Will the U.S. government really hold airlines accountable?

Hi travel friends,

Before we say adios to Summer of 2022, we’d like to say hello to our newest subscribers from New York, Denver, Washington, D.C., and beyond. We're glad you’re here.

This year’s peak travel season flew by quickly – NOT! Each week our jaws dropped as the world’s air system consistently melted down somewhere – a massive luggage pileup at Heathrow, an outrageously last-minute flight schedule reduction in North America and so on. By late June, it was painfully clear that the airlines got it wrong – really wrong. Flying became so stressful that some fliers even did yoga handstands in the middle of the airport.

But before we say good riddance to the summer of travel hell, one of us (Barbara) has an important flight that we hope goes smoothly. Her son Joaquin on Saturday will fly Iberia Airlines to Seville to kick off his college career – and yes, she plans to visit (once it gets below 100 degrees).

We're taking off next week to enjoy the end of summer. But our fall and winter calendars are already filling up. You can look forward to our future reports from Mexico, Canada, Costa Rica, India, Spain, Las Vegas and Palm Springs.

So what are you thinking about travel, or Travel Essential? Whether you’re a new or existing subscriber, we’d love to hear from you over email, Twitter or Instagram. And if you’ve received this week’s edition from a friend, be sure to sign up for free with one click.

Here’s the news we’re watching (and waiting for):

Will air travel (finally) calm down this fall? No, you didn't miss this narrative in the news – it's not really out there YET. But privately, the insiders we've been chatting with over cocktails say they're expecting a quieter season than what we'd normally expect when airlines shift from the peak summer season to the business-travel-dominant fall. And we're seeing signs to support that. Why? Several reasons:

– Many of us got the hell out of dodge this summer. We flew like mad to wherever we could to destinations with beaches or national parks, or to favorite destinations like Europe. In July, for instance, domestic air travel to Hawaii reached an all-time high, according to Airlines for America (A4A) data. This made us happy, and we filled our Instagram accounts with awesome reels and photos.

– But with inflation making even a trip to Trader Joe's an event, and average American bank accounts smaller, even empty nesters could stay closer to home.

– And business travel simply isn't back yet. While A4A data shows corporate ticket sales sold by U.S. travel agencies steadily recovering since Covid hit, the volume's still 29% less than 2019 levels.

Bags fly free, but a prime boarding position will cost you! We’ve never been big fans of the Southwest Airlines' herding model for boarding. And it always annoys us when we see their ads bragging about no checked bag fees. Why? Because anymore you have to pay $15 to $25, (the latter being the equivalent of what most other airlines charge to check a bag) to get EarlyBird check in, which – hopefully – will you secure a spot in one of the earlier boarding groups. Now, they are making it easier to purchase an even more expensive upgrade ($30, when spots are available) to be one of the first 15 to board. That apparently would be on top of what you already paid if you bought EarlyBird check in with your tickets. The extra upgrade option has always been offered, when available, at the airport. TE's take: Southwest's newest promotion is just one more reminder that while bags fly fee, be prepared to keep shelling out the extra fees for a decent seat.

In the world of sustainable travel, advocates are absolutely loving late-night show host John Oliver's irreverent take on the absurdity of so-called carbon offsets. Watch it on YouTube. Our favorite quotes involves the Austin airport, which sells $2 offsets. Says Oliver, “That price is obviously too low. It is pretty suspicious. That you could walk into an airport and offset more than 1,000 miles of air travel for just $2, then head over to a CIBO Express, where it costs at least five times that for a soggy chicken wrap … On some level, you probably know carbon offsets are bullshit.” TE's take: Skip offsets. If you care, take action in your own home. Consider, for instance, using cold water instead of hot when you do laundry.

Marriott tells corporate travel decision makers it's thinking green. During the Global Business Travel Association conference, Marriott's chief global officer for operations, Erika Alexander, reinforced the company's green positioning. In a video interview, she told CoStar Group that "five or six years ago" business travel customers and meeting planners had "mixed" views about needing their hotel to address climate change. But today, "our customers are telling us they're committed to reducing carbon emissions for them to achieve their (own corporate) goals." In the future, she said, Marriott hotels might post their sustainability practices and certifications (which range in quality across the planet) on their brand sites – say Ritz-Carlton or Courtyard – to make it easier for travelers make decisions. TE's take: It will be interesting to track the hotel industry's actions as multinational conglomerates steps up their own measures to reduce carbon footprints. This is not a marketing exercise!

After a summer of unpredictable flying and growing pressure on Capitol Hill to hold airlines accountable, U.S. Transportation Secretary Pete Buttigieg is ramping pressure on carriers. Last week, he fired off a letter to CEOs of the biggest airlines, telling them to clean up their act or face new rules. He called their record this year unacceptable, and said that at the very least, airlines should give passengers delayed by three or more hours meal vouchers, plus lodging if stranded overnight for reasons within an airline's control.

To shed light on the quality of each carrier's consumer protection policy, Buttigieg also announced a new, upcoming feature on the Department of Transportation Aviation Consumer Protection website website. On Sept. 2, the site will have a section that will (allegedly) clearly describe each carrier's promise to help customers who have experienced a delay or cancellation. Of course, all of this raises even more questions.

Will the government follow through on Buttigieg's threats for tougher regulation? We spoke with independent airline analyst Henry Harteveldt of Atmosphere Research. "The government can try to hold airlines to be more accountable. If (it) doesn’t try, it’s unclear to what degree the airlines will do certain things on their own. Of course, it’s in the airlines' best interest to be as on-time as possible," Harteveldt told Travel Essential.

"When an aircraft is delayed, it slows down an airlines’ chance to make money. Airlines will always use safety as a bit of a smokescreen to mask certain things when it’s convenient. So ultimately, the government may be better able to impose policies that make a difference to consumers such as requiring refunds."

Still, whether the DOT will follow through on its threats – and when – is anyone's guess. The industry has a strong lobby, and is struggling to eke out its first profit this year since Covid.

"The airlines are going to fight back with everything they can," Harteveldt told us. "They don’t like anybody telling them what to do, whether how they run their business or whether to refund money to travelers."

You’ve heard our outrage about $1,000-a-night stays for a Hilton Doubletree last winter. In fact, when we raised the issue of paying luxury sums for a Doubletree back in June during an industry CEO panel, Hilton CEO Chris Nassetta called the example an outlier. That ended the conversation in the room.

But we think this trade outlet piece from CoStar Group's Dana Miller should restart it.

Reporting from an industry conference – specifically from a revenue strategy session titled, "Exchanging occupancy for ADR?", Miller tells us that operators of hotels with names such as Holiday Inn, Hampton Inn, AC by Marriott, Red Roof Inn and Courtyard by Marriott continue to take a "sky's the limit" approach to room rates despite the fact that the pandemic is (hopefully) easing. CoStar Group data shows record-high monthly room rates for July.

This vivid example from a McKibbon Hospitality executive, revenue management vice president Jihad Lotfi, underscores the industry mentality of valuing high rates over high occupancy: When a new revenue manager started at an old TownePlace Suites (a mid-priced Marriott International brand), Lofti told hoteliers that the property succeeded in fetching a whopping $1,500 a night from "a handful of guests" coming in for a college football game.

"You don't know what the (room rate) ceiling is. I tell my team, 'If it's not broken, don't fix it,'" Lofti is quoted as saying. "Don't be afraid to take a risk."

Doubling down, he said, "None of us can decide what the customer will pay. It's kind of like the car industry right now. You're seeing cars being marked up $10,000-$15,000 and people are still buying them."

McKibbon Hospitality's website shows it operates scores of properties representing all the big brands, including 13 Courtyard hotels. Many are located in the southern cities across Florida, Georgia and North Carolina.

Oh, and McKibbon Hospitality tags its hotel portfolio as “places with purpose.” Guess we know what that purpose is.

By Stephanie Mehl

Halfway between Athens and Thessaloniki, is a magical region of Greece most of us have never heard of: the Pelion.

Named for the mountain that graces this 22-mile peninsula, it’s easy to see why this area with its lush green forests, enchanting villages and unforgettable beaches, was the summer escape for Greek gods.

According to Greek mythology, Mount Pelion took its name from King Peleus, father of Achilles. The area was the home of the half-men and half-horse, Centaurs.

Over the centuries villages formed and were built on steep slopes to protect themselves from invading armies and regular pirate attacks. Many of the villages flourished, producing olives, oils, fruit, honey, chestnuts, silk and timber. The mule paths used to bring the products to sea ports for trading are maintained hiking trails today and the ports are now beaches. Many of the historic mansions built by the silk trade in particular, have transformed into small boutique hotels and guest houses.

The Pelion has two sides - very different in character. We sampled both.

The west Pelion overlooking the Bay of Pagasetic is gentler, with easily accessible sandy beaches, olive groves and generally more developed for tourists. Ornate mansions with characteristic architecture of the area reflect a thriving history and tap the imagination.

The wilder eastern region facing the Aegean Sea, is a nature lover’s dream. The forests are denser and jungle like, and the winding roads are a bit more challenging to drive. But the great payoff is traditional villages and more beaches to choose from, many that are rocky and remote.

Both sides of the region have a wide range of accommodation choices, excluding any branded hotels. On the eastern side, the obvious pick for us was the earthy Amanita Guesthouse (mushroom in Greek), with its stunning stone structures and vast gardens. Price including breakfast was $130 in the high season.

Amanita is in the beautiful village of Tsagarada, which has unforgettable views of the Aegean. It’s also home to a famed 1,000-year-old plane tree, in the largest of the four of its village squares. The tree is enormous and well worth a visit from anywhere you might stay. I was fortunate enough to witness one big fat Greek wedding underneath its massive branches. (Priceless!)

We started every morning with a discussion about breakfast with Filaretos, the owner and chef who proudly served up his unique recipes using fresh ingredients (and herbs unknown to me) from his three-acre organic garden. A short hike, late morning, through dense chestnut forests helped work off the meal.

Then the big decision of the day was what type of beach to explore. Should it be wide and sandy, remote, “organized” with lounge chairs, umbrellas and restaurants? Or should it be a rocky, isolated cove? And if you are familiar with the stunning beaches in Meryl Streep’s musical comedy Mamma Mia!, that was an option too! For dinner, we would venture off to neighboring villages where we sampled local wines, myrtle and plum marmalades, pine and chestnut honeys with Galotiri (a soft, cheese made of feta, yogurt and milk) grilled meats and fish and, of course, Spetsofai – the classic specialty of the area, made with a local spicy sausage and green pepper.

On the Western face of the mountain, we stayed in the Sakali Mansion, a bit more of a formal atmosphere compared to Amanita, with its stunning rooms and authentic antique furniture and textiles for $120 night. The hotel was owned by the fabulous and warm Anastasia, who prepared an enormous buffet breakfast each morning. Between her personality and the pool overlooking the bay, it was hard to leave.

A monestary high up in the hills captured my attention from the hotel one Sunday morning. I couldn’t resist and hiked up the steep slope and discovered a traditional Greek Orthodox service, packed with the village elders who invited me to join. A great pay off for my hard work, I thought, as I hiked back to the hotel to the sound of loud church bells.

I often wonder how in the world I had never heard of this magical region before. During five weeks of travels around the mainland), nearby islands and down to the Southern Peloponnese, this still largely undiscovered paradise was by far the highlight. (Read Who Needs an Island? - Part 1)

Still, I have to admit I was reluctant to write about it. While some Europeans – but not many – have begun to venture here, it remains largely off most American’s radar. Although part of me really wants to keep it that way, it’s just too good not to share.

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