Welcome back to another episode of the TravelPulse Podcast!
25.08.2023 - 13:37 / skift.com / Daniel Shurz
Shifting travel patterns by consumers in a post-pandemic world are forcing airlines to guess at what is the “new normal” as they seek to adjust by cutting flights, revamping networks, and packing even more passengers into planes.
Even as the thirst for travel remains strong, the changing trends are driving up airlines’ operating costs and hurting revenue.
They are also fueling worries about the strength of travel spending amid growing economic uncertainty, leading to a 6% drop in airline shares from their highs in January.
“Today’s flexible work conditions are helping to drive changes in ticket-purchasing patterns.” Citi analyst Stephen Trent said. “Let’s get used to it.”
No-show rates have gone up as customers are changing their travel plans more frequently than before.
Travel demand has also softened on days in the middle of the week, but has strengthened on peak days. A Reuters analysis of U.S. Transportation Security Administration data shows passenger traffic this year on average has fallen 14% on Tuesdays and Wednesdays compared with Mondays, and then it rebounds on Thursdays.
Similarly, customers are booking trips well in advance compared with last year, leading to a moderation in ticket sales close to the date of travel. Citi’s data shows that these so-called close-in ticket sales have moderated for a third straight week, but those for trips in June and July have improved.
Those evolving patterns have forced companies to adjust.
Frontier Airlines decided to slash flights on Tuesdays and Wednesdays by about 20%, citing weak demand. It marks a shift from last year when some airlines said midweek was less of a trough.
The Denver-based carrier attributed the change to flexible work arrangements, where more people are spending two to three days a week working in the office.
“The most common two days in the office are Tuesdays and Wednesdays,” said Daniel Shurz, a senior vice president at Frontier Airlines. “That’s why travel for leisure is the hardest on Tuesdays and Wednesdays.”
In contrast, the ultra-low-cost carrier last week said its revenue per available seat mile on peak travel days is stronger than before the pandemic as customers are willing to pay a lot more to travel on the other days of the week.
Frontier has eliminated an unspecified number of routes as part of its network restructuring. It now expects capacity this year to be up 19%-22% from last year compared with previously estimated growth of 23%-28%, resulting in higher operating costs.
Changing travel patterns are also affecting United Airlines, which has a relatively small presence in the Caribbean and Florida where demand is usually strong in the winter.
Since the Chicago-based carrier’s network is more focused on business
Welcome back to another episode of the TravelPulse Podcast!
When our iPhones alerted us that the temperature had crept past 37C, we paused. Every sun-drenched step outside felt like we were wagyu steaks sizzling on the grill. Was honeymooning in Japan in July – one of its hottest, most humid months – really a good idea? From Osaka to Kobe to Kyoto, my wife Erin and I planned every day with one goal: avoid melting into puddles. Around us, hordes of tourists were in the same sweaty boat. But a few days in, I noticed something. The locals looked noticeably cooler, less crabby, more comfortable. Why? The answer should come as no surprise. Japan, a nation renowned for its design thinking and innovation, is armed with a fistful of ways to survive punishing heat. While they love air-con as much as the next heat-stricken country, they also find respite in creative remedies, from electrically ventilated clothes to water-based rituals. Solutions like these epitomise a nation where ancient traditions fuse with hyper-modern cities reaching endlessly towards the future. Here's six ways that locals cope with extreme heat.
When wanderlust strikes, travelers often dream of jetting off to globally recognized cities, often overlooking lesser-known destinations that offer a blend of culture, history, and natural beauty every bit as good.
Either way, it’s a change of scenery. Either you’re going to look at snow and ice, or to get away from it.
The CEO of bankrupt Scandinavian airline SAS, Anko Van der Werff, does not see the carrier’s position in the northern European market as “diminished” by recent market share grabs from the likes of Norwegian Air and Ryanair.
Frontier has rolled out a slew of routes to warm-weather destinations this winter.
As the coolest kid on the Scandi block, Copenhagen has it all: good looks, smarts and influence that far exceeds its size. Where else can you dive straight into a once-polluted inner-city harbour, ski down an eco-friendly power plant or cycle across a ‘Circle Bridge’ designed by art-world superstar Olafur Eliasson? While not short on cobbled streets and fairy-tale palaces, Denmark’s capital is a metropolis of the future – a clean, green marvel of electric-powered ferries and cutting-edge architecture as striking as it is sustainable.
Here at TPG, we keep you informed about all the changes and developments in the travel industry.
China’s three largest airlines remained in the red in the second quarter, although losses narrowed significantly from the previous three months as a recovery in the domestic aviation market gathered pace.
What’s better than a trip to Denmark where you’ll explore the remote wonders of North Jutland and the culinary and cultural scene in Copenhagen? Flying to your destination via Scandinavian Airlines (SAS) in business class, of course. As travel becomes increasingly stress inducing, the aspirational allure of SAS business class shines brighter than ever. Beyond the mere act of getting from point A to B, this elevated travel experience can add another valuable dimension to your journey.
September is National Preparedness Month, which raises awareness about planning for unexpected disasters and emergencies. United Airlines and Sesame Workshop are teaming up to assist children and families in need. Here is how to help.
Christian Poulsen will continue as COO while serving as acting CEO.