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Brown Bag Session Objectives

Brown Bag Session Objectives. Increase awareness of travel industry trends Overview of the University of Miami Travel Department Increase awareness of Travel Program Benefits. Travel Department Mission Statement.

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Brown Bag Session Objectives

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  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

  3. The Travel Industry& Future Present Past,

  4. Travel Past Factors which impacted the Travel Industry Commission Change First Self-Booking Systems Economic Downturn

  5. Prior to February 1995 Commissions paid to travel agencies: 10% on the value of the ticket February 1995 Domestic Commission Cap $50 Roundtrip $25 One-way 10% Commission September 1997 Commission Cut from 10% to 8% Same Caps Imposed November 1998 International Commission Cap $100 Roundtrip $50 One-way Still 8% Commissions November 1999 Commission Cut from 8% to 5% Same Caps Imposed August 2001 Domestic Commission Cap $20 Roundtrip $10 One-way March 2002 Elimination of Commission Travel Past Commission Cut and Cap History

  6. Travel Past • First self-booking engines • Launched in the late 90’sTravelocity - 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

  7. 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

  8. 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)

  9. 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

  10. Travel Past UM travel was reduced 16% following September 11, 2001(September 01 – May 02)

  11. Travel Present Acceleration in Online Travel Bookings Airlines Implement Price Increases Airport Security Obstacles for Airlines

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

  13. 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

  14. INDUSTRY TRENDS Acceleration in Online Travel Bookings OnlinePenetration 4% 7% 11% 13% 15% 17% 19% Source: Orbitz.com

  15. UNIVERSITY TRENDS 4% 6% 11% 14% 16% Dollars in Thousands

  16. 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”

  17. 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

  18. 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

  19. AmmunitionAutomatic weaponsAxesBaseball batsBB gunsBilly clubsBlackjacksBlasting capsBows and arrowsBox cuttersBrass knucklesBull whipsCattle prodsCompressed air gunsCorkscrewsCricket batsCrow barsDisabling chemicals or gasesDynamiteFire extinguishersFlare pistolsGolf clubsGun lighters GunpowderHammersHand grenadesHatchetsHockey sticksHunting knivesIce axe/Ice pickKnives (any length)Kubatons Large, heavy tools (such as wrenches, pliers, etc.)MaceMartial arts devicesMeat cleaversMetal scissors with pointed tips Numchucks (nunchaku)Pellet gunsPen knivesPepper sprayPistolsPlastic explosivesPool cuesPortable power drills Portable power sawsRazor blades (not in a cartridge)Religious knivesReplica weaponsRevolversRiflesRoad flaresSCUBA knivesSabersScrewdriversShot gunsSki polesSpear gunsStarter pistolsStraight razorsStun guns/shocking devicesSwordsTear gasThrowing starsToy transformer robots (this toy forms a toy gun)Toy weapons Items Prohibited in Aircraft Cabins Source: http://www.tsa.dot.gov

  20. Obstacles for Airlines Operating losses The U.S. Government provided in excess of 2 billion dollars to assist the airlines in 2002

  21. Obstacles for Airlines Airline Bankruptcy United Airlines filed Chapter 11 on December 9, 2002 National Airlines closed its doors in November, 2002

  22. 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

  23. 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

  24. 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

  25. 2003 Airline Industry ReboundWHAT 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

  26. 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. Travel Department Overview

  27. Available University of Miami Travel Service Entities Authorized Travel Agencies Hotels Car Rental Companies Airline Carriers

  28. 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.

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

  30. Local Hotel Rates Coconut Grove Coral Gables

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

  32. UM Florida Car Rental Rates

  33. 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

  34. Center for Disease Control US State Department Warnings US Department of Transportation Times Around the World Currency Converter Passport Information Travel Fair Travel Talk & More… Silent Auction Mapquest.com Weather.com Car Rental Rates Hotel Rates And more… The University of Miami Travel Website Current University information and links to important travel sources such as: http://www.miami.edu/travel

  35. Frequently Asked Questions The Travel Website also contains a section which addresses Frequently Asked Questions Q:What is the University’s standard mileage allowance for travel by private automobile? A: The standard mileage allowance is 36 cents per mile. Q:What is the University of Miami’s 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 3:00 PM or the return time prior to 3:00 PM the traveler is entitled to $20. International Travel: $50 for a full day. If the departure time is after 3:00 PM or the return time prior to 3:00 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

  36. 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.

  37. Travel Payment Options Ghost Card Personal Credit Card Check

  38. What is the Ghost Card? The University’s direct bill option for Air travel which bills the department account directly

  39. How to utilize the Ghost Card Step 1: Request a copy of the itinerary for the airline ticket from the UM Authorized Travel AgencyStep 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

  40. Future of UM Travel Management • Establish University travel booking website • Continued use of Travel Agencies

  41. 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

  42. Universities with Travel Booking Websites • Cornell University • Indiana University • Penn State University • Stanford University • University of Southern California

  43. Travel Booking Website Internet Booking Websites capture and post negotiated discount rates for Air, Car and Hotel accommodations

  44. Is there still need for a Travel Agency? Expert assistance on complex segments Group bookings

  45. What Next ? • Travel alternatives • Increased security charges • Continued airline losses • Probable reduction in airline capacity Source: Bob Langsfeld & Bob Lichtman SCTM Conference October 2002

  46. 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

  47. Questions???

  48. 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(305) 284-3192 fax http://www.miami.edu/traveltravel@miami.edu

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