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Travel Industry Roundup | September 9

In this week’s travel industry news roundup, see what hotel brands corporate travel buyers rate most highly, and why global air traffic is up, despite the occasional service disruption and Americans’ habitual reluctance to go on vacation.


Global Air Passenger Demand Shows Resilience

Global air passenger traffic increased 5.9% year-over-year (YOY) in July, according to the International Air Travel Association’s latest Air Passenger Market Analysis. Low oil prices have kept down airfares, meaning that passenger demand is up 6% year to date, despite a number of headwinds including the lingering impact of high-profile terrorist attacks, and the political uncertainty resulting from the United Kingdom’s decision to leave the European Union. 


Power Outage Costs Delta $100 Million in Revenue

In other airline news, Delta said its revenue for August was reduced by about $100 million due to an outage that led to the cancellation of 2,300 flights over three days. As reported by Reuters, the second largest airline in the U.S. saw its passenger revenue per available seat mile decrease 9.5% compared to August of last year, though it still projects a healthy operating profit margin of 19% for the quarter. 


Half of All Americans Took Little to No Summer Vacation

Americans have a bad case of vacation deprivation, according to Project Time Off, an advocacy group backed by the U.S. travel and tourism industry. Of the 2,000 Americans surveyed, a third (33.5%) said that they took one or two weeks of vacation in summer 2016, but an even greater number (37.4%) said they had taken either no vacation (37.4%) or fewer than three days (11%). All together, Project Time Off concludes that Americans let 658 million vacation days go unused each year.


Travel Buyers Reveal Hotel Preferences

Business Travel News says that corporate travel buyers identify service as the key factor influencing their choice of hotel vendors. BTN’s 2016 Hotel Survey & Report ranked hotels in four prices tiers. The top brands were Ritz Carlton (luxury tier); Westin, Marriott, and Crowne Plaza (upscale tier); Hampton by Hilton and La Quinta (mid-price); Residence Inn and Extended Stay America (extended stay tier). 

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