June 2012 Newsletter

Marriott Agrees To Buy Convention Hotel Co. Gaylord’s Management Rights By Chris DavisMarriott International today announced an agreement to purchase from Gaylord Entertainment Co. for $210 million in cash the Gaylord Hotels name and the right to manage for 35 years its four large meetings-centric properties. Publicly traded Gaylord’s shareholders must approve the deal.

Assuming they do, which the companies expect to happen in August, Marriott would add to its portfolio the 7,800 total rooms in Gaylord’s Nashville’s Opryland; Gaylord Palms in Kissimmee, Fla.; Gaylord Texan in Lake Grapevine, Texas; and Gaylord National in National Harbor, Md.

Gaylord would continue to own the properties and would pay Marriott a 2 percent base management fee with incentives for increases in hotel profitability, Gaylord said.

Adding the four properties would give Marriott a bigger footprint in the large-meetings and conventions market.

“Like Gaylord, Marriott is a significant player in the meetings business,” said Marriott president and CEO Arne Sorenson. “But Gaylord adds something quite distinct: A brand targeted at very large meetings with all-in-one service offerings that make it very simple to be a meeting planner. We like the group business, and we have a great deal of experience in it. Groups tend to be profitable for hotels year in and year out. And groups tend to hold up well in this period of economic weakness.”

Marriott plans to operate Gaylord as a separate brand, fully integrated into Marriott’s website and rewards program.

While Marriott eventually would like to grow the brand, Sorenson said it will not happen in the short term. “We’re optimistic that there will be additional Gaylords, but by definition of what they are, it makes it a longer-term process than other brands,” he said. “These are big boxes with significant function space and take years to get off the ground.”

Gaylord chairman and CEO Colin Reed said, ” We believe that the hospitality industry is in the still in the early stages of a recovery, a recovery that will be amplified by the fact that very little new competitive supply is coming into our markets.”

By selling the management rights—a move Gaylord estimated will save the company between $33 million and $40 million annually—Gaylord would transform itself into a real estate investment trust.

Reed said he would bring to Marriott’s attention any acquisition possibilities for the Gaylord brand.

- Marriott Agrees To Buy Convention Hotel Management Rights...- Delta Amends Policy for Infant Travel...- BTN Blueprint: First Steps...- United Checked Baggage Service Charges...- Delta to Sell Economy Comfort through Travelport Systems...- Expanded Economy Comfort Seating on Delta...- TSA Announces Deployment of New Security Screening Program...

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INfocusfocusJune 2012 Newsletter

Effective for tickets issued on or after May 27, 2012, Delta’s policy for infant travel has been amended as follows: Infants who reach their 2nd birthday during their journey (mid-trip) will be required to occupy a seat and purchase a roundtrip ticket at the applicable fare for the entire journey for all domestic and international travel on or after May 27, 2012.

For more information on infant travel, please visit the Delta website: http://www.delta.com/planning_reservations/special_travel_needs/index.jsp.

Delta Amends Policy for Infant Travel

INfocusfocusJune 2012 Newsletter

BTN Blueprint: How To Take the First Steps When Rolling Out a New Program By Amy Hummel, senior consultant, Gibson Consulting LLC

The phone rings. The phone rings again. The inbox bing, bing, bings, demanding immediate attention. Someone has found a cheaper fare on a non-preferred airline. The executive status match did not go through on time. The administrative assistant has never paid a fee for booking online before. An involuntary sigh escapes as the new travel manager replays her director’s words: “What’s so difficult about implementing a travel program? Our employees book travel now. So they’ll use a new website. No big deal.”

Sound familiar?

Senior management understands the value of implementing a travel program—after all, they allotted the time and resources required to get the program this far. Unfortunately, all too often the final strategic preparation and training needed for a successful rollout is overlooked in favor of speed. Fortunately, this dangerous pitfall can be avoided by gaining executive endorsement of a few key actions.

Know Your Travel Strategy, Ensure Others Do TooConsider the number of decisions an employee traveling on business makes on behalf of his or her company during a single reservation. Employees select their flight times, airlines, number of connections, ticket types and more. Then, they pick a hotel, room type and location, whether it be near the airport to avoid getting a rental car or near the site for easy access for morning meetings. Finally, they select a rental car—the size, insurance (if any), GPS, prepaid gas, etc. There are at least a dozen decision points for any simple roundtrip.

Now, multiply that by the number of travelers and the number of trips taken within the entire organization, and you have a large variable on your hands. Addressing every potential traveler decision would be impossible, but there is a way to limit ambiguity and increase traveler confidence. Creating and communicating a concrete travel strategy are the first key actions for implementation success. A comprehensive and well-understood strategy will minimize traveler frustration and maximize program adoption.

An effective travel strategy should answer the question: “What is the most important direction we can provide to our traveling employees?” After identifying the key aspects of the strategy, avoid the urge to blast a list of top 10 travel rules across the organization. Stories offer the strongest support for strategies. Letting travelers know that the CEO always flies coach and never books cars larger than midsize will be more effective than explaining that Rule #6 is choosing “low-cost alternatives.” Bring the strategy to life with real and concrete examples.

INfocusfocusJune 2012 NewsletterJune 2012 Newsletter

Continued BTN Blueprint: How To Take the First Steps When Rolling Out a New Program

Additionally, executive endorsement of a unified travel strategy will give travelers, the executive team and your travel management partner confidence that travel decisions are supporting your company’s culture and goals.

In addition to training travelers, additional guidance should be provided for any individuals who book travel for others, review travel reports or handle group bookings. With multiple traveler touchpoints, these representatives often are natural program champions. Their understanding and endorsement of the program are keys to its success.

Establish executive expectations that there will be static with any program introduction, but reinforce that training and education will greatly limit any pushback. The importance of support for this second key action cannot be undervalued.

Sell The BenefitsTime is precious, and executive support of an extended timeline can be difficult to maneuver. It is your responsibility to prove that the payoff of a few weeks of implementation preparation is worth the investment.

Illustrate the dangers of trading strategy development and traveler training for a speedy rollout. Demonstrate that increased traveler understanding of program goals will ease static, increase adoption and maximize return on investment. Greater program usage will translate into savings through use of existing program discounts and supporting improvement for future contracts. Doing the work correctly up front translates into time and savings multiples on the back end.

United has revised some checked baggage policies for travel worldwide. Effective for ticketing and travel June 1, 2012, United is making the following changes to second bag fees: There will be a new second bag fee to 8 African countries: Algeria, Botswana, Libya, Madagascar, Mozambique, Namibia, Tunisia & Zimbabwe (existing Countries: Egypt, Morocco, Malawi & Zambia. These fees now align with existing Lufthansa policy. For travel North/South/Central America to/from Europe, the Middle East and select countries in Africa, the bag fee will increase from $70.00USD to $100.00USD. Note exception: For travel between Canada and the U.K. the second checked bag fee will remain at $70.00USD. These changes are aimed at keeping the Trans-Atlantic bag-fee structure aligned and to match pricing of a competitor who in January increased their second checked bag fee. Details on United baggage policies worldwide may be found online at www.united.com/baggage.

United Checked Baggage Service Charges

INfocusfocusJune 2012 NewsletterJune 2012 Newsletter

Delta Air Lines (NYSE: DAL) and Travelport have reached agreement to sell Economy Comfort, Delta’s premium Economy product offering more leg room, through Travelport’s global distribution system.

“Customers today can purchase Economy Comfort directly with Delta at delta.com, through a reservations agent or at the airport via a kiosk or ticket agent,” said Wayne Aaron, vice president -- Marketing Programs and Distribution Strategy at Delta. “Partnering with Travelport broadens the availability of this popular product to Travelport-affiliated travel agents. We are always willing to work with partners like Travelport who bring value to the distribution chain and can deliver our product on a cost-effective basis.”

“We’re delighted to provide Travelport-connected travel agents globally with the ability to offer their customers Delta Air Lines’Economy Comfort seating later this year,” said Derek Sharp, Travelport’s president for the Americas.

Economy Comfort features three to four inches of additional leg room across Delta’s fleet of two-class aircraft as well as giving passengers Priority Boarding. On long-haul international flights, the seats also have up to 50 percent more recline than standard economy class seats and customers receive complimentary beer, wine and cocktails. Economy Comfort is available on all Delta mainline aircraft and more than 250 two- class regional jets.

Delta to Sell Economy Comfort through Travelport SystemsPremium seats with more leg room to be available through Travelport GDSs, Delta’s largest ancillary service partnership to date

INfocusfocus

Delta Expands Economy Comfort Seating to More Markets Premium seats with more leg room now available for purchase for all dual-class flights departing June 7

June 2012 Newsletter

Delta Air Lines (NYSE: DAL) will build on the success of its Economy Comfort seating on long-haul international flights by selling the premium Economy Class product on all flights that feature dual-class cabins. This expansion is now available for purchase on all mainline domestic and international flights departing on or after June 7.

“Our expansion of Economy Comfort gives customers more premium seats to choose from no matter where they fly on Delta,” said Glen Hauenstein, Delta’s executive vice president – Network Planning, Revenue Management and Marketing.

Customers seated in Economy Comfort enjoy three to four inches of additional leg room as well as Priority Boarding. The product is available in the first three-to-five rows of the Economy cabin on more than 550 of Delta’s mainline aircraft.

Customers who have purchased an Economy ticket on Delta can upgrade to Economy Comfort for an additional introductory fee of $19-$99 each way on flights within the domestic U.S and on short-haul international markets. Economy Comfort seats are available for purchase for flight through delta.com, Delta check-in kiosks, and Delta reservations for flights that depart June 7 or after.

Similar to Delta’s long-haul international Economy Comfort product, complimentary access to domestic and short-haul international seats will be available to all SkyMiles Diamond and Platinum Medallions and customers purchasing full-fare Economy class tickets. Gold Medallion members will also have free access to these seats after they place their reservation, while Silver Medallions can purchase them at a 50 percent discount after purchasing a ticket or can access these seats for free at check-in.

In addition to Economy Comfort, Delta is adding more First Class seats and in-flight entertainment to its domestic product; offering full flat-bed BusinessElite seats on its entire international widebody fleet; adding personal, in-seat entertainment for both BusinessElite and Economy class customers on all long-haul international flights; is nearing completion of its plan to install in-flight Wi-Fi service to all domestic two-class aircraft -- including regional jets – that have a First and Economy class cabin; updating Delta Sky Clubs throughout the system; and building new terminal facilities for international customers at its two largest global gateways – the new international terminal in Atlanta now open and the expanded international terminal opening next May at New York-JFK.

June 2012 Newsletter

INfocusfocusJune 2012 NewsletterJune 2012 Newsletter

TSA Announces Deployment of New Security Screening ProgramThe Transportation Security Administration (TSA) has announced a new security screening program aimed at expediting the airport screening process for travelers. Your company may be eligible for participation in the pilot phase of this program. Please continue reading for further details. The TSA is deploying an expedited security screening program for passengers traveling in the U.S. Participants may enjoy benefits such as no longer removing the following items at the security checkpoint: shoes, 3-1-1 compliant bag from carry-on (all liquid restrictions still apply), light outerwear/jacket and belt. Customers may be required to go through a more detailed security screening at the discretion of the TSA agent. The following carriers are currently participating in the program:

• Alaska Airlines• American Airlines• Delta Airlines• United Airlines• US Airways If you are enrolled in a rewards program through any of the above carriers, you may be eligible to participate in the initial phase of this program.

Where and when will TSA PreCheck be available? TSA PreCheck is only available for travel itineraries wholly within the United States. TSA’s deployment plan includes at least 11 airports by the end of 2012. Full details of the program are available on the TSA website at: http://www.tsa.gov/what_we_do/escreening.shtm.

How do customers participate?Participation via United Airlines, for example, is as follows:

MileagePlus® members are invited to participate in the initial phase of the program. Customers may log into their MileagePlus profile to update their traveler information and preferences. This is a one-time sign up for UA departures via www.united.com. Former Continental OnePass® customers who already signed up for TSA PreCheck will not need to sign up again with MileagePlus as their information was transitioned to the MileagePlus program. Additionally, U.S. citizens currently enrolled in the Global Entry, NEXUS or SENTRI Trusted Traveler programs can also participate by providing their Known Traveler or PASS ID number. For more information on how to sign up for the program, customers can visit TSA Pre-screening Sign-Up and enter their MileagePlus number to sign in.

Participation and registration may vary by approved airline. Please visit an approved airline website for specifications. For additional information, please visit the TSA website at: http://www.tsa.gov/what_we_do/escreening.shtm. Important factsPlease note that the TSA will determine eligibility for inclusion in the pilot program on a per-flight-segment basis, and signing up, or even being selected for one flight, does not guarantee that the traveler will receive expedited screening during future travel. If the TSA determines a passenger is eligible for expedited screening, information is embedded in the barcode of the passenger’s boarding pass. TSA agents will read the barcode at a designated lane for expedited screening. The program is available at checkpoint lanes that TSA has designated and may or may not include a dedicated queuing lane. Full details of the TSA PreCheck program are available on the TSA website: http://www.tsa.gov/what_we_do/escreening.shtm.

INfocusfocusJune 2012 NewsletterJune 2012 Newsletter

Continued TSA Announces Deployment of New Security Screening Program 

Frequently Asked Questions

Q. Can customers sign up for the program at the airport?A. No, they will need to opt-in via an approved airline. (Note: Members of a Known Traveler program will be able to provide their Known Traveler/PASS ID number to an agent at the airport however, opting in can only be done via an approved airline website.) 

Q. How will customers learn if they qualify for TSA PreCheck lane entry?A. At this time there is no way to identify eligibility as the eligibility information is embedded in the barcode of the passenger’s boarding pass and detected by the TSA Security Checkpoint scanner. Customers should be directed to a TSA agent to scan the barcode to determine eligibility. Q. Where is the dedicated TSA PreCheck security lane located?A. It will vary by airport and TSA will have signage. Q. Is enrollment in TSA PreCheck reciprocal among domestic carriers?A. No, Current traveler participation is driven by TSA and requires personal data

Q. If customers are already signed up for TSA PreCheck with one carrier, are they able to use the expedited check points for other carriers in the U.S.?A. This is dependent on the airline that generates the boarding pass. If the boarding pass was generated by UA, the customer should be able to approach any TSA PreCheck checkpoint and see if he/she qualifies for that segment.