A Weaker U.S. Passport, Travel Lobbying Spending and Delta’s AI Airfares
Photo Credit: A hand holding a U.S. passport. Adobe Stock / Jeff McCollough
Skift Take
On today’s pod we look at the declining value of a U.S. passport, where some travel brands are spending money in Washington, D.C., and how some people are crying foul about Delta’s AI pricing experiments.
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The U.S. passport was ranked the world’s most powerful just over a decade ago, but it’s now slipped to tenth place, reports Asia Editor Peden Doma Bhutia.
Bhutia writes the U.S.’s current position in the Henley Passport Index marks its lowest standing in two decades. The U.S. ranked seventh last year. American passport holders can currently access 182 destinations without a visa.
Bhutia adds several Asian countries have risen steadily in the rankings, with India making the most significant leap over the past six months. Singapore, Japan, and South Korea occupy the top three spots in the rankings.
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Next, many of the U.S.’s biggest travel brands and trade associations spent larger-than-usual amounts to lobby Congress and the Trump administration during the second quarter, reports Contributor Dave Levinthal.
A Skift analysis of new federal lobbying disclosure documents revealed that trade groups such as the U.S. Travel Association and Airlines for America increased their lobbying expenditures from a year ago. In addition, most major U.S. carriers — including United and Delta — accelerated their lobbying efforts.
However, Levinthal notes several big, brand-name travel companies spent slightly less, including Marriott, Hilton, and Expedia.
Some wins for U.S. Travel: A FIFA World Cup task force and more money for air traffic control.
Finally, Delta has started testing AI to set some airfares, a practice that has raised concerns among some lawmakers and consumer advocacy groups, writes Airlines Reporter Meghna Maharishi.
Delta president Glen Hauenstein said during a call with analysts that the carrier was using AI to price 3% of its domestic fares, with plans to expand that to as much as 20% by the end of the year. Delta started experimenting with AI for pricing and reservations in 2023.
However, critics contend consumers could be forced to pay more for flights since the pricing system will set prices more tailored to the consumer rather than set static fares. Senator Ruben Gallego from Arizona called Delta’s use of AI to set airfares “predatory pricing.”
