World Travel Industry Update

July 16, 2008

Featured Articles This Issue

 

1.	Northwest News
2.	New Ticketing Policy for United
3.	Delta’s CEO Richard Anderson to Run Merged Airline
4.	Latest Airline Money-Maker: Boarding Passes
5.	Department of Transportation Tracking Airlines’ Fuel Cost and Consumption
6.	Staying at a Luxury Hotel? Don’t Expect Free Wi-Fi

1. Northwest News
Last week Northwest Airlines announced effective immediately for all domestic tickets booked on or after July 10 for travel on or after August 28, Northwest will charge $15 each way ($30 roundtrip) for the first checked bag.  The second bag fee is $25 each way.  The fee for the third or more bags is $100 per bag each way.  Northwest’s new fee applies to customers traveling within the United States and to/from Canada.  Full-fare coach passengers and frequent flier elites are exempt from the policy.  Other changes going into effect include the following: Effective July 9, the fee for domestic non-refundable ticket changes will increase from $100 to $150.  International ticket change fees will increase by an additional $50 to $150 per ticket, depending on class of service and other restrictions.  Effective for tickets issued on or after September 15, 2008, Northwest will charge $25 for domestic, $50 for Trans-Atlantic and $100 for Trans-Pacific WorldPerks Award tickets issued in North America. 

2. New Ticketing Policy for United
As part of United’s cost control efforts that are necessary to successfully compete in an industry challenged by record high fuel prices and a softening economy, United is applying advance ticketing requirements on most refundable fares with North America (U.S. and Canada) point-of-sale bookings.  For bookings made at least 3 days before departure, tickets must be issued 3 days prior to departure for First and Business and Normal Economy (Y,B) Classes.  For bookings made less than 3 days before departure, tickets must be issued within 24 hours of booking for First and Business and Normal Economy (Y,B) Classes.  For all other economy class fares tickets must be issued 24 hours after booking..

3. Delta’s CEO Richard Anderson to Run Merged Airline
Delta Air Lines CEO Richard Anderson will run the merged DL/Northwest Airlines out of Atlanta, the carriers announced yesterday as they unveiled the senior management team for what would be the world’s larges airline, saying the team will “ensure the seamless transition of Northwest’s operations into Delta over the next 12-24 months.”  Upon closing of the merger, Northwest will be an operating subsidiary of Delta run by current Delta President and CEO Ed Bastian, who will assume the titles of CEO and President of Northwest.  Current President and CEO Doug Steenland will vacate the post and sit on the Delta board.

4. Latest Airline Money-Maker: Boarding Passes
Five major US airlines have plans to start publishing ads on boarding passes that passengers print at home.  The airlines are Delta, Northwest, US, United and Continental.  The ads will have coupons, restaurant and shopping recommendations and lists of events.  Information will be based on destinations and duration of stay.  Passengers that want to save printer ink can still choose to print only the boarding pass.  Airports are also hoisting ads on electrical outlet stations and baggage carousel conveyor belts.  The Transportation Security Administration has also approved selling ads on the bins used at security checkpoints.     

5. Department of Transportation Tracking Airlines’ Fuel Cost and Consumption
The U.S. Department of Transportation’s Bureau of Transportation Statistics has unveiled an Airline Fuel Cost and Consumption web page.  It holds preliminary summary data on the industry’s monthly fuel costs and consumption.  In May, airlines spent $3.5 billion on nearly 1.6 billion gallons of fuel, paying $3.05 per gallon for domestic flights.  It spent $1.8 billion on 540 million gallons of fuel that cost $3.33 per gallon on international flights.  To review airline fuel cost and consumption visit www.transtats.bts.gov/fuel.asp 

6. Staying at a Luxury Hotel? Don’t Expect Free Wi-Fi
The more you pay for your room, the less likely you are to get free Wi-Fi.  That was the surprising finding from a recent survey of 10,000 hotels conducted by Smith Travel Research for the American Hotel & Lodging Association.  At the same time, wireless Internet access is becoming common.  It is offered by 91% of hotels, up 35% from four years ago, according to the survey.  The survey also found that charges for Internet access were most common at more expensive properties.  Other findings: fewer hotels are offering free breakfast; more hotels are charging for late cancellations; more hotels are offering allergy-free rooms.

 

Getting away used to be a luxury, however, in today’s world it has become a necessity.