Delta Touts Fuel Advantage + Online Travel CEO Pay Ranked + Lisbon's Tourism Lessons

The Travel Industry's Daily Agenda-Setting Newsletter

May 31, 2018 View in browser

Editor's Note Nothing quite beats the gamesmanship between competing airlines. Low-cost long-haul airline executives were almost smug when they began to take share away from legacy carriers on long flights. But the recent spike in fuel prices, up 50 percent in the past year, may have given the legacy airlines new reasons to dismiss their competitors. As Aviation Business Editor Brian Sumers writes, Delta Air Lines CEO Ed Bastian on Wednesday said rising fuel prices will hurt low-cost carriers flying transatlantic routes, like Norwegian Air or Wow Air. While labor costs might be lower with those airlines, fuel is pretty much a fixed cost for all the airlines — and those long flights eat up a ton of that pricey fuel. Bastian also made the familiar argument that Delta doesn't cater to the same customer base as, say, Norwegian. Of course, as Sumers points out, the premium airlines have underestimated new competitors and their ability to woo customers before. But for now, the bad news of rising fuel prices is welcome good news for competitive executives like Bastian. — Tom Lowry, Managing Editor Skift's First Startup Competition Focuses on the Airline Industry Sponsored by Accenture Amadeus Alliance We've launched our first-ever startup competition: Air Pitch, aimed at identifying the innovators working to revolutionize the traveler experience, help airlines operate more efficiently, and shape the future of flight. Ready to take your startup to the next level? Learn More Top Stories Don't Miss Airbnb, Google, Marriott and More at the 2018 Direct Booking Summit in Amsterdam Sponsored by Triptease Triptease's Direct Booking Summit returns on June 27-28 with a lineup that includes the heaviest hitters in hospitality. Register now to hear from the biggest chains to the smallest independents on where they fit into the Direct Booking Movement, and how you can replicate their success. Delta CEO Dismisses Threat from Low-Cost Transatlantic Airlines European and U.S. airlines years ago underestimated the threat posed by short-haul discount airlines. Since then legacy carriers have treated transatlantic low-cost airlines as serious competitors. But there's reason to believe the low-cost model may not be as appropriate for longer routes. Legacy carriers might be OK this time. The Most Highly Compensated Online Travel CEOs of 2018 TripAdvisor CEO Steve Kaufer is ordinarily far from being the most-compensated CEO in online travel. This year represented an unusual payout for him. But Skift's annual survey reveals that most online travel CEOs are often more handsomely compensated than what the top bosses in other industries receive, on average. Lisbon's Overtourism Lesson: Living Like a Local Is Not Enough Lisbon's post-crisis evolution and corresponding tourism boom shows the dramatic impact and lasting ramifications of overtourism. Efforts have centered on sustainable tourism and limiting tourism's potential negative impacts, but, in our view, the focus has been all wrong. Sustainable tourism should be about sustainable cultures, and we all have a role to play. Airbnb CEO Says Company Will Ready for IPO in 2019 Just as important as what was discussed on stage was what wasn't: an update on Airbnb Plus, the upcoming luxury brand, the new superguest loyalty program, the near-merger with Tujia, and more. Oh, and whatever happened to that stakeholder report Chesky promised to release in March? Hard-Hit Caribbean Islands Rebuild With Extreme Weather in Mind Caribbean destinations have to walk a thin line in the coming months by communicating that hotels and resorts are prepared for possible monster hurricanes while not mentioning the "H" word too much to scare off would-be visitors. Why India's MakeMyTrip Made Peace With Rapidly Growing Oyo The decision by MakeMyTrip, India's largest online travel agency, to start selling Oyo budget lodging is significant. The move recognizes that the heavily funded Oyo is no longer a rival marketplace and is instead primarily a supplier. Asset-light hotel chains need to wake up to Oyo's rise. Do Airlines Overpromise With In-Flight Wi-Fi? Travelers board an airplane and expect the Wi-Fi, which is often expensive, to work as it does at home. But it's not as good as at home, and it may never be. Should airlines do a better job of communicating that to customers? CEO Interview: C2 Montreal Evolves With Global Aspirations C2 may be past the point of reinventing itself as it looks to export its brand of experiential business conferences around the world. Yet, the tweaks it has made to its hallmark event demonstrate the work to scale its interactive festival as its popularity surges. Skift Table Don't miss your chance to register for Skift Restaurants Forum at Early Bird prices. Screen-Free Cafes Aren't Anti-Tech, They're Pro-Atmosphere Wi-Fi and screen-time policing at cafés has less to do with money and missed earnings: the main culprit is our attitude. Admittedly, it feels like strict policy, but we can all learn a lesson from this. How Restaurants Are Adapting to the Rising Minimum Wage Menu prices are going up, and we're just going to have to deal with it. The Italian Chef Who Has Elevated Vegetarian Cuisine for 30 Years and Counting Imagine pioneering elevated vegetarian cuisine 30 years ago in a fine dining restaurant in Italy. It took a few years to take off, but chef Pietro Leeman hasn't looked back since — nary a noodle or tomato in sight. Popular Now U.S. Airlines Lose Tolerance for Money-Losing Flights as Fuel Prices Rise Nothing refocuses airline executives like rising fuel prices. If they continue to creep up, expect airlines to cancel more marginal routes. New Skift Research Points to Amazon Playing a Larger Role in the Travel Industry It's dangerous to give Amazon breathing room in any industry; better to think through its implications for travel today. Amazon is not simply a threat, it offers lessons and opportunities for travel executives as well. These U.S. Airline CEOs Made the Most Money Last Year Does the average traveler care whether a U.S. airline CEO made $7 million or $13 million last year? It's highly doubtful. Passengers want to fly a well-run, on-time airline with friendly customer service. How much money the CEO makes is probably immaterial to most customers. 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. You received this email because you are subscribed to Skift Daily Newsletter from Skift.

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