Weekend Review: No-Frills Fares Go Transatlantic + Airbnb's Multiple Challenges

The Travel Industry's Daily Agenda-Setting Newsletter

April 7, 2018 View in browser

Editor's Note Checked bag fees are the gift that keeps on giving — to airlines that have bolstered their profits from them in recent years, and to headline writers who grab readers' attention because of passengers' distaste for these tacked-on expenses. These fees are starting to become a thing in transatlantic flying, as our story today describes. Business schools and pundits often advise companies that they should never forget to put their customers first or risk losing them, but bag fees turn that wisdom on its head. Moral of the story? When customers in some markets have few choices about which airline to fly, and most competitors are practicing the same policies, then carriers can get away with ramming bag fees down customers' throats. And then passengers eventually throw up their hands, and start to accept the fees as the new normal. Looks like some business text books need to get rewritten. — Dennis Schaal, Executive Editor Did You Miss the Latest Skift Research Report? There is not a one-size-fit-all method to how travel brands should approach Affluent Travelers, who account for 51% of travel-related spending. Subscribe to Skift Research today to learn more. Learn More Top Stories One Fallout From Long Haul Battle on Air Fares: No Free Checked Bag Low-fare airlines got there first. Now, big carriers are launching basic economy fares across the Atlantic. Expect some confusion as their customers figure out the rules. Why Qantas Flies a Nonstop Every Day Between New York and Los Angeles Tag flights — when an airline lands in one international city and then almost immediately takes off for another — are disappearing from aviation as more airlines launch ultra-long-haul nonstops that make the stop unnecessary. But Qantas will probably keep its Los Angeles-New York nonstop for awhile. Southwest Tries to Do More With Less Because of a Temporary Aircraft Shortage The conventional wisdom is that airline passengers will do anything to save a buck. That's often true, but not always. Southwest has recently added more flights that depart before 6 a.m. and arrive after 10 p.m., and its load factor has suffered. Airbnb Plus' Risky Bet to Push Homesharing to a New Level If Airbnb is successful with Airbnb Plus, it will ensure that alternative accommodations are no longer seen as an alternative. But making it a success will be easier said than done. Tenants of New Airbnb-Branded Complex in Florida Feel Blindsided It's one thing to know when you're signing a lease that your apartment building will serve as a de facto Airbnb hotel. It's another to be "blindsided" months later after you've already made it your home. Tourism Cities Take Baby Steps to Address Overtourism This Summer It took years for overtourism to happen in some destinations and the problem won't be solved overnight or this year. But to start, destinations could begin paying tourism workers more fairly and give locals more access to programs and services that tourism revenue supposedly helps to fund. Bermuda Fears Tourism Hit as Same-Sex Marriage Reversal Draws Lawsuit By banning same-sex marriage, Bermuda is being the wrong kind of trailblazer, many travelers, companies, and human rights organizations would argue. We've seen how much similar discriminatory legislation has stung other destinations and left a bad impression. Tourism Australia Deploys Influencers to Overcome Long Flight Stereotype There's no way around it – Australia is one of the longest flights someone from the United States or Europe can take. But it's not necessarily the grueling journey many travelers fear, and Tourism Australia is telling them why the flight is worth it. Corporate Travel Hilton's Loyalty Upgrades Are Good News for Frequent Travelers Elite members of Hilton's Honors program will soon see some significant upgrades. Marriott and Starwood should take notice. Data Privacy Is a Bigger Issue Than Ever for Business Travelers With laws in flux and hackers prowling for access, companies are trying to help corporate travelers protect valuable business data, but the efforts are piecemeal and inconsistent. Attempts to require loaner devices or limit access to information risk making international travel less productive. Travel Agents Apple Leisure Group to Merge With Mark Travel in Consolidation of Legacy Players This transaction makes one of the largest private players in leisure travel, Apple Leisure Group, even bigger and sweetens the potential reward for the almost inevitable private equity sale of its assets. Travel + Leisure and the Problem of Pay to Play Times are tough for legacy travel media brands and they are having to come up with more creative ways to cash in. But bringing in a charge for its A-List — no matter how this manifests itself — calls into question the idea of editorial independence. New Research Report: U.S. Affluent Traveler Trends 2018 Given their huge spending power, it's no wonder affluent Americans are an attractive and strategic segment for travel brands to target. Our U.S. Affluent Traveler Survey 2018 reveals key insights into their travel behaviors, attitudes, and preferences, while further segmentation paints a more nuanced picture of this diverse and lucrative group. Hospitality What Now for Hilton After HNA Sells Stake? Now the question arises, who will buy the HNA stake and what does it all mean for Hilton? Red Lion Is Buying Knights Inn from Wyndham for $27 Million Red Lion has made good on its promise to buy up more brands you've likely never heard of (or in this case, remembered much). Is Wynn Resorts in Play? Perhaps more important than who might eventually wind up buying Wynn is what a buyer would have to do with the brand's tarnished image. Digital TripAdvisor CEO Bullish on Giving Hotels New Ad Path to Top of Listings Hotels — 10,000 of them — have voted with their feet, or advertising budgets, that is, and are trying out TripAdvisor's new sponsored listings program. The bottom line is the success or failure of the program will depend on how it impacts advertisers' bottom lines. Sabre Searches for Deal as the Air France-KLM Distribution Surcharge Looms Wasn't the whole point of these surcharges to prevent the global distribution systems from taking a cut of that juicy ancillary money that is now flowing in? One has to wonder what the terms of Air France-KLM's deal with Amadeus and Travelport really are. For now, it looks like the global distribution systems that took the new distribution capability seriously are reaping the rewards. Amadeus Is Revving Up Its Startup Involvement Travel startups face long odds, but the lucky ones have a champion in Suzanna Chiu, who has spearheaded an array of programs at travel technology giant Amadeus that have been helping startups thrive. The industry needs more folks like her. Flying Alaska Airlines CEO Outlines New Measures to Prevent Sexual Harassment It's nice to see Alaska Air's CEO saying all the right things about preventing sexual assault and harassment. Now let's see if the new training and procedures actually work. Air Canada Launches New Economy Fares to Compete With Low-Cost Carriers A new series of fares just launched by Air Canada should make it easier for discerning travelers to pick the fare that suits them best – as long as they're willing to pay for it. Cruising 3 Big Challenges Cruise Lines Still Have to Overcome in China China has been full of ups and downs as the cruise industry has grown its presence in the market. Identifying the cause of the downs — and taking steps to manage the factors that can be controlled — should help operators find stability. Meetings Safety and Security Should Remain in Spotlight for Events Safety should be a priority for events, whether taking place at a local hotel or a convention center in a gateway city. Unfortunately, event planners don't always have the resources they need to prepare for complicated security situations. IMEX Partnership With C2 Shows Impact of Experiential Networking Collaboration between IMEX Group and C2 International shows the value, and power, of creativity in the meetings and events space. The more lessons planners from around the world can learn from these educational sessions, the better. For Gmail users: If you are using the tabbed inbox, Skift emails may be pushed to the 'Promotions' tab. To get updates from Skift direct to your primary inbox, drag and drop this email to that tab. 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