Why Checking In Bags Is More Expensive

Good morning from Skift. It’s Wednesday, February 28. Here’s what you need to know about the business of travel.

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Episode Notes

American Airlines and United Airlines are among the major carriers that have increased baggage fees in recent months. Airlines Reporter Meghna Maharishi explains why checking bags at airports has gotten more expensive.  

Maharishi writes that nearly every carrier cited inflation, higher fuel and operating costs as reasons they hiked baggage fees. JetBlue Airways said it raised baggage fees as part of its plan to return to profitability. 

Airlines may also be increasing bag fees to help boost sign ups for their loyalty programs and co-branded credit cards. An airline consulting firm executive said expensive bag fees increase the value of airline-branded credit cards. American said its loyalty program members and credit card holders can check their first bag for free.  

Next, New York City hotels could see a $380 million boost in revenue this year from the city’s de facto ban on short-term rentals, writes Short-Term Rental Reporter Srividya Kalyanaraman. 

A new report from real estate firm JLL revealed the New York City hotels could book an additional 2.2 million nights this year. A city law requiring

hosts to be present for stays shorter than 30 days went into effect last September. In addition to the crackdown on short-term rentals, New York City’s hotel industry also stands to benefit from a projected surge in international tourists this year.

Finally, Katerina Giannouka has left her role as CEO of Jumeirah Group, writes Middle East Reporter Josh Corder. 

Giannouka became Jumeirah’s first female CEO in December 2022 after having previously served as the Asia-Pacific president for Radisson. During her brief time at Jumeirah, she said she was looking to double the group’s portfolio, including signing more hotels outside of the United Arab Emirates.

Jumeirah’s current Chief Operating Officer Thomas B. Meier will serve as interim CEO, according to an internal document seen by Skift.