News for January 28th 2010

Iny Grand Prix at Barber Motorsports a good thing

Economic developers may be more revved up about the upcoming Indy Grand Prix of Alabama than the racers themselves.

The Alabama Development Office, the Economic Development Partnership of Alabama and the Birmingham Business Alliance all have plans to wine, dine and entertain prospects when the race comes to the Barber Motorsports Park on April 9-11.

Gene Hallman, chief executive of the Bruno Event Team and Zoom Motorsports, said economic developers have planned a dinner inside the museum during the race weekend. They also plan to have tents and areas for entertaining companies.

“In recruiting, getting the decision makers here is often the biggest challenge,” Hallman said after an appearance Wednesday at the Rotary Club of Birmingham. “When you’ve got a hook like the Indy Grand Prix of Alabama, it makes it that much easier.”

Economic developers for corporations also are planning to use the race for recruitment, Hallman said.

“It makes perfect sense to me that the kind of companies that would be a good fit for Birmingham would be fans of IRL and open-wheel racing,” said Greg Barker, Alabama Power’s head of economic development.

Barker said his team is working with BBA to recruit at the event. He said automotive companies are a natural draw at the event. Also many firms are considering projects related to the addition of the C-Class at the Mercedes-Benz plant in Vance and the construction of the Volkswagen plant in Chattanooga.

Barker said executives of aerospace companies are also being targeted. Several site selection consultants are the guest list, too.

“What a great place and a great time to showcase your community,” Barker said.

Hallman said in addition to recruitment, the race has the ability to boost the metro area’s tourism business. Already, more than half the tickets sold have gone to buyers outside Alabama.

The event will also be televised in 184 countries, and that exposure will enhance the area’s image, Hallman told Rotary Club members at a Harbert Center luncheon. Plus, race promoters of the race will start a major advertising initiative starting next week to showcase the event.

The race is expected to draw 100,000 spectators, creating a $35 million economic impact.

“Our vision is to make this Birmingham’s version of a loud Kentucky Derby,” Hallman said.

Edited: January 28th, 2010

Travel may be on the Increase

There are new signs that more business travelers are once again packing their suitcases.

The Washington Post reports that United Airlines joined other big airlines on Wednesday by saying that it’s seeing a bump in demand for last-minute tickets – the priciest kind typically purchased by business travelers.

And a new survey of travel agents suggests that business travel bookings in 2010 will at least match – if not exceed – last year’s levels, according to Reuters.

In a poll of 227 Travel Leaders travel agents, 28% of expect business travel bookings to top last year’s level, while about 40% expect bookings to match 2009 levels, the story says. Only 12% predicted fewer bookings this year, the article says.

Business travelers who are traveling are taking advantage of the plentiful hotel deals available, instead of trying to move up into a nicer hotel, the poll suggests.

Asked about business travelers hotel booking patterns, 72% of the Travel Leaders agents who responded said that their customers were booking hotels in the same category as opposed to seeking a room at a pricier hotel – or trading down to save even more money.

In other words, travel agents aren’t booking long-time Holiday Inn or Courtyard customers into Omni or Park Hyatt hotels because those hotels are discounting, the poll suggests.

Dale Eastlund, a travel consultant with CWT Solutions, told the Washington Post that business travel isn’t bouncing back to pre-recession levels – but it is gradually improving.

“Because so many companies cut back last year on travel, going into this year there’s a significant amount of pent-up demand for businesses to get out there and meet with their customers, to try to drive sales,” Eastlund told the Post.

Edited: January 28th, 2010

How to avoid airports’ sky-high car rentals

The best rate Darren Popik could find on a weekend car rental at Austin-Bergstrom International Airport recently was $114. So he decided to look elsewhere.

Popik, a Los Angeles-based blogger, widened his search to other car rental locations in the Texas capital. And he found a lower price through Enterprise Rent-a-Car. “It was a much better deal,” he said.

No kidding. At $38 — just one-third the airport rate — it was a steal.

At a time when rental rates are climbing, Popik is one of many travelers who have discovered that it pays to cast a wide net when you’re looking for affordable wheels.

Why such a dramatic price difference between on-airport and off-airport locations? Local taxes and airport concession fees, according to Robert Barton, president of the American Car Rental Association. The fees cover the companies’ costs of renting airport facilities and of shuttle services to and from the terminal for customers, but the taxes can fund local projects that may or may not have anything to do with airport users.

“It’s taxation without representation,” he said.

Take Barton’s recent two-day rental at Phoenix Sky Harbor International Airport, for which he paid $27. After a 5 percent vehicle license fee, a 10 percent concession fee, a $12 airport fee and a 77 cent-per-day “tourism” fee were extracted from the price, only about half of the rate went to his car rental company.

Neil Abrams, a car rental analyst with the Purchase, N.Y.-based Abrams Consulting Group, says that the rate difference between an airport and off-airport location has historically been “substantial.” For example, the average weekly rate on a compact car — the kind many leisure travelers prefer — was $363 at an airport, according to a survey his company recently conducted. By comparison, the same rental taken off-airport cost just $202.

“The rate difference is pretty constant,” he says. But as car rental rates rise, more travelers begin looking for other ways to get around.

The extra airport fees and taxes, he adds, put airport-based car rental franchises “at a competitive disadvantage.” That’s bad news for the car rental company, but good news for you.

Except when it isn’t.

In some cities, renting at an airport makes sense almost every time. Denver comes to mind. When Amy Pollick hired a car in the Mile-High City recently, in-town rentals were “unbelievably cheaper,” she said.

“Trouble is, my only friend in Denver wasn’t in town to meet us at the airport and take us to the office,” recalled Pollick, who works for a newspaper in Decatur, Ala. “Cab fare to and from the airport would have completely wiped out any savings we realized.”

Sometimes, it isn’t the distance to the airport so much as it is the duration of the rental that matters. Jeff Tucker, a technology consultant who lives in Hawaii, frequently rents cars in Seattle.

“You can rent cars in nearby Kent and save a bundle on taxes,” he said. “Unfortunately, they couldn’t shuttle you to and from the airport, so you had to take a cab.” For a short-term rental, it’s not worth it. “But if you’re staying for several days, that often pays off,” he added.

The other issue is convenience. Rent a car that’s miles away from the airport, and you could save a lot of money. But if your flight leaves around rush hour and you don’t give yourself enough time to return the vehicle, you might also miss your plane. That’s happened to me a time or two.

We shouldn’t have to be making these calculations, of course. We should be able to rent from the airport at a fair price when we’re flying into town. I can’t think of any other business that routinely doubles its rates between stores without breaking the law.

Any other business would be prosecuted for price gouging. There’s just one thing: Car rental companies aren’t doing this. The taxes and fees are for the most part being added by airports and municipalities, which makes these higher prices perfectly legal.

I think most travelers expect gas to cost a little more in certain neighborhoods and a little less in others. They anticipate price fluctuations on restaurant meals, groceries and other items they might buy while they’re on the road. But the exorbitant airport markup on rental cars defies reason and takes advantage of the people who are bringing tourism dollars to a destination: you.

Unfortunately, there’s little travelers can do to help narrow this unacceptable price difference. Until motorists refuse to rent their cars at the airport, which is unlikely, airports and counties will continue overtaxing their passengers, to the detriment of car rental companies, and us.

Elliott is the reader advocate for National Geographic Traveler magazine. His syndicated column runs weekly at seattletimes.com/travel. Contact him at celliott@ngs.org.

Edited: January 28th, 2010

Open IZOD Test at Barber Motorsports Park

In preparation for the 2010 IZOD IndyCar Series, race teams will participate in an Open Test Feb. 24-25 at Barber Motorsports Park.

The focus of the test will be to prepare teams for the inaugural Indy Grand Prix of Alabama, which will be contested April 9-11.

The road-course wil also help for other courses early in the season such at St. Petersburg and Sau Paulo.

After the two-day IndyCar test, the Firestone Indy Lights teams will test at the facility in February.

After a Preseason Photo/Video Day on Feb. 23, IndyCars will take to the grid from 9 a.m. to 5 p.m. daily with a one-hour noon lunch and media break.

Teams will test under the same format on the second day and the two fastest drivers each day will address the media at the end of each tests.

The Firestone Indy Lights will test Feb…. from 9 a.m. to 5 p.m. with a one-hour noon lunch break in between.

Edited: January 28th, 2010