Supplier Solutions Business Travel Updates August 2024
Southwest To Assign Seats and Offer Premium Seating
After keeping its open seating model for more than 50 years, Southwest has announced a move to assigned seats starting in 2025. Southwest will also add premium seats that offer more legroom to more than one-third of their aircraft’s seats across the system.
This move is driven by customer feedback. 80% of current customers and 86% of potential customers prefer an assigned seat. Seat assignments will happen in 2025 after new technology is introduced to manage this process. In addition, modifications will need to occur at all existing Southwest gates with removing the seat assignment towers.
Both of these changes are part of Southwest’s ongoing modernization efforts. These efforts have included faster Wi-Fi, in-seat power, and larger overhead bins, and will also include new RECARO seats.
Southwest does remain committed to continuing to allow customers to check two bags for free. Southwest Airlines Newsroom (swamedia.com)
Airbus To Deliver Fewer New Planes in 2024
While the Boeing Corporation has dominated the news in 2024 due to production problems, their European rival is also facing some headwinds this year.
Airbus expects to deliver around 770 planes before the end of 2024, up from 735 deliveries in 2023 but lower than an expected delivery count of 800 plus planes. Slower deliveries of Airbus aircraft will add to global aircraft delivery pressure already caused by the Boeing production issues. This will also force many airlines to keep their existing aircraft flying, many of which are significantly less fuel efficient than newer models. Airbus is Delivering Fewer New Planes: Should Airlines be Worried? (skift.com)
Hotel Occupancy and Rates Continue to Rise
The average hotel daily rate in May increased year over year, as did revenue per available room and occupancy rate. This is the second straight month occupancy has increased year over year after posting declines for almost a year. The U.S. ADR increased 2.4% year over year to $160.40, while the occupancy rate increased 1.5% to 65.7%.
Drury Hotels Continues Growth
Drury Hotels currently operates more than 150 hotels in 26 states. Their expansion in exciting new markets continues. Drury recently opened Drury Plaza hotels in Orlando at Disney Springs, Savannah Ga, and Arlington Tx. New properties are also nearing completion in Cincinnati Oh, Chattanooga Tn, College Station Tx, and Charleston SC. Drury Hotels is a family-owned organization where customers continue to experience clean rooms, and best in class amenities.
Delta Air Lines Opens Most Exclusive Airport Lounge
The Delta One Lounge opened this past June at New York’s John F. Kennedy International Airport. The lounge offers new perks so some of the airline’s highest paying customers. The 39,000 square-foot space to available to travelers flying in the Delta One cabin as well as travelers with invite-only “360” status. The lounge offers perks that include massages, showers, and a high-end restaurant.
United is First Airline to Purchase SAF for Chicago O’Hare Airport (ORD)
United has become the first airline to purchase sustainable aviation fuel for use at ORD. SAF producer Neste will provide up to 1 million gallons of Neste MY Sustainable Aviation Fuel to United in 2024 and more to follow in 2025 and beyond. SAF is an alternative to conventional jet fuel that can reduce GHG emissions by up to 85% on a lifecycle basis from production to end use because it is made from renewable materials rather than drilled fossil oil.
U.S Carriers Continue Suspension of Tel Aviv Flights
As tensions rise in the Middle East, Delta Air Lines and United Airlines have continued suspending flights to Tel Aviv, Israel. The suspension follows issuing a U.S. State Department Level 4: Do Not Travel advisory for Lebanon. Both Delta and United extended waivers for customers affected by this suspension. Several European airlines have also suspended flights to Tel Aviv.
