DUMB: Las Vegas Travel Is Down So Caesars Is Raising Resort Fees

by Gary Leff

Feb 29 2020

In August the CEO of Caesars declared that resort fees could be the straw that breaks the camel’s back for Las Vegas lodging. Yet just two months later Caesars raised resort fees at Caesar’s Palace, Nobu and Rio.

Now with visitor arrivals to the U.S. under pressure from coronavirus – and the entire Chinese market large cut off from travel to Las Vegas – you’d expect prices to be reduced, not raised. Yet effective March 3 Caesars is raising resort fees at Harrah’s, Flamingo, Linq and Bally’s.

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Business Travel – And Airline Stocks – Are Collapsing

by Gary Leff

Feb 28 2020

Since this morning we’ve learned that Amazon is telling employees to defer non-essential domestic business travel. After mentioning this on Twitter I’ve seen others reply that their companies are doing the same and pulling out of trade shows. The value of going to trade shows drops (they are a perfect example of network effects) and the reduction in travel spreads, along with a further reduction in economy activity. A 12% selloff in the markets over the last week may not be wrong.

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Is American Airlines Going To Add A New Australia Route?

by Gary Leff

Feb 28 2020

When the American Airlines-Qantas joint venture was first announced I expected that an early route addition would be Dallas Fort-Worth – Brisbane. The head of the Brisbane airport expected it, too, and the CEO of Qantas International predicted their Boeing 787s made the most sense flying Brisbane to LA or Dallas.

Before Qantas began operating an Airbus A380 on the Sydney – Dallas route the flight was on a Boeing 747 and from Dallas to Sydney had to make a stop in Brisbane (but flew non-stop from Sydney to Dallas). Now JonNYC is writing that Dallas Fort-Worth – Brisbane is a route to look for.

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LA Wants To Give Priority Security To People Who Ride Public Transit. That’s Silly.

by Gary Leff

bradley international
Feb 27 2020

Los Angeles is is considering letting people who take public transit to the airport have priority security. This isn’t PreCheck or CLEAR, just priority line access for the regular security queue, and follows a program at Boston Logan for people who take a shuttle bus or ferry to the airport.

Priority security isn’t actually free, in other words it isn’t costless. “When everybody’s priority, nobody is.” Grant everyone priority and they’re behind everyone else who is also priority that got there first.

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Delta Will Start Offer Mileage Earning And Redemption On LATAM Starting April 1

by Gary Leff

plane on tarmac
Feb 27 2020

LATAM is the largest airline in South America. With Delta’s move to acquire 20% of the airline, LATAM is leaving oneworld and its planned joint venture with American Airlines to align itself with the Atlanta-based carrier.

News of Delta’s plan only came out in the fall, and they’re already launching reciprocal mileage-earning and redemption starting April 1.

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