AIR FARES - GOING UP!

Not a Surprise: Airfares Are Going Up Right Along with Fuel Prices. Not only are rising oil prices triggering fuel surcharges, but they are also being passed on to global consumers in the form of higher fares. According to the American Express European Corporate Travel Index, transatlantic fares increased by a whopping 20.5 percent in economy class during the second quarter of 2000. Average fares for first class, business class and economy, from Western Europe to the rest of the world, increased by 3.6 percent, 1.7 percent and 2.6 percent respectively. The rising cost of fuel will likely hit no-frills carriers hardest, forcing them to raise fares more in line with their larger competitors, which have more leverage in buying fuel than independent airlines. Travel managers doing budgeting for 2001 should be aware that because surcharges do not reflect an actual change in ticket prices that they may significantly underestimate the real cost of air travel.

Adding to the Squeeze on Travel Budgets: Corporations are having a tougher time negotiating route deals than before. According to Matthew Davis, director of consulting services at American Express in London, ''Low fuel inventories have sharpened price pressures-the full effect of which is still to come and airlines are policing volume agreements more rigorously."

Dealing with Fare Hikes by Cross-border Hubbing. It is now common practice for U.K. executives to fly via a continental hub. A company can save 35 percent by sending an executive business class from London to Los Angeles via Paris instead of flying direct- a $5,800 rather than $8,700 fare, or save even more - 61 percent - by flying via Amsterdam.

Are Internet Fares As Cheap as Advertised? Hardly, Says Consumer Reports. As the popularity of online travel services skyrockets, consumer advocates, elected officials and The U.S. Department of Transportation are raising questions about the possible bias of Internet sites that may ultimately mislead or overcharge the consumer. A new study by Consumer Reports Travel Letter found compelling evidence that major online agencies, such as Travelocity and Expedia, are not offering the lowest possible fares and best travel options as advertised. ''The Internet is an exciting new tool, but it's no more likely to garner you the best airfare than a low-tech telephone," the article stated. "Travel sites don't easily, fairly and thoroughly deliver'' lowest possible fares and full flight options. The full critique is available at <www.consumerreports.org>. At the very least, travel Web sites should be compelled to disclose their biases, including preferential treatment for advertisers, so consumers can make an educated choice, consumer advocates say.

HIGH SPEED INTERNET ACCESS

More Hotels Provide High-Speed Internet Access. CAIS Internet, Inc., a leading provider of broadband networks, is expanding its two-year-old relationship with Hilton Hotels Corporation. Under a new agreement CAIS will provide high-speed Internet access and wide area network (WAN) data services to all the properties in the Hilton portfolio, which includes Hilton, Garden Inns, Embassy Suites, Doubletree Suites and Hampton Inns. CAIS Internet currently is the preferred vendor for more than 1.1 million hotel rooms in 9,900 properties, many of which also offer CAIS products in meeting rooms and IPORT lobby kiosks. For a list of hotels and airports with CAIS high speed capability, visit the CAIS web site at <www.cais.com>.

Cathy Pacific to Install High-Speed In-Flight E-Mail Capability. Cathay Pacific is installing in-seat power systems and adding in-flight e-mail capability in all newly-acquired aircraft as well some of the existing fleet in the first quarter of 2001. The airline says the move will expand the number of aircraft with high-speed in-flight email services and in-seat power to 62. Services targeting the frequent business traveler include in-flight transmission and receipt of emails and attachments, and an intranet providing Web content and e-commerce capability. The in-flight system will operate at 30 times the speed of a normal modem; an in-seat data system will also provide DC-power outlets allowing all passengers to plug in and recharge their computers.

ROAD WARRIOR RESOURCES

Ask Dr. Tech, a new 24/7/365 computer tech-support service, works similar to AAA's roadside assistance plan. The service, accessible by phone or Internet, is designed for travelers whose IT service desks (if there are any) are only open during business hours and/or who would rather not pay Microsoft, IBM et al the usual $25-$35 "per incident" fee for help with a hardware, software or peripheral problem. An unlimited services package costs $49 per year. For $79, the company will also cover a computer and peripherals for up to $25,000 against theft, virus and hacker intrusion. Ask Dr. Tech can be ordered from SkyMall(R) (best known as the catalogue you find in airline seat pockets along with the in-flight magazine and aircraft safety card). For information: <www.askdrtech.com>.

<www.OAG.com>, offers Web access to the OAG ``Flight Engine,'' a database of 800+ airlines, and OAG E-Notification, a service that provides critical details about the status of a current flight via e-mail, mobile phone, pager and/or PDA. Unlike other travel notification services, an OAG spokesperson claimed, any registered OAG.com visitor can use the OAG E-Notification service, regardless of where or how the flight is actually booked. OAG.com users also have the flexibility to determine how frequently they will receive the flight status notification and arrange for this information to be sent to both a mobile device and personal or corporate e-mail account. The new site includes value-added ``sticky'' content such as the on-line version of Frequent Flyer, as well as the opportunity to subscribe to the bi-weekly newsletter, Frequent Flyer Update.