Posts in category Gulliver


Business and financeGulliver

British Airways’ franchisee in South Africa throws off two black passengers

IN THE latest—and possibly most alarming—in a recent string of allegations of racism against airlines, two black musicians claim they were downgraded from business class on a British Airways-branded flight in South Africa to make room for a white woman. Thabo Mabogwane and Bongani Mohosana, a South African musical duo known as Black Motion, purchased business-class tickets for a flight on December 4th from Cape Town to Johannesburg on the South African-based Comair, branded in British Airways’ colours. They wrote on Instagram, a social-media website, that a white woman in business class complained that her seat was broken, and they “happened to be the only two young black men in the British airline business class.” They were asked to move to economy class, and when they complained they were told to leave the plane, both claim.

The airline denied to the Continue reading

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Business and financeGulliver

America’s culture wars are spreading to hotels

CHOOSING a hotel for a trip is generally seen as an apolitical decision. In contrast, restaurants and cafes have sometimes taken on an ideological tinge, with conservatives mocking liberals for their latte coffees, and liberals ribbing conservatives for their deep-fried everything and well-done steaks. But for most hotel users, location and good wi-fi matter more than the ideology of the owners. In some places that now appears to be changing: a trend turbocharged since the arrival of Donald Trump, an owner of an international hotel brand, in politics.

Suddenly the new Trump International Hotel in Washington, DC—on the same street as the White House and Capitol building—became the most politically-charged building in the city, if not the country. Celebrity chefs scrapped their plans to open restaurants there after Mr Trump made incendiary comments about Mexicans. Meanwhile, organisations such as the Kuwaiti embassy Continue reading

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Business and financeGulliver

Hotels are finding out what amenities guests really want

IT HAS been more than once that Gulliver has found himself putting the incorrect electrical plug into the wrong socket or dock at a hotel—whether it be for a smartphone, laptop or shaver. Since such gadgets have proliferated, the hotel industry too has been confused about what facilities they should offer to service weary travellers. But after much trial and error, hotels finally seem to be figuring out which amenities guests truly value—and which ones are little more than gimmicks.

The latest survey of American hotels from the American Hotel and Lodging Association, an industry group, reveals a plethora of shifts in the hospitality industry, including the rapid disappearance of smoking rooms. But when it comes to gadgets, the trends are particularly interesting, since they are not always in the direction of more technology.

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Business and financeGulliver

Private jets are getting cheaper

ONE of the first corporate jets was owned by Harry Ogg, the president of a washing-machine company. Bought in 1929, the four-passenger plane was named “Smilin’ Thru” and was decked out with a desk, a typewriter and space for washing machines. On sales trips Ogg told the pilot to fly low over a town, with the plane’s siren wailing. The commotion drew residents to the airport, where Ogg demonstrated the benefits of his white goods in a slick sales pitch.

Most aspects of corporate jet setting have changed since Ogg’s day. Planes are more likely to be owned by a hedge-fund manager than a white-goods salesman. They are kitted out with televisions rather than typewriters. Moreover, they tend to be too costly for entrepreneurs to use as clever marketing tools. Yet even though such stunts remain a dream for many, their revival may be edging slightly closer. That is because the price of private jets has tumbled in the last few years, Continue reading

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Business and financeGulliver

Carriers in America are doubling down on budget airfares

GLEN HAUENSTEIN, the president of Delta, is optimistic about the future of basic economy. On a conference call this week, he boasted that the stripped-down airfares actually act as an incentive for passengers to upgrade to the more expensive standard economy tickets. Despite Mr Hauenstein describing it as a product that “people don’t really want”, the airline says it will expand the revenue-boosting basic-fares system in 2018.

Delta was the first carrier to roll out basic economy fares—sometimes called “last class”—in America in 2012. Since then the model has caught on. Both American and United quickly introduced similar services on some domestic routes. By taking away a perk here and adding another there, each airline has created a unique version of the same miserable experience.

The new fare system is not without its critics. Many have Continue reading

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Business and financeGulliver

Airlines are trying to cram ever-more seats onto planes

AIRLINES use all sorts of clever tricks to make more money from passengers. They charge extra for bags, for food and for selecting where you sit. Now they are embracing another strategy: packing more seats onto each plane. Last month American Airlines announced that it will insert 12 more seats, or two rows, into its economy class on its Boeing 737-800 fleet and an extra nine seats into its Airbus A321s. Similarly, JetBlue recently said it will cram 12 additional seats into its A320s.

But flyers do not like being packed ever-more tightly into the sardine tins that planes have become. This summer American Airlines announced that it would reduce the distance between rows—known as seat pitch—from 30 to 29 inches on some of its new planes. The public outcry was so heated that the carrier scrapped its plans, as Gulliver has previously reported. This February a member of Congress Continue reading

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Business and financeGulliver

Concerns over charges for checked bags in America miss the point

FEES for checked luggage are working exactly as intended. That is the main thrust of a new report from America’s Government Accountability Office (GAO) on the recent rise of charges for checking a bag onto a plane when flying. But not everyone is interpreting the study in such a positive light.

Critics are crying foul because these fees cost some passengers more money. Bill Nelson, a Democratic senator who requested the study and sits on the committee that oversees the airline industry, has described the charges as a “last-minute shakedown”. William McGee of Consumer Reports, a non-profit organisation that reviews products, told USA Today that “consumers should be able to shop for airline seats without being nickel-and-dimed.”

Media outlets are also making the same point. When the Associated Press Continue reading

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Business and financeGulliver

Monarch Airlines goes into administration

JUST before dawn on October 2nd, passengers booked to fly on Monarch Airlines began to receive texts informing them that their flights had been cancelled. This was the first news that Britain’s fifth-biggest airline had ceased trading and is now in administration.

It is the country’s biggest airline ever to collapse. Monarch had been in last-ditch talks with the Civil Aviation Authority, a regulator, to renew its licence to sell package holidays, but failed to reach a deal. About 110,000 passengers have been left stranded, although the government has hired over 30 planes, in effect creating another airline, to bring holiday-makers back over the next two weeks. Chris Grayling, the transport secretary, is calling it the “biggest ever peacetime repatriation”. A further 860,000 have lost future bookings, and with it weddings, vacations and more, although many should be able to reclaim some of their costs. Monarch also employs about 2,100 people, all now…Continue reading

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Business and financeGulliver

Online auctions of Boeing 747s reflect shifts in the air-travel industry

FOR many aeroplane enthusiasts, buying a Boeing 747 is the stuff of dreams. The “Queen of the Skies” is an icon from the golden age of air travel, a period the 1960s and 1970s when the industry was at its most glamorous. And owning one would be like having a little piece of aviation history.

Last week that dream shifted slightly closer to reality, albeit only for well-heeled fans. Three Boeing 747s went up for auction on Taboo, China’s equivalent of eBay. The seller is a state court in Shenzhen, which seized the planes when Jade Cargo International, an airline, went bust in 2012. At first, state officials tried to flog the planes offline at private auctions. But after six failed attempts, they opened the sale up to public bids. Offers currently range from 122m yuan ($18.5m) to 135m yuan.

This is not the first time one of the planes has been auctioned online. Last year Concord Aerospace, a Florida-based firm which buys and sells plane parts,…Continue reading

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Business and financeGulliver

Sleep pods are becoming increasingly common at airports

IN THEORY, overnight air travel should be wonderfully convenient. Instead of booking a hotel for the night and losing a day, travellers simply sleep while they fly. In reality, sleeping on a plane is hard, and at an airport tougher still. The chairs in terminals, nobody’s idea of comfort to begin with, tend to have armrests that make splaying out unfeasible. Even in business-class lounges, travellers contort themselves into impossible shapes to pretend that workspace desks are actually beds.

But soon there may be less need for such acrobatics. Sleep pods are coming to more and more airports. Last month, Washington Dulles International put out a call for proposals for a company to provide “a quiet and comfortable place within the airport to sleep, relax, or work while waiting to board a flight”. Mexico City’s airport has just added sleep pods with a space-age design for $30 a night. YotelAir, which offers pods in…Continue reading

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Business and financeGulliver

The Ryanair cancellations

SOME strategies are too successful. When Ryanair convinced many of its pilots to take less vacation during peak-travel season, it probably thought it was being clever. However, pilots who ferry tourists to holiday destinations need vacations too. Poor planning and a bit of bad luck have left Ryanair with a shortage of working pilots for the autumn. This shortfall has forced the low-cost airline to cancel around 2,100 flights beginning on September 16th and continuing through October. The abrupt cancellation of last weekend’s flights and the short notice provided to customers has left many angry.

Ryanair’s woes were caused in part by a change in the way the airline determines employee leave. Previously, Ryanair staff took their vacations over an operational year from April to March. In 2016, under pressure from the Irish Aviation Authority, Ryanair adopted the calendar year instead. As part of the transition, it needed to allow its employees to take the entirety of their vacation time between April and December of this year. That…Continue reading

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Business and financeGulliver

The value of credit-card points

THE value of credit-card points has long been a topic of debate among business travellers. The subject is also picked over online on an impressive number of dedicated blogs and forums. Now it is getting an airing in a different sort of venue: the corruption trial of an American senator.

Robert Menendez, a Democratic senator from New Jersey, is facing charges for allegedly doing favours for Salomon Melgen, a Florida-based eye doctor and friend of the lawmaker. Prosecutors say that Mr Melgen was trying to avoid repaying the government $8.9m that he had allegedly overbilled Medicare, the public health-care programme for seniors. And he wanted Mr Menendez’s help in exchange for lavish kickbacks. These included flights in a private jet, stays in a fancy hotel and more than $750,000 in campaign contributions. 

But at the centre of the third day of the trial last week was the issue of credit-card points. In 2010, Mr Salomon paid for Mr Menendez to stay for three nights at the Park Hyatt Vendome, a five-star hotel in…Continue reading

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Business and financeGulliver

More business travellers are booking their own trips

A friend of Gulliver’s recently received some devastating news, in the form of a change to company policy. No longer would he and his co-workers be able to book their own flights and file for reimbursements. Instead, the firm would buy all employees’ plane tickets from the start.

On the face of it, this is a convenient change. It saves staff time by ensuring that they do not have to fill in tedious expense forms. But many business travellers may not see it that way. A study from Phocuswright, a travel-research firm, finds that more and more employees are booking their own travel and filing for reimbursements. Sometimes doing so allows for a better itinerary: travellers can avoid annoying layovers and airlines for which they reserve particular ire. Sometimes, if they are feeling generous towards their employer, it can save money too. 

But the most-compelling reason is often the credit-card reward points. Say you are booking a flight from London to New York. On United Airlines, the round-trip will earn you…Continue reading

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Business and financeGulliver

What effect is Donald Trump really having on American tourism?

WHEN Donald Trump was inaugurated in January, he wasted no time in trying to bar people from certain Muslim-majority countries entering America. He swiftly, too, promised to make good on his pledge to build a wall along the Mexican border. The nation’s travel industry shuddered. It did not feel like the actions of a man keen to woo visitors from abroad.

The predicted “Trump slump” quickly appeared to materialise. Within months, several online travel firms, including Kayak and Hopper, reported that fewer people were searching for flights to America. That seemed plausible. The country was getting terrible press abroad and the firms that sell flights online seemed the best placed to monitor demand for travel in real time. Come July, however, the U.S. Travel Association revealed that everything was rosy. Instead of a Trump slump, the country was in fact enjoying a Trump bump. The organisation’s Travel Trends Index, which tracks flight and hotel bookings, plane boardings and other data, suggested that the number of…Continue reading

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Business and financeGulliver

Less lost luggage at the airport

WAITING to see if your checked bag will bump down the carousel and join you at your destination is one of the enduring anxieties of air travel. Though the number of “mishandled” bags—an industry term meaning lost or misplaced—is at an all-time low, six out of every 1,000 passengers can expect to be separated from their luggage for longer than they expected, or possibly even forever. These mishaps cost the airline industry $2.1bn a year and cause untold stress and inconvenience to passengers. 

From June 2018, however, travellers’ frustrations should ease when the International Air Transport Association’s Resolution 753 comes into effect. It will require mandatory tracking at four stages of a checked bag’s journey: when it is first handed to the airline, when it is loaded onto the aircraft, when it is delivered to the transfer area and when it is returned to the passenger. The resolution, which was devised in conjunction with Airlines for America, an industry…Continue reading

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Business and financeGulliver

Appalling behaviour on London’s Tube

WITH 1.4bn passengers annually, the London Underground is one of the world’s busiest transport systems. It is also one of the most crowded, sometimes producing an element of friction among commuters over small acts of inconsideration. This week YouGov released the results of a survey of the things that most wind up passengers as they scurry around the Tube. Impatient commuters pushing to get into the carriage without letting riders off first are what drives people mad the most.

The survey also revealed some interesting differences when broken down by gender: “manspreading” (unfurling one’s legs wide enough to take up unnecessary room) and…Continue reading

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Business and financeGulliver

Involuntary bumping seems to be a thing of the past

IF AVIATION had an astrological sign, 2017 would surely be the Year of the Bump. Most infamously, it was the year that a United Airlines passenger who refused to leave an overbooked flight in April was dragged violently from the plane. There followed airline policy changes to reduce involuntary bumping, a novel system to make bumping less inconvenient, and even bipartisan action in Congress to render involuntary bumping illegal.

Such headlines suggest that the practice is spiralling out of control. In fact it is at its lowest level since the government began recording data in 1995, according to a Department of Transportation Continue reading

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Business and financeGulliver

Airlines want tighter control of alcohol sales in British airports

TRYING to stop Britons from boozing can be a forlorn task. Drinking has been woven into the nation’s culture for centuries, from the “loose-tongued” pilgrims of Chaucer to the apprentices who ran amok on London’s streets in the 16th century. According to Susie Dent, a lexicographer, English has 3,000 words for being drunk. Some take that list as a challenge. Whether at football matches or funerals, children’s parties or cheese-rolling, Britons turn almost any occasion into an excuse to get ramsquaddled (thanks, Ms Dent).

A visit to a British airport is a crash course in this culture. Regardless of the time of morning, the bars are full and the English breakfasts come accompanied with pints of Guinness. That is an increasing problem for airlines….Continue reading

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