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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

  • Increase awareness of travel industry trends

  • Overview of the University of Miami Travel Department

  • Increase awareness of Travel Program Benefits


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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


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The Travel Industry& Future Present Past,


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Travel Past

Factors which impacted the Travel Industry

Commission Change

First Self-Booking Systems

Economic Downturn


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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


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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


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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


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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)


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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


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Travel Past

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


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Travel Present

Acceleration in Online Travel Bookings

Airlines Implement Price Increases

Airport Security

Obstacles for Airlines


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Travel Present

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


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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


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INDUSTRY TRENDS

Acceleration in Online Travel Bookings

OnlinePenetration

4%

7%

11%

13%

15%

17%

19%

Source: Orbitz.com


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UNIVERSITY TRENDS

4%

6%

11%

14%

16%

Dollars in Thousands


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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”


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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


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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


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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


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Obstacles for Airlines

Operating losses

The U.S. Government provided in excess of 2 billion dollars to assist the airlines in 2002


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Obstacles for Airlines

Airline Bankruptcy

United Airlines filed Chapter 11 on December 9, 2002

National Airlines closed its doors in November, 2002


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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


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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


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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


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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


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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


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Available University of Miami Travel Service Entities

Authorized Travel Agencies

Hotels

Car Rental Companies

Airline Carriers


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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.


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Hotel Discounts

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


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Local Hotel Rates

Coconut Grove

Coral Gables


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Car Rental

  • Discount Rates are available from:

    • Avis

    • Alamo

    • Dollar

    • Enterprise

    • Hertz

      Rates are available online at:

      www.miami.edu/travel



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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


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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


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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


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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.


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Travel Payment Options

Ghost Card

Personal Credit Card

Check


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What is the Ghost Card?

The University’s direct bill option for Air travel which bills the department account directly


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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


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Future of UM Travel Management

  • Establish University travel booking website

  • Continued use of Travel Agencies


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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


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Universities with Travel Booking Websites

  • Cornell University

  • Indiana University

  • Penn State University

  • Stanford University

  • University of Southern California


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Travel Booking Website

Internet Booking Websites capture and post negotiated discount rates for Air, Car and Hotel accommodations


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Is there still need for a Travel Agency?

Expert assistance on complex segments

Group bookings


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What Next ?

  • Travel alternatives

  • Increased security charges

  • Continued airline losses

  • Probable reduction in airline capacity

Source: Bob Langsfeld & Bob Lichtman SCTM Conference October 2002


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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



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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