Traveling Blog: American Airlines' Fee Envy + Expedia Land Grab + Southwest's Cost-Cutting Vow

October 26, 2018

Editor's Note

We heard from a lot of companies on the busiest day of the earnings season in travel on Thursday. The prevailing takeaway from this cross-section of the industry — online travel, airlines, hotels, and even cruise — is that business is still pretty good. There were no disasters to report. We did hear about a renewed interest in controlling costs, from Southwest Airlines to Scandic Hotels in Europe. What we haven't heard yet is new anxiety about the global economy. But you have wonder if it's starting to be there. The travel industry tends to get a read on these things first, and October was pretty choppy in the markets. But you decide if concerns are warranted. Read our full coverage below.

— Tom Lowry, Managing Editor

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New Report: European Hospitality's Creative Renaissance

Delta Air Lines and United Airlines recently told investors they're making big revenue from premium-seat upsells. Not surprisingly, American wants a piece of that action. But it has some IT work to do first.

Expedia CEO Dismisses Talk That the Online Travel Agencies Are Done

The biggest knock on the online travel agencies these days is that the competition is intense and that their golden years are done. Expedia's Mark Okerstrom counters that his company has a single-digit share of a $1.6 trillion market, and he's going wide and deep to pick up more. The jury is still out.

Southwest CEO: 'Number One Priority' Is Controlling Costs

There's no way around it: Southwest's new emphasis on cost-containment, productivity gains, and other efficiencies doesn't provide an optimistic outlook for passenger experience. It should make Southwest a more profitable airline — if passengers go along for the ride.

Norwegian Air in Advanced Talks Over Joint Venture

Does this mean a tie-up with another airline or someone else? For the minute Norwegian isn't saying much on the matter.

Royal Caribbean Hopes New Tech Will Turn Into New Revenue

Royal Caribbean is investing left and right in technology, new ships, new features on land, and even an entirely new brand. That means costs are up, but the company expects to see those investments pay off.

Expedia Buys Two Startups to Help Landlords Turn Apartments Into Short-Term Rentals

When it comes to the acquisition game, Expedia Group CEO Mark Okerstrom is one of the travel industry's savviest players. It's fun to see him back at it, after a mostly quiet period of him settling into the company's top job.

The Travel Advisor Innovation Report, to be sent every Tuesday, will cover trends, features, and news that will be valuable to travel advisors looking to maintain their edge, and position their businesses competitively into the future. Sign up today to receive the first issue!

Reservations Services Test Google Integrations for Faster Booking

We can already search through hotel and flight bookings on Google. It's about time that we're able to do that for restaurant reservations, too.

MakeMyTrip Is Latest to Join the Tours and Attractions Bandwagon

MakeMyTrip's management deserves credit for ending a period of decelerating growth and for reducing operating losses over several quarters. But many investors are impatient for an era of profits.

Sexual Harassment Is a Key Concern for Women During Business Travel

Women who travel for business need more resources and support from the companies that dispatch them around the world. Raising awareness of the issues they face can only do so much.

Alaska Is Blaming Rivals for Weakening Hawaii Business

Hawaii has been a profitable niche for Alaska Airlines for a long time. But now the market is under siege. Competitors want their slice of the profits.

Wellness Newsletter: Hyatt and AccorHotels Take Well-Being Seriously By Hiring Accordingly

Hotel companies are making big hiring moves to better position themselves in the wellness space. With so much momentum in the sector at the moment, this makes sense. How much investing in wellness actually adds up financially, though, is up for debate.

Qantas and Virgin Australia See Revenue Boost After Cutting Flights

Experts were tipping a slow-down in travel in Australia due to the falling dollar and rising fuel costs, but the country's two main airlines are seeing revenue growth, mostly because they have reduced capacity and halted the price war.

GoEuro Raises $150 Million for Transportation Search: Travel Startup Funding This Week

Naren Shaam, CEO and founder of GoEuro, is earning kudos for his vision of making transport booking seamless. Top-tier investors are once again supporting his startup's growth.

Some Companies Spend More on Amazon Than Air Travel

Some businesses are spending more on Amazon than flights on Delta Air Lines and American Airlines. If the online retail giant ever does ever make a play in the travel industry, it will have a strong base of corporations it is already doing business with.

Good riddance. The MD-80 had its moment in the 1980s and 1990s, but manufacturers are producing much more efficient (and quieter) airplanes now.

Six Flags' Future in Dubai Is Now Uncertain

Six Flags still considers international licensing an important driver of revenue growth, despite some roadblocks along the way. Back in the U.S., where most of its parks are located, weather put a damper on quarterly earnings.

A Cautious Hilton Unlikely to Buy Belmond

Hilton is the kind of hotel company that's adamant about sticking to its guns. It says the future outlook looks fairly solid — unless, of course, fears of a looming recession come true.

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