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KLM SAYS IT WILL RAISE AIR FARES

AMSTERDAM, the Netherlands - KLM Royal Dutch Airlines has said it will raise airfares by 1% to 3% this month in response to rising demand for air travel.

The higher rates will apply to all tickets worldwide, the airline said in a statement.

The Amsterdam-based air carrier has been suffering from a slump in international travel blamed on terrorism fears, the war in Iraq, the SARS virus, and an economic recession.

But KLM said it decided to introduce the higher rates because of "a positive outlook for bookings over the coming months."

The fare increases will apply to tickets purchased on or after August 17. The size of the increase will depend on the kind of ticket and the destination, the statement said.

KLM was acquired by Air France in April, forming the world's largest airline in terms of passenger ticket sales.

HOTEL CHAIN JOINS CHINA SOUTHERN LOYALTY PLAN

PASADENA - InterContinental Hotels Group has tied its Priority Club Rewards frequent guest program with China Southern Airlines' Sky Pearl Club frequent flyer program.

The scheme will allow members of both programs to earn and redeem airline miles or reward points when flying with over 40 airline partners or staying at any of the 3,500 InterContinental, Crowne Plaza, Holiday Inn, Express by Holiday Inn, Staybridge Suites and Candlewood Suites hotels worldwide.

The hotel group currently manages over 40 hotels in Greater China in major metropolitan markets including Beijing, Guangzhou, Hangzhou, Hong Kong, Shanghai, Shenzhen, Shenyang, Wuhan, and Zhengzhou.

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