Skift Take
Rashad Jorden
Good morning from Skift. Today is Thursday, June 13, 2024. Here’s what you need to know about the travel industry today.
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Episode Notes
Activist fund Elliott Investment Management has called for a major shakeup at the top of Southwest Airlines after recently acquiring a $2 billion stake in the airline, but Southwest Airlines CEO Bob Jordan has no plans to step down, writes aviation reporter Meghna Maharishi.
Jordan said at a Politico event on Wednesday that he would consider Elliott’s feedback, adding that Southwest is ready to adapt its business model. Maharishi reports that Elliott has called for the resignation of Jordan and Chairman Gary Kelly due to Southwest’s recent woes, with the airline yet to turn a profit this year.
Secondly, hospitality companies have significantly increased their investment in wellness in recent years. Senior Hospitality Editor Sean O’Neill looks at emerging trends in hotel wellness.
According to a report by consulting firm RLA Global, hotels offering wellness services are set to experience healthy growth in 2023. So-called upper upscale hotels were the best performers in wellness last year compared to the luxury and upscale segments. Moreover, a report by investment bank Truist found that revenue per room from spa treatments is up by at least 30% compared to 2019 levels.
Finally, cruise lines will be disclosing all mandatory fees and taxes to U.S. consumers starting July 1 to comply with California’s junk fee law, writes global tourism reporter Dawit Habtemariam.
California Governor Gavin Newsom signed a bill banning junk fees in October. The law applies to all businesses with offices or customers in California. Consumers can sue businesses they suspect of violating the law, seeking damages of at least $1,000.
Royal Caribbean, Carnival and Norwegian Cruise Line all plan to comply with the new law’s requirements. Habtemariam reports that the total price will not change, only the price advertised up front on the cruise line’s channels.
Producer/Presenter: Jane Alexander
Photo credit: Southwest Airlines President and CEO Bob Jordan speaks onstage at the Skift Aviation Forum in Fort Worth, Texas, in November 2023.
