Issue 2001-11 - Friday, October 26, 2001
Delta Airlines' initiative to revitalise airline traffic towards New-York
On this occasion, Delta went into partnership with Crowne Plaza and Intercontinental Hotels and resorts, to be able to offer hotel accommodation to the winners along with the plane tickets.
which is called Delta loves NY started on October 2, 2001 and will last
Even though the cost of the operation might seem rather high at first, you should still be aware that New York is a key element in Delta Airline activity: 202 daily departures to 71 cities in 13 countries.
we can imagine that it is also a matter of filling the empty seats for
one and the empty rooms for the others: all in all, a very clever operation
to counter this difficult time.
Source : Delta.com/nyc
|U.S. hotel industry strains to make a recovery after the attacks of September 11, 2001|
Please remember that, according to Smith Travel Research, hotel revenues went down 37% in the week after the attacks.
And yet, the attacks of September 11 are not the only explanation of the decline in room occupancy that is presently being noticed. Indeed, hotel reservations were already down 5% before the attacks and analysts expected this phenomenon to increase to finally reach 7 or even 10% between August and the end of the year.
This would mean that the "direct" impact held by the attacks of September 11 would be between 5 and 7% and no more.
To illustrate this theory, Hilton Hotels just published its third-quarter results: the company's net income was $21 million, compared to $68 million a year ago, which represents a 68% drop!
As for Hilton's third-quarter revenue, it fell 18%, from $867 million in third-quarter 2000 to $711 million in third-quarter 2001.
|Internet on board aircraft: a $1 billion market forecast for 2006|
Besides, 12 airlines that were committed to equipping 2,100 of their aircraft with Internet service just decided to postpone this investment after the attacks of September 11, 2001.
And yet, things are bound to get back to normal some day and the question is whether or not this type of service will manage to attract a certain type of customers on board aircraft equipped with this service, but also what kind of additional revenue can be expected from it.
The Northern Sky Research company just published a report on the subject and selected three forecast scenarios of growth for this type of service between now and 2007.
The average scenario, presented below, indicates that airlines might expect to get additional revenues of $4 billion from this Internet service between now and 2007.
Figures expressed in million dollars:
It looks as if there really is a market for this type of service.
But what remains to be seen is how much it would cost to equip the aircraft, the maintenance and upkeep costs (not to mention its reliability, key element of success) but also whether or not users will accept to pay the price of the service.
Source : Northern Sky Research