The year 2005 will be remembered as the year that the majority of passenger seats in the United States were operated by bankrupt airlines, that deadly hurricanes devastated cities along the U.S. east and Gulf coasts and in the Caribbean, that the threat of avian bird flu dominated headlines and that the travel industry completed its rebound from years of economic uncertainty. NBTA recently asked its members to rank these and other top news stories of the year based on their impact on corporate travel. Please join us as we count down the top ten business travel industry stories of 2005!
Click here for full report, or read summaries of each story below.
#1 – Airlines Seek Shelter from the Storm; U.S. Airline Bankruptcies
2005 will be remembered for airline bankruptcies. At one point during the year, five of the largest airlines in the United States were operating under Chapter 11 protection, and more than half the seats on domestic flights were operated by a bankrupt carrier. In 2006, airlines will continue to make changes to cut costs and maximize revenues. With continued changes in the airline industry, travel managers will continue to play an important role in maximizing corporate travel spend, and NBTA will continue to provide resources to help its members meet that challenge.
| Story #1 | Complete Report -- Top 10 Travel Stories of 2005 |
#2 –Mother Nature Scorned; The 2005 Hurricane Season
The 2005 hurricane season was one of the busiest ever recorded. The season’s most powerful storms sent the travel industry to work. Travel managers oversaw the challenging processes of evacuating of travelers, amending travel schedules, finding lodging in an area where booked for hundreds of miles and relocating or canceling meetings. Travel service providers were faced with the equally daunting tasks of surveying property damage, canceling guest reservations, housing evacuees, amending service schedules and rebuilding what was damaged. NBTA provided resources via an industry-leading web page and donated to help the recovery effort.
| Story #2 | Complete Report -- Top 10 Travel Stories of 2005 |
#3 – The Explosions Heard Around the World; The London Terror Bombings
On July 7, the world listened in horror as reports of a series of coordinated explosions on London’s mass transportation system flooded news channels around the globe. In total, three bombs exploded in the city’s rail system and one bomb exploded onboard a double-decker bus, killing 56 commuters and injuring 700. London officials feared the bombing would cause a decline in travel to the city. Despite a second failed bombing two weeks later, there was no significant drop in travel to London in the months following the bombings.
| Story #3 | Complete Report -- Top 10 Travel Stories of 2005 |
#4 – Coming to America… With a Passport; Passport and Border Crossing Requirements
The events of September 11, 2001 prompted the United States to place increased importance on securing the nation’s borders. Three separate border and passport issues captured headlines in 2005, each focusing on the nation’s efforts to improve national security and access into the United States. The issues prompted significant debate regarding the potential economic impact of the requirements and data protection concerns. NBTA was pleased to represent its members on Capitol Hill to ensure the needs of the corporate travel industry were fairly represented in each of the passport and border issues.
| Story #4 | Complete Report -- Top 10 Travel Stories of 2005 |
#5 – Plenty of Room at the Hotel California? Not this Year; The Rebound of the Hotel Industry
Business travel is back, and no industry is enjoying its triumphant return quite like the hotel industry. After two years of economic recovery, the hotel industry is experiencing returns not seen since 2000. Across the country, room occupancy rates, room rates and hotel revenue per room are at record highs. Hotel chains are taking advantage of the newfound revenue by renovating properties and adding amenities to appeal to business travelers. NBTA expects this trend will continue in the New Year and predicts that hotel room rates will increase by nine percent.
| Story #5 | Complete Report -- Top 10 Travel Stories of 2005 |
#6 – Hard-Fought Victory; The Registered Traveler Program
NBTA celebrated a hard-fought victory in 2005 when the Transportation Security Administration (TSA) announced plans to expand the Registered Traveler program to a national, permanent program. The program, to be launched in 2006, will allow travelers to undergo government background checks in exchange for expedited security screening at participating airports. NBTA has strongly supported the Registered Program for more than three years and was pleased to see the fruit of its efforts on behalf of the corporate travel industry.
| Story #6 | Complete Report -- Top 10 Travel Stories of 2005 |
#7 – Are the New Kids on the Block Changing Travel Distribution? GDS New Entrants
2005 was supposed to be the year that the travel distribution arena was rocked by new entrants into the GDS market. But, as the year comes to a close, the current picture of corporate travel distribution looks much like it did a year ago. The developments leave travel managers, airlines, traditional GDS providers and new entrants into the market in a very similar situation to the one they were in a year ago – jockeying for position, staying on top of the latest shifts, developing relationships, and taking steps to ensure that they are positioned to best serve their companies’ interests as the distribution market continues to evolve.
| Story #7 | Complete Report -- Top 10 Travel Stories of 2005 |
#8 – Preparing for the Day after Tomorrow; The Avian Influenza
In early October, global health officials created a sense of urgency regarding the possible spread of the avian flu. The travel industry, with memories looming from the extreme impact of a mere handful of SARS cases in 2003, began preparing for the possible flu outbreak by educating themselves on the virus and developing contingency plans to protect international travelers. NBTA supported the travel industry’s efforts by providing its members with a Web seminar and FAQ document to help travel managers and suppliers better understand the virus and plan accordingly to protect their companies’ interests and international travelers.
| Story #8 | Complete Report -- Top 10 Travel Stories of 2005 |
#9 – More Complication in the Air Market; Airfare Simplification
In early 2005, Delta Air Lines announced it would expand its SimpliFares nationwide, reducing the number of fare classes and the number of different fares, eliminating some of the restrictions associated with many fare types, setting domestic fare ceilings at $499 one-way for coach travel and $599 one-way for first class tickets, and adjusting change rules to be more flexible. Within weeks, the other legacy carriers had announced similar changes to their fare structures, though the reforms were far from uniform. Travel managers sprang into action to determine the impact of the changes on their companies, with help from an NBTA report that provided nationwide fare data. With varying impacts at each company, and changes in fares and the associated restrictions continuing throughout the year, “simplification” introduced some beneficial changes but ultimately complicated matters as much as any previous airfare change.
| Story #9 | Complete Report -- Top 10 Travel Stories of 2005 |
#10 – Business Travel is Not a Sin; The Proposed Air Security Fee Increase
In early 2005, a proposed increase to the taxes and fees levied on airline tickets was introduced by the administration to shift more of the cost of funding air travel security to passengers. NBTA responded to the proposal by focusing efforts on educating members of Congress that air security is national security and therefore the burden of funding such programs should not rest with airline passengers. NBTA also lobbied that air travel was already taxed as much as the sin taxes on alcohol and cigarettes, costing U.S. businesses hundreds of millions of dollars each year. Members of the association took up the rallying cry, “Business travel is not a sin,” at the association’s 3rd Annual Legislative Summit. After the Summit, Congress passed an amendment preventing an increase to the air security fee in order to fund national security programs.
| Story #10 | Complete Report -- Top 10 Travel Stories of 2005 |