Strike the phrase “since the pandemic” from your vocabulary: Travel blew way past the before times in 2024, shattering all-time records left and right. But the travel world isn't just growing: It's changing, too … and perhaps for good.
More Americans are traveling than ever before with a newfound willingness to spend big on experiences, leading to a boom in all things “premium travel” while forcing one of the country's biggest budget airlines into bankruptcy. One of the nation's most reliable carriers fell flat over the summer, though a raft of new consumer protections could ensure that the next meltdown is less painful for travelers. Yet points and miles aficionados are definitely hurting after a year full of negative changes – especially those with Amex cards in their wallets.
Let's take a look back at some of the biggest stories from the past year – good and bad – for travelers.
Travel Demand Seems Boundless
Every time it seemed like travel demand would taper off or hit a wall, it found another gear. This past year will go down as the busiest year of air travel – not just since the pandemic brought everything to a screeching halt, but ever.
Roughly 2.5 million travelers passed through U.S. airports each and every day in 2024, on average – up nearly 5% from a year ago and over 7% higher than 2019. Get this: All 10 of the 10 busiest travel days in our country's history occurred in 2024.
Aside from a few dips here and there, this chart shows just how much 2024 travel has outpaced even last year's record-setting year.
But travel isn't just growing and growing, same as it was back in 2019. Americans' preferences are clearly changing, too.
& “Premium Travel” is Here to Stay
There's been chatter for years about the emergence of “premium travel”: travelers paying extra for bigger and fancier seats, more and more airport lounges, nicer wines and meals onboard. In 2024, premium travel isn't just the next big thing – it's here. Big time.
Premium travel practically turned into an outright arms race this past year, with airlines at home and abroad scrambling to one-up each other with newer seats and upgraded service.
While most of its business class seats flying today are relics, Delta introduced fancy new amenity kits from the Italian luxury brand Missoni. More importantly: They finally opened not one, not two, but three exclusive Delta One business class lounges in New York City (JFK), Los Angeles (LAX), and Boston (BOS) – with a fourth on the way in Seattle (SEA) next year.
Fresh off outfitting its entire international fleet with United Polaris business class seats, United continues re-installing seatback screens (decked out with Bluetooth connectivity from nose to tail so you can use your wireless headphones) across more and more of its domestic fleet while upping the ante with onboard service – including a recent upgrade in its champagne game. American's spiffy new business class suites were originally expected to take flight this year, though that has slipped to early 2025.
The list is even longer overseas. Japan Airlines, Iberia, Lufthansa, Emirates, and more all introduced spiffy new business class (and some first class!) seats in 2024. A dozen or more will follow suit next year.
But it's not just the big global airlines upping their game in pursuit of higher-paying passengers. JetBlue finally confirmed it will begin installing first class seats. Southwest isn't going full first class but will introduce extra legroom seating, though those won't hit the skies until sometime in 2026. Heck, even budget carriers like Frontier and Spirit – you know, the ones with just 29 inches of legroom – are going for the full first class treatment soon.
If that doesn't say something about where airlines are shifting their focus these days, I don't know what will.
But Budget Airlines are Flailing
You know which airlines aren't very “premium” – at least not today? Notorious ultra-low-cost carriers like Spirit and Frontier.
You know which airlines are struggling for survival heading into 2025? Notorious ultra-low-cost carriers like Spirit and Frontier.
For decades, Americans voted with their wallets and made clear that their No. 1 priority was a cheap ticket, giving rise to those budget carriers that will sell you a $19 one-way ticket in exchange for a slim seat and high fees. But that clearly changed coming out of the worst of the pandemic, and the Spirits and Frontiers of the world got caught off guard.
Following a failed bid to get swallowed up by JetBlue, Spirit filed for chapter 11 bankruptcy. That came after its one-time suitor, Frontier, declined to resurrect its own takeover bid of Spirit. And both airlines continue losing money by the millions, slashing routes and scrambling to reinvent themselves and find a business model that works for 2024 and 2025.
Read more: A Q&A with Prolific Airline Entrepreneur David Neeleman on Budget Airlines' Struggles
There are exceptions, of course. Minnesota's tiny low-cost carrier Sun Country continues churning out consistent profits. Same goes, for the most part, for Allegiant.
But there's a clear pattern: The big global carriers – the ones with powerhouse credit card ecosystems who can get you to Europe or Asia in a lie-flat seat – are thriving. The big budget carriers are failing.
Southwest 2.0?
Not even the mighty Southwest Airlines is immune from changes in the airline industry.
Once a Wall Street darling that posted decades of consecutive profits, Southwest has gotten off track. An activist investor bought a major stake in the carrier, pushing for the airline to make some seismic changes – including oust its CEO.
Southwest's transformation started this spring, when – out of nowhere – Southwest fares suddenly appeared on Google Flights. For an airline that always forced customers to search and book directly on the its own website, that was a massive change … and a huge win for travelers who can now instantly compare prices between airlines and even set a Google Flights price alert on Southwest fares.
Yet even bigger changes are on the horizon.
Sometime in 2026, Southwest's controversial first-come, first-served seating policy will end as the airline finally begins assigning seats in advance. Extra legroom seats with another three-plus inches of legroom are coming, too … likely at the expense of legroom in the rest of the plane. And the airline is partnering with Icelandair, finally giving customers a way to get to Europe.
To be clear: Southwest will still be Southwest. Every passenger will still get two free checked bags and can change or cancel their ticket for free. And, at least for now, dreaded basic economy fares aren't happening.
But put it all together, and Southwest set in motion the biggest transformation in company history this past year. And considering it's one of the country's largest airlines, that will have huge ramifications for all travelers.
Delta's Meltdown Lingers
Delta's reputation as the “on-time machine” took a major hit this past year.
What started with a global cybersecurity software outage spiraled into a historic meltdown for Delta … and only Delta, as other major carriers recovered within a few days (if not hours). Over that five-day span in July, Delta canceled more than 5,500 flights – more than its cancellations in all of 2018 and 2019 combined, according to federal data.
But it was Delta's public response to those cancellations that made it the airline's most embarrassing collapse.
Despite the lopsided numbers, Delta and its executives pinned the blame on CrowdStrike and CrowdStrike alone, immediately angling for a lawsuit against the cybersecurity vendor in hopes of recouping their costs. Even as customers slept on airport floors or waited nearly 24 hours for a reply from Delta online, the airline's leadership never explained the issues to customers or went on camera to apologize directly. Instead, CEO Ed Bastian flew to Paris for the kickoff of the Summer Games … on a day when his airline canceled more than 500 flights.
Bastian and Delta have repeatedly said they went above and beyond to make things right with customers, spending $500 million to refund travelers and cover rental cars, hotels, meals, and even flights on other airlines. To some once-loyal customers, the $100 vouchers or 12,500 SkyMiles were less of an apology than a slap in the face.
The Department of Transportation launched an investigation to “ensure the airline is following the law and taking care of its passengers during continued widespread disruptions.” The status of that investigation is still up in the air.
More than five months later, Delta continues to shirk responsibility for the meltdown.
“I’m sick and tired of these big tech companies that run our life and then don’t take accountability for it,” Bastian said during a Minneapolis airport event this fall.
New Traveler Protections
The Biden Administration has been pushing for additional rights and passenger protections when things go wrong for years. Those efforts went into overdrive in 2024.
That includes:
- As of this fall, airlines are now required to automatically dole out refunds when canceling or significantly delaying flights – by more than three hours for a domestic flight or six hours for an international flight. Not just a voucher or travel credit, but your money back.
- As part of a broader crackdown on so-called “junk fees,” pending regulations would eventually require airline websites, apps, and other booking platforms to disclose additional fees – like for adding a first and second checked bag, carry-on bags, and even change and cancellation penalties – from the get-go.
- Separately, a new federal rule will force hotels to include pesky “resort fees” or “destination fees” in the total price starting sometime next year.
- A new investigation into their mileage and status programs put the nation's four largest carriers – American, Delta, Southwest, and United – on notice.
- And the administration is still pursuing European-style regulations that would require airlines to directly compensate passengers for delays and cancellations – to the tune of as much as $775 apiece.
But with Biden leaving office in less than a month, the clock is ticking on many of these initiatives. And aside from the new refund rules authorized by Congress, the federal rulemaking process that his administration used for many of these proposals will make it easier for his successor to halt or reverse many of them.
Will the incoming Trump administration share these priorities? That's a 2025 question.
Devaluations Galore
Inflation might have eased in 2024, but pointsflation spiraled out of control. Again and again and again, we saw major airlines raise award rates this year – often without a word of warning.
At home, major U.S. airlines like Delta and United and their dynamic award pricing based on the cash cost has led to exorbitant redemptions in economy and especially business class, where rates of 400,000 miles have become the norm. But even international airlines (where you can transfer credit card points for a better deal) weren't spared.
Just a few lowlights include:
- The longtime workaround to book Delta One business class to Europe for 50,000 points bit the dust as Virgin Atlantic tacked on more than $1,000 in surcharges
- All Nippon Airways (ANA) raised Mileage Club award rates on some of its best redemptions by as much as 33%
- After nuking a first class sweet spot last year, Virgin Atlantic returned in 2024 to finish the job, drastically increasing the cost of booking ANA business class
- Once the cheapest way to get to Istanbul (IST) or much of Europe in business class, Turkish Airlines raised redemption rates by as much as 100%
- Avianca LifeMiles rolled out some overnight award rate increases this fall, ranging from mild increases to a brutal 63% hike for international premium cabin flights like Lufthansa First Class between the U.S. and Germany.
- For the second time in just a few months, British Airways increased award rates to book Alaska and American flights by as much as 45%.
- Many flights booked with Alaska miles now cost more, like Fiji Airways business class flights jumping from 55,000 miles to as much as 75,000 miles.
- Southwest raised award rates by 4% across the board at the start of 2024.
All of that happened in the last 365 days. Brutal.
Yet 2024 wasn't all bad for points and miles aficionados.
While many travelers (rightfully) feared the airline's transition to dynamic award pricing, Virgin Atlantic's changeover this fall had a serious silver lining: Economy redemptions from the U.S. to London dropped as low as 6,000 points each way … or just 29,000 for a lie-flat business class seat. And while rates north of 400,000 SkyMiles are still the norm, deeply discounted Delta One deals made a major comeback to close out the year.
Amex's ‘Extreme Couponing' Approach is Here to Stay
“All these new card benefits are a big win for Amex and bad news for cardholders. And we're sick of it,” we wrote in April.
In hindsight, our story – entitled “We’ve Had It: Amex Card Credits & Benefits Are Out of Control” – might have put it too mildly.
Amex's playbook of raising annual fees while tacking on questionable and complicated new benefits continued in 2024, spreading to more and more top travel credit cards – and not just the bank's own Membership Rewards cards like *amex platinum*, but even co-branded cards with Hilton and Delta, too.
- In February, it was the Delta SkyMiles cards getting a facelift. As if limiting cardholder's Sky Club access wasn't bad enough, Amex raised annual fees across the board by as much as $100 in exchange for new annual hotel credits and monthly credits for rideshares and select restaurants.
- After initially escaping unscathed in the first round of Hilton card changes, the The Hilton Honors American Express Business Card got the same treatment: its annual fee doubled in return for quarterly hotel credits, while an avenue to earn free night certificates was cut altogether.
- Even the fan-favorite *amex gold* wasn't spared, as Amex raised its annual fee from $250 to $325 (see rates & fees) while getting twice-a-year, up to $50 credits for Resy-participating restaurants and a goofy, up to $7-a-month credit for coffee from Dunkin' Donuts.
Message received: No card is safe. And if 2024 showed us anything, it's likely only a matter of time before Amex's flagship Platinum Card – already clocking in at a whopping $695 a year (see rates & fees) with benefits like monthly credits for streaming services and a complimentary Walmart+ subscription – sees another hike.
Hilton + SLH = <3
Let's end this wrap up on a positive note, shall we?
Travelers who have been down on Hilton's loyalty program would be wise to reconsider. The massive hotel conglomerate arguably pulled off the biggest win of the year by stealing Small Luxury Hotels of the World (SLH) away from Hyatt.
That changeover brought 400-plus new properties under Hilton's umbrella, all bookable – and often at reasonable rates – with points. Forget about stuffy, big-box hotels: These run the gamut from unique inns, resorts, and downtown properties in great locations with complimentary breakfast.
I could spend 3,000 words (and 300 pictures) on these new options, but I'll spare you. Let me highlight just a few I've already booked myself
My personal new favorite addition is Hermitage Bay, an incredible all-inclusive resort on the Caribbean Island of Antigua with picturesque beaches, unbelievably warm service, and unbeatable dining. This property typically sells for north of $3,000 a night … and yet it's bookable for 150,000 points.
Way down in the shadow of Table Mountain in Cape Town, South Africa, there's The Cellars-Hohenort. This recent SLH addition to Hilton is widely regarded as one of the best hotels in the area. With cash, it's not cheap: Expect to pay $600 or more a night. But we booked a three-night stay next February – peak season over summer in South Africa, no less – for just 50,000 points per night.
Hilton's fifth-night free benefit for travelers with status works at these new properties, making a longer stay even cheaper. And they're some of the best ways to redeem a Hilton free night certificate, too.
Hyatt might still be the #1 hotel chain in many travelers' eyes, but this addition alone has us questioning whether Hilton could change that.