Analysis for The Americas

Flight rightsizing and business regionalisation could see a rising demand for smaller capacity airliners alongside a renewed focus on more efficient, greener aircraft types

7 December, 2020

The trend in the 2010s was towards larger capacity aircraft, mainly delivered by upguaging in short-haul flying. During the decade we saw a +19.4% rise in the average capacity per flight departure from approximately 124 seats in 2010 to closing in on 149 in 2019. This trend was expected to continue through the 2020s, but for the foreseeable future a COVID-19 impacted market will see short-term influences.

A year in time – China’s biggest conurbations are now the world’s best connected cities as many of the world’s largest markets continue to be hit by COVID-fuelled restrictions

1 December, 2020

As we entered the new decade the growth in air connectivity was a global success story. In fact over the last two decades (the 2000s and 2010s) the number of cities directly linked by air (city-pair connections) more than doubled while over the same period, air travel costs fell by around half, according to research from International Air Transport Association (IATA).

Small and simple in-person meetings, the continuation of virtual offerings and an increasing move to hybrid approaches is how the meeting and events industry will adapt in 2021

26 November, 2020

The meetings and events industry has quickly adapted during the disruptions of 2020, but 2021 could be even more challenging. This year there has been little option but to drastically change the production of meetings and events to a virtual online platform. Next year, as COVID-19 restrictions subside and there is a return to physical events, there will be huge decisions to be made on how to safely deliver meetings and events for internal staff and external visitors.

USA spotlight – a dire outlook, particularly for business travel, as total spending is expected to decline by 45% and not return to 2019 levels until 2024 or 2025 as losses could hit USD1 trillion during 2023

24 November, 2020

The US Travel Association (USTA) has revealed that domestic leisure travel is expected to decline by -24%, domestic business by -60% and international inbound travel by a staggering -76% this year in an autumn update to its 2020 Travel Forecast. The results of this report are dire, particularly for business travel, though projections for domestic leisure have marginally improved since its spring update.

Many US hotels are close to the brink and with Thanksgiving fast approaching seven in ten Americans still don’t plan to travel and more than two thirds are unlikely to travel for Christmas

23 November, 2020

A national survey commissioned by the American Hotel & Lodging Association (AHLA) shows that many Americans are not expected to travel during the forthcoming holiday seasons. Results from a survey of 2,200 adults in early Nov-2020 by Morning Consult on its behalf show that 72% of Americans are unlikely to travel for Thanksgiving and 69% are unlikely to travel for Christmas, compounding the challenges for the hotel industry during this public health crisis.

Pick a number, any number! Bill Gates says we could lose over 50% of business travel: it would take the potential scale of the COVID crisis to new heights for the corporate travel sector

20 November, 2020

When Microsoft co-founder Bill Gates said this week that “over 50 per cent of business travel and over 30 per cent of days in the office will go away” it may have come with a little personal bias. His comments at the New York Times’ Dealbook conference could see us questioning future travel and make better use of technology, something that would obviously appeal to the business magnate. After all, Microsoft has already seen its Teams videoconferencing platform see active users grow almost four-fold since early Mar-2020 from 32 million to over 115 daily users.

CAPA LIVE – candid executive opinions: airline CEOs speak out on COVID and industry recovery

17 November, 2020

As aviation and travel continues what can only be described as a period of darkness, the industry that emerges will look vastly different than it did before the COVID-19 outbreak. The implications are wide-ranging and highly disruptive. There will be winners and losers in the more constrained marketplace. “It is important to have some sort for a reality check,” said CAPA – Centre for Aviation’s chairman emeritus Peter Harbison during the latest edition of CAPA Live last week.

USA spotlight – rising COVID-19 cases hit sentiment, but latest travel indicators show a noticeable improvement in road travel, while air travel declines and travel spending sees a double-digit slip

17 November, 2020

Rising COVID-19 cases throughout the United States of America is certainly taking a toll on travel plans. Latest research indicates that less Americans will travel in the coming months and more a feeling anxious about the health crisis. According to the wave 24 analysis of the COVID-19 Travel Sentiment Study from market research consultancy Longwoods International less than six in 10 (58%) of all travellers now have travel plans in the next six months, the lowest percentage since the beginning of the pandemic in early Mar-2020.

Millennials and higher-income travellers are the groups ready to return to travelling and are set to lead the travel recovery into 2021

12 November, 2020

Millennials and higher-income travellers are the groups ready to return to traveling and lead the travel recovery into 2021, according to new research presented by Berkshire Hathaway Travel Protection (BHTP). In recent years, millennials emerged as the generation that travels the most, followed by mature (55+) travellers. However, the pandemic has further widened the gap between millennials and other age groups.

USA spotlight – Biden becomes President-elect but controlling COVID spread will remain the priority meaning further implications for a travel industry mired in turmoil

10 November, 2020

The incoming Administration in Washington DC led by US President-elect, Joe Biden, is expected to have some major implications for an airline industry mired in turmoil. President-elect Biden’s outline transport strategy emphasised the building of extensive rail infrastructure and his Administration will be strong on the environment and climate change.

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