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MarketFlash

	March 27, 2008

	: HOTELS  : DESTINATIONS : AIRLINES : CAR RENTAL :
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	Upcoming Events: ATME NEWS     ATME Marketing Forecast Lunch - April 29th, Yale Club, NYC The Luxury Market Panelists include: Dennis Pinto, Micato Safaris; Marshall Calder, Leading Hotels of the World Moderator is Ruthanne Terrero, Editorial Director Luxury Advisor and Travel Agent ATME Annual Conference June 11-12, 2008, Red Rock Resort, Casino & Spa, Las Vegas, Nevada Athenticity, Branding & Customer Engagement: Speakers include: Joanne D. Smith SVP In-flight Services & Product Development Worldwide, Delta Airlines; Henry Harteveldt, VP and Analyst, Forrester Research; Steve Pinetti, SVP Marketing, Kimpton Hotels; Porter Gale, VP Marketing, Virgin America; Kirk Thompson, VP Marketing, Hilton Hotels.  Panels covering Mobile Marketing, Destination Marketing, Social Networking and Customer Engagement, The Death of Advertising (as we knew it), as well as case histories, an economists take on the economy, and new technology that you need to know about.  Early registration will save you $100 if you register by April 30th.  https://www.registrationfactory.com/v3/default.cfm?EventUUID=658DEAAA 2008 Renewals Please process your 2008 membership renewal.  Make sure we have your correct contact information.

	HOTELS  Product placement has become a buzzword -- okay, two buzzwords -- for savvy marketers.  And now the phenomenon is appearing in a hotel room near you.  Brands like Sony and Restoration Hardware have negotiated deals that will seed their products in high-end hotels.  This low-tech approach allows hotel guests to sample products like a Sony PlaySation3, and also purchase them, often at a discount. One example:  As the Luxor hotel-casino in Las Vegas proceeds with a $300 million renovation, Restoration Hardware will design and provide furniture.  Table tents and messaging on the hotel's TV network will alert guests that these products are available at a discount exclusive to Luxor guests.  "Quite often we share the same customer [demographics] as the hotel, so we're able to co-market and do things together that are more valuable than just selling product," said Claire Eeles, general manager of Restoration Hardware's Trade unit. Sony will be the electronics provider for Borgata Hotel Casino & Spa in Atlantic City, N.J., and the Seminole Hard Rock Hotel & Casino in Tampa and Hollywood, Fla.  Guests there can sample its PS3, HDTV's and music from the Sony BMG division.,  Sony Suites are in the works for top tier guests, while common areas could be converted to showcase products -- all of which will be available at 10-20% discounts for hotel guests. (Brandweek) DESTINATIONS Texas Tourism, the states official marketing organization, aims to shrink the Lone Star State a tad for trip planning purposes.  One of five 60-second TV spots – debuting last month via TM Advertising, Dallas – shows a couple walking through the Zen Valle vineyards and sipping from wine glasses. “The State is so big and there is so much diversity that people think I can do the beach one day and the mountains the next, said Julie Chase, CMO at the Office of the Governor, Economic Development and Tourism, Austin.  “That’s just not possible, so we wanted this campaign to give people tools so they can plan a better trip; and see some of the diversity and attractions that they night not have realized were here.” Visitors to TravelTex.com can click on the spots.  As the video plays the vineyard ad, for example, information boxes pop up on an adjacent Texas map to pinpoint the winery’s location.  Other nearby shopping and hiking attractions showcased in the same ad also appear on the map so viewers can plan a manageable driving tour along Interstate 10 in El Paso County. Visit Florida, the state's tourism marketing company, recently broke its first national TV campaign, "Discover our Sunshine State.  Rediscover yours."  The campaign from Visit Florida, Tallahassee, is backed by a $9 million spend.  TV spots, including ads targeting Hispanic and African American travelers, are running on NBC, ABC, Discovery, BET and Galavision, concentrated on New York, Chicago, Atlanta, Boston and Washington and receive print support. Visit Florida is also developing a social networking community to help build buzz about the campaign.  Ten experts on the state were recruited to blog on VisitFlorida.com about arts and culture, boating and fishing, shopping and nightlife, beach and surf, family travel, offbeat locations and events, gold and the outdoors.  Consumers can query the bloggers for specific recommendations.  The web site, handled by Miles Media, Sarasota, also includes trip-planning tools and a section for sharing photos and videos.  "One of our core objectives was to give the consumer a voice on this web site, which is right in line with the whole trend in social networking,"said Leon Corbett, director of advertising and direct marketing at Visit Florida. (Brandweek)

	AIRLINES Crisis Management High-flying Southwest Airlines is struggling to handle the crisis resulting from the FAA’s $10.2 million fine for allegedly misleading that agency about the inspection of its planes for fuselage cracks.  The airline said the problem boiled down to a computer error and at no time was passenger safety compromised.  With the grounding of those planes, the situation grew more difficult. The airline chose to deal with the problem head-on by speaking with the media; issuing a statement on its site; addressing the issue on its corporate blog; and having CEO Gary Kelly, who called the fine unfair, be interviewed by CNN.  But problems have been brewing for some time as the airline’s favorability rating has dropped from 66.6 to 48.8 in the past five years.  Southwest is now reviewing its crucial loyalty program, run by Omnicom Group’s Targetbase. Brand experts wonder if the airline, which has used a lighthearted ad strategy, may need to take thing more seriously.  One humorous “get away” TV spot shows a nosy guest checking out the contents of the host’s bathroom cabinet, only to have its glass shelf fall and spill the contents in a loud crash.  Karl Barnhart, managing director, CoreBrand, says the idea is great but adds, “Southwest can’t make a mistake and expect their passengers to give them a pass on it because you are dealing with people’s lives.  He suggested that Southwest may want to reconsider the slapstick ads.  (Advertising Age) Ad Campaign to Launch a New Airline But when the airline is Virgin America, staid and sober ad campaigns are simply not in the cards.  Using the theme “This is how to fly”, the airline takes a humorous tone that is playful and knowing, intended to distinguish it from more established competitors.  The campaign, from San Francisco agency Eleven which has replaced Anomaly of New York, includes print, online, radio and outdoor ads and promotions that echo the tongue-in-cheek or downright cheeky attitude of semi-sibling Virgin Atlantic Airways whose owner, the Virgin Group, owns 25% of Virgin America. One ad, promoting a feature that lets passengers chat seat to seat, is headlined “Talk behind people’s backs.”  Another ad, describing the choice of 3,000 free Mp3’s from the in-flight entertainment system, says “Let the good times roll.”  The entire system is played up in ads that promise, “The multiplex is boarding.” An ad touting the availability of on-board outlets says “End the power struggle,” while some bus shelters bearing the company’s posters are decorated to resemble aircraft cabins, complete with mood lighting.  (New York Times)   Editor’s Note: Virgin America’s, VP Marketing, Porter Gale will present their campaign at ATME 2008 June 11-12th at the Red Rock Resort & Casino in Las Vegas. The vast audience for last month’s Academy Awards telecast saw the launch of American Airlines new campaign to woo international travelers with lie-flat beds and seats that swivel.  The ads, from T:M Advertising, Dallas, are aimed at the profitable segment where demand for such comforts is high. The effort also includes a new site, aa.com/flagship, which showcases features like on-demand entertainment, work station perks, sleep amenities, the wine portfolio, dining menus, and access to Flagship and Admiral airport lounges. “The Flagship experience is broader than just being a seat on the plane,” said Susie Williams, AA’s director of brand and target marketing, adding that market research showed customers like to “dissolve into themselves” on 10-hour flights.  “We’re trying to show them that the Flagship Service can be their world of work, their world of relaxing, dining, entertainment and wine.” The stress on international comes as domestic network carriers have been pinched by their inability to increase domestic fare prices enough to offset the rising cost of fuel.  (Brandweek) A Young Airline Shifts It’s Marketing Online AirTran Airways has signed a multi-year deal to become the official airline of ForGetaway.com, a Web site that lists vacation home rentals.  ForGetaway.com is part of The Weather Channel Interactive, Atlanta, which includes weather.com and other online destinations that attract more than 35 million unique users a month, according to Nielsen/NetRatings, New York. A link to the Orlando-based AirTran will be featured on every page at ForGetaway.com, where visitors can search from among 90,000 rental by price, location, date and amenities.  The alliance is part of AirTran’s strategy to put more of its marketing spend online – a total of about half its total media budget of more than $14 million, “We have made the switch from traditional advertising to online, said Tad Hutheson, AirTran’s vp-marketing and sales.  “We’re a young airline so when we were building our frequent flyer program, we did it without sending monthly statements or fliers – the only piece of mail members get from us is when we send them their card.  Everything is done over the Internet and our customers prefer our communication that way.”  Other online affiliations include 8900Wine.com and Hertz.com.  (Brandweek)

	CAR RENTAL TRANSPORTATION The lighthearted approach may have tripped up Southwest, but it seems to be doing nicely for Avis which invites you to “have an affair” with one of its cars, even if your stay-at-home car gets a tad jealous.  The cheeky national campaign which broke a month ago, aims to alter the way consumers think about its business by repositioning rental cars a fling – a way to break free from a monotonous routine and temporarily indulge while leaving their faithful, permanent cars at home.  The campaign itself breaks from routine, since the category has always stressed operational excellence. “We’re trying to make car rental sexier,” said Kim Lewis-Collins, Avis’ director of brand marketing.  “Car rental is the last thing people book when they book their trips.  It’s kind of the afterthought.  We’re trying to flip that on its head.” The company’s main strength is the in-airport car-rental business, with 60% of its sales coming from business customers.  It’s tough to grow such a dominant share, so Avis saw the real growth opportunity in expanding its share of the leisure market – in part by getting business customers to bring the family and linger longer.  Its research showed that the idea of the two-week vacation is gradually disappearing, leaving many trying to squeeze in some leisure travel as part of their business trips.  Avis has diversified its fleet to include such choices as Hummer, Cadillac CTS, Pontiac Solstice, Altima and Toyota Prius hybrids, Volkswagen Beetle and Corvette. One clever spot shows a dejected car left in an airport parking lot bemoaning a range of imagined infidelities:  “He’ll probably get the Where2 GPS so he can find all of his precious, fancy coffees and driving ranges.  Well, who needs him?  Wait – did he just look back?” the car asks pathetically.  Alas, he simply left his coffee cup on the abandoned car’s hood. The tagline for the campaign, “The other car,” emphasizes Avis’ idealized relationship between consumers and their rental cars.  The campaign from Avis’ agency of record, McCann Erickson, New York, is underpinned by four spots directed by Speck/Gordon, the duo responsible for the Martin Agency’s Geico “Caveman” series.  (Advertising Age)

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	MarketFlash is published in email web & print versions for the Association of Travel Marketing Executives, Inc. (ATME) and is copyright protected. Written & Edited by Brook Zern & Kristin Zern of Zern Associates, Inc. The Association of Travel Marketing Executives PO Box 3176, West Tisbury, MA 02575
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	The Association of Travel Marketing Executives (ATME) is a 28 year old professional association made up of senior level travel industry marketers representing all segments including: airlines, hotels and resorts, cruise lines, tour operators, online travel, international tourist offices, CVB's, state and local tourism offices, car rental companies, technology providers, etc. ATME is the only worldwide organization of its kind to provide members with an ongoing forum for the exchange of creative ideas and effective marketing solutions.

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