Intel Forecast for February 2012: Market Trends and Analysis

Hotel Brands Bullish on China

As Sofitel opens the Sofitel Guangzhou Sunrich in Guangzhou’s central Tianhe district, the brand adds its fourth property in the city. The new hotel’s 493 rooms and suites join thousands of additional rooms being opened or planned across China by international hotel groups this year.

Sofitel’s expansion—this is its 20th property in China, with eight more planned by 2015—reflects a broader boom from luxury names to midscale brands such as Marriott Courtyard. Marriott, which already operates 56 hotels in China, has announced plans for 44 more over the next three years, aiming for 100 properties across its brands. Starwood’s Sheraton also plans to open nine new resorts across China by year’s end.

Late last year Hilton launched the 311-room Hilton Xi’an, its first property in northwest China and its 20th in the country, shortly after opening two hotels in Guangzhou. More than 80 additional Hilton properties are planned for the Chinese market.

What explains this surge? Beyond China’s rapid economic growth, rising urbanization and the expanding middle class, leisure travel has become a major driver. China now receives over 25 million international visitors annually, a figure that continues to grow and draws investment in hotel capacity. With increasing business travel as well, demand for quality lodging is strong. The Sofitel Guangzhou Sunrich—featuring five bars and restaurants, a walk-through wine cellar, meeting and conference facilities, and an upscale spa—will compete for both business and leisure guests in a crowded marketplace.

In the Chips

American credit card users traveling in countries that use chip-and-pin technology face continuing inconvenience from magnetic-stripe-only cards. Chase’s British Airways Visa is addressing this by issuing a combined chip-and-pin and magnetic-strip card for American customers, making it unique among U.S. cards. While merchants with attendants can usually override chip incompatibility, unmanned kiosks—common at European rail stations and many gas stations—often reject such cards entirely. Increased demand from frequent travelers may persuade other issuers to follow suit.

Safer Scans

The European Union has banned backscatter X-ray body scanners over concerns about potential health risks, particularly for frequent flyers. Millimeter-wave scanners, which do not use ionizing X-rays, will remain the only approved technology at E.U. airports.

Sharing in Honolulu

American Airlines and Japan Airlines now share the Sakura Lounge at Honolulu International Airport (HNL). The combined Admirals Club/Sakura Lounge on the overseas terminal’s third level offers about 7,000 square feet of space with complimentary Wi-Fi, massage lounge chairs, and complimentary snacks and beverages. This lounge sharing is part of American’s wider expansion of partner lounge access; Admirals Club members can now use partner lounges at locations where American flies but does not operate an Admirals Club, and access dozens of international partner clubs with a membership card and same-day boarding pass.

Merger Momentum

United Airlines has begun retrofitting 12 former Continental Boeing 767-400s and 14 United 767-300s with all-new flat-bed seats, on-demand audio and video, and iPod connectivity in premium cabins. The work is part of a $550 million fleet upgrade designed to give United Continental more flat-bed seats than any other U.S. carrier. The 26 updated aircraft will primarily serve trans-Atlantic, Latin American, and Hawaiian routes and will offer BusinessFirst and economy cabins. Additional improvements planned for 2012 and 2013 include new in-flight entertainment systems, more economy seats with extra legroom, and expanded overhead baggage space. The carrier will also add 25 new aircraft in 2012, including Boeing 787 Dreamliners.

Dubai and Doha Dailies

Emirates has added daily service between Dallas/Fort Worth (DFW) and Dubai (DXB) and will add daily Seattle–Dubai service March 1. United Airlines will begin daily service between Washington/Dulles (IAD) and Doha, Qatar (DOH), via Dubai on May 1, making Doha the fourth Gulf city served nonstop from Washington/Dulles alongside Dubai, Kuwait City and Bahrain.

Codeshares and Alliances

As airberlin prepares to join the oneworld alliance, passengers can already book codeshare flights with American Airlines, British Airways, Finnair, Iberia, Malév, S7 and Royal Jordanian. American Airlines also signed codeshare agreements with OpenSkies and Fiji-based Air Pacific. The OpenSkies partnership adds American’s code to transatlantic flights between Newark and Paris Orly, and extends connections via Newark to major U.S. business markets. The Air Pacific agreement places American’s code on flights between Los Angeles, Honolulu and South Pacific destinations, expanding access across the region.

Skier Special

Porter Airlines launched a seasonal nonstop route between Newark (EWR) and Mont-Tremblant, Quebec (YTM), operating weekly through April 8. These flights complement Porter’s seasonal service between Mont-Tremblant and Toronto and between Toronto and Burlington, Vermont.

New Auto Leasing Options

Wheels in Europe, the U.S. agent for Renault’s Eurodrive buy-back leasing program, now offers Volkswagen’s Discovery Europe program as well. For travelers staying three weeks or more, leasing can be more economical than traditional rental and includes advantages such as a brand-new car, full warranty, comprehensive insurance with no deductible, no one-way or second-driver fees, 24/7 multilingual roadside assistance, and support from a network of service agents across Europe.

More in Munich

Lufthansa has reopened its Business and Senator Lounge at Munich International Airport (MUC) Terminal 2 after renovations that added seating for 100 more guests, a relaxation room, and a new bar serving coffee specialties, non-alcoholic drinks, and cocktails.

Taj Temptations

British Airways Executive Club members who book stays at Taj hotels in the United States through March 31 can earn double Avios points and enjoy 50 percent off the second night (and each alternate night for longer stays). Participating properties include The Taj Boston, The Pierre New York, and The Taj Campton Place in San Francisco. A separate offer at The Taj Cape Town includes a three-night Superior Room package with double points, daily breakfast for two, a Table Mountain tour, and transfers to the waterfront.

Points for Fun

Hilton HHonors members can now redeem points for admission to SeaWorld parks in Orlando, San Diego, and San Antonio, and to Busch Gardens Tampa Bay and Busch Gardens Williamsburg. Redemption levels start at 11,000 points for some child single-day tickets and range up to higher values for adult and multiday passes. Hilton points are also redeemable for Disney park passes, with multiday tickets available at varying point levels.

Drive, Save, Earn

Through March 31, booking a car rental with Avis or Hertz via United can save up to 35 percent, and earn 75 United MileagePlus miles per rental day plus 150 bonus miles. Elite members receive additional bonus miles. No flight purchase is required to earn miles.

Maine Stay

Inn by the Sea on Cape Elizabeth, Maine, offers a Winter Warmer Package through March 31 that includes two nights in a Spa Suite with ocean views, daily breakfast for two, seasonal treats in the Fireside Lounge, L.L. Bean slippers, two 60-minute hot stone massages, and a cheese fondue for two. The inn is about 20 minutes from Portland’s dining and arts scene and is accessible via Portland International Jetport or Amtrak service.

Winter Wonderland

Mountain View Grand in New Hampshire offers winter packages through April 13 that include three nights’ accommodations, daily breakfast, a historic tour, and a horse-drawn carriage ride through snowy scenery, with opportunities for ice skating, bonfires, snowshoeing, and cross-country skiing. Members of the National Trust for Historic Preservation can book through the historic hotels program for an additional discount.

Indulgence in India

Oberoi Hotels & Resorts is offering two special packages available for travel through March 31. The Oberoi Exotic Vacations package includes a premier room, transfers, daily breakfast, and a discount on spa services. The India in Luxury package provides curated travel services for stays of 10 to 22 nights and includes accommodations, intercity transfers, meals, spa treatments, domestic air travel, attraction entry fees, and guided services. Oberoi properties are located across India in destinations such as Udaipur, Ranthambhore, Agra, Jaipur, Shimla, New Delhi, Mumbai, and Gurgaon.