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Boeing scraps 2019 financial forecast, halts share buybacks in wake of 737 MAX disaster

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World’s biggest aerospace corporation was forced to pull its full financial forecast for the current year due to unresolved issues surrounding Boeing’s once best-selling 737 MAX aircraft.

Boeing also announced plans to pause share buybacks, citing “a challenging time for our customers, stakeholders and the company.”

“Across the company, we are focused on safety, returning the 737 MAX to service, and earning and re-earning the trust and confidence of customers, regulators and the flying public,” Boeing Chairman and CEO Dennis Muilenburg said in a statement.

The manufacturer had previously posted a report on the first-quarter earnings that managed to fall in line with analysts’ expectations, while its revenue was slightly less than projected. Boeing’s earning per share totaled the expected $3.16 from January through March, while the revenue amounted to $22.92 billion against $22.98 billion forecasted by London-based provider of financial markets data Refinitiv.

Boeing stressed that the previous guidance didn’t reflect the impact of two crashes of the company’s flagship planes, leading to the grounding of all 737 MAX 8 jets by global regulators, lawsuits from some air carriers and a decline in market value.

According to the producer, more than 135 test and production flights of updated software for the 737 MAX have been carried out so far.

Boeing’s bestseller crashed on March 10 not far from the Ethiopian capital of Addis Ababa six minutes after takeoff on the way to Nairobi, Kenya. The tragedy, which killed 157 people, marked the second crash involving the same jet model in less than six months. In October, the same type of aircraft, operated by Indonesia’s Lion Air, crashed in the Java Sea shortly after takeoff, claiming the lives of 189 people.

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Soap bars around the world get a new life from Red Lion Hotels

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Based on US market statistics, the combined hospitality segment produces close to 440 billion pounds of solid waste per year. A great amount of this waste is made up of discarded soap and bottled amenities. However, through Clean the World’s Hospitality Recycling Program, these life-saving hygiene products can skip the landfill and, instead, be sent to one of Clean the World’s five Recycling Operations Centers where the products are sanitized, fully recycled, and given a second-life to help those in need. It’s a win-win for the hospitality industry, helping to reduce waste and transform lives around the world.

In celebration of Earth Day, Clean the World, dedicated to WASH (WAter, Sanitation and Hygiene) and global sustainability, is joining forces with RLH Corporation to collect and recycle gently-used bars of soap and bottled amenities at Hotel RL locations nationwide to help fight the spread of preventable diseases while preserving our planet.

“We are excited to collaborate with Clean the World,” said RLH Corporation SVP of Brand Strategy Amanda Marcello. “At Hotel RL, we are focused on the modern-day traveler, with core hotel elements that allow guests to immerse themselves in local culture while maintaining their connection to the world. We are always searching for opportunities to better our planet, the communities we live in and those around the world. With Clean the World, we will now be able to make a significant improvement in reducing the amount of waste our hotels produce while benefiting communities worldwide by recycling our bath amenities.”

Together, this Earth Day, Clean the World and RLH Corporation are bringing awareness to sustainable practices within the travel and hospitality industry. Eight Hotel RL locations adopting the Hospitality Recycling Program this week will begin recycling all soap and bottled amenities from over 1,600 guestrooms. In just one year, the Hotel RL portfolio of hotels is projected to provide over 6,700 pounds of soap and bottled amenities to Clean the World, resulting in the creation of an estimated 23,000 bars of newly-recycled soap to be distributed to those in need locally and globally.

“We are thrilled to join forces with RLH Corporation this Earth Day to share the importance of implementing new, eco-friendly approaches to daily operations that benefit and help to preserve our planet,” said Shawn Seipler, founder and CEO of Clean the World. “By diverting leftover soap and bottled amenities from landfills, RLH Corporation will not only help Clean the World provide health and hygiene programs to children and families around the world, but also set a great example of CSR and sustainability throughout the hospitality industry, encouraging others to help make a difference.”

Through this joint venture, newly-recycled bars of Clean the World soap will make their way to shelters, food banks and disaster relief initiatives in the United States, in addition to supporting hygiene education internationally through Clean the World Foundation’s WASH Education programming. Our global programming, in places like India, Kenya and Tanzania, has contributed to a 60 percent decrease in the rate of hygiene-related deaths in children under 5, helping to keep children healthy and in school.

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Allegiant Air to offer scheduled service to Mexico

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Allegiant Air today filed an application with the U.S. Department of Transportation to offer scheduled service between the United States and Mexico.

Allegiant Air currently serves more than 450 domestic routes. This will be the company’s initial venture into scheduled international service.

“Unlike other U.S. carriers, Allegiant has always been laser-focused on leisure travel and providing access to affordable, non-stop flights for those who wouldn’t otherwise be able to go on vacation,” said Maury Gallagher, Allegiant chairman and chief executive officer. “Offering service to Mexico will provide a whole new array of options for travelers to discover world-class destinations that may have been previously out of reach.”

“We believe that providing scheduled service to Mexico will also be of great economic benefit, by stimulating traffic and providing additional competition in the international leisure market,” he continued. “It will not only bring exceptional value to travelers, but will also enhance both tourism and business impact in the communities we serve.”

The DOT application is the first step in the process for Allegiant to begin scheduled service to Mexico. Projected dates and locations for commencement of service will be announced at later dates as the process moves forward.

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Saudi tourism sector worth over $70 billion in 2019

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Saudi Arabia’s travel and tourism sector is expected to contribute $70.9 billion (SAR 263.1 billion) in total to the country’s GDP in 2019, according to data from the World Travel and Tourism Council, as exhibitors prepare to showcase what the Kingdom has to offer at this year’s Arabian Travel Market (ATM), which is being held at the Dubai World Trade Centre from 28 April – 1 May 2019.

According to data from ATM’s research partner Colliers, international arrivals to Saudi Arabia are expected to increase 5.6% per year from 17.7 million in 2018 to 23.3 million in 2023. Religious tourism is expected to remain the bedrock of the sector over the next decade, with a goal of attracting 30 million pilgrims to the Kingdom by 2030, an increase of 11 million from the 19 million Hajj and Umrah pilgrims that visited the country in 2017.

Danielle Curtis, Exhibition Director ME, Arabian Travel Market, said: “At ATM, we are witnessing this growth first hand with the total number of delegates arriving from Saudi Arabia increasing 42% between 2017 and 2018, while 33% of delegates, exhibitors and attendees were interested in doing business with the Kingdom.

“More relaxed access to visas, through online portals such as the ‘Sharek’ and the growth of the Umrah plus market – combining religious and leisure travel – are expected to be key drivers in the growth of international tourism in the Kingdom.”

Vision 2030 has set aside $64 billion to invest in culture, leisure and entertainment projects over the next decade, which will significantly add to the attractiveness of the country as a touristic destination, according to a recent report from real estate firm Savills.

The first phase of the Red Sea project, which is estimated to grow the kingdom’s GDP by US$5.86 billion (SAR22 billion) and will consist of an airport, marinas, up to 3,000 hotel rooms and various recreational activities, is expected to complete during 2022.

Additionally, last year Saudi Arabia’s Public Investment Fund announced the development of Amaala, a new ultra-luxury tourism megaproject which is earmarked for completion in 2028. The development will add 2,500 hotel rooms – further boosting the accommodation offering for both domestic and international visitors alike.

“Saudi Arabia will see a vast expansion of its hotel and resort inventory during 2019, with over 9,000 keys of three, four and five-star international supply expected to enter the market despite major cities such as Riyadh and Jeddah experiencing an overall drop in ADR during 2018.

“While, this new supply will place additional competitive pressure on hotels performance across the country, the projected growth in visitor numbers in both the domestic and international markets is expected to boost occupancy levels throughout 2019,” added Curtis.

Looking ahead to ATM 2019, Saudi exhibitors, who will highlight what the Kingdom has to offer and the exciting developments in the pipeline, include The Red Sea Development Company, Saudia – Saudi Arabian Airlines, Makarem Hotels, AlfaOne Concierge – and of course the Saudi Commission for Tourism and National Heritage who will have a major presence too.

A focused seminar titled ‘Why Tourism is Saudi’s new ‘White Oil’ will take place on the Global Stage on Monday 29th April between 14.50 – 15:50.  The session will discuss Saudi Arabia’s tourism potential as the Kingdom undergoes a period of rapid economic diversification and forges ahead with its Vision 2030 blueprint.

The upbeat tourism forecast is also being driven, by domestic tourism with the number of local tourist trips inside Saudi Arabia exceeding 47 million in 2018. The latest research from Colliers forecasts this figure to increase 8% per year to 70.5 million by 2023.

“Plans are already afoot in Saudi, to achieve the projected increase in domestic visitors, with the Kingdom’s Vision 2030 blueprint forecast to double the number of UNESCO heritage sites and increase household spending on cultural and entertainment activities inside the country from 2.9% to 6%.

“Meanwhile, the Quality of Life Vision Realisation Programme (VRP) and the General Entertainment Authority are both working to create new attractions and recreational activities within the country,” added Curtis.

ATM, considered by industry professionals as a barometer for the Middle East and North Africa tourism sector, welcomed over 39,000 people to its 2018 event, showcasing the largest exhibition in the history of the show, with hotels comprising 20% of the floor area.

Brand new for this year’s show will be the launch of Arabian Travel Week, an umbrella brand comprising four co-located shows including ATM 2019, ILTM Arabia, CONNECT Middle East, India & Africa – a new route development forum and new consumer-led event ATM Holiday Shopper. Arabian Travel Week will take place at Dubai World Trade Centre from 27 April – 1 May 2019.

For more news about ATM, please visit: https://arabiantravelmarket.wtm.com/media-centre/Press-Releases/.

About Arabian Travel Market (ATM)

Arabian Travel Market is the leading, international travel and tourism event in the Middle East for inbound and outbound tourism professionals. ATM 2018 attracted almost 40,000 industry professionals, with representation from 141 countries over the four days. The 25th edition of ATM showcased over 2,500 exhibiting companies across 12 halls at Dubai World Trade Centre.  Arabian Travel Market 2019 will take place in Dubai from Sunday, 28th April to Wednesday, 1st May 2019. To find out more, please visit: www.arabiantravelmarket.wtm.com.

MEDIA CONTACT: NATHALIE VISELE, Director, Shamal Communications, Arjaan Office Tower, Dubai Media City, Dubai, United Arab Emirates, Tel: +971 4 365 2711 | Mobile: +971 50 457 6525, E-mail: nathalie.visele@shamalcomms.com , Website: www.shamalcomms.com

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Travel Trends Index: International and domestic travel growth projected to dwindle

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Travel to and within the U.S. grew 3.2% year-over-year in February, according to the U.S. Travel Association’s latest Travel Trends Index (TTI).

However, the predictive Leading Travel Index (LTI) continues to project a slowdown in both international and domestic travel growth, as both segments could continue to feel the effects of rising trade tensions, volatile financial markets and weakening business and consumer confidence. These factors have the potential to stunt travel growth and dull American competitiveness at a time when the U.S. is seeking to reverse its declining share of the global international travel market.

Though international inbound travel grew for the ninth consecutive month, the segment grew only 1.4% in February. Domestic travel increased 2.8% year-over-year in February, with growth in both the business and leisure travel segments. Domestic business travel outpaced the leisure segment for the first time since October 2018, registering slightly above its six-month moving average with a 3.0% growth. Leisure growth fell slightly below its six-month moving average with a more tepid 2.6% growth rate.

Looking ahead, domestic and international inbound travel are both projected to grow, but at a moderate pace.

Said U.S. Travel Senior Vice President for Research David Huether: “Growth is expected to decelerate in the case of domestic travel while international inbound travel is projected to remain soft. This is consistent with an expectation of stable-yet-moderating economic growth both in the U.S. and globally.”

U.S. Travel economists caution that this decelerated growth rate will make it even more difficult for the U.S. to regain its diminishing share of the global international travel market. Acting on certain legislative initiatives—such as Brand USA’s long-term reauthorization and the rebranding and expansion of the Visa Waiver Program—can help the U.S. increase competitiveness in the global travel market.

The TTI is prepared for U.S. Travel by the research firm Oxford Economics. The TTI is based on public and private sector source data which are subject to revision by the source agency. The TTI draws from: advance search and bookings data from ADARA and nSight; airline bookings data from the Airlines Reporting Corporation (ARC); IATA, OAG and other tabulations of international inbound travel to the U.S.; and hotel room demand data from STR.

Click here to read the full report.

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ATM Report: 63% of Dubai Airport passengers were in transit during 2018

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More than 63% of the 89 million passengers who passed through Dubai airport in 2018 were in transit with just 8% of these passengers leaving the airport to explore the emirate, according to the latest Colliers International data published by Reed Travel Exhibitions ahead of Arabian Travel Market (ATM) 2019, which takes place at Dubai World Trade Centre between 28 April – 1 May 2019.

As Dubai targets 20 million annual visitors by 2020, plus an additional five million between October 2020 and April 2021 for Expo 2020 – 70% of which will come from outside the UAE – a number of initiatives to increase stopover tourism have been introduced including new transit visas and dedicated tourism packages.

Danielle Curtis, Exhibition Director ME, Arabian Travel Market, said: “Last year, the UAE introduced a new transit visa allowing all transit passengers an exemption from entry fees for 48 hours with the option to extend up to 96 hours for AED 50. This visa is not only good for the country’s tourism sector but for the local economy as a whole, enticing passengers to view their transit not as an unwanted delay in their travels – but as a good opportunity to add value to their trip and experience everything the UAE has to offer.”

According to IATA, the Middle East is forecast to see an extra 290 million air passengers on routes to, from and within the region by 2037, with the total market size increasing to 501 million passengers during the same period.

Adding to this, figures from ATM 2018 show the number of delegates interested in buying airline products and services increased 13% between 2017 and 2018.

“This projected growth underscores Dubai, and of course the Middle East, as the ideal location to bring together professionals from the aviation and tourism industry for our inaugural CONNECT Middle East, India and Africa forum which will be co-located alongside ATM 2019 – taking place on the last two days of the show,” Curtis said.

The success of the aviation industry in the sky is matched in the GCC and wider MENA region by the continued huge infrastructure investment.

The total value of 195 active aviation-related projects in the Middle East reached almost $50 billion in 2018, according to research provider BNC Network.

The various airport investments under way include AED30 billion in developing Al Maktoum International Airport, AED28 billion expansion of phase four of Dubai International Airport and AED 25 billion for the development and expansion of Abu Dhabi International Airport. In addition, Sharjah Airport is also undergoing a AED1.5 billion investment in expansion of its terminal.

There are also a number of upcoming and planned airport expansion projects across Saudi Arabia, including King Abdulaziz International Airport Expansion in Jeddah and King Khalid International Airport Expansion in Riyadh.

Curtis said: “2018 was also an exciting year for new flight routes with GCC airlines alone adding 58 new flight routes – focusing on areas of consistent and substantial growth.

“With two thirds of the world’s population within an eight-hour flight from the GCC, it is an ideal base for exploring some of the world’s most interesting and previously inaccessible corners of the world. And the GCC’s airlines are making it even easier with the continuous addition of new and direct flight routes,” Curtis added.

Looking ahead to ATM 2019, aviation will feature heavily in the programme with a keynote from Emirates’ President Sir Tim Clark titled ‘Emirates: Still leading the way’ as well as an exclusive one-to-one with Air Arabia CEO, Adel Ali. A panel session titled ‘What are the hot topics in the airline world’ which will explore how traffic is performing against a backdrop of volatile fuel prices and geo-political challenges as well as discussing stopover tourism and how the digital world is affecting airline and airport services and experiences for customers.

Confirmed exhibiting airlines for ATM 2019 so far include Emirates, Etihad Airways, Saudi Airlines, flydubai and flynas.

Considered by industry professionals as a barometer for the Middle East and North Africa tourism sector, ATM welcomed over 39,000 people to its 2018 event, showcasing the largest exhibition in the history of the show, with hotels comprising 20% of the floor area.

Brand new for this year’s show will be the launch of Arabian Travel Week, an umbrella brand comprising four co-located shows including ATM 2019, ILTM Arabia, CONNECT Middle East, India & Africa – a new route development forum and new consumer-led event ATM Holiday Shopper. Arabian Travel Week will take place at Dubai World Trade Centre from 27 April – 1 May 2019.

Arabian Travel Market is the leading, international travel and tourism event in the Middle East for inbound and outbound tourism professionals. ATM 2018 attracted almost 40,000 industry professionals, with representation from 141 countries over the four days. The 25th edition of ATM showcased over 2,500 exhibiting companies across 12 halls at Dubai World Trade Centre.  Arabian Travel Market 2019 will take place in Dubai from Sunday, 28th April to Wednesday, 1st May 2019. To find out more, please visit: www.arabiantravelmarket.wtm.com.

Travel News | eTurboNews

Allegiant Airlines’ ancillary revenue initiatives among most innovative in the world

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Allegiant is based in Las Vegas, but it has never relied upon the notion of “luck” as part of its business strategy. The airline was born in 1997 and immediately challenged all the rules of how to start an airline.

Allegiant maintains its industry leading margins by distancing itself from competitors, and by being very different from everyone else. This distinctive style includes innovative ways to generate ancillary revenue:

• Allegiant’s Sunseeker Resort development in Florida is projected to contribute ancillary revenue in excess of $6 per passenger on a systemwide basis.

• The carrier’s new family entertainment centers allow it to build deeper customer relationships and capture more leisure spending within Allegiant’s network of smaller cities.

• More than $16 per passenger is generated by baggage revenue policies, which include fees for large carry-on bags, and allow those without large carry-on bags to board first.

• The Allegiant World Mastercard provides a free inflight beer or wine for cardholders and is expected to generate annual earnings (EBITDA) of $50 million by 2020.

• The installment payment option (pay monthly) yields online shopping carts nearly 300% larger than those paid in full.

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