Internet: Travel industry has underestimated the impact

March 24, 2004 |

Top executives representing the airline, hotel, cruise and car rental industries recently participated in the first Active International Travel Advisory Board Meeting.

Top executives representing the airline, hotel, cruise and car rental industries recently participated in the first Active International Travel Advisory Board Meeting. Board members representing Spirit Airlines, Super Clubs/International Lifestyles, Radisson Seven Seas Cruises, Aimbridge Hospitality, and Stretch Enterprises gathered at the Westin Diplomat in Hollywood, Florida for the inaugural meeting in December.

The Board’s objective is to provide a platform to discuss, debate and analyze trends and issues impacting the travel industry, such as the fall-off in both business and leisure travel post-September 11, stagnant capacity across all segments, and declining profit margins.

According to the members:

- The travel industry as a whole has underestimated the impact of third-party Internet sites.

- Economic conditions and terrorism fears continue to be one of the biggest challenges the industry faces.

- Some travel products such as vacation packages are extremely perishable. Finding solutions for those products would be very valuable.

- The airline industry is still suffering. Air travel was being affected prior to September 11, 2001, especially big carriers doing primarily business travel.

- The hotel industry is beginning to even out and travelers are coming back. That down cycle was also trending down prior to September 11, with double digit decreases in revenue for two consecutive years.

“Predicting demand is difficult today,” said Tom Anderson, Chief Marketing Officer for Spirit Airlines. “Cross-promotional marketing opportunities such as those developed by Active can benefit the airline industry as well as all the other travel segments. It’s a win-win situation for all.”

Dominic Bencivenga, Senior Vice President of Worldwide Travel for Active, said, “Our travel division has grown from $3 million to $22 million in gross trading volume in just 2 years. Active has grown its business by creating capacity and bringing incremental business to the travel industry.”

Board members include the following officers of Active International: Alan Elkin, Chief Executive Officer; Arthur Wagner, President; Richard Vendig, Chief Financial Officer, Fredrick Fuest, Chief Operating Officer; and Dominic Bencivenga, Senior Vice President of Worldwide Travel.

Representatives from the travel industry include Tom Anderson, Chief Marketing Officer, Spirit Airlines; David W. Johnson, President & CEO, Aimbridge Hospitality; Mark Conroy, President & CEO, Radisson Seven Seas Cruise; Jim Gregory, Consultant, Stretch Enterprises; Michael Going, Senior Vice President - Sales & Marketing, Air Jamaica Ltd.; Paula Hayes, Senior Vice President of Sales, North America, Club Med; Jim Kilroy, Vice President, Global Agency Sales, Starwood Hotels & Resorts; Thomas L. Trotta, President, SuperClubs/International Lifestyles; Jeanine D. Gilchrist, Vice President, Travel Industry Sales, Wyndham Hotels & Resort. Nancy Morrell Swanson, President, Global Marketing Services, moderated the meeting.