SYMBOL COMPANY NAME
TOURISM AUTHORITY ALLOTS $3 MILLION TO WHOLESALERS
Hawaii moves quickly to tout discounts
Air Tran Holdings
Alaska Air Group
American Express Co.
Avis Budget Group
Choice Hotels International
Delta Air Lines
The Walt Disney Co.
Gaylord Entertainment Co.
Hertz Global Holdings
JetBlue Airways Corp.
Las Vegas Sands Corp.
Northwest Airlines Corp.
Red Lion Hotels
Republic Airways Holdings
Starwood Hotels & Resorts
US Airways Group
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By Michelle Baran
the operators participating in the current promotion, said
that “there’s a cost associated in putting together programs,
both in creating the discounts and in promoting them.”
Wholesalers and operators worked together with the airlines, hotel and sightseeing suppliers to create the discounted packages.
“There’s a perception that fares to Hawaii are too expensive,” said Jack Richards, president and CEO of Pleasant
Holidays, which is participating in the HVCB campaign.
“This is aimed to counter that. This was a special campaign
that [HVCB] came up with, due to the fact that oil prices
were where they are, the loss of ATA and Aloha as well as
the general softness of the economy.”
Earlier this year, ATA and Aloha
Airlines both shut down, reducing
airlift to Hawaii by 15%.
This isn’t the first time the HVCB
has gotten funding to bail Hawaii
tourism out of a bind. In November
2001, the HVCB received $2 million
in emergency marketing funding
from the HTA to help stimulate travel
‘We wanted to show the
airlines that demand was
strong.’ — Jay Talwar, Hawaii
Visitors and Convention Bureau
When fuel costs surged to more than $120 a barrel in April,
Hawaii’s tourism industry moved quickly, allocating $3 million in funding to help wholesalers market discounts on air-inclusive packages to Hawaii for the summer.
“We wanted to show the airlines that demand for Hawaii was strong,” said Jay Talwar, senior vice president of
marketing for the Hawaii Visitors and Convention Bureau.
“We want to make sure that they’re receiving appropriate
yields for the routes to Hawaii, so we maintain that lift to
The Hawaii Tourism Authority, a state agency, authorized
the $3 million in funding intended to
help wholesalers promote and market air-inclusive packages to Hawaii.
The HVCB, the HTA’s marketing
arm, allotted different amounts to
each of the participating wholesalers
depending on proposals submitted
The HVCB would not divulge
how much the allotments were, but operators hinted that
the amounts were significant.
The funding from the HTA was intended for the promotion and marketing of the discounts, which are being jointly
- 47. 1 advertised on the HVCB’s destination marketing website,
-62.2 GoHawaii.com, as well as in newspaper travel sections and
on other websites. Individual operators are also promoting
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their own discounts independently, in print and via online
- 38. 1 Whether some of the funding was actually used to subsi-
-71.4 dize the deals themselves, however, remained unclear.
N/A “A lot of this happens behind the curtain,” said Talwar.
101.4 “Generally, and it’s not exclusively, but generally it’s all going toward marketing.”
- 39. 1 Tim MacDonald, president of Classic Vacations, one of
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- 24. 2 By Johanna Jainchill
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But, said MacDonald, “This is the first time they’ve done
something like this. We in the travel industry have never
marketed summer in Hawaii because the demand has always been there. This is somewhat of a new investment.”
The participating wholesalers are American Express Vacations, Liberty Travel, Expedia, Orbitz, NWA World Vacations, Travelocity, United Vacations, American Airlines Vacations, Classic Vacations and Pleasant Holidays.
The promotions range from Expedia offering up to $200
in savings on air and five nights in Hawaii, to Classic Vacations touting savings of up to $1,000 per person, including free nights and a free car. The length of the promotions
differs from wholesaler to wholesaler, with travel-by dates
ranging from mid-July all the way to Dec. 26.
Carnival beats $158M in fuel to show Q2 profit
$1,190.57 $1,927.70 - 38. 2
CUMULATIVE (NOT INCLUDING AIRLINES) $820.74 $1,189.75
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Carnival Corp. overcame a 67% increase in fuel costs
to post a $390 million net profit in the second quarter, exactly what the company earned in the same
quarter of 2007.
Higher-than-expected ticket revenues from its
North American brands, bolstered by strong close-in bookings and lower-than-expected cruise costs,
excluding fuel, helped the company beat the second-quarter guidance it had provided in March.
“Our North American and European brands con-
- 31.0 tinue to perform well in the current difficult eco- Holland America Line’s Zuiderdam anchors in the Bahamas. Parent company Carnival
nomic environment,” Carnival CEO Micky Arison Corp. said that Caribbean pricing continues to show strength.
said. “We enjoyed strong revenue growth supported
by solid cost controls; however, higher fuel prices cost the
company $158 million during the quarter.”
COO Howard Frank said on an earnings call with analysts that North American bookings were
not as strong as last year, but that could be
attributable to the soft economy or to the EARNINGS
Carnival brands’ higher price points. “The
absolute volume is sufficient to maintain
higher prices,” Frank said.
The strong ticket pricing was somewhat offset by lower-than-expected onboard spending.
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2Q ’08 2Q ’07
“It’s clear that our guests to some degree are tightening
their belt,” Arison said during the call. “But fortunately they
continue to cruise and book at very acceptable levels.”
Fuel was once again the spoiler. COO
Howard Frank said that Carnival was estimating fuel costs would increase by $752
million this year over 2007. However, Frank
said he didn’t expect it to get much worse.
“We don’t believe that fuel prices will continue to rise at
this level in the future,” he said. “It’s simply not sustainable.”
Frank also said that Caribbean pricing was continuing
to show strength, while pricing in Europe and Alaska were
lower. However, he said pricing in Europe had actually held
up well considering the company’s 18% capacity increase
there and increased competition.
“Our European businesses are performing extremely
well,” he said. “With Alaska, it may be the result of the $50
head tax, but it’s difficult to know precisely.”