A gloomy travel market for 2010 will follow an ugly 2009

by Tom Johansmeyer on

Everybody seems to want the travel market to recover next year, but it looks like more time will be spent in yards, instead. According to a new USA Today/Gallup poll, only 16 percent of us are going to hit the skies or crash in hotels more than we did in what will go down in history as a dismal 2009. Close to a third said they are going to spend less time in guestrooms and cramped plane seats. The main reason, of course, continues to be the state of the economy.

Slow improvements to the economy, according to some industry analysts, should push demand for tickets and hotel rooms higher – not to mention services related to the convention and meetings business. But, the baseline is set pretty low, with 2009 having been so weak. American Express, the largest travel agency in the world, doesn’t see a recovery coming anytime soon.

The bar has been reset, and it’s low. It will stay low for a while.

The big beast to be tamed in the travel market, doubtless, is business travel. Until the corporations start to send people on the road more liberally, the airlines, hotels and other businesses involved in travel will continue to feel the squeeze.

What’s going to happen by sector? See below.

Airlines: Industry analysts see hints that the market is turning, with demand for seats up year-over-year (by month) since May. United Airlines sees “a very encouraging trend line,” and US Airways notes a steady improvement. But, the latter continues that a decline of 30 percent to 35 percent in corporate spending has been a drag, and November was the first month in which it was up year-over-year. And, November 2008 wasn’t a tough month to beat.

Analysts believe that “even a modest rise in the USA’s gross domestic product,” says USA Today, will kick the airlines back into profitability. Gary Kelly, CEO of Southwest, isn’t that optimistic, telling the newspaper, “Business travel still lags, and I don’t know that I’m comfortable in reporting that we’ve seen any improvement in that market.” He doesn’t expect business travel to bounce back next year.

Hotels: What can I say that Melanie Nayer hasn’t? Not much, really. The past year has been miserable, with PricewaterhouseCoopers reporting occupancy plunging to 55.2 percent this year, from a 2006 peak of 63.3 percent. Next year, it’s expected to tick up only to 55.8 percent.

Room rates fell precipitously in 2009 relative to 2008, causing an average decline of 16.4 percent in the industry’s average revenue per available room-night. PwC expects 2010 to be worse than 2009, conflicting with the Business Travel Monitor report from American Express. But, there’s room for both views. Leisure travelers will have to spend a bit more, but hotels in business-heavy markets will still win some favorable pricing.

Conventions: Look for a slight increase next year – again, relative to a brutal 2009. For the good news about the conventions, you’ll have to wait until 2011 and 2012, says Roger Dow, president of the U.S. Travel Association. Through the end of 2010, approximately 40 percent of corporate and association meeting planners, reports USA Today, are likely to postpone or sink off-site meetings for the next year.

Southwest & SkyMall Bring Yetis & Slankets to New York City

by Mike Barish on
The Southwest Porch in Bryant park has been around this the summer and has provided locals are tourists strolling through that Midtown greens space a place to relax, have a drink and grab a snack inspired by the cities that the airline services. But for three days this week, Southwest has invited Gadling’s favorite catalog, SkyMall, to join the party. With Slankets featured on the cover of the Southwest edition of the catalog, SkyMall made sure to bring plenty of the blanket/robe hybrids to keep guests warm and give away to some lucky attendees. And, one of the catalog’s most popular character’s, the Garden Yeti, was there in a Slanket all his own.

Not being able to resist anything SkyMall-related, I attended the opening night of the event and spoke with SkyMall’s VP of Airline Marketing, Casey Christ. He said that the partnership with Southwest was “natural and helps us connect with our fans outside of the flying experience.” Throughout the evening, attendees who entered the free raffle won Slankets. And one very lucky winner took home her own Garden Yeti.

And where does one find a Slanket that fits 28″ tall Garden Yeti? Well, Mr. Christ took a full-sized Slanket to his local tailor in Phoenix – along with the Garden Yeti – and asked her to make the proper alterations. I salute that talented woman, who I assume remains quite confused.

SkyMall will be joining Southwest at the Southwest Porch today and tomorrow to give away more Slankets and Garden Yetis. If you’d like to join them, be sure to RSVP in advance. The Southwest Porch will be open for snacks, drinks and lounging by their fire pit into January, when they will shut down until New York warms up again.

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Southwest gains a passenger midflight

by Jamie Rhein on

When a Southwest Airlines flight took off from Chicago Midway Airport today bound for Salt Lake City it had 123 passengers. When it landed, there were 124. The addition joined the flight at 30,000 feet somewhere above Denver.

As one of the passengers discovered, the floor at the back of an airplane can work fine as a delivery room in a pinch. Luckily, there was a doctor on board who could help deliver the baby. Southwest medical personnel on the ground gave instructions via radio.

In the case of this baby, they’ll be a story to tell later. Instead of claiming that a stork was in charge of the delivery, the family can tell tales of a jet plane bearing responsibility for the speedy arrival time.

An ambulance took the mother and new baby to a hospital in Denver after the plane was diverted there. Hopefully, this is the kind of flight delay the other passengers were happy to be a part of. I can’t imagine that it would have helped matters if any grousing was going on.

I wonder if the mom can sign up the baby as a frequent flier and get any credit for the baby’s portion of the flight?

Southwest and FedEx planes bump wings

by Katie Hammel on

A Southwest Airlines jet bound for Albuquerque clipped wings with a Fed Ex cargo jet Sunday at the Salt Lake City Airport. A spokesperson for Southwest said the jet was about to pull back from the gate when it was bumped by the cargo plane. The pilots had not yet started the engine when they felt the “jolt” of the impact, which sliced off a 6-foot section of the plane’s wingtip.

No one was injured, though there was some initial confusion as to what caused what one passenger said felt like “a mini-earthquake”. The passengers were able to move to another plane for take off; the affected jet was repaired and put back in service.

While on the ground collisions between planes are rare, they do happen. A different Southwest plane clipped another passenger jet with its wing back in March.
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Southwest and Virgin celebrate Thanksgiving with sales

by Katie Hammel on

Here are two more things to be thankful for this Thanksgiving – Southwest Airlines and Virgin America. Both carriers have announced Thanksgiving sales to celebrate the holiday.

Sample one-way fares in Southwest’s seven-day sale include: Austin to Houston for $59, Baltimore to Chicago for $97, Chicago to Las Vegas for $148, Denver to Milwaukee for $96, Fort Lauderdale to Long Island for $103, LA to Oakland for $59, Orlando to Nashville for $94, and Portland to Spokane for $58.

Fares start at $47 (and go up to about $159) each way plus tax. The tickets must be purchased by November 30 and are good for travel through February 9. A 14-day advance purchase is required, travel is valid every day except Fridays and Sundays, and there are a few blackout dates.

Tickets for Virgin’s sale must be purchased by December 2 and are valid for travel December 3 to 17. One-way fares range from $59 to $249 and include LA to Seattle for $79, LA to New York for $169, and Las Vegas to New York for $249.