Market Ripe For More BarterUtah's Ski Resorts
businesses, due to the hubbub of the coming 2002 Winter
Olympics, has many of Utah's ski resort owners scratching
their heads. They had expected a windfall to their area,
but now it has become a different story, as once-loyal
customers are expected to be heading to Colorado or Canada.
spokesman for Ski Utah, the state's ski-industry trade
group, says some resorts are bracing for revenue to drop
40% or more next year. As a result, ski reports and hotels
are planning a big marketing effort to lure consumers
onto their slopes next season.
Similar Situation Exists On Famed Catalina Island
Island, just 26 miles from the California coastline, has
long been considered a jewel for Southern Californians.
It serves as a perpetual getaway for the mainland residents
who make up more than 70% of its visitors.
things have changed, Catalina faces a lethargic economy
and dwindling visitor counts. Plus there is mounting competition
for tourists' dollars in Southern California. Annual visitors
are down 15% and hotel occupancy rates are down 20%! (The
Island is up against overnight destinations such as San
Diego, Santa Barbara, and Palm Springs.)
the circumstances are different, one fact remains: barter
can be a tool to facilitate greater tourism and generate
which still owns 32,212,199 common shares of Priceline.com as
a result of being the first major carrier to agree to work with
them, saw the price of shares rise to $9.91 this month. A considerable
increase from its low of $2.31 a share. (Priceline's high was
$104.00 a share.)
Andy Granatelli's home in Montecito (cover story #46 of BarterNews)
has been sold for $30 million. Granatelli's ubiquitous STP ads
in the '50s were often acquired on trade. He made millions selling
the additive and built several multi-million dollar estates.
Granatelli sold his home outside of Santa Barbara to James Q.
Crow, the founder and CEO of Level 3 Communications, a telecommunications
company based in Westminister (CO)
the location for this
year's IRTA convention.
Crow's company, having recently fallen on hard times, has not
re-sold the home to Frank J. Caulfield, a venture capitalist from
the Silicon Valley.
- Business Travel
Coalition, based in Pennsylvania, reports in a survey of executives
at 62 major companies, including big travel customers like Black &
Decker and DaimlerChrysler, that travel budgets have been slashed
an average of 28%, with some up to 60%. More telling, however, is
that 86% of the companies called their cuts "permanent."
Furthermore, almost 40% of the companies are now encouraging employees
to drive whenever possible if the trip is less than 500 miles. Reason?
Air travel has become increasingly crowded, unpleasant, and expensive.
Bottomline message. When the economy firms back up, there will not
be the snap-back in business travel that there has been in previous
- A federal mediator
has told California Gray Davis that he should consider "non-cash
ways" for the repayment of some $9 billion that the State was
overcharged by the power sellers. The mediator will make the decision
on what will be used as payment, if the energy companies and the Governor
can't negotiate a settlement by a coming deadline.
- Known as "integrated
marketing" in publishing jargon, it can also be identified as
a barter deal
as magazines are working harder than ever to sell
advertising, and trading on a host of marketing ploys to do so.
Among the extra services for advertisers are proprietary research
and co-sponsorship of events, specially design and written research
by the magazine for the advertiser, providing speakers to annual meetings,
and help in customizing gifts to send to readers. It's a sign of the
lean times in selling ad space.
- More frequent
flier miles will be added to the $80 billion airline currency (4 trillion
airline miles at 2 cents each) now that American Airlines has settled
two lengthy frequent-flier lawsuits by agreeing to award extra miles
to four million eligible members.
American Airlines was charged with changing the terms of its AAdvantage
frequent-flier program in 1988 and 1995. (Only 28^% of those eligible
put in a claim for their awards.)
- Leaders from
the Caribbean nations have agreed to remove the last of the restrictions
blocking the free movement of money, goods, and services in the regionthe
final steps toward the creation of European style single market.
This means the region will now integrate into the global economy and
the Free Trade Area of the Americasa proposed duty-free zone
that would stretch from Alaska to Argentina. (The idea of a Caribbean
common market was originally floated in 1989, and was supposed to
have been enacted by 1993.)
- The Financial
Accounting Standards Board (FASB) voted unanimously, as expected,
to enact new standards which eliminate the "pooling of interests"
accounting treatment for merging companies. The change means many
things, one of them will be the use of more cash in the acquisition
rather than a company's stock.
Opposition to the elimination of pooling faded when the accounting
rule makers proposed eliminating goodwill amortization. So the old
approach of amortizing goodwill for up to 40 years is gone.
Rather, companies now must subject the acquired goodwill to an annual
"impairment test," aimed at determining whether there has
been a decline in the value of that goodwill. Write-offs would be
required only if the value has been impairedreducing the goodwill
assets to fair value.