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Extreme Loyalty: The Airlines Turning Travel Into a Competitive Sport
Extreme Loyalty: The Airlines Turning Travel Into a Competitive Sport

Skift

time3 hours ago

  • Business
  • Skift

Extreme Loyalty: The Airlines Turning Travel Into a Competitive Sport

In a drive for loyalty and attention, high-stakes travel challenges are growing in popularity. These airline campaigns generate buzz, but they also raise thorny questions around ethics, sustainability, and long-term brand impact. Earlier this week, JetBlue launched one of the quirkiest promotions by a U.S. airline in years: a loyalty challenge that rewards customers who visit 25 JetBlue destinations by the end of 2025 with coveted perks through 2050. To mark its 25th anniversary, the '25 for 25' campaign offers members of its TrueBlue loyalty program a quarter-century of Mosaic 1 status – part of JetBlue's elite tier – plus up to 350,000 bonus points. Members who hit 15 destinations earn 150,000 points; 20 destinations bring an additional 200,000 points; and those who hit the full 25 unlock the status windfall. Ed Pouthier, the carrier's VP of loyalty and personalization describes the promotion as 'a thank you to the customers who've helped us reach 25 years of incredible growth.' While headline-making in the United States, JetBlue's campaign is just the latest in a global wave of high-concept airline marketing stunts. Abu Dhabi's Etihad Airways launched 'The Extraordinary Challenge' at the end of May. It is offering Etihad Guest members the chance to win up to 5 million miles by flying to each of the airline's 15 new destinations. The first to complete the challenge will win 5 million points; the second, 3 million; and the third, 1 million. In marketing materials, the UAE carrier says that 5 million Etihad Guest miles 'can equate to over 500 Economy flights, or more than 70 trips in Business, or more than 40 unforgettable journeys in First.' To qualify, participants must fly to or from all of the following destinations by May 25, 2026: Addis Ababa, Algiers, Atlanta, Chiang Mai, Hanoi, Hong Kong, Krabi, Medan, Peshawar, Phnom Penh, Prague, Sochi, Taipei, Tunis, and Warsaw. Service to some of these destinations doesn't start until later this year. Getting Creative, But At What Cost? 'Like all companies, airline marketing campaigns have had to get creative to break through and grab people's attention, especially when the subject is somewhat mundane like new seat upholstery or new destinations,' says Scott Keyes of Going (formerly Scott's Cheap Flights). 'But Etihad's campaign of offering 5 million miles to one winner is perhaps the most audacious and attention-grabbing attempt I've seen for a new route announcement.' Chelsea Curran, director of integrated PR, destinations, resorts, and experiences, at Crowe PR, offered additional behind-the-scenes insight about the latest campaigns and similar stunts. 'We've seen airlines, hotels, and hospitality brands jump on PR stunts for years designed to help them spark global attention,' she says. 'These are geared towards doing more than just going viral: They are well designed to help generate long-lasting buzz, deepen brand understanding, and engage and inspire conversations amongst travelers with the Etihad brand at the forefront.' Another high-profile example comes from the Scandinavian carrier SAS. Last year, it ran a campaign that rewarded members of its EuroBonus loyalty program by turning them into 'points millionaires.' To be eligible for the prize, members had to fly with 15 out of 17 SkyTeam alliance airlines. The contest period took place from October 8 to December 31, 2024. Despite having less than three months to fly with 15 global airlines, 940 of the 42,700 participants were successful. Of course, there's the bottom line to keep in mind, but these campaigns can be a relative bargain for airlines. The cost of a stunt like this to Etihad is 'trivial, of course,' says Keyes. 'They can print as many miles as they want, and even assuming a generous 1-cent-per-mile accounting cost, the prize is equivalent to $50,000, a rounding error in an airline's marketing budget." Sustainability Questions For all of the recent hype, is it a simple case of back to the future? The hyper-competitive period following airline deregulation in the 1980s was full of wacky campaigns. However, unlike the 1980s, the socially conscious modern air traveler has an additional angle to consider. A major issue with this style of airline promotion is the risk that they grate against stated sustainability goals and mission statements. Skift called in generative AI to create the best itinerary to visit each of the cities in Etihad's Extraordinary Challenge. The brief was to use flights connecting through the carrier's Abu Dhabi hub as sparingly as possible. Our prompt allowed other airlines to directly connect each destination as long as Etihad flights were used for at least one flight in or out. According to its calculations, flying to and from each of these cities in the most efficient manner possible would add up to about 85,563 miles (137,700 km) in the air. That would generate around 30.3 tons (27.5 tonnes) of CO₂ per passenger, around twice the average annual individual carbon footprint. Depending on how many people enter the competition, it's a challenge that could leave quite a mark. Etihad won Environmental Airline of the Year in 2023 and the airline plans to reach net-zero carbon emissions by 2050. Etihad declined to comment when approached by Skift for this story. Who Pays the Price? There's also the human factor. While it might not cost airlines much to facilitate the stunts or their prizes, it can be contestants who shoulder the cost instead. 'There's concern among some about the amount of wasted travel hours and additional emissions that [the Etihad] competition entails,' says Keyes. 'After all, there will be many people competing to win the 5 million miles, and all but three of them will see their efforts in vain." The recent SAS and JetBlue promotions differ in that there is no limit to the number of successful participants. However, travel that's consumption-focused and performative (staying somewhere only long enough to say you've been there, 'doing it for the 'gram') is the antithesis of sustainable travel, which prioritizes slow travel, reducing carbon footprint, and forming meaningful connections on the ground. 'Given travelers, especially Millennials and Gen Z, are seeking more meaningful, slower trips versus globe-hopping on long, non-stop journeys, this stunt can feel at odds with the rising call for more sustainable and responsible travel,' Curran adds. For its part, JetBlue told Skift: "As a primarily leisure airline, this promotion is designed to celebrate exploration, encouraging customers to connect with friends and family across our network, or visit destinations they may not have discovered yet. "Importantly, the promotion is built around our regularly scheduled flights, not added capacity or special charters created solely for the program," a spokesperson added. Despite the campaign still being in its first week, JetBlue reports "great enthusiasm," with more than 650 bookings already made through a dedicated promotion landing page. The Russian Factor An additional consideration for the Etihad competition in particular is accessibility. While the airline says the competition is 'offering anyone the chance to participate and win,' the required stop in Sochi, Russia, might deter some. This could be because of visa restrictions, safety concerns given the conflict in Ukraine, or the questionable morality of flying into a country at war to win loyalty points. 'Whether intentional or not, the fact that one of the required stops is in Russia effectively excludes most American and Western European travelers from participating,' says Keyes. In the near term, is there a way forward for attention-grabbing airline PR stunts? Curran suggests initiatives that align more toward sustainable travel while still creating buzz. 'This might include challenges that entice travelers to show off their low-carbon travel, creating immersive experiences in local communities or slow travel itineraries that help travelers experience longer, more meaningful trips,' she notes. 'In a crowded market, we'll continue to see travel brands push boundaries and the key to ensuring these will be successful is to anchor them in purpose and your brand mission, not just promotion.' What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance. Read the full methodology behind the Skift Travel 200.

Planner Left Stranded After Hotel Changes Hands
Planner Left Stranded After Hotel Changes Hands

Skift

time17 hours ago

  • Business
  • Skift

Planner Left Stranded After Hotel Changes Hands

No rooming lists, diagrams, or BEOs — and no responses to her calls or emails — left this planner on edge as her hotel went through a change of ownership just weeks before her meeting. For Evya Potts-Richards, using a Capitol Hill hotel that she had, in her words, 'broken up with before,' could have been a bad omen. But despite the fact that she had a negative experience in the past, the property was now part of a major chain. So last year, when her site specialist suggested using them for a June 2025 conference, she gave it the green light. 'I knew the property, and I also knew the conference services manager and that she would take care of me. So I decided I would go back again,' said Richards, who is the meeting manager at The Energy Council. The contract was signed in May 2024 and, as always, included a change of ownership clause. What Richards didn't know was that the property changed from corporate-owned to a franchise after the contract was signed. 'The service and everything, whether corporate-owned or franchised, should be seamless, because as a franchised property you're still flying that brand's flag,' she said. In this case, the franchise employees were not given any access to information, systems, or credentials. Then everyone she had been working with started leaving. Trouble Brewing The first sign of trouble was in March 2025, when she started noticing that she had no introductory emails from the hotel. She reached out to her sales manager, only to find that she was no longer there. 'Still, that wasn't a big alarm because I know salespeople tend to move on. So I reached out to the person who I thought was going to be my CSM, and she sent me back an email that she was moving on.' That's when she picked up the phone. During their conversation, the CSM never gave Richards any indication that the hotel was changing ownership and all the corporate employees were fleeing. Around that time, the issues started. Because of a mistake in the system, the registration cutoff date was listed a month earlier, so her attendees — high-profile state-appointed legislators and leaders in the private business sector energy from companies like Exxon Mobil and Shell — started reaching out saying they had tried to register for the meeting but the room black was full. 'I had at least four or five different rooms coordinators,' she said. 'Every time I'd reach out to somebody, they were no longer there. It was like the first time they'd ever heard about this.' Less than 30 days before the meeting, after numerous frustrated emails and calls, the sales manager finally called to tell her the hotel had been sold. She was assigned a new CSM, a 'task force' contractor who actually lived in Atlanta. These interim management professionals are brought in from all over the country to fill critical roles. 'I knew nothing of that world, but she was a seasoned professional,' Richards said. 'However, she was extremely overwhelmed, because we weren't the only group coming in.' The issues persisted. 'No BEOs, no diagrams, nothing.' That's when the hotel brought in additional contract task force employees: a banquet captain, a food and beverage director — and a new CSM to relieve the overworked one. Enter the Task Force The June 5-7 meeting went off without the 130 attendees having any issues or idea of what went on behind the scenes. Richards has decided not to pursue any legal action. She did hold a debrief meeting with the new general manager (the previous one also left) and her third CSM, to let them know how she felt about how they handled the situation. 'It would have been a professional courtesy for the previous GM to have contacted me to let me know what was happening, and the contract says that the hotel is supposed to do that. I told them that meeting planners talk to each other, and as a planner who has been doing this for many years I feel like we're getting a little disrespected.' She has asked that the hotel offer her the same rate as they did this year, and perhaps she would consider returning again in two years. She'll be sure to get that promise in writing. Her advice to fellow planners: Ask if a hotel is franchised or corporate-owned or -managed. There can be differences in flexibility, brand standards, and contracting. In her previous role, for example, her company would not work with franchise hotels. 'They were not as amenable to our addendums,' she said. 'Moving forward, we'll be putting this in future RFPs, along with a 90-day change of management clause. 'So many things went so terribly wrong,' she said. 'I think if I hadn't been more seasoned, it could have been even worse.'

Regional Air Travel Startups Raise Over $85 Million: Funding Roundup
Regional Air Travel Startups Raise Over $85 Million: Funding Roundup

Skift

time18 hours ago

  • Business
  • Skift

Regional Air Travel Startups Raise Over $85 Million: Funding Roundup

The biggest airlines are behind on updating their tech systems and operations; regional airlines are even further behind. Travel Startup Funding This Week Each week we round up jd@ if you have funding news. Each week we round up travel startups that have recently received or announced funding . Please email Travel Tech Reporter Justin Dawes atif you have funding news. One big theme for travel startups this week is regional air travel. Three companies raised money toward their efforts to modernize various aspects of the industry, from software to aircraft themselves. The biggest airlines are behind on updating their tech systems and operations; Regional airlines are even further behind. Like the rest of the flying taxi startups, one such company on the list seeks to create a new type of commercial travel. Over the last week, six travel startups announced fundraises totaling more than $100 million. Expliseat: $42.1 Million Expliseat, which develops and manufactures lightweight seats for commercial aircraft, has raised $42.1 million (€36 million). Crédit Mutuel Innovation led the round, with support from the SPI fund (managed by public sector investment bank Bpifrance for the French government), Supernova Invest, Swen Capital, BNP Paribas Développement, GO Capital, and NCI. France-based Expliseat says it has invested heavily in research and development for lightweight seats, securing more than 100 patents. The company says that its flagship product, the TiSeat 2, weighs 30% less than traditional seats. The company says it has orders totaling $58.5 million (€50 million). Clients include Air France, Air Canada, and Jazeera Airways. Expliseat has a new facility in France that it says can produce 32,000 units annually. And it recently opened an office in Montreal as it seeks to expand business in the North American aviation market. The funding will go toward business expansion, along with continued R&D for the next generation of its products. The company also plans to move into rail and electric buses. Surf Air Mobility: $27 Million Surf Air Mobility, an airline owner that is also developing tech for regional airlines, has raised $27 million in a registered direct offering of common stock. The company sold roughly 10.8 million shares of common stock for $2.50 each. Surf Air Mobility's regional airline software includes products for operations efficiency, sales and sourcing customers, and aircraft utilization. The company owns two regional airlines — Southern Airways Express and Hawaii's Mokulele Airlines — as well as Surf Air, a website for booking private charter flights. Surf Air is also working to commercialize electric and hybrid-electric powertrains for regional aircrafts, including for the Cessna Caravan. Founded in 2020, Surf Air Mobility acquired the airlines as part of its debut on the stock market through a direct listing on the New York Stock Exchange in 2023. The funding will go toward operations and paying down debt. XTI Aerospace: $16 Million XTI Aerospace, which is developing a flying taxi for long distances, has raised $16 million. The funds come from an underwritten public offering of stock and warrants, priced at $1.75 each. Colorado-based XTI Aerospace is developing a vertical takeoff and landing (VTOL) aircraft called ​​TriFan 600. It is designed to travel up to 1,000 miles at speeds of up to 300 miles per hour, and can carry a pilot and six passengers. The two turboshaft engines are designed to be fully compatible with renewable jet fuels, with future plans for electric engines. The company plans to primarily target the business and commercial travel industries, along with the ambulance industry. XTI Aerospace says it has 700 pre-orders for $10 million per aircraft. XTI Aerospace went public in March 2024 following a merger with Inpixon, which provides location tracking devices that factories can use to monitor equipment and inventory. Inpixon had gone public through a merger with a special purpose acquisition company in 2023. Chatlyn: $9.4 Million Chatlyn, which provides AI-powered guest management tech for hoteliers, has raised $9.4 million (€8 million) in a series A round. Smedvig Ventures led the round, with support from bus company Blaguss, individual investors Andreas Burike (AnyDesk founder) and Mathias Hiebeler (former owner of Grob aircraft, acquired by Helsing), and a group of angel investors. Vienna-based Chatlyn says its tech helps automate hotel operations, including front desk, reservations, marketing, guest services, and guest communication. Features include a public-facing AI assistant for booking, an AI chatbot for hotel guests, translation for more than 35 languages, and more. The startup says its tech is live in more than 1,000 properties, including St. Regis Mauritius, Singer Palace Rome, and InterContinental properties. The funding will go toward product development, geographic expansion, and hiring. StayVista: $4.7 Million StayVista, a property manager and booking site for luxury vacation rentals in India, has raised $4.7 million (400 million Indian rupees) in series B funding. JSW Ventures led the round, with support from DSG Consumer Partners and Capri Global Family Office. Mumbai-based StayVista says it manages 1,000 properties and has hosted more than 1 million guests. The funding will go toward expansion into new cities, hiring, and improving customer experience. Winalist: $1.2 Million Winalist, an online marketplace for booking ticketed experiences related to wine and spirits, has raised $1.2 million (€1 million) in seed funding. Investors included Plug and Play Ventures, Portugal Ventures, and Vessoa Private Equity. France-based Winalist says it partners with more than 1,700 operators in 10 countries. Users can book winery visits, tastings, private wine-pairing dinners, vineyard day-tours, and more. The funding will go toward opening a new branch in Porto, Portugal, as well as hiring, marketing, and increasing operational support for partners.

Singapore Airlines' Emissions Rise, Climate Rules Threaten Higher Costs
Singapore Airlines' Emissions Rise, Climate Rules Threaten Higher Costs

Skift

time21 hours ago

  • Business
  • Skift

Singapore Airlines' Emissions Rise, Climate Rules Threaten Higher Costs

Singapore Airlines' growing fleet of more fuel-efficient aircraft shows commitment to lower emissions, but it also locks in decades of continued fossil fuel use, with sustainable aviation fuel still limited. Singapore Airlines' emissions are rising as the carrier expands operations, but the company says it remains on track to hit its 2050 climate goals. In its latest sustainability report, Singapore Airlines Group reported that total emissions rose more than 13% over the past financial year, from 18.8 million tonnes of CO₂e to 21.4 million tonnes. The airline, which has orders for over 70 new planes, pointed to strong passenger demand and ongoing airspace restrictions, which have forced longer flight routes, as key reasons behind the increase. The company's CEO, Goh Choon Phong, said its investment in newer aircraft, which the industry says emits up 25% less carbon, will help in plans to reduce emissions to almost zero by 2050. 'Our long-term commitment to investing in and operating new-generation aircraft puts us in a strong position,' Goh said. 'As of 31 March 2025, the average age of the Group's operating fleet was seven years and eight months, well below the global average of 15 years.' Rising Costs From Climate Rules and Compliance At the same time, the carrier warned that complying with international climate regulations could come at a significant cost in the years ahead. It estimated the global aviation carbon offsetting scheme, known as CORSIA, which most airlines are a part of, could cost the airline around $150 million by 2030. CORSIA requires airlines to purchase credits if their emissions exceed 85% of their 2019 levels, with the goal of offsetting the climate impact of growing international air travel. In its report, the airline flagged its scope 1 emissions, which are mainly made up of fuel, as the main driver of future compliance costs. Singapore Airlines pointed to sustainable aviation fuel (SAF) as a long-term solution. SAF can reduce emissions by around 65% compared to traditional jet fuel, according to the sector. The airline called SAF 'a critical lever for decarbonisation' and said it would continue to support its development and use. Managing Climate Risks singapore airlines helped install flood defences at singapore airport. source; changi airport group The airline said that other climate-related risks, such as extreme weather and infrastructure threats, currently have a limited financial impact. However, it estimated that direct costs from these risks could reach up to around $35 million by 2030. As part of its preparations, Singapore Airlines said it has invested in flood prevention measures at Singapore Changi Airport, including flood barriers and new drain sensors. Skift contacted Singapore Airlines for additional comment on its climate strategy and financial forecasts, but the company did not respond. Skift's in-depth reporting on climate issues is made possible through the financial support of Intrepid Travel. This backing allows Skift to bring you high-quality journalism on one of the most important topics facing our planet today. Intrepid is not involved in any decisions made by Skift's editorial team.

EU Wants to Ban Luggage Fees for Carry-Ons — Airlines Push Back
EU Wants to Ban Luggage Fees for Carry-Ons — Airlines Push Back

Skift

time21 hours ago

  • Business
  • Skift

EU Wants to Ban Luggage Fees for Carry-Ons — Airlines Push Back

Airline lobbying groups in Europe are strongly opposed to the EU amendment. The rule could only be implemented following negotiations with EU governments. So far, Spain has expressed interest. The European Parliament's transportation committee voted this week for an amendment that would prohibit airlines from charging fees for bags that weigh up to 7 kilograms, or around 15 pounds. Under the rule, passengers will be able to fly with carry-ons and personal items free of charge. 'Today's vote marks an important step toward fairer and more transparent travel,' said Matteo Ricci, the lead member of European Parliament on the legislation. The measure is part of a broader effort from the European Parliament to ensure passenger rights for reimbursements following flight cancellations or disruptions and making it easier for passengers to receive compensation. Airlines Voice Opposition Airline lobbying groups in Europe are strongly against the measure. 'Unfortunately, the vote was also used to slip in air travel-specific amendments through the backdoor, taking away passenger choice and deciding for them what services they should pay for, even when they don't want or need them,' Airlines for Europe said in a statement on Tuesday. A4E has also warned that the rule could make traveling more expensive for passengers who may not need a carry-on. 'What's next? Mandatory popcorn and drinks as part of your cinema ticket?' said A4E managing director Ouriana Georgoutsakou. 'The European Parliament should let travellers decide what services they want, what services they pay for and, importantly, what services they don't.' A Potential Blow for Europe's Low-Cost Carriers Scrapping carry-on fees could adversely affect low-cost carriers in the region, which sell unbundled airfares to passengers, charging separately for carry-ons, checked-in luggage, and seat selections. For example, Ryanair, the largest carrier in Europe, made €4.7 billion last year from ancillary revenues, which include baggage fees and seat selection. The U.S. doesn't have a regulation prohibiting baggage fees for carry-ons. In the U.S., carriers only charge fees for carry-ons to passengers flying basic economy. Ultra-low-cost carriers like Spirit and Frontier have recently introduced bundled airfares to customers, which do not include separate fees for carry-ons. However, baggage fees have drawn some scrutiny in the U.S. A Senate subcommittee report released last year found that major U.S. airlines made $25.3 billion from baggage fees. During a congressional hearing on the report, senators expressed frustration with airline executives' lack of transparency on their pricing models. The rule could be implemented following negotiations with EU governments. Spain has said it is open to the change, according to Politico Europe. Lawmakers said that the rule is based on the 2014 Court of Justice ruling, which established that carry-ons are a 'necessary aspect' to passenger rights as long as they meet the 'reasonable requirements in terms of weight and dimensions, and complies with applicable security requirements.' What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance. Read the full methodology behind the Skift Travel 200.

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