In a recent podcast episode by Skift, several key developments in the travel industry were highlighted. One major topic discussed was activist fund Elliott Investment Management’s call for a shakeup at Southwest Airlines. The fund, which recently acquired a $2 billion stake in the carrier, has been pushing for changes at the top leadership level. Despite this pressure, Southwest CEO Bob Jordan has stated that he has no plans to resign and is open to considering Elliott’s feedback to adapt the airline’s business model. Elliott has specifically called for Jordan and Chairman Gary Kelly to step down due to Southwest’s ongoing struggles, as the carrier has yet to turn a profit this year.
Additionally, there has been a significant increase in hotel companies’ investments in wellness offerings in recent years. Senior Hospitality Editor Sean O’Neill examined emerging trends in hotel wellness, citing a report from consulting firm RLA Global that showed hotels with wellness amenities experienced strong growth in 2023. The upper upscale hotel segment performed particularly well in the wellness sector compared to luxury and upscale segments. Another report from investment bank Truist indicated that revenue from spa treatments per occupied room had increased by at least 30% compared to pre-pandemic levels in 2019.
Furthermore, starting July 1, cruise lines will be required to disclose all mandatory fees and taxes to U.S. consumers in compliance with California’s junk fee law. This law, signed by California Governor Gavin Newsom last October, bans hidden fees and requires businesses with offices or customers in the state to display all additional charges upfront. Consumers in California are able to sue companies for at least $1,000 in damages if they are found to be violating the law. Major cruise companies such as Royal Caribbean, Carnival, and Norwegian Cruise Line have all announced plans to meet the requirements of this new legislation, with the total prices remaining unchanged but only the advertised prices being adjusted to comply with the law.
Overall, these developments in the travel industry reflect a period of change and adaptation for key players in the sector. From the pressure faced by airline leaders to invest in wellness offerings in the hotel industry and comply with new consumer protection laws in the cruise sector, companies are being forced to reassess their strategies and operations. As travelers continue to navigate the post-pandemic landscape, these shifts in the industry will likely shape the future of travel and tourism experiences for years to come.
