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REWARDED FOR FLYING COACH
(source: The New York Times, featuring Michael Steiner, Executive Vice President, The Lawyers' Travel Service)
Long before the economy foundered, Energizer Battery Company was looking for ways to cut its travel costs. After all, two-thirds of the company's 5,000 to 6,000 employees travel for work, many of them overseas.
Its solution was an incentive program: it pays employees to fly coach, instead of business class, when traveling overseas.
"What we do for all locations except for Asia is we share the difference in the ticket price for up to $2,000," said Doris Lee Middleton, the human resources and travel services manager at Energizer. "For Asia, it's $3,000."
Now, with the weak economy forcing them to make tough budget decisions, other travel managers are trying variations of the incentive program.
"Companies are always looking for creative ways to get more value out of their travel programs," said Michael Steiner, executive vice president of [The Lawyers' Travel Service], one of the nation's largest travel management companies.
Mr. Steiner said such programs were not foolproof. They can expose employers to higher taxes, and can sometimes create divisions between traveling employees and those who journey only from the photocopier to their desks. Nevertheless, in cases like Energizer's, Ms. Middleton said, the benefits to a company's bottom line "are substantial." The company would not reveal the size of its travel budget nor how much it saves by using the travel incentives.
There are other variations on incentives, too, that feel less rewarding to employees but nevertheless reduce companies' travel costs. One is allowing employees to fly business class if they book a flight on a less expensive route, but requiring them to fly coach on a more expensive itinerary.
A few companies do another variation on travel incentives — reimbursing employees who use their own points to take a trip. "As an employee, it allows you to monetize your frequent-flier miles," Mr. Steiner of [The Lawyers' Travel Service] said.
While many of the incentive programs can result in substantial financial rewards for the companies that use them, these incentives can incur costs of their own, both for employees and employers. "If the employee receives cash or the equivalent of cash, that's taxable income," said Anthony Burke, a spokesman for the Internal Revenue Service. Likewise, employers are required to pay payroll taxes of 7.65 percent on the additional money they give out in cash rewards. Tax ramifications for noncash prizes "depend on the facts and circumstances of each case," Mr. Burke said.
Incentive programs can create some administrative hassles. The company has to review every itinerary and decide whether it's applicable, Ms. Middleton said. "Then an auditor looks at it, and then it finally goes to the payroll department." In fact, Ms. Middleton said she believed that "more companies aren't taking advantage of this because they don't have the process in place to easily administer it."
Energizer has received no complaints about its program from its non-traveling employees, she said.
Similarly, incentive programs can sometimes defeat themselves by inadvertently encouraging unnecessary travel.
Asked whether some employees might exploit the company's largess, Ms. Middleton responded, "Energizer trusts its colleagues to do the right thing." She added, though, "That said, we do have audit controls in place to make sure there's no abuse of the system."
She said she frequently encouraged other travel managers to try incentives. It is a method of cutting travel costs that builds loyalty rather than dissension among staff, Ms. Middleton said. "Energizer has found that this is a very successful program."
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AMERICAN AIRLINES: PAY A FEE TO BOARD EARLY, STAND BY AND PAY LOWER CHANGE FEES
(source: Los Angeles Times)
The airline industry's relentless drive to monetize services, many of which used to be free of charge, opened another front Tuesday when American Airlines began offering an optional "Boarding and Flexibility Package" that charges $9 and up each way for earlier boarding, the right to stand by for an earlier flight and a discount on change fees.
Here's what you get with the new package:
> A place in Group 1 of general boarding, which American says "allows you to be one of the first groups to board the plane … immediately following Priority AAccess customers."
The main gain seems to be earlier access to carry-on baggage bins. The cost of the new package varies by flight. In one example from the news release, an "introductory price" was $19 each way between New York and Los Angeles. (American said that later this summer, it will offer priority boarding as a stand-alone option for customers, who'll pay a flat $10 "introductory price" each way upon arrival at the airport.)
>The option to stand by for an earlier flight on your day of departure. In February, American eliminated this option for all except its premium customers, such as a high-mileage fliers, those in first and business class and coach fliers who buy unrestricted fares.
>A $75 discount on flight-change fees. Granted, it's been many years since the big carriers (with the notable exception of Southwest, which generally doesn't charge such penalties) allowed you to change or cancel your flight for free. American, like many other airlines, typically charges $150 for this service.
American's boarding package is part of its new "Your Choice" program, which it says aims to "make your travel experience even more convenient, cost-effective, flexible and personalized."
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U.S. AIRLINES REPORT REVENUE INCREASE IN MAY
(source: USA Today)
U.S. airlines continued their recovery in May as they saw greater demand and charged higher prices.
Their revenue per passenger mile - a common industry performance measure - for domestic flights rose 14.1% in May, its sharpest increase this year, according to Marketwatch.com, quoting a report from the Air Transport Association.
Trans-Atlantic routes reported a 28.3% increase, stemming from last year's historical lows, it says.
Trans-Pacific routes gained 25.2%, while Latin America rose 10.9%.
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U.S., EUROPE INK PACT TO STANDARDIZE AIR TRAFFIC SYSTEMS
(Source: Business Travel News)
Journey times and fuel consumption between the United States and Europe could be reduced after the U.S. Federal Aviation Administration and European Commission signed a memorandum of cooperation last Friday to harmonize air traffic services across the two.
The agreement commits the two to standardizing their air traffic modernization programs, which have until now been developed separately. FAA's NextGen and Commission's SESAR projects both seek to introduce satellite-based navigation that would enable commercial aircraft to fly more direct routes and shorten the separation between aircraft, thus improving air traffic control safety and reducing greenhouse gas emissions. Airlines had expressed fears that the U.S. and European Union might develop incompatible systems, requiring them to fit two sets of satellite navigation equipment.
The agreement details 22 specific areas of cooperation, which also include research into alternative fuels and better ways to coordinate on safety issues, such as responding to volcanic ash clouds. The Commission hopes to obtain approval from member states and the European Parliament to allow the agreement to take effect early in 2011.
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THE LAWYERS' TRAVEL SERVICE PREFERRED HOTEL PARTNERS PROGRAM
ARIZONA BILTMORE; THE WALDORF ASTORIA COLLECTION
2400 East Missouri Avenue
Phoenix
Built as one of Phoenix's first resorts in 1929, the Arizona Biltmore was constructed in grand form by brothers Albert, Charles and Warren McArthur. Frank Lloyd Wright served as the consulting architect, and the Arizona Biltmore remains one of the only existing hotels in the world to benefit from his influence.
Throughout its colorful history, this acclaimed landmark has been graced by U.S. presidents, celebrities and world travelers. Arizona's historic Grand Dame radiates an undeniable mystique of refinement and splendor.
This acclaimed Phoenix Arizona Property features:
740 guest accommodations
78 one-and two-bedroom villas
8 swimming pools
7 tennis courts
A full-service resort spa, salon and fitness center
5 dining options
To keep connected while away from home, High Speed Internet Access is available at the Arizona Biltmore. Choose from a variety of speeds best suited for business needs. Complimentary WiFi within the main lobby, Ocatilla lounge & patio and the Paradise pool.
The Lawyers' Travel Service Preferred Hotel Partners Program rate at the Arizona Biltmore; The Waldorf Astoria Collection is $109 through September 13, 2010 (compared to a corporate rate of $119).*
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THE LAWYERS' TRAVEL SERVICE PREFERRED HOTEL PARTNERS PROGRAM
GRAND HYATT WASHINGTON
1000 H Street Northwest
Washington, DC
Escape to extraordinary elegance at Grand Hyatt Washington. Centrally located in Penn Quarter – with convenient in-lobby Metro Center access – this downtown Washington, DC hotel is an ideal spot to explore the US capital. Stroll to concerts or sporting events at Verizon Center, historic monuments or the Smithsonian Museums. This captivating Washington, DC Hyatt hotel features stylish guestrooms with plush Grand Beds™, indulgent amenities, multiple dining venues and recreation at Grand Slam. Utilize their full-service business center and 32 outstanding meeting rooms – just steps from Washington Convention Center. Relax by the lagoon in the lovely 12-story atrium. Experience the highest standard of luxury in this Hyatt hotel in downtown Washington, DC.
Rooms & Amenities:
888 Elegant Guestrooms, with City and Lagoon Views
Oversized Work Desk, with Herman Miller Chair/self check-in kiosks
Luxurious Marble Bath, with deluxe spa amenities/video checkout
Hyatt iHome™ stereo with iPod dock/plush Grand Bed™
Guest Services:
Full-Service Business Center/PDA check-in/Fast Board™
Two Gift Shops, florist/laundry, dry cleaning/valet service
Wireless High-Speed Internet throughout Hotel (fee)/in-lobby metro access
Valet & self-parking/Concierge/Hyatt E-Concierge
Dining & Entertainment:
Grand Slam
Grand Cafe
Zephyr Deli
Cure Bar & Bistro
The Lawyers' Travel Service Preferred Hotel Partners Program rate at the Grand Hyatt Washington is $289 (compared to a corporate rate of $303).*
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THE LAWYERS' TRAVEL SERVICE PREFERRED HOTEL PARTNERS PROGRAM
THE RITZ-CARLTON, PHILADELPHIA
10 Avenue of the Arts
Philadelphia
This urban sanctuary wows by combining the historic lobby with the modern touches of today.
Walk in the footsteps of America's forefathers and become a part of history. Stay in one of America's most venerable cities and absorb the character of landmark buildings as time is spent exploring Independence Hall, the Liberty Bell and Philadelphia's other cultural treasures. Making its mark in a spectacular historic building, this hotel in Center City Philadelphia offers easy access to fine dining, shopping, and the city's business district.
The Ritz-Carlton is a downtown Philadelphia hotel that features:
300 guest rooms including their famous Penthouse
More than 26,000 square feet of event space
18 state-of-the-art meeting rooms
Ten Arts Bistro by Eric Ripert
10 Arts Lounge, set in the majestic domed marble lobby
Guest Room Features & Amenities:
Wireless internet
Flat screen televisions
24-hour room service
Bath menu and bath butler services
Twice daily housekeeping attention
Overnight laundry service
Evening turndown
Complimentary overnight shoe shine
Complimentary morning newspaper
Complimentary coffee
Hotel Amenities:
Spectacular landmark building in the heart of the downtown business district
6,100 square-foot Grand Ballroom
3,075 square-foot Petite Ballroom
On-site fitness center
Award-winning Richel D'Ambra Spa & Salon
On-site shoeshine stand
Babysitting service referrals
The Lawyers' Travel Service Preferred Hotel Partners Program rate at The Ritz-Carlton, Philadelphia is $199 (compared to a corporate rate of $359).*
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THE LAWYERS' TRAVEL SERVICE PREFERRED HOTEL PARTNERS PROGRAM
THE STANDARD NEW YORK
848 Washington Street
New York City
The Standard, New York sits in the Meatpacking District, which over the past ten years has transformed from a butcher's haven into one of New York City's hottest neighborhoods to eat, drink and dance. The property incorporates a century's worth of architectural history into one structure as it straddles the city's former elevated train line which has been recently converted to The High Line Park. Each of the hotel's 337 Scandinavian inspired guestrooms and suites have breathtaking views of the Hudson River and the stunning cityscape. Each room is equipped with massive showers, oversized bath tubs, custom organic amenities, IPod-ready stereos, and 24 hour room service. The hotel is equipped with extensive private meeting and event spaces as well as complimentary Wi-Fi throughout the building. The Standard Grill, the hotel's acclaimed restaurant run by Chef Dan Silverman, is an aesthetic homage to the traditional New York bar and grill serving seasonal New American cuisine. Additionally, the hotel is home to outdoor Biergarten serving traditional German food and beer as well as the 18th floor cocktail lounge with 360° views of the city.
The Lawyers' Travel Service Preferred Hotel Partners Program rate at The Standard New York is $260 (compared to a corporate rate of $311).*
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* All rates are subject to availability.
______________________________________________________________
The Lawyers' Travel Service
www.lawyerstravel.com
info@lawyerstravel.com
800.431.1112 |
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