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What's Hot in Transportation Industry Trends & Press

TIA Express knows what's important to you - the very latest in Transportation Industry issues and news.

That's why we have compiled the following articles listed below. Stay up-to-date on hot issues, industry trends and late breaking news for the Transportation Industry. Come back often – we promise to keep you "in the know"!

Amtrak Returned Limited Service on the Acela Express
One Acela Express train returned to service this week and Amtrak plans to bring others back within the next few months. The Acela Express will operate on a schedule that includes four daily departures, two from New York and two from Washington DC. The train will serve all regular Acela destinations including Newark, Philadelphia, Wilmington, Delaware, Baltimore and the Baltimore Washington International Airport. The Acela Express fleet was removed from service on April 15th due to cracks or stress fractures that were found on the brake discs. Approximately $1 million per day of revenue is lost due to the sidelined premium express service.
- July 13, 2005

Gas Prices Reach a New Record
According to the Lundberg Survey, gasoline rose to an all time high of $2.31 per gallon of self-service regular. This is just over the record that was set on April 8th, 2005. Despite the increase in gasoline prices demand was up 2.5 percent in June over a year ago. The lowest average price for gasoline was in Charleston, S.C. at $2.09, the highest was in San Diego where a gallon costs $2.55.
- July 11, 2005
 
Gas Prices Near Record High
According to the Energy Information Administration, the average price for regular unleaded gasoline rose 1.1 cents over the week prior, and 33 cents from a year ago to $2.23 a gallon. The average price falls a few pennies short of the record price of $2.28 set in mid April. The price for crude oil topped $60 a barrel on the New York Mercantile Exchange. San Francisco was the most expensive place to purchase gas with $2.52 a gallon, whereas Houston was the cheapest place to purchase gasoline at $2.09 a gallon.
- July 6, 2005

Monthly Passenger Traffic Edges Up
The Air Transport Association recently released the monthly passenger report for the month of May. The report revealed an increase of 4.7 percent in domestic enplanements to a total of 42.6 million. Domestic Revenue Passenger Miles (RPMs) increased 5.4 percent to 41.8 billion. Domestic Available Seat Miles (ASMs) rose slightly by 1.1 percent to 53.4 billion. System wide enplanements increased 5.5 percent to 48.0 million during the month of May. System wide RPMs rose by 7.2 percent to 58.8 billion, and Systme wide ASMs increased by 3.3 percent to 74.6 billion.
- June 24, 2005
 
Plane Prices Increase
Airbus recently increased prices on new planes by approximately 3 percent as growth in travel and rising fuel prices force carriers to order more fuel efficient airliners. The top catalog price for Airbus' 555 seat A380 airliner will increase an estimated $10 million, or 3.4 percent from $292 million to $302 million. The highest price for the smallest model, the A318 which seats 107 passengers, will rise 3.2 percent to $54.4 million from $52.7 million.
- June 21, 2005
 
Big Price Hikes for Rental Cars
In the last couple of weeks, the rental car industry has undergone a major change which has started to affect prices. Traditionally, rental companies have maintained close ties with auto makers. Now, however, car makers are starting to pull back from these relationships, in an effort to shed the "fleet car" stigma that has tarnished some models and hurt showroom sales. Partly as a result, rental-car rates are starting to climb as the companies face the prospect of a dwindling supply of vehicles at the same time that travel demand is rebounding. In recent weeks, Avis, Dollar, Hertz, National and others have all boosted prices by 5 percent to 15 percent or more.
- June 16, 2005

Cruise Lines Report Strong First Quarter
Strong consumer demand for cruise vacations drove robust passenger growth in the first three months of 2005, according to the Cruise Lines International Association (CLIA). CLIA member fleets carried 2.63 million worldwide guests in the first quarter, up 8.9 percent over first quarter 2004. North American passenger bookings grew by 12.9 percent during the quarter, to 2.34 million guests.
- June 10, 2005

U.S. Demand for Gasoline Continues to Rise Despite High Prices
U.S. demand for gasoline continues to rise despite near-record prices, a trend that could lead to even higher prices at the pump in coming weeks, according to the U.S. Department of Energy. The four-week average for U.S. gasoline demand was up 2.9 percent from a year ago last week, which included Memorial Day, the strongest year-over-year increase in four months and the sixth-consecutive weekly gain. AAA reported that the average U.S. price for a gallon of regular unleaded gasoline was $2.118 on June 7th, about 9 cents more than a year ago. Although off from the record high of $2.276 hit nearly two months ago, gasoline prices have risen every day for nearly a week. 
- June 9, 2005
 
Fuel Prices Rise and With Them Airfares
Jet fuel prices have risen about 15 percent in the past two weeks, taking back more than half of a six-week decline after they hit their highest levels ever. Some experts believe jet fuel prices — linked to crude oil — will go higher as the year goes on. Fuel is typically the second-biggest expense behind labor for an airline, and the year's inflation has seriously dented the prospects of the large U.S. carriers, trying to recover from four years of huge losses. As a result, airlines have been raising fares enough to help offset the higher costs. Big carriers have raised fares nine times this year, including a $5-$10 increase this week for one-way trips. Industrywide, leisure travelers are seeing the largest fare increases, according to Fulcrum Global Partners. In recent weeks, leisure fares have been about 30 percent to 40 percent higher than year-ago levels, while business fares have been down by about one-third. Heavy losses are expected to continue this year, projected at more than $5.5 billion for the year by Calyon Securities. 
- June 6, 2005
 
ATA Forecasts 4 Percent Gain in Air Travel This Summer
The Air Transport Association (ATA) expects approximately 200 million passengers (enplanements) to travel on our nation's legacy airlines this summer (Memorial Day through Labor Day), 4.1 percent more than last summer. This forecast is very consistent with the one released by TIA in mid-May. Despite the strong growth in travel, high fuel prices and taxes combined with low fares will continue to constrain the industry's financial recovery. Every penny increase in the price of jet fuel adds $186 million in additional annual expenses for the industry, or an additional $5.5 billion for fuel this year. And although fares have crept up slightly in recent weeks, ticket prices are comparable to what consumers paid during the mid-1980s, according to ATA. In addition, high taxes continued to burden air travelers, accounting for 26 percent of a typical $200 domestic roundtrip ticket. 
- June 1, 2005

Industry-Wide News

TBR/TIA Partnership Immediately Benefits Travel Industry 
A delegation of leading travel and tourism industry executives met with senior members of Congress and the Bush Administration to discuss the travel industry's enormous contributions to the U.S. economy, the effects of visa policy on travel to the U.S., and how the travel industry may help America's image abroad. The group was made up of members of the Travel Business Roundtable (TBR) including TIA President and CEO Roger Dow. "These meetings mark a new era of public/private cooperation," Dow commented. The meetings are the first joint actions since the June 28th announcement of the strategic partnership between TBR and TIA. Click here to see who was involved. 
 
TIA and TBR Partner to Ignite Government Action 
Acting on the call for "one industry, one voice," TIA and the Travel Business Roundtable (TBR) have announced they are partnering to advance the interests of the travel industry with policymakers. "This partnership is a great move forward for travel and tourism," said TIA President and CEO Roger Dow. "This new unified approach will give the travel industry more clout on Capitol Hill and at every level of government." Improving America's image abroad and lobbying for action on international travel facilitation issues are among the top priorities for TIA and TBR. The Travel Business Roundtable is an association of CEO-level travel industry executives and is chaired by Jonathan Tisch, chairman of Loews Hotels. To view the press release, click here.

World Expo Features "See America Honeymoon" 
The ultimate wedding gift, an all expenses paid "See America Honeymoon," was presented to a Japanese couple who were married in front of the U.S. Pavilion at the World Expo in Aichi, Japan on June 25th. The newlyweds will spend seven days on a dream vacation to Orlando, Florida. The honeymoon package was provided through a partnership with TIA and the U.S. Pavilion and is sponsored by American Airlines, Marriott International, Hertz, Chelsea Premium Outlets and the Orlando Tourism Office. See America has had a strong presence throughout the World Expo, which runs through September 25th and is expected to draw 15 million visitors. In May, a successful See America seminar and reception was held at the Expo's U.S. Pavilion. (Photo by Mel Lukens, U.S. Pavilion.)

The Power of Travel Celebrated at See America Week UK 
The 2005 See America Week drew hundreds of British press, tour operators and travel agents to London for the largest Visit USA event in the UK. The well-attended Visit USA Travel Media Awards kick started the festivities at Winfield House, the official residence of the U.S. Ambassador. Other events included a Media Marketplace with top British press in attendance, a Gala Dinner and Ball, and the 5th Annual See America Educational Seminar where TIA President & CEO Roger Dow told attendees that the power of travel can energize economies and build understanding. See America Week UK is a partnership between TIA's London Office, the UK Visit USA Association and the U.S. Commercial Service. Sponsors included Marriott International, New Mexico Tourism Department and the Albuquerque Convention & Visitors Bureau. For information on upcoming See America Weeks in Brazil and Japan, click here. (Pictured from left are Stephan Wasylko, Senior Commercial Officer, U.S. Commercial Service; Roger Dow, TIA President & CEO; Matt Bates, Chairman, Visit USA Association UK.)

Latest TIA Report Examines Leisure Travel Decisions 
With more travel choices than ever before, how do travelers decide where to go and what to do? Is price always the main concern when planning trips? TIA's new research report, Leisure Travel Planning: How Consumers Make Travel Decisions, examines the primary influencers behind consumers' travel choices. Based on the decision making and planning patterns of over 5,000 travelers, this report includes information about how they come to their decisions about destinations, transportation modes, brands and accommodations. Study results are also segmented by four popular leisure trip occasions: entertainment, family-centered, outdoor recreation and combined business/pleasure. To learn more about this report or to order a copy click here.

Reinhard to Speak on U.S. Image at ESTO 
Keith Reinhard, president of Business for Diplomatic Action and chairman of DDB Worldwide, will be the keynote speaker during the Tuesday session of the Educational Seminar for Tourism Organizations (ESTO), August 13th-16th in Coeur D'Alene, Idaho. Reinhard's organization, Business for Diplomatic Action, is dedicated to improving America's reputation abroad by mobilizing the private sector to help restore America's declining image. ESTO offers high quality education and information sharing opportunities for destination marketing professionals at all levels. Registration is now open.

Price Not Always King in Leisure Travel Decisions 
The latest study from TIA, Leisure Travel Planning: How Consumers Make Travel Decisions, shows that leisure travelers decide where they want to go and for how long before they even consider the price tag. The study helps travel industry professionals better understand leisure travel decision making among U.S. residents and the role of pricing in a highly competitive environment.  
 
Beaches and Theme Parks: More Than Just Sand, Rides and Fun 
Americans who include beaches and/or theme and amusement parks on their vacations are a lucrative market. These travelers tend to take longer vacations and spend more money per trip than overall travelers, according to new data from TIA's TravelScope® survey. They are also more likely than average to bring their kids along, fly to their destination and rent a car once they arrive. More than 105 million person-trips were made by U.S. households to the beach last year, and Americans made 79 million person-trips to theme and amusement parks in 2004. 
 
Tourism Office Budgets Reflect Positive Outlook 
The year ahead looks optimistic for the 47 state tourism offices that responded to questionnaires for TIA's 2004-2005 Survey of U.S. State and Territory Office Budgets. The collective projected budgets for fiscal year 2004-2005 total $602.7 million, 10.6 percent higher than last year's actual budget. For the first time in years, the average funding allocation for all budget breakdown categories increased from the previous year. Combined marketing and promotion-related budgets increased over 9 percent, advertising and sales promotion budgets increased 5.3 percent, and the combined international advertising and sales promotion budgets increased 27.8 percent.