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Here’s why Trivago CEO believes travel will be even more expensive

Here's why Trivago CEO believes travel will be even more expensive

Aussies are keener than ever to hop on a plane and escape what has been a pretty rough past few years.

Almost 57 per cent of Aussies are planning a getaway in the next 12 months which is up 49 per cent from December, according to Finder’s Consumer Sentiment Tracker.

However, travel at the moment comes with a heftier than usual price tag.

KAYAK’s data shows the average return economy international flight price in Australia based on flight searches in July (between July 1-18) was approximately $1761 – an increase of about 14 per cent compared to the same period in May (between May 1-18) .

Meanwhile, the consumer price index (CPI) July report shows plane tickets have soared 27.7 per cent on a year-over-year (YoY) basis.

And sadly it is a tendency likely to stick around for a bit longer, according to Angus Kidman, travel expert at Finder.

“Sale fares are definitely higher than they were pre-pandemic. Tiger used to regularly offer $9 domestic fares,” Mr Kidman said.

“We won’t see that again. Jetstar has offered a handful of $22 fares this year, but only outside of peak periods and for a tiny number of seats.”

He said Virgin’s floor in sales is now generally $49, and for Qantas it’s rare to see any sub-$100 flights.

“I don’t expect we’ll see much change to that in 2022. The arrival of new competitor Bonza may create a little price pressure, but many of its routes are regional and I’m expecting that it will be charging well over $100 for a seat most of the time.”

‘On the rise’

Trivago (TRVG) CEO Axel Hefer believes “costs will continue to go up”, attributing it to staffing shortages and labor costs.

“You see a fundamental shortage of people in travel and hospitality, and the reason is that a lot of companies have actually reduced their staffing during the pandemic,” Mr Hefer told Yahoo Finance.

“[Companies] are now struggling in very tight labor markets to staff up again. So they will have to pay up, and that cost will be passed on.”

Flight cancellations

The Bureau of Transportation Statistics quantified that 88,161 flights have been canceled so far this year, with many being attributed to staffing issues.

Virgin Australia, Qantas, and Air New Zealand were all named among the global airlines with the current highest cancellation rates, while Singapore Airlines was noted as the carrier with the lowest cancellation figure.

The new data, compiled by aviation analytics company Cirium, looked at flight data from 19 major airlines in the three months to July 26 which revealed Virgin Australia to have one of the highest cancellation rates at 5.9 per cent.

Air New Zealand and Qantas were also named in the top five airlines with high cancellation rates, at 3.7 and 3.3 per cent respectively.

Singapore Airlines, which remains the top international carrier in Australia, was dubbed the most reliable airline, with a 0.8 per cent cancellation rate.

Notably, of all 19 studied carriers, Virgin boasts the smallest international network, possibly skewing the data, according to Australian Aviation.

Australia’s worst month for flying

Australian airlines recorded their “worst ever” month in June for flight delays and cancellations with a total of 5.8 per cent of all flights canceled – nearly three times more than the long-term cancellation average.

There were 63 per cent of all flights arriving on time in June, with 61.9 per cent departing on schedule, the Bureau of Infrastructure and Transport Research Economics (BITRE) report found.

BITRE said these figures mark “the worst” the industry has seen since records began in November 2003.

The report looked at delays and cancellations across all major Australian airports in the month of June.

The severe disruption was fueled by staffing shortages, staff sicknesses, mid-year school holiday travel surges and severe weather events, including flash flooding throughout NSW.

Qantas recorded the highest percentage of cancellations at 8.1 per cent during the month, followed by QantasLink, Virgin Australia, Jetstar, Virgin Australia Regional Airlines and Rex Airlines.

Qantas recorded just over half of their airlines arrived on time in June, at 59 per cent, while Virgin achieved the highest level of on time departures among the major domestic airlines at 60 per cent.

A Qantas spokesperson told NCA NewsWire the flight delays and cancellations were not the kind of performance that they were delivering pre-Covid.

“A rise in Covid and other illnesses among airline crew as well as the tight labor market led to flight disruptions for all domestic airlines in June,” they said.

“We had rostered additional crew on standby which helped lessen the impact of Covid-related crew absences and meant 85 per cent of our domestic flights for the month departed within an hour of schedule.”

“Flight cancellations in July were lower than they were in June, call center wait times are now better than they were pre-Covid and our mishandled bag rates are close to what they were before the pandemic.”

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Qantas engineers to hold one-minute work stoppage

Qantas engineers to hold one-minute work stoppage

More than 700 aircraft engineers from Qantas, Jetstar and Perth-based FIFO subsidiary Network Aviation will conduct a “one-minute work stoppage” in August.

The Australian Licensed Aircraft Engineers’ Association (ALAEA) federal secretary Steve Purvinas told members in a meeting on Wednesday that the majority had voted in favor of industrial action.

Airline engineers are asking their employer for a 12 per cent pay rise to make up for stagnant wages the last four years.

The union’s first action will be a one-minute stoppage across all airlines sometime in late August.

“The first action will be a token one,” Mr Purvinas told members.

“A one-minute stoppage of course is not going to harm any airline and also demonstrates our willingness to negotiate in good faith and not try and harm the airline.”

Mr Purvinas said the token stoppage aimed to give the airlines an opportunity to come to the table.

“We do want to give some time for resolution of these matters before we have to do anything that may even be close to disrupting the public,” he said.

The strikes come at a difficult time for Australia’s national flag carrier, as the aviation industry struggles with staff shortages that have led to flight cancellations, delays and missing luggage.

If the stoppage does not motivate negotiations, the union plans to notify the airline of more work stoppages.

During these stoppages, the union has offered to provide “alternative labor provisions” to the airline.

“We want to assure the public that we won’t be harming their services,” Mr Purvinas said.

“Our target is the airlines who are not negotiating in good faith.”

ALAEA members voted against using overtime bans to avoid “exacerbating” already challenging conditions in the industry.

A Qantas spokesman told the NCA NewsWire in July that the 12 per cent pay rise was something the airline “simply can’t afford”.

They said Qantas had a policy of 2 per cent annual increases for all employees across the Group.

The airline has a history of not holding back when it comes to dealing with union industrial action.

Qantas chief executive Alan Joyce infamously grounded the airline during a dispute with the ALAEA and two other unions back in 2011, leaving 200,000 passengers stranded without notice.

Qantas was contacted for comment.

Read related topics:Perth Qantas

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Qantas moves managers and executives into baggage handling

Qantas moves managers and executives into baggage handling

Qantas senior executives and managers will step down from their usual roles to pitch in as ground handlers, as the airline continues to suffer from major staff shortages.

The shake-up is part of an extraordinary contingency program expected to last three months and help the airline get back on its feet before the busy summer holiday period.

While the airline has rehired close to 2000 staff after letting about 1700 ground handlers go during the pandemic, it has struggled to stay on top of baggage, flight delays and cancellations.

Chief operating officer Colin Hughes told staff that during the contingency program, they would be an “embedded resource within the ground handling partners”, Australianreports.

“This means you’ll receive a roster, be scheduled to operate and be supervised and managed in the live operations by our ground-handling partners.”

Staff participating in the program would be required to sort through and scan bags, and drive airport tugs to carry luggage onto planes and between terminals.

“It’s our singular company focus to support our teams to get our operation back to where it should be and provide our passengers the experience they expect from the airline,” Mr Hughes said in his note to staff.

A Qantas spokesperson said the measures were introduced as a result of staff shortages caused by flu and Covid, as well as the tight labor market.

“We’ve been clear that our operational performance has not been meeting our customers’ expectations or the standards that we expect of ourselves – and that we’ve been pulling out all stops to improve our performance,” they told news.com.au .

“As we have done in the past during busy periods, around 200 head office staff have helped at airports during peak travel periods since Easter.

“While we manage the impacts of a record flu season and ongoing Covid cases coupled with the tightest labor market in decades, we’re continuing that contingency planning across our airport operations for the next three months.”

Qantas is filing an appeal in the High Court after the Federal Court found it was in breach of the Fair Work Act for sacking almost 2000 staff during the pandemic.

It has yet to fully staff its operations since domestic and international travel summarized following the Covid shutdown period.

Qantas’ reputation has suffered immensely in recent months with furious customers complaining about delayed and canceled flights, missing luggage and extreme customer service wait times.

Read related topics:qantas

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Qantas, Jetstar and Virgin: Broome airport hit with massive flight delay record

Qantas, Jetstar and Virgin: Broome airport hit with massive flight delay record

Flights leaving one Australian airport have had the largest delays in the entire country, with almost 70 per cent of planes delayed.

Figures, released by the Bureau of Infrastructure and Transport Research Economics report, found less than 30 per cent of flights headed from Broome to Perth left on time, the worst route in the entire country.

The report looked at delays and cancellations across all major Australian airport in the month of June.

Airlines included in the report were Virgin Australia, Qantas, Jetstar, QantasLink and Rex Airlines.

The figures for on time arrivals in June reached all time lows for all 58 travel routes looked at.

Qantas recorded the highest percentage of cancellations at 8.1 per cent during the month, followed by QantasLink, Virgin Australia, Jetstar, Virgin Australia Regional Airlines and Rex Airlines.

Australia’s signature airline company Qantas recorded just over half of their airlines arrived on time in June, at 59 per cent, while Virgin achieved the highest level of on time departures among the major domestic airlines at 60 per cent.

A Qantas spokesperson told NCA NewsWire these flight delays and cancellations are not the kind of performance that they were delivering pre-Covid.

“A rise in COVID and other illnesses among airline crew as well as the tight labor market led to flight disruptions for all domestic airlines in June.” they said.

“We had rostered additional crew on standby which helped lessen the impact of COVID-related crew absences and meant 85 per cent of our domestic flights for the month departed within an hour of schedule.”

“Flight cancellations in July were lower than they were in June, call center wait times are now better than they were pre-COVID and our mishandled bag rates are close to what they were before the pandemic.”

Mildura Airport, which is located in northwest Victoria, recorded the lowest percentage of on time arrivals sitting at more than 47 per cent, while Alice Springs Airport recorded the highest rate of on time arrivals at 87 per cent.

Cancellations were highest on the Sydney-Melbourne route at 15.3 per cent, followed by the Melbourne-Sydney route at 14.9 per cent, and the Sydney-Canberra route at 11.1 per cent.

The report follows after more than 21 flights were canceled in Sydney across the Qantas, Virgin Australia, Jetstar and Rex networks on Tuesday.

Virgin dumped 10 flights, Qantas nixed eight, with two pulled from Jetstar and one from Rex, combined with an additional 20 flights scrapped at Melbourne Airport as of 8.30am on Tuesday.

Both domestic and international flights with major aussie airlines alongside Emirates, British Airways and American Airlines were also dumped on Monday between 6.30am-7am.

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Warning Australians could miss out on Christmas holiday flights, accommodation

Warning Australians could miss out on Christmas holiday flights, accommodation

If you thought the chaos at airports over the July school holidays was enough to send you mad, experts say a whole lot more pain is coming – and not just when it comes to flying.

With Christmas holidays creeping up and the busiest holiday period just around the corner, Aussies hoping for a breezy summer escape are being warned to book now – or face being left out in the cold.

Accommodation platform Stayz revealed one-in-five Aussies have already booked their end of year holiday, with newly released data predicting a possible sold out summer in top holiday home destinations over the Christmas break.

“Booking for year-end Christmas holidays in July is now the norm” says Simone Scoppa, travel expert at Stayz.

“Prior to the pandemic, we knew that travelers mostly booked Christmas holidays in the month of September. But, the last two years have seen this peak period move to July as travelers get in early to secure their holiday home.”

According to the research, families heading into the silly season are increasingly searching for whole holiday homes with pools, in a waterfront or beachside location, and for the accommodation offering to be pet friendly.

Ms Scoppa said heading into July and August, the most popular destinations that have seen a spike in summer bookings include the Fraser Coast in QLD, the South West region of WA, the Barossa wine region in South Australia and smaller coastal towns along the Great Ocean Road in Victoria.

Airbnb, who recently launched the ‘Categories’ section for unique-style homes, predict this summer will have an increased interest from the international market now that border restrictions are over.

“While traditional holiday destinations continue to be popular, last year we saw guests seeking stays in those lesser-known locations that might be slightly further afield,” Susan Wheeldon, Airbnb’s Country Manager for Australia and New Zealand, told news.com.au.

“This summer, Aussies won’t be the only ones snapping up fun and unique homes on Airbnb, with international travelers also looking to experience Down Under – from our world-famous coastal cities and towns, to breathtaking rural landscapes.”

Ms Wheeldon tips locations like Rye, Apollo Bay and Bright to be popular once again this summer, along with South West Rocks and Nelson Bay in NSW.

With airports and airlines across the country – but particularly along the east coast – battling staff shortages, flight cancellations and delays coupled with the post-Covid travel boom, experts warn travelers could be in for long wait times over the summer holidays for both domestic and international travel.

On Monday alone, 21 flights were canceled in Sydney across the Qantas, Virgin Australia, Jetstar and Rex networks. Virgin dumped 10 flights, Qantas nixed eight, with two pulled from Jetstar and one from Rex.

Melbourne Airport faced similar struggles, with 20 flights scrapped as of 8.30am.

This included seven flights from Qantas, five from Emirates and Virgin Australia, two from American Airlines and one from British Airways.

The flights canceled at both airports were between 6.30am and 7pm on Monday.

With airlines struggling to keep up with demand amid staff shortages, Qantas announced they would be reducing flights in July and August.

Domestic and International CEO Andrew David apologized to customers as a result of the ongoing chaos being faced at airports across the country.

“We are the national carrier, people have high expectations of us, we have high expectations of ourselves and clearly over the last few months we have not been delivering what we did pre-Covid,” he said.

“We have reduced some of our flying this month and we’re planning to do the same next month, recognizing the operation pressures we have.”

It is understood the airline will be rostering on extra staff for the Christmas period, and any large widebody aircraft will be deployed to assist with domestic flights if need be.

In 2022 alone, Aussies have faced a string of rising cost of living pressures and accommodation reservations have been no exemption.

It hasn’t exactly been cheap to holiday domestically for many years, but staggering figures show that it has gone from bad to worse in the past 13 months.

Data from trivago released in June – recorded hotel price shifts from more than 400 booking sites for over 2 million hotels around the world in its Hotel Price Index. The survey uncovered an astronomical increase in the price of an Aussie getaway.

It shows the average price of a hotel in Sydney has arisen almost 25 per cent over the past year while hotel rooms in Melbourne have seen a 24 per cent spike in the same period.

This means the average cost of a hotel room in Sydney is now above $240 per night, up from $206 a night a year ago. For Melbourne, the average cost is now $239, up from $200 in August last year.

The CEO of Tourism Accommodation Australia, Michael Johnson said the hike in prices came down to staff shortages still plaguing the industry, with many hotels forced to operate at 70 to 80 per cent capacity which was impacting revenue.

“I know hotels that are still looking for 30 to 40 staff, instead of running two restaurants they are only running one,” he said.

“They’re not taking conference bookings, because they just don’t have the staff to manage those bookings.”

But despite the angst and frustration following travelers to airports both domestically and internationally, Australians have not been deterred from traveling and there’s no sign of it waning off in the future, according to Finder’s Consumer Sentiment Tracker.

More than one-in-two (57 per cent) of Aussies are planning a getaway in the next 12 months, including 32 per cent who plan to travel within Australia, 12 per cent who plan to travel internationally, and 13 per cent who plan to travel both domestically and overseas.

This is up from 49 per cent last December.

According to Finder’s Covid Comfort Indicator, Aussies rank their level of comfort with overseas travel at 4.3 out of 10, up from 2.7 in January. They feel slightly more at ease with domestic travel, ranking it 6.1 out of 10.

“The travel industry is finally seeing some normalcy for the first time in over two years. People aren’t as concerned about prices, they just want to travel again,” said Angus Kidman, travel expert at Finder.

“The key to making the most of any travel sale is to be flexible with dates and open-minded about destinations. Don’t forget to book your travel insurance as soon as you’ve locked in your trip.”

Ms Scoppa agreed, saying with many Australians missing out on travel plans due to Covid-19 interrupting plans in 2021 – the advice was to be organized and book now.

“The advice is simple, we recommend that you book now for your Christmas holidays, rather than leaving it to the last minute, where there may be limited choice,” Ms Scoppa said.

“The Mackay and Central Coast NSW regions are typically favorite summer destinations, that in years past have been close to a sell out, so it is good news for travelers looking ahead to book for Christmas that availability is still looking good for these destinations.”

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