Author: Alicia

  • News: Cruise industry highlights continuing efforts to guard environments where it operates

    In celebration of Earth Day, Cruise Lines International Association (CLIA) today highlighted the continued efforts of its member lines to give protection to the sea environment.

    CLIA and its members lines have a vested interest in protecting the surroundings, not just as it is the responsible thing to do – but in addition because clean oceans and beaches are necessary to the cruise experience.  The international environmental standards that apply to the cruise line industry are stringent and comprehensive and are established by the International Maritime Organisation (IMO), a United Nations agency, in addition to national laws of port States where cruise ships visit.  The cruise industry, however, employs practices and procedures which are substantially more protective of our surroundings than are required by regulation and CLIA member lines must meet and frequently exceed all applicable environmental regulations on a ship’s voyage.

    CLIA members were on the forefront of wastewater treatment, emissions reduction and the construction of innovative technologies to further reduce the environmental impact of boating.

    “I am extremely pleased with the extensive investments and ongoing commitment of our member lines to safeguard the surroundings for future generations through responsible practices and continuous innovation,” said Christine Duffy , president and CEO of CLIA.  “The cruise industry has invested extensively to develop and implement wide variety of recent technologies that protect air and water quality and increase energy efficiency.”

    Energy efficiency is an important focus of the cruise industry, which has adopted practices similar to using recycled hot water to heat passenger cabins, using special window tinting to maintain passageways cooler while using less air con, and switching to low energy LED lights which last 25 times longer, use 80% less energy, and generate 50% less heat.  All of those efforts also reduce air emissions.  CLIA members have invested significantly over the past decade to develop and implement new technologies that help to minimize air emissions, including utilising exhaust gas scrubbers, developing engines that run more efficiently and extending using shore power, which involves a boat connecting to shore-side power and closing down its own engines while in port.
    Working with the IMO, america and other flag and port States, CLIA has participated within the development of consistent and uniform international standards governing waste management that apply to all member ships that travel internationally.  CLIA members have also adopted the Cruise Industry Waste Management Practices and Procedures, that are much more protective than the present regulatory requirements.

    Many CLIA member lines offer programs to elevate passenger awareness and to encourage them to conserve energy and contribute to the industry’s environmental stewardship efforts by recycling paper, plastic, aluminum cans and glass by utilizing dedicated bins inside the ship.  Passengers also are encouraged to maintain energy like they might do at home, resembling turning off lights when not of their cabins.

    Additional initiatives and practices in place at CLIA member lines include the next:
    *  Several lines are in various stages of utilising advanced wastewater treatment systems which might produce water cleaner than most wastewater treatment facilities in U.S. cities.
    *  One member line has installed solar panels on five ships — and on one ship over 200 solar panels were installed, which generate enough power to function approximately 7,000 LED lights.
    *  a variety of member lines use fabric bags – including laundry, dry cleaning, and shoe shine bags – in lieu of plastic bags, thereby reducing plastic from the waste stream.
    *  Many lines are using ecological, non-toxic, slick hull coatings that save up to 5% of fuel usage for propulsion.
    *  Condensation from shipboard aircon units is reclaimed after which re-used to scrub the decks on a CLIA member line’s ships, saving as much as 22.3 million gallons of unpolluted water in 2012 alone.
    *  One CLIA member line saves paper by means of an E-Tickets program which delivers cruise documents to guests electronically in place of on paper. The passengers cruise documents are delivered as a PDF file through email.
    *  Various ships are installing high-efficiency appliances onboard their ships with a purpose to minimise their impact at the environment. All types of appliance onboard the ships is evaluated for efficiency, including TV’s, coffee makers, ovens and dishwashers.
    *  One CLIA member line is self-generating 87% of the water used on board its ships, compared with 65% in 2008.
    *  One CLIA member line introduced a revolutionary system for fresh water production that consumes 40% less power than traditional systems.
    *  Current shipboard recycling programs onboard one line’s ships eliminates greater than 900 a whole lot metal, glass, plastic and paper — approximately 45% of all solid waste generated — from traditional waste streams annually.
    *  Through its robust waste management programs, one line has increased its waste recycled and reused by over 75% while reducing the volume of waste going to landfill by over 50% formerly five years.

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  • EoN Resorts to bring Atmosphere to Maldives

    New Indian Ocean resort brand Atmosphere, promoted by the renowned Maldivian resort developer EoN Resorts, will launch the 1st of its properties within the Maldives this year.

    The Atmosphere brand will offer a completely unique and native experience immersing travellers within the natural and cultural environment of the Indian Ocean.

    Whether within the Maldives, Sri Lanka, India or the Seychelles, Atmosphere will showcase the wealthy culture of the region and heat of the folk.

    Atmospheres’ strapline, Art of Balance, highlights the brand’s emphasis on offering the superbly balanced trip of a life-time incorporating tranquillity, fun and usefulness for money.

    “We feel there’s a gap out there for an area resort brand during this region offering all it’s wonderful from the Indian Ocean. Atmosphere is the solution to this gap and we’re excited to announce the launch to the united kingdom market, said Salil Panigrahi, EoN Resorts’ chief operating officer.

    “There are numerous new resorts planned under the ambience brand and we’re delighted to announce that our first property opens later this year”, he continues.

    Atmosphere Kanifushi Maldives would be the first resort to open under the ambience brand.

    Located within the spectacular and sparsely populated Lhaviyani Atoll, the five star property is because of open in November 2013.

    EoN Resorts have been the motive force behind the various most successful resorts within the Maldives including Island Hideaway, Constance Halaveli, Jumeirah Dhevanafushi, Jumeirah Vittaveli and Viceroy Maldives.

  • Foreign investment floods into Montenegrin tourism

    After gaining independence in 2006, Montenegro, a rustic half the scale of Wales and with a population of just 625,000 has attracted over €4 billion in foreign investment, and now has investors from over 100 countries all over the world.

    The latest property development funded by British private equity company, the Boka Group – who’ve themselves managed over €1 billion of development value within the country, celebrated the beginning of construction on its latest scheme of luxury villas overlooking Kotor Bay last week, marking the beginning with a foundation stone ceremony attended by the mayor of Kotor.

    Speaking recently minister of sustainable development and tourism, Branimir Gvozdenović said: “It is a simple country during which to do business and visit.

    “We desire to take care of luxury tourism and accomplish a high standard of service to present us a competitive advantage.

    “We are very proud that we’ve investors from 107 countries around the globe.

    “Only two years after independence, foreign direct investment had increased near 1 billion euro, in comparison with ten million euro only seven years before.”

    The minister also stressed: “Not only will Montenegro have the ability to offer prime quality accommodation, it also offers a various experience- in a brief expanse of time, you’re able to visit the coast, the canyons inland, Lake Skadar and the mountains.”

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  • News: Travelocity Business adds risk management services for global customers

    Travelocity Business (www.travelocitybusiness.com) announced today it might begin featuring risk management information provided by iJET International, Inc., an industry leading risk management solution provider. iJET’s, global intelligence, technology and response operations will provide peace of mind to Travelocity Business’ travelers by helping them to anticipate and get ready for threats in addition to providing access to worldwide response services when required. 

    “iJET is a natural fit with our offerings to Travelocity Business customers,” said Yannis Karmis , president of Travelocity Business.  “Our customers have travelers crossing the globe and having a risk management plan in place is imperative for today’s business traveler.  We glance forward to working with iJET’s experienced team to verify we provide the finest risk management solutions to our customers.”

    iJET is definitely one of the largest travel risk management firms inside the U.S. and its services at the moment are available to Travelocity Business customers.
    iJET might be providing Travelocity Business customers a comprehensive package of essential travel risk management services, including:
    Alerts, in accordance with their itinerary detail, are sent to travelers at time of booking

    Traveler tracking, emergency communications and monitoring services via iJET’s Worldcue Global Control Center
    Worldcue Planner intelligence database, the “know-before-you-go” resource, covering ten threat categories for every of over 400 global locations, helps travelers prepare and choose whether and when to book their trips

    Daily Intelligence Briefings and Monthly Intelligence Forecasts keep travel and security executives informed of world events and trends

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  • News: Fitch upgrades Avis Budget Group’s ratings

    Fitch Ratings has upgraded the Issuer Default Rating (IDR), senior secured, and senior unsecured ratings of Avis Budget Group, Inc. (ABG) and its various Fitch-rated subsidiaries following the completion of its auto rental and fleet leasing peer review. The Rating Outlook is Stable.

    RATING ACTION RATIONALE

    The upgrades to the IDR are supported by the strength of ABG’s dual brand strategy, its leading position within the on-airport rental market and record operating leads to 2012. ABG’s liquidity profile is powerful given increased EBITDA and operating cash generation, in addition to improved access to the capital markets. Fitch believes ABG currently has a more flexible business model than before the last downturn via its improvements in revenue and supplier diversity, operating leverage, liquidity and funding. As a result upgrade, Fitch not deems it essential to assign specific Recovery Ratings to the senior secured and unsecured debt, because the relative notching of the ratings to the IDR is reflective of its potential default risk for these classes of debt.

    Rating constraints include cyclicality of the business and its susceptibility to potential slowdowns in travel volumes, and reliance on predominantly secured funding. While ABG remains liable to pricing pressures and passenger volumes in air travel, Fitch believes the corporate is best equipped to control cyclical downturns and maintain positive earnings, barring extreme disruptions in vehicle prices and suppliers, which might raise fleet costs beyond levels that can’t be passed directly to renters.

    The Stable Outlook reflects Fitch’s expectation for continued access to the capital markets through various market cycles, strong liquidity, consistent operating cash flow generation, and continued earnings growth in 2013 supported by incremental EBITDA generation and improved operating leverage.

    KEY RATING DRIVERS

    Operating Performance
    ABG achieved record operating performance in 2012 as net income grew 25% to $7.4 billion due to the substantial growth within the international segment because of the Avis Europe acquisition in 2011. Adjusted EBITDA for the entire year 2012 improved 33% to $802 million when compared with $605 million in 2011 on higher revenues and lower fleet costs. Fitch expects operating performance will continue to enhance as ABG further benefits from improved operating leverage caused by integration of Avis Europe in addition to its recent acquisition of Zipcar, Inc. (ZIP) in March 2013 for $500 million. ABG expects pro forma adjusted EBITDA to be $917 million, assuming $60 million of synergies, $17 million of adjusted EBITDA from ZIP, and last 12-month ABG adjusted EBITDA of $840 million. Excluding expected synergies, Fitch expects pro forma consolidated adjusted EBITDA to range between $742 million and $842 million in line with the company’s guidance for standalone adjusted EBITDA for 2013. Given strong residual values, cost reduction efforts, improved supplier diversity and expansion of ancillary revenue products, Fitch believes ABG’s earnings forecasts are achievable.

    Liquidity and Funding
    Fitch believes ABG’s liquidity profile is powerful given increased EBITDA, operating cash generation, and improved capital markets access. At year-end 2012, the corporate had $606 million of unrestricted cash, and nearly $3.4 billion of availability under its various financing arrangements. In the course of the first quarter of 2013, ABG raised approximately $685 million of corporate debt in aggregate and increased its European securitization by approximately $195 million to fund the ZIP acquisition, refinance existing debt at more attractive terms, and to fund peak seasonal vehicle purchases.

    The company’s funding profile is predominantly secured and ABG remains primarily reliant on secured corporate debt and securitizations. On a professional forma basis as of Dec. 31, 2012, vehicle-backed debt of $7.0 billion and secured corporate debt of $949 million together represent approximately 75% of total long-term debt. Fitch would view a rise of unsecured debt in ABG’s funding mix positively, because it would add additional flexibility to the company’s overall funding profile.

    Capitalisation and Leverage
    As a function of money flow leverage, total debt to EBITDA improved to a few.77x in 2012 in comparison to 3.83x in 2011. Excluding vehicle debt and related interest expense in addition to noncash vehicle depreciation, corporate debt to adjusted EBITDA declined to three.62x in 2012 in comparison to 5.30x one-year prior. The advance in corporate leverage was driven by a mix of incremental earnings and lower corporate debt balances through deleveraging. Balance sheet leverage, as measured by total debt to equity, improved significantly to twelve.83x at year-end 2012 from 21.28x in 2011 because of increased retained earnings through the period.

    Given the extra $685 million of corporate debt raises to fund the ZIP acquisition and refinance existing debt, pro forma consolidated leverage would range between 4.26x and four.84x on a company debt to adjusted EBITDA basis. This incorporates Fitch’s expectation for ABG’s pro forma adjusted EBITDA projected for 2013, assuming no advantage of expected $60 million of midpoint synergies. ABG manages its leverage from a company leverage standpoint, net of balance sheet cash. Pro forma consolidated leverage, net of money, would range between 3.37x and three.82x, which remains in step with the company’s articulated target of between 3x and 4x. Fitch believes the incremental leverage ABG undertook to obtain ZIP was reasonable and is neutral to the company’s overall credit profile.

    SUBSIDIARY AND AFFILIATED COMPANY RATING DRIVERS AND SENSITIVITIES

    Avis Budget Finance PLC and Avis Budget Car Rental LLC are wholly-owned subsidiaries of ABG. The ratings are aligned with that of ABG due to the unconditional guarantee provided by ABG and its various subsidiaries. Therefore, the ratings are sensitive to the identical factors that will drive a transformation in ABG’s IDR.

    RATING SENSITIVITIES – IDRS, SENIOR DEBT

    Fitch believes that positive ratings momentum is restricted within the near term, although over the long run, ratings might be positively influenced by sustained improvements in leverage and liquidity, maintaining appropriate capitalization, and economic access to the capital markets. Additionally, ABG’s ability to gain operating synergies from its recent ZIP acquisition and successfully leverage the logo into stronger earnings performance over the years would even be viewed positively by Fitch.

    Conversely, negative rating actions will be driven by material deterioration in revenue and cash flow generation due to a decline in passenger volumes, rental rates and used car values, which might impair ABG’s access to funding, liquidity, and/or capitalization. Leverage remaining at materially higher levels, reduced commitment by management to lessen leverage, or an inability to generate incremental revenues from ZIP may also yield negative rating actions.

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