December 12, 2013 
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In This Week's Issue:

Making Marriott's Expansion Work

Growing in Latin America means changing the company's corporate makeup.

 

U.S. hotel behemoth Marriott International is concentrating much of its future growth plans on markets outside its home territory, including Latin America and the Caribbean. It plans to at least double its

Courtesy Marriott
Craig Smith
presence in the region during the next four years, to 150 hotels. To do so successfully, the company is building its brand equity in the region, working with local partners and changing the makeup of its management team for the region, and in the hotels.

 

Latin Business Traveler sat down with Craig Smith, Marriott International's president for Latin America and the Caribbean, to talk about the company's Latin American strategy. You can watch the full interview on YouTube. 

 

LBT: Do you anticipate that most of the hotels Marriott opens in the region will be company-owned or franchised?

Craig Smith: Most of the properties outside the United States are owned by other parties. We usually have partners that are local, that understand how to build and develop. What we do is bring our expertise and our platform for sales and marketing.

 

LBT: Have you been able to find good local partners?

Smith: Oh, we have. ... There's quite a few franchisee partners in this part of the world that have the local knowledge and are able to move quickly. 

  

Marriott Hotel in Lima
LBT: Are there any particular brands that you think are going to be the strongest for growth in Latin America?

Smith: Our mothership of our brand is Marriott, and the good news for us right now is the company is pouring a lot of money and attention into revitalizing our Marriott name. ... The JW Marriott brand's been very successful in this part of the world. People are looking for that elegant luxury. Courtyard will be another one (Courtyard by Marriott). When we look at the secondary and tertiary markets ... we have lots of opportunities, where you maybe can't afford to put a full-service Marriott hotel [because] you wouldn't fill it up, but you would with a Courtyard or even a Fairfield Inn.

 

LBT: Your group at Marriott also brings a lot of expertise in the region, because of some strategic hiring decisions, right?

Smith: They wanted a team that understood the region and was able to take what is the best of Marriott and ... they also wanted it to be local, to understand how to do business in the local environment and how to succeed in it. And that was something that may have been lacking [in the past]. We were very much an American company doing business in Latin America. We are now a global company working with people in Latin America. Now, our entire team is at least bilingual, and all of them have lived overseas. ... We've got some very good people [at Marriott], but if they don't speak Spanish and haven't lived overseas, we'll take a pass. ... Language is the entry to understanding the culture.

 

Marriott Plaza Hotel 
in Buenos Aires

We want people that we can teach the technical side [of the industry], but you really need to understand [the culture]. And the same with the hotels. Our diversity goals for our region is really about localizing positions, getting more general managers that are from the countries that we have hotels in.

 

LBT: Are you able to find the right people to hire in-country?

Smith: We're finding great talent, and we need to continue to try to get out of our old paradigms of where we look for talent.

 

LBT: So how do you fit into this?

Smith: I grew up in this part of the world. As a child I lived in Latin America and then Eastern Europe. When Marriott found out that I had experience and I spoke Spanish, I was shipped off, five years into my career, to Latin America and the Caribbean. I spent about 12 years here. 

  

Watch LBT's expanded interview with Marriott's Craig Smith, including more about how he finds the right talent in Latin America, Marriott's growth plans in the region, Millennial travelers, how social media is influencing hotel service and more.   

 

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News from our Partners
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  Delta

 

Delta announces new Saturday seasonal flights from New York's JFK to Caribbean: Added roundtrip service to Grenada January 11-August 30, to Antigua July 5-August 16 and to Providenciales, Turks and Caicos March 8-August 30. 

 

Delta expands Atlanta to Freeport, Bahamas service: Service between Freeport and the airline's U.S. hub in Atlanta, Georgia will expand to daily flight between December 19, 2013 and August 18, 2014. 

 

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Travel News
                                                

American Airlines and US Airways Merge   

American Airlines and US Airways have officially merged. The two large U.S. carriers now make up the world's largest airline, under the company name American Airlines Group. Although the full merger of the two airlines is expected to take up to two years, US Airways plans to leave the Star Alliance on March 30 and enter oneworld, which American is already part of. For now, the two airlines continue to operate as separate entities.

The company expects to begin reciprocal loyalty program benefits by January, when fliers should be able to earn and redeem frequent flier miles on either airline, enjoy elite status recognition on either airline and access reciprocal American Admirals Club and US Airways Club benefits. 

 

The new American Airlines Group has nearly 6,700 daily flights and services more than 330 destinations in 50 countries. 

 

New Airline Routes and Route Changes

South America

A new airline has launched in Bolivia: Cochabamba-based Linea Aerea EcoJet began scheduled passenger flights with four 93-seat Avro RJ85 aircraft. The airline flies daily between the Bolivian capital of Sucre and Cochabamba and between Sucre and Santa Cruz, Bolivia. It also runs three weekly round-trip flights each between Cochabamba and the Bolivian cities of Riberalta and Trinidad. The airline also flies from Cochabamba to the Bolivian cities of Potosí, La Paz, Cobija and Guayaramerín.

Aruba

 

LAN Airlines introduced new nonstop service between Bogotá and Aruba, on Mondays and Thursdays. 

 

Mexico

Mexico-based Volaris launched four new routes within Mexico: Wednesday and Saturday, it now flies between San Luis Potosi and Cancun and between Hermosillo and Cancun; Thursday and Sunday, it now flies between Veracruz and Cancun and from Cancun to Mexicali; Monday and Friday, it offers flights from Mexicali to Cancun.

 

Interjet, the low-cost Mexico-based airline, began twice weekly flights between Guadalajara, Mexico and San Antonio, Texas (U.S.)

 

Caribbean

JetBlue Airways began daily flights between Port-au-Prince, Haiti and New York's John F.

LaGuardia Airport

Kennedy International Airport. The U.S.-based airline also began twice-daily flights between Port-au-Prince and Fort Lauderdale-Hollywood International Airport in South Florida.

 

International Connections

As part of the American Airlines-US Airways merger, American will transfer 17 slot pairs at New York's LaGuardia Airport to Southwest Airlines and Virgin America. Virgin America's six pairs will allow it to service LaGuardia for the first time. 

 

Airline Alliance News

A new interline ticketing agreement between JetBlue Airways and Silver Airways allows passengers to connect more easily between the two U.S.-based carriers' networks via airports in the Florida cities of Fort Lauderdale, Orlando, Tampa and Fort Myers. 

 

Other Airline News

Private equity firm Indigo Partners finalized its purchase of Denver-based Frontier Airlines from Republic Airways Holdings. The airline will continue to be based in Denver (Colorado, U.S.)

 

New TSA Pre-check Options

The U.S. Transportation Security Administration began taking direct applications for its Pre-check expedited security screening program. Pre-check allows U.S. citizens to use expedited security lines; leave on shoes, lightweight jackets, sweaters and belts; and keep laptops and liquids or gels in their carry-ons. Previously, passengers could only apply to Pre-check if they were already part of certain frequent flier programs or the U.S. Customs and Border Protection's Global Entry program. Now, U.S. citizens can apply directly by first filling out an initial application online at tsa.gov and then visiting an application center to provide additional identity and fingerprint information. Currently, the only application site is at Indianapolis International Airport in Indiana, although the TSA expects to open centers in the New York City, Los Angeles and Washington, D.C. metro areas before the end of the year.

Allure Bonbon

 

Hotel News

Karisma Hotels & Resorts launched its new Allure by Karisma brand of boutique city hotels with the opening of the 14-room Allure Bonbon and the 33-room Allure Chocolat in Cartagena, Colombia. Both hotels are in the Zona Rosa section of Cartagena, near the convention center, and offer free in-room Wi-Fi. The Allure Chocolat has a restaurant and an events terrace with capacity for up to 110 people, as well as a business center, conference room and gym.

 

The 103-room Grand Residences Riviera Cancun opened in Puerto Morelos. The condominium resort includes complimentary Wi-Fi throughout, as well as a private beach, spa and fitness center.

 

The 238-room Riu Palace Jamaica opened near Montego Bay. The adults-only all-inclusive resort includes free in-room Wi-Fi, five restaurants, a gym and access to amenities at the Riu Montego Bay, which is next door.

 

The Round Hill Hotel and Villas completed a renovation, including refurbishing and updating of villas, a redesigned lobby garden and expanded vegetable garden.

 

Sandals Resorts International will spend US$125 million to refurbish and rebrand the Grand Pineapple Beach Antigua, turning it into a Beaches resort.

 

The 100-room Hotel Boutique opened in New York City near Manhattan's Grand Central Station. Rooms include free Wi-Fi and bottled water, and a guest lounge offers complimentary coffee, wireless printing and charging stations.

Hyatt Times Square New York

 

The 487-room Hyatt Times Square New York opened on West 45th Street. The newly-built, 54-story, hotel includes two restaurants (one on its rooftop, with a lounge overlooking Times Square), a fitness center. Its 8,000 square feet of flexible meeting space, in six rooms, includes a 2,000-square-foot ballroom and a 1,400-square-foot outdoor terrace. A spa is expected to open soon.

 

Also in New York City, The William hotel will open on January 6 near Bryant Park. For extended stays only, the property has a minimum stay of 30 nights. The 33-suite William targets upscale travelers with amenities such as two restaurants and personalized recommendations for restaurants, shopping and sights.

 

The Staybridge Suites Atlanta Airport hotel opened 2.75 miles from Hartsfield-Jackson Atlanta International Airport. The InterContinental Hotels Group property has 149 suites with work separate work areas and fully equipped kitchens, as well as 4,500 square feet of flexible meeting space across five rooms.

 

National Car Rental

Loyalty Program News

For bookings made by January 31, American Airlines is offering certain award flights bookings for fewer miles to members of its AAdvantage loyalty program who have an AAdvantage credit card from Citibank or American Express. Discounts, which apply to travel through March, range from 10% to 30% and apply only to certain destinations.

 

National Car Rental will no longer count rentals that earn airline or hotel points towards elite status in its Emerald Club loyalty program

 

The New American Airlines, courtesy American Airlines; Aruba by Roger Wollstadt; LaGuardia Airport by Douglas Palmer; Allure Bonbon Lobby, courtesy Karisma Hotels & Resorts; Hyatt Times Square New York, courtesy Hyatt Hotels and Resorts; National Car Rental by Atomic Taco
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