Travel
Low-cost Airlines Are Often Cheaper than Rail Travel
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There are ongoing protests against the aviation industry and its environmental impact. This pressure is now being felt in the political mainstream, with European policymakers debating whether airlines and airports should be mandated to decrease the number of flights to slow emissions growth.
Recently, Spain followed France in announcing a limited ban on short-haul flights. Other countries, such as the Netherlands, Denmark, and France, are considering higher taxes on flying. The Dutch government previously attempted to impose a hard cap on the number of flights at Schiphol. In contrast, even cross-border short-haul flights are expected to shift towards rail travel, such as trains from Copenhagen to Stockholm or Barcelona to Paris.
However, policymakers must also recognize the popularity of affordable flying and the lack of viable alternatives. The European Court of Auditors, which evaluates EU policy, reported that of the €54 billion required for eight cross-border transport “mega-projects,” the EU had only spent €3.4 billion. Although efforts have been made since then to improve the rollout, it concluded that the core network is unlikely to be workable by 2030.
Although aviation is a highly competitive industry with frequent price wars, rail travel is still dominated by state-run operators whose domestic priorities often hinder efforts to improve international connectivity.
Despite the many advantages of flying over rail, many aviation executives worry about facing increasing regulatory scrutiny if they are not seen to be making progress on decarbonization.
As one airport investor admits, “everyone realizes this industry is doomed unless there is a clear plan to achieve net-zero emissions.”
Ryanair’s Dublin-based CEO, Michael O’Leary, plans to expand rather than cut back despite being located around 750km northwest of Amsterdam.
Over his 30 years in charge and with the help of successive rounds of deregulation, O’Leary has transformed Ryanair from a small carrier with only a few planes into Europe’s largest airline, with expectations to carry up to 200 million passengers in the next financial year.
As employees in the operations room silently monitor screens displaying the nearly 3,000 flights Ryanair operates on a typical winter’s day, O’Leary outlined how he aims to carry 300 million passengers within a decade.
Aviation is an essential industry in the EU, providing jobs for almost 5 million people and contributing €300 billion (or 2.1% of the GDP) to the European economy. However, it is also responsible for around 4% of the EU’s carbon emissions, making it one of the fastest-growing sources of pollution. Therefore, it faces a significant technological challenge to decarbonize.
European airlines and airports have developed a detailed plan to achieve net-zero emissions (carbon) by 2050 to address this challenge. The plan involves transitioning to sustainable aviation fuels (SAFs), produced from feedstocks other than fossil fuels, and emitting less carbon from production to combustion.
Despite the industry’s efforts to reduce its carbon footprint, European airlines face stringent environmental regulations. For example, they are subject to a carbon tax on intra-European flights and must ensure that 6% of the fuel used on every flight is sustainable by 2030.
In 2022, a report by Oxera, a consultancy firm commissioned by the airline industry, revealed that a ban on flights up to 500km within the European Union would only reduce overall EU aviation emissions by 1-2%. This is mainly because it would exclude the longest and most polluting flights. The airline industry argues that the EU’s emissions regulations would drive up ticket prices, causing some people to avoid flying, and that this contributes to 15% of the net carbon emissions reduction within the industry’s net zero roadmap.
However, environmental groups believe a crackdown on cheap flights should go further. T&E has called for higher carbon prices, a tax on aviation fuel, and a value-added tax to be added to airline tickets. According to T&E, airlines currently pay no duty on their fuel, while tickets are exempt from VAT, and airports and aircraft makers often receive state subsidies. This gives flying a cost advantage, as a Greenpeace study comparing ticket prices on more than 100 routes between major European cities last summer found that, on average, trains were twice as expensive as flights.
Paul Morozzo, a transport campaigner at Greenpeace, believes that flying appears to be less expensive only because airlines are not required to pay for the devastating cost of their pollution. The aviation sector’s failure to be adequately taxed for the fuel it consumes and the pollution it causes has resulted in an uneven playing field.
However, cost is only one of the factors hindering more rail travel. A more significant issue is that the network must provide travelers’ required connectivity.
In 2020, a Eurobarometer survey revealed that the cost of greener forms of travel was the main obstacle for people, but 40 percent of respondents also mentioned that speed was an issue. At present, flights are usually quicker than trains, despite the time required for traveling to and passing through airports. According to O’Leary, there are only six routes across Europe where two-hour train journeys are competitive.
However, Brussels is working to change this situation by investing more in the TEN-T network – a trans-European network of roads and rail lines designed to connect the continent’s major hubs. This network is the backbone of the EU’s land transport policy. The commission aims to double high-speed rail traffic by 2030 and triple it by 2050. This will ensure that passenger trains on the TEN-T network travel at a minimum speed of 160km/h. The Green Deal climate law requires the bloc to reduce transport greenhouse gas emissions by 90 percent to reach net-zero emissions by 2050.
Despite Brussels’ efforts to stimulate growth, land-based connections have needed to develop faster than the vast expansion of airline routes in recent decades.
In 2016, the EU introduced new regulations to promote competition between state railways and private companies to enhance cross-border rail services. Due to these changes coming into effect in 2019, some operators have expanded into new markets. Brussels has also aimed to reduce bureaucracy for operators and make competitive bidding necessary for public service contracts to liberalize the industry further.
Transportation consumes the most significant portion of the EU’s Recovery and Resilience Facility, worth €723bn. Rail accounts for most projects within the €25.8bn allocated for transportation in the EU’s Connecting Europe Facility.
However, constructing new rail infrastructure is expensive, frequently experiencing delays, and it takes a long time to pay back the capital invested in its construction. This makes it less appealing to private financing and makes it easier for governments to justify when public finances are tight.
Therefore, Europe should invest in rail infrastructure and convene with national governments to establish a European rail travel strategy. No such strategy exists currently. In the meantime, aviation expansion is expected to continue despite environmental opposition.
Travel
How cruise lines are revamping onboard dining with celebrity chefs and fresh foodie experiences
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Here’s how cruise lines are taking inspiration from some of the world’s best restaurants to give passengers exciting new ways to dine
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Travel
Delta Sync seatback rolls out to more planes, BBC News joins live tv lineup
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One year after launching, Delta Sync seatback is now on over 330 aircraft, enhancing the in-flight experience with smart TV-like screens and new features for SkyMiles Members.
One year after debuting Delta Sync seatback on the first A321ceo, customers traveling on more than 330 Delta aircraft can now enjoy the personalized experience that makes the airline’s beloved seatback screens feel more like a smart TV while offering a host of day-of-travel tools for SkyMiles Members designed to streamline their travel journey.
Delta Sync seatback is now available on five fleet types as part of the first phase of the rollout: all A321ceos, , A320s, A319s, most 75Ds and many 738s, representing 40% of total in-flight entertainment enplanements. With more than 165,000 seatback screens across Delta’s fleet – the most of any U.S.-based carrier – the airline expects to begin expanding the product to additional fleet types soon.
“We have introduced customers to a seatback product that is meaningful and relevant to how they go about their lives,” says Julieta McCurry, VP of In-Flight Entertainment and Connectivity Strategy. “SkyMiles Members have already logged in to Delta Sync seatback more than a million times, enjoying personalized content and seamless guidance through their travel day.”
Customers can also look forward to a major in-flight entertainment software release on their seatback, which includes updates like a new kids’ entertainment view, reimagined flight tools and more, as well as platform performance and stability improvements.
“We’ve learned a lot from our customers in the first year of Delta Sync seatback,” McCurry says. “Most importantly, we’ve learned that Delta has our finger directly on the pulse of what they want – a seamless, elevated and personalized in-flight experience. Our focus remains on listening, learning and innovating to deliver exactly that.”
Harnessing the power of connectivity
First announced at CES 2023, Delta is carrying out its industry-leading commitment to bringing fast, free Wi-Fi presented by T-Mobile to its entire global fleet. Today, fast, free Wi-Fi is available to SkyMiles members on more than 90% of Delta’s domestic fleet and is rolling out to international routes. But connectivity for all is just the beginning. Delta Sync seatback is one example of how Delta is using the power of that connectivity to provide even more value to customers.
“We’re seeing that access to Delta Sync seatback improves the overall in-flight entertainment experience, with SkyMiles Members who log in reporting higher satisfaction than those who don’t,” McCurry says. “And access to free Wi-Fi hasn’t cannibalized the demand for seatback content. The opposite, in fact – consumption of seatback content has increased from 2023 to 2024. Customers increasingly want a multi-device experience like they’re used to at home.”
Delta Sync seatback users can expect several new features as part of the latest software release, including new ways to help streamline day-of travel.
The new My Flight experience is a one-stop-shop for all day-of-travel related information, including real-time flight tracker, connecting flight status, 3D route maps and airport maps for wayfinding. The new Kids Experience is a place to find and explore content, music and games curated for Delta’s youngest travelers (Note: Delta Sync seatback login is not required to access the new Kids Experience.) Seat numbers are now prominently displayed on the seatback screens to help customers find their seats during boarding. Real-time notifications continue to bring personalization to the forefront: Delta Sync seatback will now inform customers when fast, free Wi-Fi is available for their personal devices. Customers can now use their mobile device to provide flight-specific feedback via new survey QR code on Delta Sync seatback.
New network, content and more on your seatback screen
Delta Sync seatback is upgrading the in-flight entertainment experience by highlighting Delta Studio content in new and intuitive ways that weren’t previously possible. The dynamic multi-tile home screen, along with content and collection spotlights, puts Delta’s industry-leading, hand-picked content front and center, offering customers a more prominent and accessible viewing experience.
Whether customers are enjoying these features on a Delta Sync seatback-equipped flight or exploring one of the other 165,000 seatback screens across Delta’s fleet, there’s something for everyone to discover.
Now boarding: BBC News on Live TV
Starting this September, BBC News will join the list of premier channels on Delta’s live satellite TV1, giving customers free access to the broadcaster’s trusted global journalism.
“BBC Studios has been a valued partner to Delta for many years, working with us to bring diverse and premium content to travelers of all ages,” says Ekrem Dimbiloglu, Managing Director, In-Flight Entertainment and Connectivity. “We’re proud to elevate the partnership in a new way by adding BBC News to our live TV lineup and strengthening our commitment to offering global content to our customers as they travel to destinations around the world.”
Travel
FCM: Q2 Prices Rise Amid ‘Incremental’ Corp. Travel Growth
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Business travel in the second quarter continued “incremental growth” and was set to continue to increase for the balance of 2024, according to FCM Consulting’s Global Quarterly Trend Report, released Thursday. Meanwhile, most average airfares throughout the world rose year over year, according to the travel management company.
Economy airfares in 2024 through May on average increased about 15 percent year over year globally, about $65, according to the report, which is based on FCM’s corporate booking data. Business-class airfares, meanwhile, increased about 11 percent year over year, about $209, in that same January-May timeframe.
Some pockets of pricing softness emerged: second-quarter international economy fares from the U.S. declined an average of 8.8 percent year over year, “a welcome sign for corporate travelers that often do business overseas,” according to FCM.
The average daily hotel room rate logged by FCM’s corporate clients in the first half of 2024 in most global regions declined year over year, including by $13 in North America to $237 and by $11 in Europe to $180. Overall, the first-half average room rate across FCM’s top 100 corporate cities reported by FCM Consulting’s business analytics team was $182, down $5 year over year.
Generally speaking, business air and lodging demand remained solid in Q2, according to FCM.
“It’s encouraging to see the steady upward trajectory for business travel and the way the industry continues to demonstrate consistent and positive growth throughout the year,” said Ashley Gutermuth, Head of FCM Consulting, Americas. “This trend signifies the increased demand we are seeing for in-person meetings and events and the ongoing commitment to foster and build strong, meaningful relationships through business travel.”
Still, the report, while projecting further business travel growth, highlighted the uncertainty of future pricing projections, noting that “geopolitical unrest” and “economic uncertainty” would “continue to impact travel industry forecasts through the rest of 2024.”
“This Q2-2024 report represents six months of positive travel industry momentum, which is somewhat difficult to forecast for H2-2024,” according to the report.
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