2004 Press Releases

CONTACT:
Kristin Zern
Association of Travel Marketing Executives
914/576-5280
kzern@atme.org

Amanda Borichevsky
VOLLMER
972/488-4790
amanda@vollmerpr.com

FOR IMMEDIATE RELEASE

INDUSTRY EXECS FORECAST THE FUTURE AT ASSOCIATION OF TRAVEL MARKETING EXECUTIVES’ MARKETING ISSUES FORUM

New York, N.Y. (January 27, 2004) ATME's luncheon panel discussion on January 27 covered the state of the travel industry both present and future, from a wide range of perspectives. The panelists included Bob Sharak, Executive Vice President and CMO of the Cruise Line Association of America (CLIA); Bob Whitley, President of the United States Tour Operators Association; Marshall Calder, Senior Vice President of Luxury Hotels of the World; Frank Camacho, Vice President Marketing of Hertz; and Joanne Smith, Vice President of Marketing of Song. The moderator was ATME's chairman Gary Sain, Executive Vice President and Partner of Yesawich, Pepperdine, Brown and Russell.

Asked what kind of year they envisioned for 2004, the basic mood was upbeat. Calder expected to see his members attain or exceed the levels of 2000, and Whitley said most of his members shared that view. Smith envisioned more air travelers in general, but a lower yield than 2000. And Sharak cited the growing capacity of cruise ships as both a challenge and a cause for optimism, noting that even as the immense Queen Mary 2 enters the market, a larger ship is already in the works.

Smith said her new carrier is listening closely to consumers, and putting more money into the customer experience in an effort to "underpromise and overdeliver".

Sharak stated that today's consumers demand an array of choices, and the cruise industry is taking steps to provide that kind of variety. He also noted that the industry still has little overall penetration, which translates into huge potential: 44% of travelers would like to try cruising, and thanks to the high satisfaction levels, some 90% of first-timers are inclined to sail again.

Sain asked what marketing issues kept the panelists up at night, and Whitley cited the crucial question of how customer flow would ultimately split between travel agents and the internet. Calder expressed concern about the "commoditization of travel" -- the tendency to sell online strictly on a price basis. Luxury destinations can't undercut the low-price players, and have to keep the focus on value in order to come out ahead. In short, "We have to make people understand the value of that extra star."

Camacho noted the confusing multiplicity of brands and choices, which can reach a point where the consumer simply decides to go with the lowest price. He noted an acute industry need for increased emphasis on branding to combat this growing problem. And he said the leisure side of the market is now dominant, especially as baby boomers become empty-nesters. In fact, while business travel is not yet back to the levels of 2000, leisure travel has already surpassed those high marks.

Sain inquired about perceived threats to travel, beyond the essentially uncontrollable elements of terrorism, disease and currency shifts.

For Smith, a big threat is the emergence of more low-cost competitors all trying to capture the "$79 traveler". Noting that today's consumer is inundated with clutter, she said Song's ads deliberately don't look like airline ads. Acknowledging the clear targeting of women, she added: "Where women go, men will follow"

The cruise business sees the key threat as continuing low yields, said Sharak, adding that while major cruise lines were currently profitable the pricing had to increase to more normal levels.

Another consumer shift and industry challenge is today's shorter booking cycle. Cars, hotels and airlines that were typically booked well in advance now have little notice, and there are far more last-minute and drop-in travelers. Cruises, once booked four to six months ahead, are now arranged just a few weeks before departure. Adjusting to this on-demand world is difficult, but Whitley saw signs that this shrinkage of lead time is finally abating. And when Doug Burke of the Philadelphia Inquirer asked how panelists coped with this move to last-minute booking, Whitley said, "Easy. Put an ad in the Sunday Philadelphia Inquirer."

The improving economy bodes well for the industry, of course, and Calder said that the rising tide will benefit hotels, cruises and all discretionary travel. But business travel will also recover, and he anticipates the number of corporate travelers in luxury hotels going from 5 to 7 percent -- a 40% increase in business customers. In addition, over half of business travel now includes some leisure component -- at its best, a visit to provincial France after a talks with the client in Paris or Brussels.

The panelists saw a bright future for travel agents who've adjusted to new realities. Camacho said agents remain his biggest source of business, with notable increases in group sales, and will continue to play a vital role. Whitley said the USTOA knows agents will do well, with more of them becoming home-based.

Whitley was also pleased with the comeback of the tour industry, especially in Europe despite the strong Euro. He also noted that the industry is changing its product, avoiding the rush through too many countries, adding leisure time, and changing "tour" to "vacation". Sain noted a YPB&R finding that Italy, Spain and the United Kingdom are up most -- leaving the impression that this might relate to these U.S. allies positions on Iraq war.

Sharak, too, noted the need to change perceptions. The public view of cruisers as "newlywed, overfed or nearly dead" has yielded to a new and active image. "It's nice to have customers who will repeat before they expire", he added.

For Smith of Song, the challenge is making air travel as easy as possible, by streamlining check-in and taking all other steps to provide a hassle-free and even rewarding experience.

Responding to a question from Hugh Riley of the Caribbean Tourist Organization about growth areas, Calder cited "experiential travel", which goes beyond the physically active idea of adventure travel to encompass, say, an arctic cruise. It was noted that adventure travel may be fast-growing, but it still comprises a very small segment of overall travel. Sharak said that the real growth areas may be honeymooners, extended families, and families traveling with children.

CONTACT:
Kristin Zern
Association of Travel Marketing Executives
914/576-5280
kzern@atme.org

Amanda Borichevsky
VOLLMER
972/488-4790
amanda@vollmerpr.com

FOR IMMEDIATE RELEASE

ASSOCIATION OF TRAVEL MARKETING EXECUTIVES BRINGS BACK INDUSTRY-LEADING CONFERENCE AND TRADESHOW IN 2004

LINE-UP OF EVENTS INCLUDES EXPERT COMMENTARY ON MAXIMIZING THE BRAND TO ACHIEVE GREATEST RESULTS AND RENOWNED ATME ATLAS AWARDS PRESENTATION

Larchmont, N.Y. (June 9, 2004) The Association of Travel Marketing Executives (ATME) will be holding its 2004 Conference and Tradeshow this year to address key issues of concerns to travel executives, such as how to differentiate their brand from competitors. Key strategy seminars will include how to effectively use brand through different communication and distribution channels to achieve the goal at hand.

Other key industry events of note include the announcement of this year’s prestigious ATME Lifetime Achievement Award as well as the presentation of ATME’s annual Atlas Awards, which will be judged by a panel of experts and presented during the 2004 Conference and Tradeshow. The awards recognize breakthrough thinking and extraordinary achievements in the creation and execution of travel marketing initiatives.

Key speakers already confirmed include: Tom O’Toole, SVP Marketing, Hyatt Hotels and Resorts; Rob Britton, Managing Director of Advertising and Marketing, American Airlines; Scott Deaver, SVP, Cendant; and Peter Greenberg, NBC.

The conference is set for September 21-22, 2004 at the Westin Philadelphia Hotel (99 South 17th Street at Liberty Place, Philadelphia, PA, 215 563-1600). Members of the media can attend the conference at no cost. Please contact Amanda Borichevsky or Chintan Talati at 972-488-4790 to request a press pass. For more information on ATME, the 2004 Conference and Tradeshow or the Atlas Awards, visit atme.org

CONTACT:
Kristin Zern
Association of Travel Marketing Executives
914/576-5280
kzern@atme.org

Chintan Talati
VOLLMER
972/488-4790
chintan@vollmerpr.com

FOR IMMEDIATE RELEASE

THE ASSOCIATION OF TRAVEL MARKETING EXECUTIVES ANNOUNCES RECIPIENTS OF THE 23rd ANNUAL ATLAS AWARDS

STARWOOD'S BARRY STERNLICHT AND OTHER LEADING INDUSTRY EXECUTIVES RECOGNIZED FOR OUTSTANDING ACHIEVEMENTS AND RESULTS IN TRAVEL MARKETING

Larchmont, N.Y. (September 29, 2004) The Association of Travel Marketing Executives (ATME) recognized some of the most innovative leaders and companies in travel marketing with the organization's 23rd annual ATLAS Awards. The awards were presented during the 2004 ATME Conference on September 21-22, 2004 at The Westin Philadelphia.

The most prestigious ATME recognition, the ATLAS Lifetime Achievement Award, was given to Barry S. Sternlicht, Starwood Hotels & Resorts' recently-titled Executive Chairman. The Lifetime Achievement Award is awarded by ATME judges to individuals who have consistently distinguished themselves as marketing leaders while advancing the travel industry worldwide. Sternlicht received the award for his innovative strategy of focusing on the sleep and in-room experience, a move that has revolutionized the entire hospitality industry.

“We are extremely proud to present the ATLAS Lifetime Achievement Award to Barry Sternlicht,” said Gary Sain, ATME's Chairman and CMO & Partner of Yesawich Pepperdine, Brown & Russell. “We are always seeking to recognize individuals such as Barry for their innovative ideas that have transformed the way we travel.”

The ATME Atlas Awards were created to honor those in the travel marketing industry who have displayed breakthrough thinking and leadership in marketing. Major award categories recognize executives and companies for bold tactics, results-oriented programs and broad marketing vision.

In addition to the ATLAS Lifetime Achievement Award, ATME also announced the following awards for 2004:

Best Brand ReLaunch: Cunard - For the innovative and highly successful launch of the QM2 and their “Can you wait?” campaign.

Best New Brand: Song - For the unique and trendy integrated branding of Song, a new airline within a legacy carrier.

Best Brand Strategy: Cayman Islands - For devising their fresh and effective “Welcome Back” interactive CD, an effective strategy to convert cruise passengers to land based vacationers.

Best Brand Innovation: Collette Vacations - For their unique Collette Vacations “Traveling Well” program and campaign that promotes the benefits of travel from the perspective of increased vitality, de-stressing and wellness enhancements.

Best Enduring Brand: Monaco - For Monaco’s success in becoming one of the world’s great luxury brands and enhancing that brand luster for nearly a century.

Best Branding Campaign: Las Vegas Convention & Visitors Authority - For the instant success of their new campaign “What happens here stays here”.


About ATME
The Association of Travel Marketing Executives (ATME) is a professional association of senior-level executives with vital responsibilities in the marketing of travel and tourism worldwide. ATME’s members represent airlines, hotels, resorts, cruise lines, car rental companies, advertising and public relations firms, travel marketing professionals, research groups and tourist offices of domestic and foreign destinations. ATME is a global network of industry marketing professionals committed to enhancing skills, recognizing excellence, and providing innovative, effective and provocative marketing ideas and solutions while enhancing the highest standards of travel leadership.

CONTACT:
Kristin Zern
Association of Travel Marketing Executives
914/576-5280
kzern@atme.org

Amanda Borichevsky
VOLLMER
972/488-4790
amanda@vollmerpr.com

FOR IMMEDIATE RELEASE

INDUSTRY EXECS LOOK BACK AT 2004 AT ASSOCIATION OF TRAVEL MARKETING EXECUTIVES’ MARKETING ISSUES FORUM

New York, N.Y. (December 2, 2004) Gary Sain, ATME’s Chairman and CMO & Partner of YPBR and Mary Pat Sullivan, VP Marketing Communications, The Travel Institute led a lively discussion with ATME Board Members and the attendees at the New York Yale Club.

Here are the highlights from the discussion:

CRUISE INDUSTRY

Bob Sharak, ATME Board Member and the EVP & CMO at CLIA (Cruise Lines International Association representing 19 cruise lines (95% of the industry) described 2004 as a banner year for the industry. There were 10.5 million passengers. The industry added 12 ships in 2004 and 15 ships in 2003 (there will be 5 new ships added in 2005). Even with all this new capacity occupancy was at 102%. Because of occupancy rates prices are coming back up. And more importantly, yields are increasing.

There are 30,000,000 who say they would like to cruise who haven’t yet. That pent up demand should increase yields even more.

The QM2’s launch and massive public relations campaign raised the bar for everyone in the industry.

When asked if there have been any shifts in the age of cruisers Bob answered that they are slowly getting younger (no longer the “nearly dead”). He also mentioned that the boomers are a big target for the cruise industry.

Interesting Factoid: Sharak mentioned that cruises sold via travel agents reaped the highest yields. The reason being that agents can easily upsell a client to a higher price/level of service and the consumer using a travel agent is less driven by bargain hunting than online consumers tend to be.

AIRLINES

Joel Chusid, ATME Board Member and Managing Director Sales & Marketing, China Eastern Airlines gave a rundown on what the airlines were doing from a marketing perspective.

Aer Lingus is becoming a low cost carrier across the Atlantic.

Virgin Atlantic, once marketed as a backpackers budget buy, is now focusing on the redesign of its premium class and creating flat beds, comic books for adults, massages in flight, limos to and from the airport, etc. Their market is what they’ve playfully coined the “JetroSexual”.

Singapore Airlines is going for the long haul with their new 18 hour non stop flight from New York to Singapore in the huge new Airbus. Their challenge is to keep people occupied during such a long flight.

American Airlines which prefers the description “network” carrier to legacy carrier is having a difficult time as are all the “legacy carriers” managing rising fuel costs, labor unrest (with possible strikes looming), high labor costs, and low fares, etc.

US Air, Delta, Continental, United, American and Northwest are all struggling and at least one if not two will probably not survive. They all have full planes but aren’t making any money because the yields are so low and the expenses are so high.

Nevertheless, American is initiating a new touchy feely ad campaign “We know why you fly”. To which someone in the audience muttered, “to be squeezed like a sardine and generally mistreated”.) And Song, Delta’s in house budget high-style airline is marketing to women reasoning that where the women go the men will follow.

CENDANT TDS

Cheryl Scheideler, Director of Partner Marketing, Cendant TDS announced that Cendant had just acquired another online company - EBookers which adds to their market share with Orbitz, CheapTickets (Trip was folded into CheapTickets). She mentioned that the brands will remain separate. Cheryl sees the trend moving towards an expanded corporate travel segment online and says the Group Meeting side will also expand online.

CORPORATE TRAVEL

Scott Boone, ATME Board Member and CMO of TravelLeaders, sees a trend toward one stop shopping for corporate travel. TravelLeaders offers corporate accounts either a traditional agency experience or a $15 per transaction solution. All corporate travel RFP’s now include Orbitz, Travelocity, Expedia, in the mix.

MEDIA

Chris Baum, ATME Board Member and Travel Marketing Director, The New Yorker said that there is a higher spend committed to for 2005. There’s more emphasis on branding, and many are going from 3 time frequency to 6 and 9 times.

Jacqueline Johnson, ATME Board Member, and Executive Travel Director, The Fairchild Bridal Group said that travel marketers overall budget remains the same for 2005 but that they are going to other mediums and cutting down on print programs in the process.

Joanne Nelson, Associate Publisher, Travel Professional mentioned that trade advertising is coming back. Travel agents are stronger than ever and marketers are realizing that they are important because the yield on sales through travel agents is higher. She also mentioned that electronic ad sales is now a profit center, no longer an add-on.

Joe Buhler, CEO, NetStrategic LLC said that as more clients are seeing more profits they are interested in trying new things including web solutions.


THE CARIBBEAN

Hugh Riley, ATME Board Member and Director of Marketing, CTO (Caribbean Tourism Organization) described what he considered a branding dilemma. The Caribbean in general, versus each individual country. The problem: How should countries spend their marketing dollars? For the entire region or as an individual stand alone destination?

He continued by saying that there is a shift in the way destinations market. The shift is from a primarily promotional organization to one that must now close the sale as well. Now destinations have to have booking engines on their websites or turn to the CTO to use its booking engine. He concluded by saying that the region expects to end 2004 with a 4-5% increase in visitors over the previous year.


ONE TO ONE MARKETING

Madigan Pratt, ATME Board Member and Managing Director, Madigan Pratt & Associates, said that destinations and hotels are trying to understand who their customers are. They are learning the importance of database marketing.

Mary Pat Sullivan concurred by saying that The Travel Institute used a one to one database driven message/marketing campaign over a 6 week period. In that 6 week period they achieved what would normally have taken 9 months.

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