‘Ancillary revenues’ skyrocket. In 2007, the world’s airlines took in $2.45 billion in “ancillary revenues” — those fees they charge for various amenities and services. By 2013, that figure had jumped to $31.5 billion — a 1,200 percent increase — according to the latest study by IdeaWorks Company. That’s $16 per passenger. United had the biggest haul, at $5.7 billion, followed by Delta ($2.5 billion) and American ($2 billion, not counting US Airways’ $1.1 billion). But the airline where ancillary revenues made up the biggest portion of total revenue was Spirit, at 38.4 percent. The bulk of ancillary revenue for all airlines (except Southwest) comes from those onerous $200 change fees and of course new checked baggage fees.
Recycle, recycle, recycle! The travel industry keeps finding ways to put things to good use. Southwest Airlines just started a project that will hire African youths to remake old leather seat covers into things like shoes and soccer balls for local communities. And in Atlanta, airport concessionaire HMSHost donates about a ton of unsold food from ATL each week to the Salvation Army to help feed the city’s hungry.
Boeing bares innovations. Visitors to the renowned Farnborough Air Show in the U.K. last week got to see some stunning aerobatics by Boeing’s 787-9, the newest version of its popular Dreamliner. Check out this video and be thankful (or jealous) you weren’t along for this wild demo ride. Meanwhile, Boeing also revealed some passenger-friendly design innovations for its upcoming 777X, like larger and higher windows, a wider cabin, next-generation LED lighting and improved humidity in the cabin air.
Alaska moves at SFO. Originally slated for June 25, Alaska Airlines now says that mid-August is the target date for its move from Terminal 1 to the International Terminal’s Boarding Area A at San Francisco International. The airline’s Board Room lounge has closed, but it plans to share lounge facilities with “one of our international Mileage Plan partners” at the new location once it makes the move, a spokesman said. In other news, TSA opened a PreCheck application office in SFO’s International Terminal, pre-security, G-side, near the BART station.
More cutbacks to Caracas. Delta and United are following the lead of American in reducing service to Venezuela, due to an unresolved dispute with the government about the airlines’ ability to take money out of the country. Delta on August 1 will cut its daily Atlanta-Caracas schedule to just one flight a week. And United’s daily Houston Intercontinental-Caracas operation will be pared from seven flights a week to four as of September 17.
Seats of the future? How will airlines’ coach seating evolve in the years ahead? Airbus has filed a patent for short-haul “saddle seats” that look like glorified bicycle seats and are about as uncomfortable as they could get — although a lot more of them can be crammed into an aircraft. (The company notes that just because it filed for a patent doesn’t mean it intends to use them.) Meanwhile, a Hong Kong designer has come up with a long-haul economy seat concept that protects your knees during recline and even provides an easily-shared armrest.
I’m keeping my CLEAR card. Based on your reaction to Chris’s recent post asking whether or not to spend the $179 to renew his CLEAR card, he’s decided to keep it. Reader comments were mixed but leaned more toward keeping the card.
Beware the Business Center computers. Do you use the computers in hotel business centers? Be careful what you do on them: The Secret Service sent a warning to hotels that scammers could be infecting their public computers with malware that logs users’ keystrokes and sends the data off to the bad guys by email. The agency especially warns against using the computers for personal business that requires you to input account information and passwords. Some scammers were arrested recently near Dallas for just this kind of crime.
Wi-Fi problems bug hotel guests. The biggest complaint by far from hotel guests is a slow or inconsistent Internet connection in their room, according to the just-released 2014 study of guest satisfaction by J.D. Power and Associates. But the biggest negative impact on a guest’s satisfaction is a room that’s not clean. Among the eight hotel categories rated, Four Seasons took the number one spot for luxury hotels, Kimpton for Upper Upscale, and Hilton Garden Inn for Upscale.
Best Credit Cards
If you are in the market for a new card, please do so via the links here. Remember, when you get a new credit card via the links provided here, TravelSkills earns a commission. This is what keeps us in business cranking out meaningful content and practical advice. THANK YOU! Best all around cards for business travelers (and what Chris carries in his wallet): Chase Sapphire Preferred Card and Barclaycard Arrival Plus World MasterCard. Both offer nice 40,000 mile sign up bonuses (after spending $3,000 in first three months), and you can use miles on several airlines, hotels and other travel providers. Neither charges irritating foreign transaction fees. And the Barclaycard now has Chip & PIN for easier use overseas. That 40,000 mile bonus with Chase Sapphire is good for $500 in travel when booking through Chase Ultimate Rewards. Try it, you’ll like it!
In Case You Missed It…
>Kimpton Hotels rolls out a new rewards program with lots of unique ways to earn points.
>A major Middle Eastern carrier will start flying to SFO this fall.
>Chris offers some thoughts on the Malaysia Airlines tragedy.
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