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July 28, 2010 Choice Hotels International achieved second-quarter net income of $27 million, a 6 percent increase from a year earlier. Worldwide average daily rate fell 2.2 percent year over year to $69 while occupancy climbed 1.3 percentage points to 51.7 percent.
July 23, 2010 American Express Global Commercial Services for the June quarter reported a 28 percent year-over-year jump in global corporate travel sales, to $4.6 billion. Card billed business increased 21 percent to $32.9 billion and average basic spending per cardmember grew 26 percent to $4,712.
July 23, 2010 Domestic U.S. airline passenger yield in June increased nearly 18 percent year over year to 15.27 cents per mile, according to the Air Transport Association. Defined as "the average price (excluding taxes) paid to fly one mile," domestic yield increased by the largest percentage for any month in at least nine years. ATA for June also reported a 25 percent jump in total passenger revenue and a 1.4 percent increase in passenger count.
July 23, 2010 The U.S. lodging industry's average daily rate during the first half of 2010 fell 2 percent year over year to $97, while occupancy increased 4.4 percent to 56.4 percent, according to Smith Travel Research. During the second quarter, ADR was flat at $97.87 and occupancy rose 6.2 percent to 60.7 percent.
July 22, 2010 Starwood Hotels & Resorts reported net income of $114 million, down 15 percent year over year. Worldwide systemwide average daily rate increased 1.6 percent to $158.54 from $156 the year before while occupancy climbed 7 percentage points to 68.8 percent. Overall group rates booked for 2010 rose 16 percent whereas corporate transient was the "primary driver of demand" and remained "robust," according to CFO Vasant Prabhu. During the quarter, midweek occupancies in Boston, Chicago and New York City topped 90 percent and rates increased roughly 5 percent--leaving room for Starwood in 2011 to increase corporate rates that fell about 20 percent since 2008, according to Prabhu. "While raising rates is not something that delights customers, this is a business that is determined by the supply-demand balance. As retail rates rise, corporate negotiated [rates] will need to rise too," said Prabhu. "In our case corporate negotiated rates are clearly one of the factors that are holding back ADR growth this year. Therefore [Starwood] would look for high single digit increases in our negotiations later this year."
July 22, 2010 Continental Airlines reported a second-quarter net profit of $233 million, reversing the $213 million loss from last year. Average fare jumped 21 percent to $236.24.
July 22, 2010 JetBlue Airways posted a second-quarter net profit of $30 million, up from $20 million a year earlier. It also reported its "highest-ever quarterly operating income" at $94 million and "record revenues, reflecting an improved demand environment," according to CEO Dave Barger. Average fare increased nearly 10 percent to $139.02.
July 22, 2010 Alaska Air Group posted second-quarter net income excluding special items of $84 million, more than doubling the prior year's result and marking "the best quarterly profit in our history," the company announced. Passenger revenue grew 17 percent to $702 million.
July 21, 2010 American Express hired Sprint Nextel prepaid group president Daniel Schulman to head its new enterprise growth business unit "to expand alternative mobile and online payment services, form new partnerships and build revenue streams beyond the traditional card and travel businesses." Responsible for the company's business development, mergers and acquisitions, Revolution Money online payments business and global prepaid business, Schulman will report to Amex chairman and CEO Kenneth Chenault. Amex also elected former Revolution Money chairman and retired AOL executive Ted Leonsis to its board of directors and asked him to chair a new innovation and technology committee. July 21, 2010 American Airlines parent AMR Corp. posted a second quarter net loss of $11 million, much smaller than the $390 million loss a year earlier. The company achieved its first operating profit since 2007, at $196 million. According to Tom Horton--recently promoted to president from CFO--the second quarter produced "significant increases in corporate revenues that far outpaced our first-quarter year-over-year improvements."
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