Brown Bag Session Objectives

1
Brown Bag Session Objectives

• Increase awareness of travel industry trends
• Overview of the University of Miami Travel
  Department
• Increase awareness of Travel Program Benefits

2
Travel DepartmentMission Statement
To continually enhance the University of Miami
business travel program through promotion and
education of available discount services to the
end user in the fields of air travel, car rental
and hotel rates
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The Travel Industry Future
Present Past,
4
Travel Past

• Factors which impacted the Travel Industry
• Commission Change
• First Self-Booking Systems
• Economic Downturn

5
Commission Cut and Cap History
Travel Past
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Travel Past

• First self-booking engines
• Launched in the late 90sTravelocity -
  97Expedia - 99Orbitz 01

• Online engines bypass traditional
  traveler/travel agent relationship making
  arrangements online for a fee at a fraction of
  the cost of the traditional agency fees

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Travel Past

• Introduction of Web Only Fares
• Airlines began utilizing the Internet to post
  discounted air fares to travelers on the web
• Fares were initially available on the airline
  websites and eventually on Internet booking
  engines
• These fares are not available through traditional
  travel agencies

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Travel Past

• Economic Downturn
• The air travel industry lost in excess of 18
  billion dollars over the past 2 years due to the
  September 11, 2001 tragedy (Source
  www.cnnmoney.com)

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Dollars Lost By US Air Carriers

• American 3.5 Billion Dollars
• United 3.3 Billion Dollars
• Delta 1.5 Billion Dollars
• US Air 1.4 Billion Dollars
• Northwest 1.1 Billion Dollars

September 11, 2001 January 31, 2003
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Travel Past

• UM travel was reduced 16 following September 11,
  2001(September 01 May 02)

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Travel Present

• Acceleration in Online Travel Bookings
• Airlines Implement Price Increases
• Airport Security
• Obstacles for Airlines

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Travel Present

• Despite the September 11, 2001 tragedy University
  travel for FY 03 has rebounded to levels above
  prior fiscal years

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Industry vs. University Trends

• The industry has seen a 6 increase in
  online dollars spent from 2000 2002
• UM has seen an 8 increase in online dollars
  spent during the same period

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Acceleration in Online Travel Bookings
INDUSTRY TRENDS
OnlinePenetration
4
7
11
13
15
17
19
Source Orbitz.com
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UNIVERSITY TRENDS
4
6
11
14
16
Dollars in Thousands
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Travel Present

• Airlines Implement Price Increases
• Fees for paper tickets when an electronic ticket
  is available.
• 20 - 25 per ticket
• Non-refundable fares radically changed
• Truly non-refundable

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Airport Security Post 9/11

• On November 19, 2001, the President signed into
  law the Aviation andTransportation Security Act
  (ATSA), which established the new Transportation
  Security Administration (TSA) within the
  Department of Transportation. This Act
  established a series of challenging but
  critically important milestones toward achieving
  a secure air travel system.

Source http//www.tsa.dot.gov
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Functions of theTransportation Security
Administration

• Responsible for civil aviation security
• Federal baggage screening of checked luggage
• Set guidelines for "prohibited items" that cannot
  be carried on-board planes

Source http//www.tsa.dot.gov
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Items Prohibited in Aircraft Cabins
Source http//www.tsa.dot.gov
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Obstacles for Airlines

• Operating losses
• The U.S. Government provided in excess of 2
  billion dollars to assist the airlines in 2002

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Obstacles for Airlines

• Airline Bankruptcy
• United Airlines filed Chapter 11 on December
  9, 2002
• National Airlines closed its doors in
  November, 2002

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Obstacles for Major Airlines

• Low Fare Airlines
• Southwest Airlines
• Jet Blue
• Spirit Airlines
• Air Tran
• Low fare airlines offer competition on routes
  where major airlines charged higher fares

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Projections for the Travel Industry

• Business travel will decline further in 2003
• Airline cuts will be permanent
• Airport hassles are barriers
• Internet Booking Options
• Increased use of Low cost carriers

Source Business Travel Coalition / Kevin
Mitchell at the October 2002 SCTM Conference
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Travelers Have Choices
Automobile Train Bus Limousine Low-fare
airlines Charter jets Corporate
shuttles Corporate jets Web casting Web
conferencing Video conferencing Tele
conferencing Email Digital visual conferencing
Alternatives to air travel for business
interactions
Source Business Travel Coalition / Kevin
Mitchell at the October 2002 SCTM Conference
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2003 Airline Industry Rebound WHAT WILL IT TAKE?

• Consolidation of flights
• Substantial cost reductions
• Business fare reductions - 25 to 30

Source Business Travel Coalition / Kevin
Mitchell at the October 2002 SCTM Conference
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Travel Department Overview

• The Travel Department serves as a liaison
• between UM departments, disbursements,
• designated travel agencies, and the travel
• industry. Saving travel dollars is important, but
• improving service and providing new travel
• benefits are equally important objectives of the
• department.

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Available University of Miami Travel Service
Entities

• Authorized Travel Agencies
• Hotels
• Car Rental Companies
• Airline Carriers

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Authorized Travel Agencies

• Four Seasons Travel(305) 577-9800
• Lorraine Travel Bureau(305) 445-7624
• Miami World Travel(305) 266-8080
• STA Travel(305) 284-8043
• The Travel Source(305) 663-3515

All 5 agencies accept the Direct Charge card
(Ghost Card) as a form of payment.
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Hotel Discounts

• The Travel Management Department negotiates
  discount rates with various hotels both locally
  and domestically.www.miami.edu/travel

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Local Hotel Rates
Coconut Grove
Coral Gables
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Car Rental

• Discount Rates are available from
• Avis
• Alamo
• Dollar
• Enterprise
• Hertz
• Rates are available online at
• www.miami.edu/travel

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UM Florida Car Rental Rates
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Airline Carrier Discounts

• The Travel Department has successfully
• negotiated discounted rates with airline carriers
• American Airlines12 Discount
• Continental Airlines7 Discount
• Negotiations are underway for additional
  discount possibilities for
• the University

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The University of Miami Travel Website
Current University information and links to
important travel sources such as

• Travel Fair
• Travel Talk More
• Silent Auction
• Mapquest.com
• Weather.com
• Car Rental Rates
• Hotel Rates
• And more

• Center for Disease Control
• US State Department Warnings
• US Department of Transportation
• Times Around the World
• Currency Converter
• Passport Information

http//www.miami.edu/travel
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Frequently Asked Questions
The Travel Website also contains a section which
addresses Frequently Asked Questions Q What is
the Universitys standard mileage allowance for
travel by private automobile? A The standard
mileage allowance is 36 cents per mile.   Q What
is the University of Miamis Per Diem rate for
meals? A Two Per Diem rates have been
established Domestic Travel 40 for a full
day. If the departure time is after 300 PM or
the return time prior to 300 PM the traveler is
entitled to 20. International Travel 50 for a
full day. If the departure time is after 300 PM
or the return time prior to 300 PM the traveler
is entitled to 25. The per diem rate includes
gratuities.  The meal allowance is paid only when
the traveler is away from the local area
(Miami-Dade and Broward counties) overnight
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Travel Headlines
The Travel Website also contains a Travel
Headlines page providing the University
community a quick reference on travel industry
news which directly affects the University of
Miami    DEPARTMENT OF TRANSPORTATION UPDATE ON
PERMISSIBLE ITEMS IN AIRPLANE CABINS The United
States Department of Transportation has updated
their list of permissible items allowed in
airplane cabins. An extensive list of items which
are not allowed in airplane cabins can be viewed
at the Department of Transportation website. The
five page document details the changes which
became effective on February 14, 2003.
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Travel Payment Options

• Ghost Card
• Personal Credit Card
• Check

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What is the Ghost Card?

• The Universitys direct bill option for Air
  travel which bills the department account directly

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How to utilize the Ghost Card
Step 1 Request a copy of the itinerary for
the airline ticket from the UM Authorized
Travel Agency Step 2 Attach an Itinerary to an
executed Travel Advance Request Form  Step 3
Fax the Travel Advance Request Form to the UM
Authorized Travel Agency By utilizing the
Ghost Card, the charge is directly applied to
the department and not the individual
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Future of UM Travel Management

• Establish University travel booking website
• Continued use of Travel Agencies

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University of MiamiTravel Booking Website

• Website Features
• Unique Username and Password access
• Airline, Car Rental and Hotel accommodation
  capabilities
• Facilitate utilization of the Direct Charge Card
• Discount fares negotiated by the Travel
  Department
• Availability of Special Web fares

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Universities with Travel Booking Websites

• Cornell University
• Indiana University
• Penn State University
• Stanford University
• University of Southern California

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Travel Booking Website
Internet Booking Websites capture and post
negotiated discount rates for Air, Car and Hotel
accommodations
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Is there still need for a Travel Agency?

• Expert assistance on complex segments
• Group bookings

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What Next ?

• Travel alternatives
• Increased security charges
• Continued airline losses
• Probable reduction in airline capacity

Source Bob Langsfeld Bob Lichtman SCTM
Conference October 2002
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What Next ?

• Less Travel Agent Dependency
• Shift in travel agency services
• More corporate oriented
• More technology
• Less agents
• More online bookings

Source Bob Langsfeld Bob Lichtman SCTM
Conference October 2002
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Questions???
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Travel Management Department

• Where is the Travel Department located?1507
  Levante AvenueMax Orovitz Building Room 338
• How can the Travel Department be reached?(305)
  284-1087 phone[phone] fax
• http//www.miami.edu/traveltravel_at_miami.edu