Traveling Blog: United Ups Seat Fees + Marriott the Powerhouse + Travel Agents' New Frontier

August 22, 2018

Editor's Note

Most of us walk into an airplane cabin and see a confined space where we know we will be forced to sit for a few hours, hopefully without too much discomfort and frustration. Airline executives like Scott Kirby walk into an airplane cabin and see a schematic before them, envisioning ways each row of seats can be segmented to maximize revenue. Aviation Business Editor Brian Sumers interviewed the United president in Denver on Tuesday about plans to raise fees for seats that don't have better legroom but are considered more desirable, mostly on the aisle and by the windows. He likened the strategy to how concert seats are sold.

That kind of talk gives hotel executives deep envy about managing revenue. Travel Tech Editor Sean O'Neill writes today about upstarts trying to help the hotel industry improve its revenue management, a story that turns out to be a nice companion piece to the United fee story. We don't begrudge executives for wanting to wring out every penny of revenue, but when the last inch of an airplane and corner of a hotel room become a fee-enhancing opportunity ruled by software tweaks, customers sooner or later will walk.

— Tom Lowry, Managing Editor

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How Hotels Are Using Cloud-Based Tools to Attract Meetings: SkiftX Webinar

The monumental task of integrating Starwood continues almost two years later at Marriott, with all eyes on the Sheraton brand turnaround and the merging of the loyalty programs. Both could mean millions in incremental fee revenue, and efforts to reduce hotel-owner costs aren't going unnoticed.

United's Revenue Architect Plans to Add New Fees for Slightly Better Seats

This is a tough call. In some ways, what United is doing with preferred seats is unfair. It may make it harder for families to sit together. But at the same time, most of United's competitors have similar fees.

Travel Agents Get a Dose of the Sharing Economy Through Sabre Deal With Booking

This move signals Sabre's eagerness to remain a powerhouse for travel agents in a changing landscape where alternative lodging, driven by the popularity of Airbnb, takes off. Come 2019, Sabre aims to be more of a one-stop shop for agents. Some agents applaud the move, others couldn't care less.

Why Hotels Envy Airlines When It Comes to Managing Revenue

The revenue management industry picked an odd time to have an identity crisis, given the opportunity for additional profit that new rate-setting and distribution software could bring.

Hostelworld Counts Cost of European Heat Wave

There have been a number of big changes at Hostelworld in 2018 and we should expect further shifts in strategy under new CEO Gary Morrison.

Oberoi's Focused Approach to Luxury

The Oberoi Group is a good example of a hospitality company that has eschewed aggressive expansion in favor of thoughtful growth.

Who says airlines don't prioritize passenger comfort? As long as carriers calculate passengers are willing to pay for a better experience, they will provide it.

Marriott and Starwood Face Speed Bumps in Loyalty Merger

The planned integration of Starwood Preferred Guest and Marriott Rewards did not go entirely smoothly this weekend. Some members were not shy about expressing their unhappiness.

'Crazy Rich Asians' Is Potential Bonanza For Singapore Tourism

Many destinations or small towns aren't prepared for waves of tourism after a box office hit makes travelers want to visit, but not Singapore. The island nation has been expanding its airport, hotels, stopover program, and luxury offerings for years as it waited for its turn in the spotlight with U.S. travelers.

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