NBTA Business Travel Financial Forum
A Wall Street Look at the Business of Business Travel
March 10-11, 2008 | New York City
Program
9:00 – 9:15 am | Welcome Remarks
Forum Moderator
- Barney Gimbel, Writer, FORTUNE
Barney Gimbel writes feature stories as well as shorter pieces for the First, Investor and Business Life sections at FORTUNE. Gimbel joined the magazine in September 2004 as a general assignment writer and reporter. Since then he has penned feature stories on topics ranging from Iraqi reconstruction to ailing airlines, from Wall Street insider trading scandals to the first new railroad in 100 years. As Forum moderator, Barney will keep the industry outlook in its greater business context as well as ensure a refreshing exchange of views.
9:15 - 10:00 am | The Global Economy & Travel
Despite the relative stability in overall global economic prospects and world real GDP growth, financial volatility and uncertainty dominate economic headlines. How will rising energy prices, the subprime crisis and evolving monetary and trade policies affect the U.S. and global economies going forward? Ken McGill, Executive Managing Director of the Travel & Tourism practice at Global Insight, will offer an exclusive perspective on current macro- and micro-economic trends and their impact on the business travel industry.
Speaker
- Ken McGill, Executive Managing Director, Travel & Tourism, Global Insight
10:00- 11:00 am | Aviation Forecast
Despite the “recovery” of U.S. carriers and rising fares over the past year, the industry still can’t cover its cost of capital. What does the future hold for airline profitability—beyond operating profitability—on a global basis? How will consolidation, labor relations, outsourcing trends, open skies agreements and potential tax and carbon trading schemes affect global aviation’s bottom line? This session will provide a concrete analysis of how the industry is responding to these developments and offer insights on emergent business models that will impact managed travel going forward.
Moderator
- Douglas A. Blackmon, Atlanta Bureau Chief, The Wall Street Journal
Speakers
- J. Randolph Babbitt, Director, Oliver Wyman
- Frank Boroch, Associate Director, Bear, Stearns & Co. Inc.
11:00 - 11:15 am | Coffee Break
11:15 am - 12:15 pm | Hotel Forecast
Since 2004, the hotel sector has seen all-time record levels of RevPAR, though the trend shows signs of slowing. The question now is: Will RevPAR continue to grow into the foreseeable future and if so, at what pace? Hospitality experts will report on the fundamentals (which remain strong) and address how mitigating factors like construction costs and labor may affect the industry. Enhance your understanding of the key performance metrics in this segment—occupancy rates and ADR—so that you can face your next round of negotiations (and price increases) better prepared.
Moderator
- Ian Flint, Head of Global Consultancy, HRG Consulting
Speakers
- Bjorn Hanson, Ph.D, Managing Partner, Global Hospitality Industry, PricewaterhouseCoopers
- Randy Smith, CEO, Smith Travel Research
- Mark Lomanno, President, Smith Travel Research
12:15 - 1:00 pm | Keynote
Keynote Speaker: Larry Kudlow, host of CNBC's "Kudlow & Company"
The Greatest Story Never Told
As one of America's most influential free-market economists, Larry Kudlow discusses why the U.S. economy remains the greatest in the world; what the challenges are in the months and years ahead; and why the current American economic boom remains, "The Greatest Story Never Told." Kudlow expertly dissects the political and economic climate and offers a unique "Washington to Wall Street" perspective on the long- and short-term implications of current events throughout the globe. He offers inisghts into the remarkable triumph of American capitalism and how its continued success has unleashed an unprecedented global economic boom.
1:00 - 2:00 pm | Luncheon
2:15 - 2:45 pm | Technology Futures
In the world of Travel & Entertainment, technology has become the ultimate game-changer—profoundly impacting everything from the financial underpinnings of the industry, to relationships throughout the supply chain, all the way down to the consumer. A leader of this transformation, Rearden Commerce has delivered a technology platform that simplifies life for the consumer and creates rich economic opportunities for merchants, content providers and applications developers. Patrick Grady will share his compelling vision for how technology will re-shape the business landscape—and what elements of Travel and Entertainment are ripe for revolution.
Speaker
- Patrick Grady, Founder, Chairman and CEO, Rearden Commerce
2:45 - 3:00 pm | Coffee Break
3:00 - 4:00 pm | Investment and Innovation in the Travel Biz
A panel of senior executives will share their views on the business of travel technology, focusing on the investments being made for long term value creation in this space.
Panelists include
- Patrick Grady, Founder, Chairman and CEO, Rearden Commerce
- Chris Kroeger, Senior Vice President, Sabre Travel Network
- Mat Orrego, President and CEO, Cornerstone Information Systems
- Bradley Whitt, Managing Director, Broadpoint Capital Inc.
CCTE Credit
Participation in the NBTA Business Travel Financial Forum qualifies as an elective in the Certified Corporate Travel Executive (CCTE) program -- the industry-recognized professional certification. For information on the CCTE program, see www.nbta.org/ccte. For details on counting the Business Travel Financial Forum as an elective, contact educate@nbta.org.
Speakers
Randolph Babbitt, Director, Oliver Wyman
Internationally recognized as a leader in the fields of aviation and labor relations, Randy Babbitt has more than 35 years of aviation experience. Babbitt began his aviation career as a pilot for Eastern Airlines and flew for more than 25 years. He served as President and CEO for US ALPA, the world’s largest professional organization of airline pilots. And he served as a Presidential appointee on the National Commission to Ensure a Strong Competitive Airline Industry. In his capacity as a specialized aviation and labor consultant, Babbitt has been instrumental in advising both airlines and labor unions throughout complex restructuring initiatives and negotiations. He also has been called upon by numerous clients to analyze and explain industry economic issues. Babbitt, a Presidential appointee to the FAA Management Advisory Council, has helped direct and achieve significant improvements in aviation safety and influence regulatory policy in critical areas of the industry. He was recognized by Aviation Week & Space Technology with the Laurels Award for outstanding achievement in the field of Commercial Air Transport. He attended the University of Georgia and the University of Miami.
Doug Blackmon, Atlanta Bureau Chief, The Wall Street Journal
As The Wall Street Journal's Atlanta bureau chief since 2004, Douglas A. Blackmon directs the Journal's coverage of the Southeastern U.S., including general news, politics and corporate and financial news. He also is responsible for the Journal’s global coverage of all airlines and all other major transportation companies, including trucking, shipping, ports and logistics.
Mr. Blackmon's stories or the work of his bureau have been nominated by the Journal for the Pulitzer Prize three times, including for coverage of Hurricane Katrina in 2005, Florida hurricanes in 2004 and for his stories in 2001examining the use of slave labor by U.S. corporations in the early 20th century.
Mr. Blackmon's first book will appear on March 25, 2008: "Slavery By Another Name", reveals for the first time the use by dozens of U.S. corporations and commercial interests of slave labor in coal mines, timber camps, factories and farms in cities and states across the South, beginning after the Civil War and continuing until the beginning of World War II. Bill Cosby recently called the book “the most important work of history written in a long time.” New York University Pulitzer Prize winning historian David Levering Lewis says the book reveals “an America holocaust that dare not speak its name, a riveting, terrifying history of six decades of racial degradation in the service of white supremacy”
Frank Boroch, Associate Director, Bear Stearns & Co. Inc.
Frank Boroch is a senior research analyst covering US and Latin American airline equities as well as aircraft leasing companies at Bear Stearns. Previously, Frank researched US and Asian airlines on the Institutional Investor #1 ranked airline equity team. Before joining Bear Stearns in 2003, Frank earned an MBA from New York University. Prior to business school, Frank worked for the Capital Group Companies in the institutional marketing area. Frank is a CFA charterholder.
David Cerino, Chief Product & Marketing Officer, Farelogix
A respected professional with more than 15 years marketing experience in travel and other industries – including four years with the world’s third largest travel Web site – David Cerino is responsible for developing and leading the execution of Farelogix’s global marketing and product strategy. Through his diverse experience, he has gained an in-depth understanding of legacy and Internet-based agency and corporate distribution strategies, and how critical industry economics are to creating industry-changing operating models. Leveraging this wealth of experience, Cerino is focused on building Farelogix’s position as the leading provider of independent, value-based distribution software and solutions.
Before joining Farelogix, David was the driving force behind Orbitz’ highly successful “Orbitz for Business” unit. As vice president and general manager, he created, built and operated this unique corporate travel market entry. His direct marketing efforts there brought more than 1,400 corporate clients to the portfolio within the first two years. Prior to his work at Orbitz, Cerino held the role of vice president of Marketing Operations and Customer Experience for DigitalWork.com, a leading provider of technology that enables the aggregation and distribution of business services over the Internet. He also spent two years as vice president, Internet marketing and customer experience for First USA Bank, as well as six years as senior director of marketing and product management for Amadeus Global Travel Distribution. He began his career with Clarion Software Corporation. Cerino has an MBA from Florida Atlantic University, and a BS in Mathematics and Computer Science from Wake Forest University in North Carolina.
Barney Gimbel, Writer, FORTUNE
Barney Gimbel writes feature stories as well as shorter pieces for the First, Investor and Business Life sections at FORTUNE. Gimbel joined the magazine in September 2004 as a general assignment writer and reporter. Since then he has penned feature stories on topics ranging from Iraqi reconstruction to ailing airlines, from Wall Street insider trading scandals to the first new railroad in 100 years. As Forum moderator, Barney will keep the industry outlook in its greater business context as well as ensure a refreshing exchange of views.
Patrick Grady, Founder, Chairman and CEO, Rearden Commerce
A recognized pioneer in Web Services and on-demand technologies, Patrick Grady has guided Rearden Commerce to a commanding leadership position as the world’s fastest growing commerce platform for goods, services, and applications. With more than 1,250 customers spanning the Fortune 50 to small/medium enterprises, leading distribution partners like American Express Business Travel, and more than 137,000 merchants and third-party application providers, the company is fundamentally transforming the way individuals and businesses buy and sell goods and services online.
Patrick founded Rearden Commerce with a singular vision – to deliver the Rearden Personal Assistant, an innovative on-demand personal assistant that simplifies life, helping people quickly find the services and goods they need based on what they like, where they are, what they are doing, and company policies. The Rearden Personal Assistant also helps thousands of companies save money by consistently guiding employees to preferred suppliers offering negotiated discounts and helping them make smarter purchase decisions.
In addition to serving as CEO, Patrick is Rearden Commerce's strategic architect, guiding the company’s product and technology vision. He is a sought-after speaker with engagements including the CSFB Disruptive Technology Conference, the PhoCusWright Executive Conference, and Supernova.
Bjorn Hanson, Managing Partner, Global Hospitality Industry, PricewaterhouseCoopers
Dr. Hanson is well known for his consulting and econometric and statistical research. He holds Certified Real Estate Counselor (CRE), Certified Fraud Examiner (CFE) and Food Service Consultants International (FSCI) professional designations. He is an author and frequent speaker who has been quoted in almost every major business periodical and industry journal including: Financial Times, Time, Newsweek, Forbes, Fortune, U.S. News & World Report, The Wall Street Journal (US, European and Asian editions), Barron's, and The New York Times and has appeared numerous times on CNN, CNNfn, CNBC, FOXfn, WCBS, PBS and other television and radio systems. He has served as International President of the Cornell Society of Hotelmen and was the Cornell Hotelie of the Year in 1994. He has served as a Visiting Assistant Professor at Cornell and in addition to having been an adjunct faculty member at NYU for 16 years, he is the Chair of the Executive Board for New York University's Center for Hospitality, Tourism and Sports Management and The Center for Hospitality Research Advisory Board. Dr. Hanson holds a bachelor's from Cornell University, School of Hotel Administration, an MBA from Fordham University, and a Ph.D. from New York University.
Larry Kudlow, host of CNBC's "Kudlow & Company"
Larry Kudlow is CEO of Kudlow & Co., LLC, an economic and investment research firm in New York City, and host of CNBC's "Kudlow & Company." He is a contributing editor of National Review magazine, as well as a columnist and economics editor for National Review Online. Mr. Kudlow has also served as chief economist for a number of Wall Street firms and was the associate director for economics and planning, Office of Management and Budget, Executive Office of the President, where he was engaged in the development of the administration's economic and budget policy during Reagan's first term.
Mark Lomanno, President, Smith Travel Research
Mark Lomanno has been with STR for over 15 years. As President, he sets company policy and direction while overseeing daily operations. In addition, he coordinates initiatives and implementation for STR's ventures, both domestically and globally. Mr. Lomanno is highly regarded for his lodging industry expertise and writes a column for Hotel & Motel Management magazine. He serves on the advisory boards of the HSMAI Foundation, The Center for Hospitality Research at Cornell University, and Travel Industry of America. He is a frequent speaker at industry seminars and guest lecturer at the School of Hotel Administration at Cornell University.
Kenneth McGill, Executive Managing Director, Travel & Tourism, Global Insight
Recognized as the most consistently accurate forecasting company in the world, Global Insight has over 3,800 clients in industry, finance, and government with revenues in excess of $95 million, 600 employees, and 23 offices in 13 countries covering North and South America, Europe, Africa, the Middle East, and Asia. McGill is responsible for managing the firm's consulting activities dedicated to analysis of the travel and tourism sector. He leads consulting projects related to strategic planning and market analysis for the accommodation, entertainment, and transportation industries, as well as for the public sector. He has nearly three decades of experience in economic analysis and strategic consulting and is a graduate of West Virginia University.
Mat Orrego, President and Chief Executive Officer
As President and CEO of Cornerstone, Mat Orrego is passionate about helping clients solve the complex travel-technology issues of today’s operations and fulfillment processes. He believes in investing in relationships and helping his clients stay focused on the three main facets of booking a trip—reserving, ticketing and confirming. After earning his degree in finance from Indiana University’s Kelley School of Business, Mat began his career in the financial services industry in 1985. Later, he joined Gant Travel Management where he spent four years working with front- and back-office operations. At Gant, he developed a core understanding of how technology can make a business more efficient and profitable. In 1992, Mat’s entrepreneurial spirit drove him to define success on his own terms by founding Cornerstone Information Systems. Mat works with various non-profit, micro-lending organizations that benefit entrepreneurs in third-world countries. He is also one of the founders of a successful construction and development company in Indianapolis, as well as, a primary investor in a professional outsourcing company in San Diego, and a minor league baseball team in Bakersfield, California.
Randy Smith, CEO, Smith Travel Research
Randy Smith founded STR in 1985. He is widely quoted in the industry as the authority on hotel industry performance and is a frequent keynote speaker at industry conferences and seminars. Mr. Smith was a 2007 inductee to the Florida State University College of Business Hall of Fame. He is a member and past co-chairman of the Industry Real Estate Financing Advisory Council (IREFAC) and the 2002 recipient of the prestigious IREFAC C. Everett Johnson Award. He is also vice-chair of the American Hotel Foundation Funding Committee. Mr. Smith is a charter member of the International Society of Hospitality Consultants and a former member of the board of directors. He is the recipient of the 1996 Industry Pioneer Award of the ISHC for outstanding contribution to the lodging industry.
Bradley Whitt, Managing Director, Broadpoint Capital Inc.
Bradley Whitt is Managing Director and Senior Analyst in the Equity Research Group, Broadpoint Capital Inc. Whitt covers software technology with a focus on the Software-as-a-Service sector. He previously held positions with RBC Capital Markets, where he was a senior analyst covering enterprise software companies. Prior to this, Whitt has held other sell-side senior research analyst positions covering software technology. He also has held various sales positions at IDX Systems Corporation, Datamedic Corp., and DataFlow Corp. Brad holds a B.S. in Business Administration from Appalachian State University and an MBA from Wake Forest University Babcock Graduate School of Management.