Week in Review: July Air Travel Sales, Mergers and Market Moves

Airlines Reporting Corp. (ARC) recently announced that July 2024 U.S. travel agency air ticket sales totaled $7.9 billion. This was a 5 percent increase both year-over-year and month-over-month. July’s total passenger trips rebounded from June’s numbers, too. The 24.1 million passenger trips were a 6 percent increase from June and a 10 percent increase from July 2023.  Even better: The average ticket price was $523, a 1 percent drop year-over-year and month-over-month.

In addition, ARC reported that In July 2024, 19.7 percent of its monthly transaction volume came from new distribution capability (NDC) transactions—a 55 percent increase year-over-year. More than 950 travel agencies reported NDC transactions throughout the month.

Elsewhere in the air travel space, Alaska Airlines and Hawaiian Airlines cleared one regulatory hurdle in their planned merger this week when the time period during which the parties were prohibited from closing under the HSR Act expired. Now, the filing heads to the U.S. Department of Transportation for approval. After that step, the airlines will work to close the transaction and proceed with the merging of the two companies.

In addition, Tradewind Aviation and JetBlue Airways have announced a new interline partnership designed to provide travelers from the U.S. with more options in the Caribbean. Through a single ticket purchase, travelers will be able to leave from JetBlue’s hubs in the U.S. and connect to Tradewind’s locations in St. Barth’s, Anguilla, Tortola and Virgin Gorda.

Tradewind Aviation
Tradewind will offer JetBlue customers access to a variety of smaller Caribbean islands. (Tradewind Aviation)

Southwest, on the other hand, is continuing its battle with its largest shareholder Elliott Investment Management. The investment company last week threatened to oust Southwest’s board, replacing 10 members with their own. Elliott is seeking to replace Southwest’s chairman and CEO due to the “continued deterioration in Southwest's performance.”

(Elliott, separately, instigated a similar “coup” at Starbucks, replacing its CEO with Brian Niccol, who came over from the same role at Chipotle.)

Ever wonder which airlines deny the most passengers? Well, a new study found that Endeavor Air denies the most passengers per 10,000 travelers (13.05). That said, of the nearly 20,000 it has denied boarding, none have been involuntary. When it comes to the leader in involuntary denied boardings, Frontier Airlines claims the top spot with 3.16 passengers denied per 10,000. Major airlines, typically, fared better than regional carriers in both categories—but there are some exceptions.

Running Your Business

Cruise Planners recently hosted its Luxury Forum at the Secrets Moxche Playa del Carmen. The event convened more than 120 Cruise Planners travel advisors and over 70 luxury suppliers, all dedicated to offering training and resources to help advisors effectively market, find luxury clients and sell luxury products. Advisors had the chance to attend training sessions, panel presentations, networking events and more.

Cruise Planners
Cruise Planners' Luxury Forum convened nearly 200 advisors and suppliers who are focused on selling luxury travel. (Cruise Planners)

In other event news, host agency OutsideAgents.com shared details for its first two live 2024 Opulence training events. In response to the growing demand for luxury travel, OutsideAgents.com introduced Opulence earlier this year—a dedicated luxury division tailored to provide advisors with a premium platform crafted to elevate luxury sales performance.

The one-day sessions—scheduled to take place on September 17 in Miami Beach and October 11 in New York—are designed for advisors who specialize in luxury travel. The training sessions will center on key topics such as preferred vendor products, group travel and innovative programs aimed at enhancing the overall client experience.

Separately, Hilton this week introduced its new Hilton for Luxury, a luxury travel advisor preferred partner program exclusive to Hilton’s luxury brands: Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, LXR Hotels & Resorts, NoMad Hotels and Signia by Hilton. The invitation-only program is designed for Hilton’s top-producing luxury travel advisors in every region. The program gives advisors access to exclusive offers from Hilton luxury-branded hotels and resorts, value-added benefits and direct contact with on-property hotel team members.

Have an interest beyond travel? Consider merging it with your advising business. Corinne Levine of Eltee Travel, part of Global Travel Collection, recently launched Novel Travels, inspired by her love for reading and travel. Levine has created a series of literary-themed travel itineraries that visit settings from books with insider access such as involvement by the authors themselves. Novel Travels will also create customized plans based on the traveler’s favorite books.

In Latin America

Casa Zamna
Casa Zamna is located about 15 minutes from Secrets Tulum Resort & Beach Club at its Zamna Beach Club. (Secrets Tulum Resort & Beach Club)

Secrets Tulum Resort & Beach Club, part of Hyatt's Inclusive Collection, has debuted Casa Zamna, a 21-room luxury addition to the resort located at the Zamna Beach Club. Located 15 minutes away from the Secrets Tulum Resort & Beach Club's main property, the retreat offers a waterfront experience just steps from the Caribbean coast of Mexico for guests seeking exclusivity and seclusion.

Heading further south, El Mangroove, Autograph Collection—located within the Blue Zone of Costa Rica’s Nicoya Peninsula on the Gulf of Papagayo—says it will host the second edition of the Sustainable Gastronomic Congress on September 27 and 28. The two-day event will host a lineup of chefs from Michelin-starred restaurants as well as celebrity chef, author and influencer Inés Páez Nin.

Further south still, Metropolitan Touring launched four new cultural tours in Quito, the capital of Ecuador. The tour operator is refreshing its portfolio of popular excursions in Old Town Quito with guided, full-day offerings complete with hands-on activities and behind-the-scenes access to local artisans and healers.

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