IDeaS Revenue Solutions recently announced the second and final round of 2011 IDeaS Cornell Revenue Management Scholarship winners, according to a press release issued by the company.

Winners include Matthew Wilson, Director of Revenue Management, DoubleTree by Hilton Boston Downtown; Nicola McDougall, Revenue Coordinator, Apex Hotels, Edinburgh, Scotland; and Jeff Tang, Director of Revenue Management, Grand Hyatt Hong Kong. The recipients were selected by the Scholarship Panel at the Cornell University School of Hotel Administration for their exceptional skill sets and career aspirations within the field of revenue management.

“We are thrilled to award this scholarship to another round of hospitality professionals eager to advance their understanding of revenue management and advance the revenue management discipline within their teams,” said Vivek Bhogaraju, Senior Manager, Corporate Business Development, IDeaS. “Revenue management is a necessary function today, and Cornell’s curriculum offers an in-depth look at emerging ideas and current practices that benefit hospitality professionals in a variety of positions.”

The scholarship programme, funded by IDeaS, gives hospitality professionals access to five eCornell courses covering topics such as pricing strategy, overbooking practices and forecasting in relation to revenue management and allows both beginners and seasoned revenue management professionals from around the world the opportunity to evolve their knowledge of the industry.

“This scholarship provides a fantastic opportunity to learn from the best and brightest and further develop my skill set,” said Wilson. “Revenue management is a rather recent and constantly evolving role, and I look forward to discovering new management techniques to help me improve revenue initiatives within my organisation.”

“The continued teaching of revenue management is imperative to keep one step ahead of your competition and grow your business in tough economic times,” added McDougall. “I hope to take away an enriched knowledge of best working practices and utilise the information to educate my colleagues and create a more effective revenue department.”

“This programme has the potential to bring my hotel’s operating efficiency to the next level, and I trust that I will gain an understanding of new approaches and tools for optimising revenue across all levels of operations,” said Tang.

HSMAI partner d2o recently hired Bernard Ellis, whereby strengthening the force in pursuing the mission of making PMI as industrial standard in the hotel industry.

“Bernard is one of the preeminent figures in hotel technology sales and marketing in the world. He built his base in the hotel industry by holding a variety of operations and F&B positions while in school. His undergraduate degree, from the College of William and Mary, was in the heart of the hotel and tourism center of Colonial Williamsburg. He went on to get his master’s degree from Cornell’s renowned Hotel School”, d2o’s CEO Young N. Nguyen explains in an email today.

Having both industry experience and a top-notch education, Bernard began an 8-year tenure at Micros, first in product management for its fledgling 8500 PMS, then in sales for its new acquisition, Fidelio, where he was responsible for selling the total solution of PMS, POS, Sales & Catering, F&B Inventory and Cost Control, and Back Office.

Bernard’s next role was in sales and product management at SynXis (now a part of Sabre Hospitality Solutions), where he found himself in the middle of a highly volatile and changing CRS and electronic distribution environment, and acted as one of the earliest proponents of Software as a Service to the hospitality industry. At both Micros and SynXis, Bernard had a working relationship with IDeaS Revenue Optimization (a SAS Company), where he then worked for six years as Managing Director-Americas. He doubled sales year on year for multiple years running, and hopes are high for a similar achievement at d2o.

Bernard served on the advisory board of the HSMAI Revenue Management Special Interest Group, and currently serves as president of the local Metropolitan Washington, DC chapter. He also holds both Certified Revenue Management Executive (CRME) and Certified Hotel Technology Professional (CHTP) designations.

He divides his time between Washington, DC and Rehoboth Beach, Delaware, where, on weekends, he is able to indulge his love for the ocean, cycling, kayaking, and great restaurants, and wherever he is, he enjoys books, movies, and Scrabble. Though single, he is swamped by extended family—four older siblings and forty-two first cousins. Bernard is also quite accustomed to being in a multi-cultural environment: with an American father and French-Canadian mother, he holds both US and Canadian citizenship.

IDeaS Revenue Solutions, provider of pricing and revenue management software, services and consulting, today announces that global hotels group Millennium & Copthorne has extended the deployment of its IDeaS Revenue Management System (RMS) to five Millennium & Copthorne properties in the United States, according to a press release from IDeaS.

IDeaS has now been working with Millennium & Copthorne for over five years, initially with the company’s UK properties and later with the entire European portfolio. Since the IDeaS RMS was first implemented at Millennium & Copthorne in 2006, the relationship between the two companies has evolved to meet changing business needs with new modules and functionality, supporting management decision-making.

Nayan Peshkar, Regional Director of Revenue Management at Millennium & Copthorne Hotels, says “The past five years with IDeaS have been characterised by a strong working relationship. IDeaS supports us in achieving our revenue management goals. Not only do we continue to take great value from the IDeaS RMS, but we continue to benefit from their client centric approach, which is vital to us in our partnerships.”

“The collaborative relationship with Millennium & Copthorne is something in which both organizations are particularly proud. IDeaS continues to invest, not only in our technology, but also in providing unrivalled client support. The ongoing relationship with Millennium & Copthorne is a clear testament to that philosophy,” added Fabian Specht, IDeaS EMEA Managing Director.

Specht concluded: “We are pleased to be celebrating our long-standing relationship with Millennium & Copthorne Hotels – a hotel group for which revenue management sits at the heart of its business strategy. The longevity of the relationship validates the value of the revenue management solutions provided by IDeaS. IDeaS has a client retention rate of 95% over its 22 years of business and Millennium & Copthorne is further evidence of the many extremely satisfied clients in which we are proud to have long and continuing relationships”.

IDeaS Revenue Solutions, the leading provider of pricing and revenue management software, services and consulting, and SiteMinder, an award winning distribution company, announced Monday the complete certified integration of SiteMinder’s Channel Manager and the IDeaS Revenue Management System (RMS), according to a press release from IDeaS.

The integration offers joint clients increased online exposure to a multitude of top-performing local and international booking sites through one fast, easy-to-use and reliable interface. Each day, the IDeaS RMS recommends customized pricing strategies to hotel revenue managers. Once the rates are approved, the IDeaS RMS automatically sends the updated rates to SiteMinder’s Channel Manager, which promptly forwards the rates to online travel agencies. The streamlined, automated integration results in faster and more extensive rate distribution and improved rate optimization.

As the use of online booking sites rises, integrating revenue management software with channel management technology can bring increased revenue to hotels and resorts. The partnership eliminates tedious, manual data entry and enables hotels to more effectively distribute their rates—a necessary advantage given the competitive nature of the industry and the current economic climate.

“The integration between the IDeaS RMS and SiteMinder’s Channel Manager allows revenue managers to focus more on strategic activities that drive business growth instead of repetitive administrative tasks,” said Linda Hatfield, vice president of product management, IDeaS. “Together, these systems will save clients valuable time and help maximize revenue at their hotels.”

“We are thrilled about SiteMinder’s integration with the IDeaS RMS,” said David Williams, general manager of sales and marketing, SiteMinder. “By offering our clients a faster and simpler way to utilize online booking channels, we can provide them with a distinct advantage over hotels that do not use automated distribution services.”

About IDeaS

Founded in 1989, IDeaS Revenue Solutions – a SAS Company, offers industry-leading revenue management Software, Services, and Consulting to the hospitality industry. Headquartered in Minneapolis, IDeaS has technology, support, sales and distribution offices in North and South America, the United Kingdom, Europe, the Middle East, Africa, Greater China, Australia and Asia. For more information, visit www.ideas.com.

About SiteMinder

SiteMinder’s ‘software-as-a-service’ distribution platform enables hotels to sell more rooms on dozens of accommodation booking sites around the world. From offices in Sydney and London, SiteMinder’s channel management technology allows accommodation providers to manage room availability and rates across a multitude of online channels from a single interface. More than 4600 accommodation providers in over 60 countries now use SiteMinder as their preferred solution for online distribution. Visit www.siteminder.com or www.siteminder.co.uk.

TripAdvisor®, the world’s largest travel site, announced the winners of its 2011 Travelers’ Choice® Destinations awards this week.  In its third year of the awards, TripAdvisor has honoured 337 outstanding destinations across the globe. In addition to the top 25 in the world overall, top 25 lists have been named for the United States, Europe, the Caribbean & Mexico, Central & South America, Asia, India, South Pacific, Canada, Africa, United Kingdom, France, Italy, Germany and Spain.

Travelers’ Choice Destinations awards honour top travel spots worldwide based on millions of real and unbiased opinions from TripAdvisor travelers.  Award winners were determined based on a combination of travelers’ favourite places and overall destination popularity.

“Millions of TripAdvisor travelers around the globe have helped identify the world’s top travel spots,” said Barbara Messing, chief marketing officer for TripAdvisor. “The Travelers’ Choice Destinations awards not only recognise some of the most beloved travel destinations worldwide, but serve as inspiration for millions of travelers looking to plan their next trip.”

2011 Travelers’ Choice World Destinations:

1. Cape Town, South Africa
2. Sydney, Australia
3. Machu Picchu, Peru
4. Paris, France
5. Rio de Janeiro, Brazil
6. New York City, United States
7. Rome, Italy
8. London, United Kingdom
9. Barcelona, Spain
10. Hong Kong, China

For the complete 2011 Travelers’ Choice Destinations lists, sponsored by Audi, go to www.tripadvisor.com/TCDestinations.

Photo: Cape Town. Photographer: PRNewsFoto/TripAdvisor

Teenagers terrified of racking up huge debts by going to university are being offered an alternative – running their own Travelodge, according to The Sun.

Five hundred are to be offered the opportunity as the expanding budget hotel chain launches a major shake-up in how it recruits potential managers.

School-leavers will be taken on as apprentices – earning up to £30,000 during the first two years of the programme.

Read story in full

The Scandinavian business travelers’ agree. They want Lufthansa as owner of SAS airline, regardless if they are Danish, Norwegian or Swedish. No other airline even comes close, according to a press release from Swedish analysts Resegeometri.

In Resegeometri’s Nordic independent airline study 2011 as much as 51 % of the Scandinavian business travellers point to Lufthansa as the obvious choice in the event of possible changes in the SAS ownership structure.

“There are mainly three reasons why the business travel customers would prefer Lufthansa as owner,” says Vice President Jan Borg at Resegeometri Nordic AB. “Lufthansa is considered the best guarantee of a development in line with Scandinavian interests and needs, they are believed to have the best travel alternatives in terms of destinations and schedules, and are considered to offer the best service and quality.”

15 % of the business travelers would prefer continued Inter-Scandinavian state ownership in order to secure the region’s interests.

10 % consider AirFrance/KLM the best alternative, 8 % British Airways and 6 % Finnair.

Photograph: A Lufthansa Boeing B 737 in Frankfurt (photograph from Lufthansa)

Air France-KLM’s passenger activity in the Third Quarter was strongly impacted by strike action in France in October, notably by air traffic control, followed by severe weather disruption in December. In total, the group was forced to cancel 6,900 flights, according to a press release issued by the group today.

The negative impact of these events on revenues is estimated at 100 million euros of which 70 million for December alone. On the other hand, cargo continued its recovery of the past year while maintenance also enjoyed a good level of activity.

In total the Air France-KLM group generated a rise in revenues of some 14% after a positive currency effect of 3.7%, and recorded an operating profit of 81 million euros, versus a loss of 245 million euros a year earlier. The impact of the disruptions on the operating result is estimated at 80 million euros. The net result remained in loss at -46 million euros, but this represented a significant recovery from the previous year.

Activity strongly impacted by external disruptions

The passenger business saw a 3.1% rise in traffic for capacity up by 1.6%. The load factor gained 1.2 points to 81.4%. Unit revenue per available seat kilometer (RASK) gained 11.0%. The cancellation of 6,800 medium-haul flights, which enjoy higher unit revenues than long-haul, shaved around half a point off this rise. Passenger revenues amounted to 4.54 billion euros, up 12.6%. The operating result stood at 12 million euros, an improvement of 196 million on the previous year.

Cargo continued to recover. Flight cancellations had little effect on this business which saw a rise in traffic of 4.9% for capacity up by 3.8%. The load factor gained almost a point to 70.4% (+0.7 points). Unit revenue per available tonne kilometer (RATK) rose 22%. Revenues rose by 27.7% after a positive currency impact of 6.7% to 830 million euros. The operating result stood at 60 million euros after a loss of 29 million euros at 31st December 2009.

Maintenance also achieved a good performance during the Third Quarter with revenues up by 11.4%, partly thanks to the rise in the dollar, to 264 million euros. Operating income amounted to 36 million euros against 12 million euros the previous year. Engines and components performed strongly during this quarter.

Good unit cost control

Operating costs rose 7.3% and by 2.2% excluding fuel. Unit cost per equivalent available seat kilometers (EASK), rose by 4.6% but declined by 1.7% on a constant fuel price and currency basis, while the rise in production measured in EASK was limited to 2.1%, impacted by the weather disruptions.

The main feature of the change in operating costs was the fuel bill which rose by 297 million euros to 1.35 billion euros (+28.2%) under the effect of a 3% rise in volumes, a negative currency effect of 10% and a rise in fuel prices after hedging of 14%. Employee costs fell 1.3% to 1.84 billion euros.

EBITDAR amounted to 708 million euros and the EBITDAR margin of 12.0% represented a five point gain on the previous year. Operating income stood at 81 million euros, an improvement of 326 million euros. Adjusted operating income stood at 152 million euros, giving an adjusted operating margin of 2.6%.

Net interest costs were virtually stable (91 million euros at 31st December 2010 against 87 million a year earlier). Financial income and costs amounted to -73 million euros (-48 million euros at 31st December 2009) including a 49 million euro negative currency result.

The pre-tax result stood at -99 million euros (-391 million euros at 31st December 2009). Net result, group share stood at -46 million euros (versus -295 million euros at 31st December 2009). The net result restated for non-recurrent items was -32 million euros versus -241 million euros at 31st December 2009. The net result per share, both undiluted and diluted stood at 0.16 euros against -1.0 euro a year earlier.

Nine months to December 2010: Operating result of 525 million euros

Results for the first nine months were impacted by the European air space closure in April and by the disruptions in Q3, which generated an operating loss of 238 million euros.

The passenger business saw a slight rise in traffic (+0.4%) with a reduction in capacity of 1.3%. The load factor gained 1.4 points to 82.6%. Cargo traffic progressed by 3.4% with capacity down 1.2%, leading to a 3 point rise in load factor to 68.6%. In both businesses, unit revenues progressed strongly (+15.1% per ASK and +37.0% per ATK).

Total revenues amounted to 18.29 billion euros (+14.5%). Operating costs increased by 6% to 17.76 billion euros, but by just 1.5% excluding fuel. Production measured in EASK declined by 1.0%, while unit cost per EASK rose 6.7% but was stable on a constant fuel price and currency basis.

The operating result improved by 1.31 billion euros on the previous year to 525 million euros against a loss of 788 million euros at 31st December 2009. Adjusted operating income amounted to 737 million euros and the adjusted operating margin stood at 4.0%.

Net income, group share, stood at 980 million euros after a 1.03 billion euro capital gain on Amadeus (-868 million euros at 31st December 2009). Net income restated for non-recurrent items, of which the Amadeus capital gain, stood at 72 million euros against a loss of 755 million euros a year earlier. Net income per share stood at 3.32 euros and net diluted income per share at 2.71 euros (-2.95 euros at 31st December
2009 both diluted and undiluted).

Operating cash flow close to 1 billion euros

Investments net of disposals amounted to 890 million euros at 31st December 2010 (961 million at 31st December 2009). Operating cash flow was positive at 974 million euros and free cash flow stood at 277 millions euros of which 193 million euros in cash from the Amadeus operation. The group has cash of 4 billion euros as well as credit lines of 1.3 billion euros.

Shareholders’ funds amounted to 7.03 billion euros, up 1.61 billion euros on 31st March 2010 under the effect of the net result at 31st December 2010 and the revaluation of the group’s stake in Amadeus. Net debt stood at 6.06 billion euros (6.22 billion euros at 31st March 2010). The gearing ratio1 stood at 0.86 (1.15 at 31st March 2010).

Outlook for the Full Year

The Third Quarter was strongly disrupted by numerous air traffic control strikes in France as well as heavy snowfall. Since Christmas, the adverse weather conditions in North America have led to the closure of several airports on the East coast. Finally we are seeing the emergence of security issues in a number of Air France-KLM destinations, notably the Sahel Region (Niger, Mauritania, Mali) for a number of months, Ivory Coast since mid-November, and more recently, Tunisia and Egypt. As in the Third Quarter, the combination of these circumstances will have negative repercussions on the quality of unit revenues in the Fourth. Moreover, January and February unit revenues have been affected by the overcapacity situation created by the increase in offer by our competitors during the Winter season.

In this context, we maintain an objective of a positive operating result for Full Year 2010-11, but it will be below our previous target of over 300 million euros.

The numerous one-off events which have affected the current year (volcano, weather disruptions, air traffic control stoppages and geopolitical events) do not call into question the structural recovery achieved by the group in 2010; the improvement in ex-fuel cost is in line with our forecasts, our ability to adapt the network to geopolitical constraints remains, and current forward bookings from mid-March and subsequent months are of good quality.

Photo: An Air France A320 landing at Paris-Charles de Gaulle. Photographer: Philippe Delafosse

In a press release issued today, Ryanair announced a slightly reduced Q3 loss of €10m (down from a Q.3 loss of €11m last year).  Total revenues grew by 22% to €746m, as traffic increased 6% to 17m and average fares rose by 15%.  Unit costs increased by a similar 15% due to a 14% increase in flight hours, as average sector length rose by 7%.  Excluding fuel (which is up 37%), unit costs rose by 8%.

The unabridged press release in full:

Summary Table of Results (IFRS) – in euro

Announcing these results Ryanair’s CEO, Michael O’Leary, said:

“This small Q.3 loss of €10m is disappointing, as we were on track to break even, but earnings were hit by a series of ATC strikes/walkouts in Q.3, compounded by a spate of bad weather airport closures in December.  The scale of these disruptions is evident by the fact that we cancelled over 3,000 flights in Q.3, compared to over 1,400 cancellations during the previous fiscal year.

With constrained capacity growth, we delivered impressive scheduled revenue growth, with traffic up 6% and average fares rising 15%.  On top of this ancillary revenues grew by 20%, considerably ahead of our 6% traffic growth.  It would appear that the shorthaul fuel surcharges imposed by many of Europe’s flag carriers, allied to the high and rising fares charged by some of our not so low fare competitors, is creating opportunities for Ryanair to grow, even during the Winter period, at slightly higher fares.

Unit costs increased by 15% in the quarter due to a 14% increase in flight hours, (as average sector length rose by 7%), a 37% increase in our fuel bill, and the impact on ownership costs  of sitting up to 40 aircraft on the ground during the Winter months.  Despite a 14% increase in flight hours during the quarter we delivered strong performance on costs as staff costs rose by 9%, and airport and handling charges increased by 6%.  Ryanair’s relentless focus on costs will continue.

Although oil prices have risen significantly in recent months, Ryanair continues to benefit from a favourable fuel hedging strategy.  While current spot prices are approx. $890 per tonne, we are 90% hedged for Q.4 FY’11 at $750 per tonne, and 80% hedged for FY’12, at an average price of $800 per tonne.  We have also hedged 70% of our dollar requirements for FY’12 at an average rate of €/$1.34 compared to €/$ 1.40 for FY’11.

We are surprised that the widespread negative commentary on the Irish economy has been allowed to cloud some analysis of Ryanair’s future growth and profitability.  Some commentators misunderstand that over recent years, due to high airport costs at Shannon and Dublin, as well as rapid capacity growth in lower cost markets like Spain and Italy, Ireland has fallen from over 20% of Ryanair’s originating traffic to less than 10% in the current year.

Ryanair has little exposure to the Irish economy.  We do believe that Irish tourism is now ripe for growth given the increased competitiveness of Irish hotels, guest houses, restaurants and golf clubs, but this potential will not be realised until the Government travel tax is abolished and the high cost DAA airport monopoly is broken up and replaced with competing terminals and airports.  We hope the incoming Irish Government will work with Ryanair to exploit the potential for tourism and job growth by returning to the low cost access policy which drove Ireland’s tourism growth in the 1990’s.

The extraordinary scale of ATC and weather cancellations during the third quarter brings renewed focus on the unfair and discriminatory EU261 regulations.  Urgent reform of these regulations is vital.  It is inequitable to force airlines to pay for right to care or compensation in circumstances where widespread flight cancellations are caused by ATC strikes, or by airports failure to keep their runways open during periods of adverse weather.  It is inequitable that airports enjoy a boost to their restaurant and retail revenues from stranded passengers when their runways close, yet the airlines are obliged to pay for meals, drinks and hotels, when these cancellations are outside of our control.  It is discriminatory that the EU regulations for competing train, ferry and coach operators, exonerate these transport providers from liability during force majeure cases, yet they oblige airlines to pay these right to care costs in similar circumstances.  Airlines should not be liable for cancellations and delays that are outside of their control.  We believe the EU261 regulations are unlawful and we look forward to challenging these unfair and discriminatory regulations in the European courts.

Our outlook for Q.4 and the remainder of FY.11 remains largely unchanged.  Easter does not fall in the current Q.4, which makes the comparatives challenging.  We expect traffic and average fares to continue to benefit from a better mix of new routes and bases, and competitor fuel surcharges (which in many cases exceed Ryanair’s lowest fares).  We expect our unit cost performance in Q.4 to be marginally better thanks to the launch of new routes in Feb and March which will reduce the number of grounded aircraft by comparison with Q.3.  Accordingly, we are now confident that our Q.4 and full year results will be towards the upper end of our previously guided range of a Net Profit after tax of between €380m to €400m after tax”.

Design Hotels announces 35 new member hotels. With the latest new member, The Conservatorium Hotel in Amsterdam, Design Hotels increases its portfolio to 200 hotels. The Conservatorium, from the dream team behind Mamilla Hotel, Piero Lissoni and Moshe Safdie, joins Design Hotels together with an array of urban hubs and remote getaways. The 35 newest additions offer a mix of global influences, local flair and eclectic design, according to a press release issued by the chain.

“This is an exciting year with 200 member hotels and we are delighted that The Conservatorium Hotel marks this occasion,” says Claus Sendlinger, founder and CEO of Design Hotels. “More than a numerical milestone it reflects that with measured growth focused on quality, our portfolio has grown in terms of geography, diversity, and above all, the community of creative individuals who are the soul of the hotels and the DNA of our brand. The new destinations reflect that while European hoteliers are continuing the path of innovation, entrepreneurs in North America, Africa, Asia and Oceania are also forging ahead with creative new concepts.”

The Local Connection

Throughout 2010, Design Hotels welcomed a diverse range of hotels to its portfolio. While very different in concept, the new member hotels share one of the company’s most important criteria for membership: a deep connection to and awareness of their locality. This quality enables them to reflect, refine and even define their neighbourhoods. For instance, Georgi Akirov, owner of The Conservatorium Hotel is transforming Amsterdam’s former music conservatory, an iconic landmark building. In Stockholm’s central square, Italian-born brothers Alessandro and Stefano Catenacci have revived two glorious 19th century buildings to create Nobis Hotel. Also known as ‘Stockholm’s new living room’ the contemporary luxury hotel features many public areas for locals and travelers to interact.

Art Meets Design

Contemporary art is a key component of several new properties. In Athens Dakis Joannou, art collector and visionary hotelier, is opening a third iconic new property after Semiramis Hotel and Periscope. New Hotel, opening in May, will be a living piece of art by Brazilian design icons Humbero and Fernanda Campana. At The Met Hotel in Thessaloniki, Christina Chandris has left a very personal mark on her family’s property by fusing a gallery with a hotel. With the soon-to-open Templar Hotel in Toronto, exciting things are also happening in Canada. Local design hero Del Terrelonge and partner John Wee Tom are unifying custom-built furnishings by Italian brand Poliform and eclectic art installations within a modernist glass-front building.

The Rural Escape

Rural destinations are also on the rise. In Morocco, a restaurateur, an architect and a journalist will open their first hotel, The Great Getaway Marrakech Hotel & Spa in July 2011. Located on the legendary ‘Road to Amizmiz,’ which leads to the High Atlas Mountains, the complex of luxury tents, private lodge and riads invites guests to an adventure off the beaten track. At Kenoa-Exclusive Beach Spa & Resort in Barra de São Miguel, Brazil, first-time hotelier Pedro Marques has worked with emerging architect Osvaldo Tenório to create an edgy eco-chic retreat.

Photo: The Conservatorium Hotel, Amsterdam, part of the Design Hotels chain.