monetize the consumer debt has forced developers to slow their sales," Nusbaum said.
For companies in the travel and leisure sectors, the timeshare slowdown comes on the back of gloomy forecasts for 2009 for their overall business.
Companies throughout the sector -- including hotel, cruise ship, theme park and gambling concerns -- have all warned in recent weeks that their businesses have slowed or that things could get worse next year.
Consulting firm PricewaterhouseCoopers said that demand for hotels in 2009 is forecast to fall by 2 percent which, when coupled with an increase in supply, is expected to reduce occupancy levels to 58.6 percent -- the lowest rate of occupancy since 1971.
PwC expects a key measure of the hotel industry's health, revenue per available room (RevPAR), to fall 5.8 percent next year, following this year's estimated 0.8 percent decline. That would be the industry's first back-to-back decline in the widely watched measure since 2001-2002.
As consumers examine their budgets, so-called discretionary spending is among the first items to be cut.
"Among discretionary spending, vacation ownership (timeshare) is high on that list," said New York University's Hanson. (Editing by Gerald E. McCormick)
http://www.guardian.co.uk/business/feedarticle/8144273
Monday, December 15, 2008
Ryanair has confirmed that it will discontinue all flights to the popular Canary Islands destination of Fuerteventura as a result of an unresolved dispute with a local tourism group.
The move will take effect from 31 January, which will mean the budget carrier cutting 23 services per week, from Birmingham, East Midlands, Liverpool, Stansted and Shannon airports. Flights from Dublin to Fuerteventura have already been discontinued.
According to Ryanair, the local tourism group AEI failed to meet its obligations to promote Fuerteventura as a tourism destination, as stipulated in a commercial agreement with the carrier.
“This is a very black day for Fuerteventura and one which will have a severe impact on tourism and the livelihoods of its islanders,” said the airline’s deputy chief executive, Michael Cawley.
In November, Ryanair announced that it intended to discontinue services on the route, unless AEI was able “to remedy their contract breach” within 30 days.
Last year the Irish airline flew 250,000 passengers on the Fuerteventura route.
After the Newquay airport announced that it was closing for three weeks in December because of construction delays, Ryanair cancelled all its flights into and out of the airport.
After a row with the local tourism authority in Valencia, Ryanair cancelled all services to the popular Spanish destination, and has also cut its three times weekly service to Alicante from Durham Tees Valley.
http://www.asap.co.uk/news/ryanair-ends-all-service-to-fuerteventura-5633969.html
Monday, December 15, 2008
UK holidaymakers have been advised that the pound is likely to reach parity with the euro in the near future, meaning that £1 will buy just one euro. At current tourist exchange rates, £100 now buys 110 euros.
The figures from Bank of England, which measures the value of the pound against a basket of international currencies, showed Britain’s currency at its lowest point since the bank began keeping records 28 years ago.
According to currency experts, the last time the pound was this low was in the mid-70s, when Britain faced bankruptcy and had to seek emergency funding from the International Monetary Fund (IMF).
The pound has continued to drop as fears grow over increased government borrowing levels. The Chancellor, Alistair Darling, revealed recently that public borrowing is likely to exceed £1 trillion in the next few years.
Sterling is not seen to be as strong as other major “global” currencies, such as the euro or the dollar, during this economic downturn. Figures released by the Conservatives have shown that the government’s debt is less credit-worthy than that issued by the fast food chain McDonalds.
The chief economic adviser to the Ernst & Young ITEM club, Peter Spencer, commented: “You need a strong economy for a strong currency and there’s no strength in the UK economy. Normally you would look to the authorities to support the currency but the Bank of England is reluctant to intervene. It is not clear where the floor is.”
http://www.asap.co.uk/news/pound-at-lowest-level-since-1980-5633970.html
Monday, December 15, 2008
A hostile credit market killed a planned Ritz-Carlton timeshare and condominium resort slated for Miami Beach, developers said Wednesday.
''There's no debt for development,'' said Diego Lowenstein, a partner in the deal that would have transformed the old Seville hotel into a luxury resort. ``Lenders across the board are not doing anything.''
Announced at the peak of the housing boom, the Ritz-Carlton Club and Residences offered luxury timeshare units (known as fractionals) and traditional condominiums selling for $900,000 and up.
It would have been the fifth Ritz-Carlton property in South Florida, but as a residential resort, the only one not to accommodate transient guests.
The news comes a day after the chief financial officer of Marriott, which owns Ritz-Carlton, said the company was scaling back timeshare developments around the world to meet contracting demand for the product.
Lowenstein, CEO of Lionstone Development, which owns South Beach's Ritz-Carlton hotel, said sales were strong enough to support the project. But he and partner Fortune International couldn't find a lender willing to back the $200 million construction tab.
''We came to market in a very difficult time,'' he said. Fortune issued a statement Wednesday confirming the project was canceled, a decision Lowenstein said was reached in the last several weeks.
The sudden demise of the Ritz-Carlton Club reflects the dire landscape facing developers.
Island Gardens, a planned $640 million hotel and retail complex on Miami's Watson Island that includes fractional units, has delayed the launch of construction while it seeks financing.
Scott Berman, head of PricewaterhouseCooper's lodging division, said few developers can get the cash they need to build, writing in an e-mail that ``99 percent of all new development in the leisure sector is in paralysis due to a lack of access to capital.''
In May 2005, an entity backed by Fortune and Lionstone paid $25 million for former site of the Seville hotel, five-acres of oceanfront land at 29th street and Collins Avenue. As they unravel plans for the Ritz-Carlton Club, the partners will be pursuing a new hotel there, Lowenstein said.
''The numbers work for a hotel,'' he said. ``It's the last remaining large property in South Beach.''
Lowenstein said there are no lenders willing to back a hotel venture on the property, either. He's counting on the credit crisis easing in the first half of 2009 to allow for the development process to begin again.
http://www.miamiherald.com/business/story/808035.html
Thursday, December 11, 2008
The Ocean Walk Resort Condominium Association and Wyndham Vacation Resorts are fighting in court over money and whether the time-share company can keep operating at the Daytona Beach resort.
The association, which represents owners of condos in Ocean Walk's south tower, filed a lawsuit Tuesday in civil court against Wyndham, claiming the Orlando-based company misused association funds. In the 300-unit south tower, there are 176 units owned by individuals and 124 units in Wyndham's time-share program.
The action comes three months after Wyndham sued the association, claiming it had a contractual right to use the south tower's common areas for marketing purposes, and that it has the sole right to market condos at the resort.
The association countered that lawsuit by alleging Wyndham, which is a part the world's largest time-share company, was required to pay a fee for use of the facilities. The association said $10,000 a day was reasonable and demanded the company pay the fee or cease its operations at the resort.
The case continues winding its way through the legal system.
Erik Hawks, an attorney for Wyndham, could not be reached for comment.
Mark Bogen, the association's attorney, said the funds allegedly misused by Wyndham "could be in excess of a million dollars."
Ocean Walk II Vacation Condominium Association Inc. and Ocean Walk Vacations Ownership Association Inc. also were named as defendants in the 50-count lawsuit.
Besides the funds, the suit alleged Wyndham hired an unlicensed manager to manage the association in violation of state law.
"What is hard to believe is that even though the board of directors fired them as our management company, Wyndham refuses to give us control of our bank account, bank records or financial information," said Craig Jackson, president of the association and a banking executive, in a telephone interview.
Jackson said the board fired Wyndham Vacation Management on Nov. 3. At that point, the association and the company were at an impasse over the 2008 budget, which Wyndham officials tried to increase to about $4 million from $2.5 million. He said a committee of board members was able to trim it back to the $2.5 million and stay on target.
He said the board also found the association had been billed for expenses that occurred in the north tower, which has a separate association. In the north tower, there are 60 units owned by individuals and 222 in Wyndham's time-share program.
The suit also alleged that while the north tower has more time-share units, Wyndham managers charged 80 percent of the water bill to the south tower. Also, the suit alleged, management spent more than $400,000 of the association's funds for time-share unit recreational activities.
Other payments cited by the board included $3,139 for remodeling the third floor common area used by Wyndham to market its time-share units; $2,276 for gift baskets for the time-share units; and $1,192 spent for the spa salon signage, according to the lawsuit.
http://www.news-journalonline.com/NewsJournalOnline/Business/Headlines/bizBIZ02121008.htm
Thursday, December 11, 2008
BAA, the owner-operator of Stansted airport, is facing the possibility of having to pay financial penalties for poor service levels at the airport.
The operator could be required to pay airlines rebates of as much as seven per cent of the amount they were charged if it is determined that they provided poor service, according to a proposal by the Civil Aviation Authority (CAA).
The proposal is part of a price control scheme that the CAA is developing for Stansted. According to the authority, the proposal is designed to encourage the development of competition among airports in southeast England, and airport development that occurs at the right place and right time for the benefit of airline passengers.
The CAA has indicated that the price caps it is proposing for Stansted are lower than what the Competition Commission has recommended, in order “to reflect an adjustment to take account of airport charge revenues from cargo and other non-passenger flights.”
According to the CAA, the price caps would “ensure that both Stansted and other competing airports can take forward efficient plans for expansion to meet demand from passengers and that competition in the airport market is encouraged.”
The group director for economic regulation, Harry Bush, said: “Our proposed price controls protect passengers and airlines whilst maintaining good levels of service. They also look to the long-term potential expansion of airports.”
http://www.asap.co.uk/news/baa-faces-poor-service-penalties-at-stansted-5633968.html
Thursday, December 11, 2008
Responding to “growing safety concerns” due to attacks and threats of attacks by Somali pirates, Germany’s cruise line Hapag-Lloyd will not take its passengers on board the Columbus world cruise through the Gulf of Aden, but will fly the 300 passengers and crew to Dubai instead.
The recent attack on Oceania Cruises’ deluxe ship Nautica in the Gulf of Aden has led to heightened concerns about cruise passenger safety in the area.
The managing director of Hapag-Lloyd Cruises, Sebastian Ahrens, made an official statement, which read in part: “Our passenger’s safety is our highest priority. As long as the situation is uncertain in the area, and as long [as] German authorities have a travel warning issued, we will not cruise through the Gulf of Aden with passengers onboard.”
Passengers will debark the cruise ship at an undisclosed location, which is likely to be in Yemen – as this is the final port of call before entering the Gulf of Aden. They will then be flown to Dubai, where they will be put up in a five-star hotel.
The flight and accommodation will be provided to passengers at no additional charge. Those passengers who booked on the first 19 days only, which ends in Dubai, can continue with their travel plans from Dubai.
Passengers booked on the full world cruise will board the Columbus once again in Oman.
http://www.asap.co.uk/news/german-cruise-line-passengers-to-debark-to-avoid-piracy-5633964.html
Tuesday, December 09, 2008
Hotel and timeshare company Wyndham Worldwide Corp said on Monday it will cut about 4,000 jobs as it shrinks its timeshare business to help eliminate its reliance on the asset-backed securities market.
Wyndham said it expects to reduce gross vacation ownership interest sales in 2009 to $1.2 billion from expected gross sales of $2 billion in 2008 by eliminating sales offices and marketing programs.
"Unfortunately, it has a relatively large impact on individuals, which is the terrible thing -- I would say it's around 4,000 people," said Stephen Holmes, Wyndham Worldwide chief executive in an interview.
Wyndham said it now expects 2009 revenue of between $3.7 billion and $4.1 billion, down from a previous forecast of between $4.1 billion and $4.5 billion.
"For the last couple of decades we have taken the receivables generated when we sell timeshare ... to the market and we borrow money against them," said Holmes.
"Now, in this current credit environment, that market has dried up," Holmes added.
Wyndham expects to take a charge of between $50 million and $60 million in the fourth quarter of 2008 and $10 million to $15 million in the first quarter of 2009 related to these initiatives.
http://www.guardian.co.uk/business/feedarticle/8133094
Tuesday, December 09, 2008
A federal court blocked the Bush administration from carrying out a plan to strip airlines of some of their takeoff and landing slots at New York's airports and auction them off to the highest bidder.
The "slot auction" plan, which was strenuously opposed by airlines and many Democratic lawmakers, was designed as a free-market experiment for curbing the problem of chronic flight delays at the New York area's three crowded airports -- LaGuardia, Kennedy and Newark. Airlines would have been forced to surrender up to 10% of their takeoff and landing slots over the next five years. The slots would then be auctioned off.
The Transportation Department reasoned that the auctions were a better way to allocate a scarce resource and encourage airlines to operate larger jets at New York airports. Department officials hoped to proceed with the first auction next month. As recently as Friday, airline executives were meeting with government officials and the firms that were to conduct the auctions to prepare for the possibility they might take place, even as their attorneys were challenging the validity of the plans in court.
Airlines and the Port Authority of New York and New Jersey, which operates the three airports, argued that the plan was illegal and would only raise costs for airline passengers.
A three-judge panel on the U.S. Court of Appeals for the District of Columbia on Monday afternoon granted a stay in the auction case. In a terse ruling, the judges said the Port Authority's lawyers had "satisfied the stringent standards required for a stay pending court review."
In a statement, the Port Authority said it "applauds today's decision halting the Bush Administration's 11th-hour plan to auction existing landing and take-off slots at the New York metropolitan airports to the highest bidder, which would invariably drive up ticket prices for passengers for the same service without alleviating delays. We are confident that upon full review, the court will agree that the Administration does not have the authority to conduct an auction, and we look forward to working with the next Administration to develop real, long-term solutions to improve air travel."
James May, president of the Washington-based Air Transport Association, said the ruling "puts a firm halt to the Department of Transportation's ill-advised, illogical auction scheme."
The Department of Transportation put out the following statement on the court's decision: "Today's court decision is bad news for travelers seeking a better flying experience in and out of the New York region. We are committed to our goal of protecting travelers, giving passengers more options and improving the air travel experience, and will continue to assess our options to provide relief for flyers."
Administration officials have tried other ways to reduce congestion in New York, such as capping the number of flights allowed per hour and redesigning flight paths to enhance airspace efficiency.
http://online.wsj.com/article/SB122877719522189421.html?mod=googlenews_wsj
Tuesday, December 09, 2008
Kuoni Travel has been named as the World’s Leading Tour Operator for the tenth consecutive year. At the 2008 World Travel Awards, the Swiss-based company once again underscored its leadership position as a leisure travel provider.
“This distinction is a clear confirmation of both the high regard in which Kuoni is held and the correctness of our present corporate course,” said Max E. Katz, Kuoni CFO and speaker of the group’s executive board. “With its modern and global brand-based business alignment and its new product lines, Kuoni has shown a fine appreciation of today’s market needs and is leading the way to a new travel culture.”
In 1993, the annual World Travel Awards were established to honour the best operators in global travel and tourism. Today, the results are based on the votes of nearly 167,000 specialists in the industry. The 2008 ceremony was held on 2 December on the Turks & Caicos in the Caribbean.
Kuoni UK was the recipient of numerous other trade and consumer awards in 2008 as well at the World Travel Award. It was voted ‘Britain’s favourite’ by the readers of The Daily Mail, The Daily Telegraph’s Ultratravel Magazine and The Sunday Times Travel Magazine.
http://www.asap.co.uk/news/kuoni-best-global-tour-operator-for-tenth-year-5633956.html
Sunday, December 07, 2008
IHG (InterContinental Hotels Group) announced the formation of a strategic alliance with The Family of Orange Lake Resorts to create a new timeshare brand, Holiday Inn Club Vacations(TM).
Holiday Inn Club Vacations will launch in December 2008 with Orange Lake's flagship 2,412 villa property in Orlando, Florida. This marks IHG's first move into the timeshare market, one of the fastest growing segments of the U.S. holiday and vacation industry. [Source: American Resort Development Association (ARDA)]
The conversion of the remaining Orange Lake resorts in Ascutney, Vermont (60 villas), Lake Geneva, Wisconsin (68 villas) and Panama City, Florida (18 villas) are scheduled to follow shortly after.
This alliance is unique in that it allows IHG to enter the timeshare industry, purely through an exclusive licensing and marketing agreement. Orange Lake will continue to own, operate and develop these timeshare resorts as a privately held company.
"This deal reinforces the strength of the Holiday Inn brand as we are able to move into the timeshare market with a good partner who knows the business well," said Andy Cosslett, chief executive officer, IHG. "We believe that timeshare is a natural progression for Holiday Inn due to our scale and customer base in North America. This comes at a time when the $1 billion global relaunch of Holiday Inn is progressing well. This agreement fits well with our business model as we are able to introduce the Holiday Inn brand to a new set of customers without the need for capital investment. With both companies focused on growth the alliance brings with it the opportunity to expand into major North American destinations."
Orange Lake is situated on over 1,400 acres with 2,412 villas, adjacently located to the new north entrance of Walt Disney World(R) Resort. The flagship resort has over 25 years of proven success in Orlando, the number one leisure destination for U.S. travelers. It offers a host of amenities including:
4 championship golf courses
7 swimming pools including a 12-acre outdoor entertainment complex
80 acre lake for water sports
Five restaurants
Retail and pro shops
"This is a great opportunity for our two companies because we share the same heritage and founder, Kemmons Wilson," said Don Harrill, president and chief executive officer for The Family of Orange Lake Resorts. "It was Kemmons' vision that changed the landscape for family vacations through his creation of the Holiday Inn hotel brand in 1952. With the re-launch of Holiday Inn and the continued growth of our company, we are prepared to reach new heights for our customers -- and together write the next exciting chapter in our history. We believe this alliance will set the new standard by re-defining 'quality time' for families and for the timeshare industry today."
The marketing and licensing agreement also includes:
The construction of a flagship Holiday Inn Resort hotel on the Orange Lake site in Orlando
The marketing and rental of available timeshare villas through IHG's extensive reservation system and distribution channels, including Priority Club(R) Rewards, the world's largest hotel loyalty program with over 39 million members
Participation in the Priority Club Rewards program including earning of Priority Club points on rentals with qualified rates and redemption for room nights
The formation of the Holiday Inn Club(TM) exchange program which will allow members of Holiday Inn Club Vacations to exchange timeshare weeks for hotel nights at over 4,000 hotels in the IHG family of brands.
http://www.timesharesdaily.com/index.php/20081204257/Latest/IHG-Create-New-Timeshare-Brand.html
Sunday, December 07, 2008
Etihad Airways, the UAE national airline, was chosen as the ‘world’s leading first class airline’ during this year’s World Travel Awards.
Nearly 170,000 professionals in the travel industry, from countries around the world voted in the awards, which were awarded at a ceremony held at the Beaches Turks and Caicos Resort and Spa in the Caribbean. More than 110,000 travel agents were represented in the voting.
This major international accolade follows just months after the airline, based in Abu Dhabi, was awarded regional ‘leading first class’ airline at October’s Middle East World Travel Awards.
Etihad’s chief executive, James Hogan, said: “To be voted the world’s best by nearly 170,000 travel professionals from around the globe is a great honour and testament to the investment we continue to place in our flagship first class product.”
He added: “WTA adjudged our first class to be the best in the Middle East in October, so to receive the top global award now rounds off a fantastic year for us.”
On Etihad Airways, first class passengers are provided with the carrier’s award-winning fully-flat bed seat that has an 80in seat pitch, and is self-contained in its own privacy ‘cocoon,’ equipped with mood lighting that is designed to help relieve jet lag.
http://www.asap.co.uk/news/etihad-wins-leading-first-class-airline-award-5633952.html
Sunday, December 07, 2008
There is conflicting advice regarding the status of Bangkok airports that is causing confusion for UK travellers headed for Thailand.
This weekend, flights at both Bangkok’s major airports are set to resume, at the start of the country’s peak holiday season, but at this time the Foreign and Commonwealth Office (FCO) is advising Britons to stay away.
Protestors have left Don Mueang and Suvarnabhumi airports, and ended their siege of Government House, but an ongoing threat of political unrest remains, which has prompted the FCO to urge Britons to avoid the Bangkok airports unless their travel is essential.
The latest advice on the Foreign Office website states: “… given the protestors’ continuing threat of disruption to the airports and transport network, we advise that you continue to avoid air travel into or through Bangkok for the foreseeable future.”
It is expected, however, that major airlines, including British Airways, will resume service to Bangkok over the next few days, and passengers are likely to see normal booking conditions.
What this means is that if customers book non-refundable tickets to Bangkok, they are no eligible for a reimbursement if they cancel.
A BA spokesman could not confirm booking conditions, but did say that if service returned to normal, it would be expected that booking conditions would also return to normal.
The spokesman stressed: “There is no talk of not flying to Bangkok on the basis of the current Foreign Office advice. As far as BA is concerned there is no security issue.”
http://www.asap.co.uk/news/foreign-office-warns-against-air-travel-to-bangkok-5633950.html
Thursday, December 04, 2008
TUI Travel and Thomas Cook have announced capacity reductions that are likely to lead to holidaymakers paying more for their breaks next summer.
The two largest tour operators in Britain have said that they are making significant cuts based on a drop in package holiday demand.
Both operators are talking about reductions over the next two years amounting to between 20 and 27 per cent, which could well lead to summer holiday breaks being more expensive for the UK consumer.
TUI has revealed that the cuts will make it possible for prices increases of as much as 10 per cent for 2009.
The Thomson and First Choice merger into TUI Travel, and the Thomas Cook takeover of MyTravel, have made it possible for the two companies to relax their fight for market share and focus on profitability instead.
Holiday company failures, such as the collapse of XL earlier in the year, have helped reduce market capacity already.
“Holidays are getting more expensive, and this trend is likely to continue,” said an Association of British Travel Agents (ABTA) spokesman.
“Whereas travel companies once offered as many deals as possible, their strategy now involves selling fewer holidays and higher profit margins.”
http://www.asap.co.uk/news/tour-operator-capacity-cuts-likely-to-raise-prices-5633947.html
Thursday, December 04, 2008
Disney Vacation Club has signed a multi-year contract with the timeshare exchange company Group RCI.
The deal, which goes into effect Jan. 1, means RCI will become the exclusive exchange provider for Disney Vacation Club members, which allows them to use their DVC "points" to rent rooms at non-Disney resorts around the world. At the same time, RCI's more than 3.6 million members will now be able to trade into DVC timeshares.
Disney had previously contracted with RCI competitor Interval International of Miami. A Disney spokeswoman said Disney will no longer work with Interval once the RCI contract kicks in.
In a statement, Disney's Celebration-based time-share division says the pact with RCI, a subsidiary of Wyndham Worldwide Corp., will provide members with "a significantly broader range of resort experiences," including access to destinations across six continents and 25 countries.
"Group RCI has the management depth, technology resources and global marketing infrastructure to align with Disney Vacation Club’s strategic growth plan,” Disney Vacation Club President Jim Lewis said in the statement. “This relationship will provide our member families with the most diverse experiences possible beyond our signature Disney Vacation Club resorts.”
The moves comes with Disney Vacation Club working to lure new buyers by convincing them that it offers more than access to Disney's own resorts and theme parks. The company has made the exchange feature the centerpiece of a television-advertising campaign it launched earlier this year.
http://blogs.orlandosentinel.com/business_tourism_aviation/2008/12/disney-vacation.html
Thursday, December 04, 2008
Deutsche Lufthansa AG said its supervisory board approved a plan to buy ailing Austrian Airlines AG, potentially pushing Germany's giant carrier further along one of the most ambitious airline acquisition sprees the global aviation industry has seen in years.
The Austrian government as soon as Friday could approve the deal, which values the national carrier at as much as €377.4 million ($479.5 million) and aims to save it from collapse under mounting financial woes. A deal would require regulatory approval, in part because the Austrian government plans to spend €500 million helping to restructure the airline.
http://online.wsj.com/article/SB122834410051377213.html?mod=googlenews_wsj
Tuesday, December 02, 2008
A blogger is being sued for defamation by the RCI-affiliated Quality Vacation Club (QVC) for criticising it on his website Insights and Rants.
Donn Edwards was phoned by a telemarketer last year and told that he had won a car. All he would have to do to claim his prize, he was told, was attend a prize-giving ceremony in Midrand, north of Johannesburg.
When he and his wife arrived at the venue, they discovered that the prize-giving ceremony was a QVC marketing presentation at which he and his wife, and the other "guests", were told to choose a key, after the airing of a video, to determine if he had won the car. He had not.
'Now that their secret is out on the web'
Edwards wrote about his experience, and his unhappiness about being misled, on his blog. He said that the telemarketers - who contacted him again six weeks later with an invitation to attend another prize-giving presentation, despite his name being placed on a list of people not to be called - had emphatically denied that they were marketing or selling any form of timeshare.
He also alleged that QVC and the company it had employed to market its product had violated the Timeshare Institute of Southern Africa's code of conduct by not clearly stating in their fax to his wife that the presentation they were to attend as competition finalists was for any other purpose; that none of the gifts or prizes, or the names of previous winners, were on display at the venue as required by the code; and that the telesales person had not made it clear that the purpose of the contact was to sell timeshare.
He concluded in his blog of September last year that "QVC has deliberately and knowingly set up a business venture with MargetMagix in order to flout or bypass the letter and spirit of the code of conduct, and they clearly think they can do so with impunity".
The blog led to QVC management and Edwards agreeing to a meeting to sort out the problem, but the meeting failed to materialise because of a disagreement over the venue.
Edwards' blog entries continued, with him calling QVC "a scam" and stating that the company's marketing "is clearly misleading and full of lies".
'They're trying to bully me into keeping quiet'
In October last year he criticised Executive Listings for trying to lure him to a similar presentation while denying that it had anything to do with timeshare sales.
In June this year, he detailed "QVC's carefully crafted deception", warning internet users again about the "marketing pitch" aimed at getting people to invest in the holiday timeshare industry.
Earlier this month, QVC, and Paul Edkins and Ian Wilcox, who are trustees of the Quality Vacation Club Trust, and Quality Time Marketing (Pty) Ltd, served summons on Edwards. In the court document listing the particulars of their claim, they argue that Edwards' statements were made "with the intention of defaming the plaintiffs and to injure their reputation".
Each of the plaintiffs had suffered a loss of reputation, and QVC and the trust had suffered patrimonial losses. An addendum to the papers stated that the applicants were claiming a total of R461 500, including legal costs calculated to date.
In the document handed to the court, the applicants asked the Johannesburg high court to interdict Edwards from publishing any defamatory material that would further harm their reputation, and wanted the court to grant payment of R1,525 million in favour of QVC, R100 000 in favour of the two trustees and R154 000 in favour of the trust.
Dave Feldman, QVC's lawyer, confirmed that the amount being sought in damages was R461 500.
"As far as anything else is concerned the matter is sub judice so no comment," his office said.
Edwards filed notice of his intention to defend the action on Wednesday. Speaking to The Sunday Independent this week, Edwards said his concern was that, if the company won its case against him, all bloggers in South Africa would be at the mercy of corporations and institutions that wanted to shut them up.
Edwards, who is defending himself in this case, said all he was doing was expressing a "robust opinion" about a product and something that had happened to him.
"This happens to dozens of people every day, and now that their secret is out on the web they're trying to bully me into keeping quiet," he said.
"They insist that I spend money hiring lawyers who then have to hire an advocate to act on my behalf in the high court. I cannot afford that. This matter is affecting my ability to earn a living and to focus on my job."
He appealed to others who had had similar problems to contact him.
Pamela Stein, a partner at legal firm Webber Wentzel Bowens, said the blogger would be able to defend his actions on the basis of fair comment.
"The right of fair comment, along with truth for the public benefit, is one of the fundamental rights of free speech," said Stein.
"I have no doubt that commentary that is in the consumer's interests is in the public interest."
http://www.iol.co.za/index.php?set_id=1&click_id=15&art_id=vn20081130104012176C255204
Tuesday, December 02, 2008
LONDON -(Dow Jones)- British Airways PLC (BAY.LN) and Australian carrier Qantas Airways Ltd. (QAN.AU) Tuesday said they are in merger talks that would create the world's first multi-continent airline group.
The talks come even as BA continues merger talks with Spain's Iberia Lineas Aereas de Espana SA (IBLA.MC), and as airlines around the world look to consolidate to cut costs in the face of a sharp downturn in the industry.
The U.K. flag carrier said it is exploring a merger of equals with Qantas that would create two legal entities with a listings in London and Sydney. Both companies said talks could fail to yield a deal.
BA's shares closed up 17 pence, or 12.5%, at 157 pence, giving the company a market capitalization of about GBP1.7 billion, about the same as that of Qantas. The combined company would have a market capitalization of about GBP3.5 billion, according to a Dow Jones Newswires calculation.
BA said it was approached by Qantas, and it has been talking since August about a merger of equals.
Any deal with Qantas will have to overcome Australian and European Union airline ownership laws. The Australian rules say a foreign carrier can't own more than 35% of an Australian airline and total foreign holdings can't exceed 49%. E.U. rules cap non-E.U. ownership of carriers at 49%.
The Australian government earlier Tuesday said it will consider removing the 35% cap, although it will maintain the legal requirement for majority Australian ownership of the country's international airlines, including Qantas.
BA has attempted an equity tie-up with Qantas before - in 1993 it bought a 25% stake in Qantas as it tried to gain a presence on the competitive London to Australia route. It sold the stake in 2004 for a significant profit.
BA said a deal with Qantas shouldn't hamper its talks with Iberia, which started in July. Those talks are moving slowly, BA Chief Executive Willie Walsh said recently, in part because BA's pension deficit has ballooned this fall as the value of the pension fund's equity holding has plunged.
An Iberia spokesman declined to comment.
BA in August filed for antitrust immunity for a tie-up with AMR Corp.'s (AMR) American Airlines and Iberia. All the airlines, and Qantas, are members of the oneworld alliance.
An American Airlines spokesman told Dow Jones Newswires that BA's talks with Qantas would have no bearing on the antitrust immunity application.
The latest merger talks come as airlines around the world, but particularly in Europe, seek to merge to build scale and create synergies that will significantly cut costs. The industry has seen losses mount this year as it was battered first by record high oil prices and then by shrinking passenger numbers as the economic downturn took hold.
The tough climate has seen more than 30 carriers go out of business so far this year. Monday, budget airline Ryanair Holdings PLC (RYA.DB) launched a EUR748 million bid for Irish rival Aer Lingus PLC (EIL1.DB) while Germany's Deutsche Lufthansa AG (LHA.XE) is negotiating or finalizing the acquisition of three smaller European carriers. Italy's government is overseeing the merger of a streamlined Alitalia SpA (AZA.MI) with domestic rival AirOne, and at the same time Alitalia is courting both Lufthansa and Air France-KLM (3112.FR).
Analysts say a tie-up of BA and Qantas would make sense because the two airlines have few overlapping operations and would be able to garner synergies on the so-called Kangaroo route between the U.K. and Australia. They currently operate six flights daily on the route.
A merger would create a giant. Currently, Qantas operates 224 aircraft to 85 destinations and employs about 37,000 people. BA has 250 aircraft in its fleet, and serves 154 destinations. It employees approximately 42,000 people. Combined annual revenues would be over GBP15 billion according to Dow Jones Newswires calculations.
http://money.cnn.com/news/newsfeeds/articles/djf500/200812021159DOWJONESDJONLINE000472_FORTUNE5.htm
Tuesday, December 02, 2008
Travel operator Thomas Cook is reporting an increase in full-year profits and raising its merger synergy targets, as its rival TUI Travel demonstrates a measure of resilience in the current economic downturn.
The second-biggest travel company in Europe is saying that its pre-tax profits for the year ended 30 September increased by 32 per cent over the previous year, up to 309.3 million pounds, citing increased revenues and improved operating margins.
It added that current trading is meeting expectations as are winter bookings, with prices up in most categories.
The group was created in 2007 by the merger of the Arcandor travel unit and MyTravel. It is increasing its merger synergy target by 2010 to 215 million pounds, up from the previous target of 155 million.
The travel operator said that the integration of the businesses has been successful, and that commercial, management and technology have been integrated into a single platform for more than a year.
Twenty-four per cent of its UK capacity for next summer has already been sold, which is in line with the level achieved last year.
The company is projecting an operating profit of 480 million pounds for the 2009-2010 year.
For the year ended 30 September, Thomas Cook has said that it will pay a dividend of 6.5 pence per share, meaning a total payout for the year of 9.75 pence, which is an increase of 95 per cent over the previous year.
http://www.asap.co.uk/news/thomas-cook-reports-rise-in-profits-5633937.html
Monday, December 01, 2008
Group RCI, one of the global leaders in timeshare exchanges, recently announced new resorts in Serbia that will be part of the group’s extensive network.
The two resorts are both located in the Zlatibor mountain region in western Serbia, at the crossroads of Central Europe. Zlatibor is renowned for its clear mountain air, spas, excellent skiing, and a myriad of outdoor pursuits including trekking, cycling and fishing among lakes, rivers, lush pastures and pine forests. The region is said to have proven restorative qualities and has established itself as a popular health and wellbeing holiday destination. The country’s rich historical, architectural and cultural heritage is also an irresistible tourist attraction, together with the city sights of Belgrade and Novi Sad.
In welcoming the two new Serbian resorts to the RCI exchange network, Jonathan Back, managing director, Group RCI EMEAI, said: “We want our nearly four million members worldwide to have the opportunity to vacation in Serbia and are pleased to have two first-class resorts as our first affiliates in this fabulous new destination. The country is accessed by three international airports making it easily accessible for international tourists. This, together with its close proximity to many highly-promoted European holiday destinations, makes us confident Serbia is poised to see rapid growth in its inbound and outbound visitor levels making it a good place to be for timeshare.”
RCI members can now choose from two attractive resorts in this diverse and vibrant country. Club Satelit offers the intimacy of a smaller development comprising 12 one-bedroom units and eight studio apartments, together with a restaurant, indoor pool and fitness centre. The apartments are light, airy and fitted with every home comfort which characterises timeshare accommodation. The names behind this resort are Canadian national, Gilles Durand, developer of RCI-affiliated Club Villas Jazmin in the Caribbean, and Srdan Vasic, who also owns Closer Marketing Club based in Belgrade. Vasic said: “Club Satelit has an air of exclusivity that’s right for this area which attracts upscale visitors to its excellent ski slopes and spas. We plan to extend the property on neighbouring land and are considering a five-star offering.”
On the central Zlatibor plateau in a lakeside location sits Kraljevi Konaci resort or ‘the King’s shelters’ as the name translates. This property is designed to blend with the line of the surrounding pine forests and offers exceptionally spacious accommodation in the form of 110-square metre two-storey villas with garage and garden. This property was the vision of Ratko Jeremic, who travelled the world working on resort construction projects which inspired him to bring the best of all he’d seen back to his homeland in his own resort. This resort has been 17 years in building and the completed phase one comprises 107 villas and a restaurant. The second phase will add a hotel, more villas, a spa centre, and a 600-seat conference and commercial centre, all coming in at a total cost of approximately €50 million. Jeremic said: “We find high demand among Serbians and the British. Serbia’s economy has now stabilised and is growing. We have been operating for several years without an exchange network but now affiliating to RCI is important for us to allow our prosperous Serbian owners the opportunity to start experiencing holidays in other countries. Timeshare is new to Serbia and it’s very exciting to be able to introduce a new quality product to this market.”
http://www.homesgofast.com/view_news/1088/
Monday, December 01, 2008
KUALA LUMPUR: Malaysia Airlines and AirAsia have arranged for several flights today to “rescue” stranded passengers.
MAS is sending three flights to U-Tapao airport for passengers unable to reach the Suvarnabhumi Inter–national Airport.
It is seeking clearance to operate a fourth flight late in the evening.
In addition to the flights, the national carrier is operating two flights out of Phuket.
The departures from U-Tapao are scheduled according to the original times out of Suvarnabhumi but may be revised if there is congestion.
MAS is working closely with Thai authorities to minimise inconvenience to passengers at U-Tapao.
They are advised to check with MAS Airlines 24-hour Call Centre at 1 300 88 3000 in Malaysia and +662-263 0572 or +662-134 3184 in Bangkok; and the Phuket office is +667-213 749, +667-621 6675 and +667-623 4467 from 8.30am to 9.00pm for similar updates.
Meanwhile, AirAsia said the air-line would be mounting its third rescue flight from Kuala Lumpur to Bangkok.
Passengers are advised to contact AirAsia’s 24-hour emergency hotlines at +662-515 9999 in Bangkok or +603-8660 4554 in Malaysia for any changes.
Passengers flying from Kuala Lumpur to U-Tapao will be transported by bus to central Bangkok free of charge.
In the meantime, guests flying back to Kuala Lumpur will be provided complimentary bus pick-up to U-Tapao from the Novotel Bangna Bangkok.
Due to limited facilities at U-Tapao, AirAsia advises customers to assemble at the Novotel Bangna Bang–kok at 10.00 am Thai time for check-in.
“Please do not proceed directly to U-Tapao as its limited facility does not allow us to perform check-in for our guests there,” said AirAsia in a statement.
Guests will be accepted on the flight subject to availability of seats. AirAsia operates on Airbus A320 that can seat 180 guests. Visit the airline’s website AirAsia.com for the latest updates.
http://thestar.com.my/news/story.asp?file=/2008/11/30/nation/2683729&sec=nation
Monday, December 01, 2008
Interpol joins search for Robbie Graham, best friend of Costa Killer Tony King
POLICE want to grill a British timeshare salesman in connection with the mystery disappearance of a Spanish teenager eight years ago.
Detectives want to interview Robbie Graham about his whereabouts when Maria Teresa Fernandez, 18, went missing in 2000.
Fernandez was last seen at a bus stop in the port city of Motril on August 18.
Now, police want to quiz Graham about his movements between 21.30 and 21.45 on the evening in question.
According to Olive Press sources, Graham was living nearby in Nerja and had been seen in Motril that day.
Graham was accused of being involved in the murders of teenagers Rocio Wanninkhof in 1999 and Sonia Carabantes in 2003.
He got off on a technicality, while his former employee and best friend Tony King - aka The Costa Killer - was found guilty of murder. He is currently in prison in Granada.
King however, has since accused him of murdering Maria Teresa - and as the Olive Press revealed in July - King has been helping detectives with the case.
Murdered
The parents of Maria Teresa have long maintained their daughter was murdered and believe Graham - a former associate of British killer Tony King - is to blame.
Since the beginning of November, detectives from the Policia Nacional have questioned known acquaintances of Graham on the Costa del Sol in a bid to trace the ex-timeshare salesman.
Graham worked for a timeshare deck Lubina Sol, in Riviera del Sol, also intriguingly where teenager Amy Fitzpatrick went missing on New Year’s Day this year.
Police now believe he is in the United Kingdom (the Olive Press understands he is in Brighton) and want Interpol to join the hunt for him.
In 2006, King - who is serving a double life sentence for the murders of teenagers Rocio Wanninkhof and Sonia Carabantes - told police that Maria Teresa had been murdered by Graham.
http://www.theolivepress.es/2008/12/01/new-manhunt-launched-for-timeshare-tout/