In other airline, hotel & travel industry news this week…

• The Airlines Reporting Corporation (ARC) reported a 4.8% decrease in tickets processed in July through which virtually all airlines account. A total of 11.6 million air transactions were settled through ARC, the lowest figure for July transactions for the last six years. This could be evidence supporting current fears of another economic slowdown like we had in 2009.
• President Obama was gently reminded by the American Society of Travel Agents (ASTA) that travel agents still account for more than 50% of all travel sold. In a town hall meeting, Obama said when speaking about industries that have become highly automated, “When is the last time somebody went to a bank teller? Instead of using an ATM. Or used a travel agent instead of going online?” His underlying point, however, is accurate and the industry has seen incredible consolidation over the years.
• Many new or rebranded hotels will be popping up across the world. A 196-room Doubletree by Hilton opened in New Delhi, marking the first property of that brand in India. A Warsaw hotel, the Jan III Sobieski Hotel, will transition into a Radisson Blu property next month, and the Hilton Albuquerque will become a Crowne Plaza in September.
• Former CEO of United Airlines, Glenn Tilton, has been unloading shares of United Continental Holdings, Inc. Since May 5^th, he sold 152,733 shares for a net gain of $3.4 million, or roughly 20% of his available holdings. He’s still serving as Chairman of United Continental until the end of 2012, but also holds the same post for J.P. Morgan Chase’s Midwest business.
• With assembly of United Airlines’ first Boeing 787 Dreamliner underway, the carrier released the configuration details noting 36 flatbed seats will be found in BusinessFirst, 63 seats in Economy Plus and 120 in regular economy. I still cringe whenever news outlets around the world title these releases as was done here: “United-Continental to offer Premium Economy on first 787.” It’s important to note the difference between truly Premium Economy service as found on British Airways, Qantas and other carriers to the enhanced legroom seats found on Delta and United. It only sets up misperception and ultimate service failures in the minds of customers who don’t know the difference.
• Subject to government approval, Australia’s Strategic Airlines will begin twice-weekly flights to Honolulu from Brisbane and Melbourne effective December 14^th. The carrier is rebranding to Air Australia from Strategic which is a brilliant decision as it would cause confusion in the minds of consumers with the former name. I had originally posted they were renaming from Air Australia to Strategic and received an email from the carrier pointing out my mistake. I’m glad they did, as the representative shed some light on the original name having been used when they were a charter airline for the defense force. Anyway, service will be operated with a two cabin A330-200.
• Finally, MGM Resorts is looking for permission to blow up the unopened Harmon hotel in the Las Vegas CityCenter complex. Marred with construction flaws they’re claiming to be beyond repair, MGM has been in a legal dispute with the contractor who claims they just want to implode it, “to hide the fact that the Harmon is not a threat to public safety…” and “… to avoid adding the Harmon as additional glut to its other vacant properties in CityCenter.”

Here’s a recap of additional news from this week that caught my attention:

• Delta Air Lines introduces the ability to track your checked bags online, as well as at self-service kiosks at its largest stations around the U.S. These upgrades also allow you to submit a missing bag report electronically, where in the past you had to work directly with an agent at the airport, or fax the information in from home. Included with the service is a “Delayed Bag Fee Rebate” in the form of travel vouchers for $25/bag up to two bags if they don’t arrive within 12-hours.
• The battles between Global Distribution Systems (GDSs) and airlines keep making the news, now with US Airways suing Sabre. The carrier claims the GDS refused to allow them to pursue other distribution platforms & threatened to remove their flights from the system if they did. Given that 35% of US Airways revenues flow through Sabre, the carrier had no choice saying, “it would not survive long” without a presence in Sabre. American chimed in, happily pointing out that “American does not stand alone in trying to bring new technologies to the distribution of airline products in the 21^st century.”
• Hilton Hotels officially introduced a new lobby design to eventually be rolled out across the flagship brand. The Hilton McClean Virginia Tysons Corner Hotel has the honor of being the first with the new lobby, featuring community spaces designed to plug in and work on your mobile devices or meet with others in a comfortable lounge-type setting. An 18-hour bar is also prominent, offering time-of-day appropriate food and beverage options.
• As widely reported at most news outlets, American Airlines and United Airlines posted first quarter 2011 losses of $436 million and $213 million respectively, citing fuel costs and the events in Japan as major contributors. Additional capacity cuts are in the works at both carriers. Meanwhile, Southwest Airlines did manage to eek out a $5 million profit for the quarter ended March 31, 2011.
• Finally, quite a bit of airline news in Australia has been interesting to monitor this week. There are hints at V Australia entering the San Francisco market after Qantas’ departure, Strategic Airlines is seeking approval to fly to the United States (likely Hawaii), and it’s looking as if the new Virgin Blue will take the name of Virgin Australia, as recent web domain ownership activity suggests.