Delta's Second-Half Upsides + The Airbnb Restaurant Factor + EU Travel's Summer Downside

The Travel Industry's Daily Agenda-Setting Newsletter

July 13, 2018

Editor's Note As Delta goes, so goes the rest of the U.S. airline industry, or at least that has been the prevailing wisdom. The airline is the first major to report earnings each quarter so it's a bellwether. What did we learn from Thursday's report? As Business Travel Editor Andrew Sheivachman's story points out, Delta looks like it will be able to power through steep increases in fuel costs, which it projects will rise by $2 billion in the second half. Fuel prices spiked some 40 percent in the second quarter. The good news is that bookings remain strong as more global travelers are flying each quarter. Delta sees an upside for a legacy carrier like itself in this environment, as low-cost carriers are forced to pass more of their fuel price increases on to consumers. So what we will see from airlines, as more carriers prepare to report earnings, is how well they balance the fuel price burden versus exploiting demand from flyers on price, and then making hard financial choices about keeping routes. — Tom Lowry, Managing Editor Why Doing Good is a Competitive Advantage in the Travel Industry: Latest Skift Report Sponsored by Intrepid Travel Many travel brands assume that a commitment to doing good means the bottom line will take a hit. But based on a growing amount of evidence, it's simply not true. Companies are discovering that purpose-driven business goals can help their organizations become more innovative, resilient, authentic, and profitable. Download Now Top Stories Delta Continues Strong Growth Despite Higher Fuel Costs As Delta goes, so goes the rest of the U.S. aviation sector. While the conversation will be centered around dealing with increased costs, all the fundamentals are still in place for Delta to continue growth across the board and expand abroad. Study Finds Airbnb Boosts Local Restaurant Business, But Not Equally One of the truest expressions of living like a local is to eat like one, and it's a shame that more Airbnb guests don't appear to be doing that. Norwegian Air CEO Is Wait and See on Possible Sale as Competitors Show Interest Norwegian Air reported earnings Thursday, and a lot of analysts expected it to feel like a funeral. But something funny happened. The airline reported a profit. Does this mean it's in good shape? Probably not, but at least it's better than a loss. Mixed Fortunes for European Tour Operators as Summer Season Begins Periods of prolonged hot weather can hurt tour operators with potential customers staying at home or booking a domestic trip instead. However, it shouldn't be used as an excuse to mask other problems within a business. Wall Street Concerns Aren't Keeping Cruise Lines From Ordering More Ships Cruise lines are confident that people will fill the ships they order, and shipbuilding yards are packed with business for years to come. Will Wall Street shake off its worries that demand won't keep up? Airline, Hotel, and Silicon Valley Heavyweights Back Startup Aiming to Fix Travel Data Hurdle Journera aims to act like a magnet attracting relevant information across company databases about a traveler's complete trip. It would help, say, a hotel learn when a high-status customer's flight has been delayed. While the idea is great in theory, it may prove elusive in practice. Amazon and the Future of Business Travel As Amazon pushes into hospitality, a battle will take place over who owns the business traveler's wallet. Travel managers will have to deal with Amazon and hotel loyalty programs pushing travelers to spend more on their platforms. Ubiquitous voice-powered travel booking, though, remains a distant reality. Headout Raises $10 Million for Activities Tech: Travel Startup Funding This Week Investors have bet big on luxury experiences, with investments in Headout, which offers last-minute activities; Key Concierge, which does something similar for luxury rental properties; My Daydream, which offers customized upscale tours; and Seatfrog, which offers last-minute upgrades. Popular Now United Becomes Latest Airline to Deploy Flight Crews to Pitch Credit Cards In-flight credit card pitches are officially coming to United Airlines, which is great news for revenue and maybe less-great news for frequent flyers. Launching The Oral History of Travel's Greatest Acquisition Booking.com This is the oral history of Priceline's two deals, the acquisitions of Active Hotels and Bookings B.V., that created Booking.com, and continue to shape the course of online travel and the competitive landscape today. The twin transactions were among the greatest Internet deals of all time, and their lessons are relevant to startups and dealmakers in any industry. Puerto Rico Emerges From Hurricane Maria With a Plan and New Hope for Tourism For more than a century, Puerto Rico has been divided along two identities – Puerto Rican and American. But Hurricane Maria has forced it to reach a point where its tourism industry must merge the two, and market the destination in a way like many others on the mainland have done for decades if it hopes to become a global success story. For Gmail users: If you are using the tabbed inbox, Skift emails may be pushed to the 'Promotions' tab. 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