One-Way Fares Don’t Cost as Much as You Think
As traditional carriers compete with low-cost carriers and their one-way fares, traditional carriers have lowered one-way fares themselves. That’s the primary reason ARC managing director of enterprise information Chuck Thackston offers for the findings in ARC’s new report, Myth Busting the Cost of One-Way Tickets.”We noticed that there was a little bit of a spike in [the purchase of] one-way tickets” over the past three years, he said. So the air travel intelligence organization analyzed 350 million tickets—booked across a variety of airlines, U.S. travel agencies and markets—and found that one-way-ticketed trips formed 29 percent of tickets in 2014 but 42 percent during the first five months of 2017.
The explanation, Thackston said, is that in many markets, two one-way tickets no longer cost a huge amount more than one round-trip ticket does. The premium for one-way fares shrank by at least 25 percent in 59 of the 200 U.S. markets with the highest booking volume through travel agencies. Of the idea that it’s better to book a round-trip, Thackston said, “That myth is no longer true.” Source: BTN
American’s Corporate Share & Revenues Increase in Q2
American Airlines reported growth in its corporate share in the second quarter, as mainline passenger revenues increased 7.5 percent year over year to $7.7 billion.
In the carrier’s earnings call last week, executives said American’s nascent Premium Economy cabin, which sells on average $400 above the standard economy seating, has been one draw for corporate business. It currently is available on only a few aircraft, but American will retrofit through 2018 most wide-body aircraft for international flights.
American also is expanding its Basic Economy fares, now being sold in 78 markets. By the end of September, American expects the fares will be available across its domestic network. Source: Travel Procurement
Avianca & Delta Cutting Off Venezuela Service
Avianca ended flights to and from Venezuela last week. The carrier originally had planned to suspend Venezuela operations on Aug. 16 but pushed that up citing “operational limitations.” Delta in a tweet also announced it will end its Saturday-only service between Caracas and Atlanta on Sept. 16. United earlier this month ended service to the increasingly isolated nation. Source: Business Travel News
Southwest Ironing Out Minor Details of Reservations System Switch
Southwest Airlines passenger revenues in the second quarter increased 6.7 percent year over year to a quarterly record of $5.2 billion, despite an impact from its cutover to a new reservations system. Southwest CEO Gary Kelly said the May cutover to its new Amadeus-based reservation system was “literally a flawless deployment” in terms of operations, though the carrier is still working through a few minor issues that affected revenues during the quarter. For example, gate agents are having difficulty selling Southwest’s Upgraded Boarding product—the ability for passenger to buy a position in the first boarding group at the gate—and canceled reservations from its group sales product are not always going back into the inventory to be resold, he said. Southwest already is working on fixes for those issues, he said. Source: Travel Procurement
Hilton’s & Marriott’s 48-Hour Cancellation Policies
Hilton at the end of July will begin charging a penalty for reservations canceled within 48 hours of hotel stays at properties in the U.S. and Canada. Marriott International released the same policy last month. For most franchise-based hotel companies, cancellation policies have been at the discretion of the property. That Marriott has introduced this policy companywide to its more than 5,700 hotels and that Hilton has followed suit have created concern that the hotel industry will move in lockstep with pricing policies the way the airlines do now. Source: Travel Procurement
AccorHotels’ Sales Org Is Taking a Measured Approach to New Business Ventures
For those who haven’t been paying attention, AccorHotels through a recent series of acquisitions has been taking significant steps to expand its business beyond traditional hotel stays. Revenues for its new businesses division more than doubled between the first quarter and second quarter as a result of new additions, bringing the division’s total revenue to €43 million for the first half of 2017. But as Accor fosters ventures like luxury home rentals via Onefinestay and concierge services from John Paul, what do these new business areas mean for the company’s sales organization, particularly from a B2B standpoint? SVP of Accor’s global sales organization Markus Keller said there’s an underlying expectation that the team will eventually contribute to the growth of these verticals. Source: Travel Procurement
Dinova & Tripism Deliver Recommendation Platform for Corporate Dining Programs
Corporate dining program provider Dinova and recommendation platform Tripism have partnered to create a user-driven dining app for corporate travel customers. Through the integration, employees can see the more than 14,000 preferred restaurants in Dinova’s business dining marketplace, as well as rate, review and share their business dining experiences with co-workers. Source: BTN
News content licensed from Northstar Travel Media.