Mike FriedmanIt’s back! Our weekly TWIT (This Week In Travel) notes have returned, just in time for your weekend reading, This week, we’ll learn why European carriers are seeing red, duty-free passengers may have better options and Delta international passengers will have an improved future.
Europe, We Have A Problem…
Twenty years ago, the United States had seven major carriers and a few minor ones and, for airlines, it was the worst of times. Given the competition in virtually every major market, it was hard for any of them to make a consistent profit. With the exception of Southwest, all of them experienced Chapter 11, and a couple went back for 22 or 33. And finally, they were merged out of their misery. Now, four major US carriers have 80% of the market share, they’ve divvied up the country nicely and profits are at or near records.
This article from Quartz points out that the situation isn’t so cozy for the European carriers, who face multiple problems. When you’re dealing with multiple nations, mergers aren’t so easy and more than one carrier has stumbled over an integration. At this point, the top four European carriers only control 40% of the market, leaving upstarts plenty of room to drive down fares (and profits) in any major market.
But it’s even worse than it seems for the region’s cash flow. The second-largest carrier is Ryan Air, which also happens to have the lowest costs and the best financial positioning. They have zero interest in industry consolidation and have a stated purpose of lowering fares every year. When you have an ultra-low cost carrier business model, that tends to work out fine for you, but it makes your competitors miserable. The bottom line? It’s going to be tough for the region’s carriers to make breakout profits.
Duty-Free Shopping Isn’t Always What It’s Cracked Up To Be
Who hasn’t wandered through a duty-free shop and thought longingly of buying one of those 20-lb bars of chocolate?
Our assumption is that, because it’s in a duty-free shop, a product is going to be cheaper than it would be in a similar land-based store. But, as CNN Travel points out, that’s not necessarily the case. Buying one of those $10 keychains? There may be a better place to do so.
Want Some Travel Inspiration?
After you read this week in travel, be sure to check out:
Marriott Bonvoy Moments
Bid For A Once-In-A-Lifetime Experience
AIRBNB ADVENTURES – TRAVEL JOURNEYS WITH THE LOCALS
VAWAA | VACATION WITH AN ARTIST
Delta Makes Improvements In Coach?
This Week In Travel
Yes, it’s true. Delta is making actual passenger-friendly moves in its international coach product. We’re used to the goodies coming at the front of the plane, but Delta is reaching out with some extra benefits for the commoners, starting this week.
Some of the improvements include a complimentary cocktail when you board, hot towel service and bigger meals with improved silverware. Feeling hungry after your meal? They’ll have a snack basket ready for you. Hey, free Biscoff cookies are the best.
There’s nothing in there about more legroom, or anything else that will cost Delta real money, but it’s nice that they’ve found a way to make some improvements on the most uncomfortable routes.
