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Episode Notes

The market for unlimited in-flight Wi-Fi connectivity is set to boom as airlines look to make it easier for travelers to stay connected in the skies. Reporter Ajay Awtaney provides background into the history of in-flight Wi-Fi.

Awtaney writes in-flight internet connectivity has come a long way since what he calls painfully slow service more than 20 years ago. As technology has improved over the past two decades, airlines have used advertising or sponsorship deals — such as a partnership with a streaming service — to make in-flight Wi-Fi more affordable. More carriers in recent years — including Delta Air Lines — have offered free Wi-Fi to members of their loyalty programs. 

In addition, Airbus unveiled in 2022 the HBCplus system, which makes it easier for airlines to provide in-flight Wi-Fi.  

Next, Airbnb hadn’t said much about its experiences offerings amid recent struggles. But the company’s Chief Financial Officer Ellie Mertz has explained what went wrong and how it plans to fix those problems, writes Executive Editor Dennis Schaal. 

When asked at a Bernstein conference why Airbnb experiences hasn’t been a success, Mertz said outside of packaged tours, consumers don’t go to a site and book everything — flights, lodging, cars, etc. — at the same time. 

Mertz also said Airbnb needs to ensure experiences are “appropriately priced” and that proper timing and personalization are keys to a successful experiences product. 

Finally, Skift recently reviewed the pay for more than two dozen top bosses at U.S. destination marketing organizations. However, Global Tourism Reporter Dawit Habtemariam notes a lot of factors go into the link between CEO pay and the performance of a tourism board. 

Habtemariam reports it’s hard to assess how much credit destination marketing organizations should get for tourism, adding a tourist may visit for reasons unrelated to marketing. 

One place the value is more clear: Meetings and conventions. “They are hugely important. That’s the only organization that can talk collectively with meeting planners,” said Vijay Dandapani, a member of NYC Tourism’s board of directors and CEO and president of the Hotel Association of New York City.

But you can’t paint with too broad a brush. As one former DMO leader told us: “Some of these CEOs are probably underpaid, some of them are probably overpaid,” she said.

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Episode Notes

American Airlines CEO Robert Isom has paid tribute to outgoing Chief Commercial Officer Vasu Raja. But Isom has indicated it was time for Raja to go amid American’s struggles, reports Airlines Editor Gordon Smith.

Isom admitted at a conference on Wednesday that American has dug itself a hole during the second quarter, with the company’s financial outlook having been downgraded. While praising Raja’s creative thinking and passion, Isom acknowledged that American needed a reset. The company has underperformed compared to rivals Delta and United across multiple key metrics, including operating margin — an important measure of profitability. 

Next, Glenn Fogel, CEO of both Booking Holdings and Booking.com, was the highest-paid travel CEO in 2023, reports Executive Editor Dennis Schaal. 

Fogel received a total pay package of $46.7 million last year, according to the Wall Street Journal. Delta Airlines CEO Ed Bastian came in second among travel CEOs, with a pay package of $34.2 million. The Wall Street Journal also scored each S&P 500 company’s total shareholder return versus its industry, with Booking Holdings and Delta among the four travel companies that got a top score.  

Finally, luxury cruise line Viking has issued its first earnings report since going public earlier this month. Senior Hospitality Reporter Sean O’Neill lists several takeaways from its quarterly earnings.

O’Neill notes Viking presented a generally upbeat report. The company, which largely targets affluent, English-speaking travelers over the age of 55, said it’s sold 91% of its possible passenger cruise days this season. 

In addition, Viking executives said they’ve sold $2.5 billion in advance bookings so far for the 2025 season.  

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Episode Notes

Google has made further inroads in the travel industry in recent months with several AI-powered products it’s launched. Travel Technology Reporter Justin Dawes delves into four of them.

Dawes notes that Google has incorporated new AI features into software for physical products, including mobile phones. A new feature on Android devices enables users to translate content on the screen without having to switch apps. Travel technology firm Sabre recently unveiled a new AI-powered retailing platform for airlines called SabreMosaic, which is meant to help airlines create and sell personalized retail experiences. 

Meanwhile, Alaska Airlines is planning to launch a trip planner built with tech from Google. IHG Hotels & Resorts has plans to release a trip planning tool powered by Google’s AI within its One Rewards mobile app later this year.

Next, New York City hotel rates have hit record highs in large part due to a supply crunch, writes Senior Hospitality Editor Sean O’Neill.

The average nightly room rate in New York City during the first quarter was $231, a nearly 7% jump from last year, according to data firm CoStar. O’Neill notes one major factor behind the soaring room rates is local authorities essentially banning short-term rentals in the city. The New York Times reported short-term rentals represented roughly 10% of the city’s travel lodging before the crackdown.  

The city’s move to convert thousands of hotel rooms into lodging for migrants has also contributed to the soaring room rates. The practice has removed about 2% of the city’s net hotel rooms from the market compared to pre-Covid levels. 

Finally, Air France will open an ultra-exclusive airport lounge ahead of the Paris Olympics, reports Airlines Editor Gordon Smith. 

While Smith writes the concept of airlines offering exclusive services for premium guests is far from new, he notes Air France is pushing those boundaries further with its new ultra-luxe offering, La Première lounge. Passengers in the lounge have access to a spa as well as a menu curated by prominent chef Alain Ducasse. 

In addition, Air France’s premium guests can reserve space in three completely private suites that are adjacent to the main La Première lounge. Each suite includes a double bedroom, outdoor patio and a dedicated butler on the patio. 

Get the latest travel news, analysis, and research at https://skift.com/

Producer/Presenter: Jose Marmolejos

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Episode Notes

OpenAI, Google and Meta have big plans for AI chatbots that can serve as personal assistants for travelers. Travel Technology Reporter Justin Dawes provides takeaways after reviewing the latest updates.

OpenAI is releasing new voice translation capabilities in the near future that can understand non-verbal cues and recognize different voices in group conversations. Dawes notes OpenAI’s voicebot could break down language barriers that could keep travelers from visiting certain destinations. OpenAI and Meta are also promoting their tech’s visual translation capabilities, which help travelers, for example, figure out a menu not in their native language. 

While Dawes notes OpenAI is the furthest along in creating a virtual personal assistant that can be a tour guide, he writes Google is the furthest along in developing trip planning tools integrated with booking options.  

Next, Chase Travel saw its sales grow as fast as Booking Holdings’ last year. But Chase said it faces some headwinds, reports Executive Editor Dennis Schaal.

Chase Travel reported it grew its gross bookings 25% year-over-year in 2023, just ahead of Booking Holdings at 24%. Meanwhile, Expedia Group registered only 10% growth. Chase Travel executives have said they’re looking to gain share from competitors such as Booking Holdings and Expedia that have been around for decades. 

Chase Travel did report at its recent annual investor day that “macro travel headwinds” were impacting its profit margins. One Chase Travel executive told investors that the company saw lower growth in spending by luxury travelers. 

Finally, India’s largest airline IndiGo is launching a business-class product by the end of this year, reports Asia Editor Peden Doma Bhutia.

CEO Pieter Elbers said the new product is part of IndiGo’s plans to adapt to India’s changing travel landscape, adding the carrier has seen a greater demand for premium travel. He also expressed confidence that the new offering would cater to corporate travelers’ needs. Elbers indicated IndiGo would unveil information about news routes in August.  

Producer/Presenter: Jose Marmolejos

Presented by BrandUSA

Episode Notes

Airbnb recently said its average daily rates can be cheaper than those of hotels. But there are lot of factors to consider, reports Executive Editor Dennis Schaal.

The company said the average daily rate in March of a one-bedroom Airbnb worldwide was $114 while data firm CoStar reported the equivalent rate for a hotel room was $140. But Schaal notes there is a lot of nuance in those numbers, adding they don’t include Airbnb cleaning fees, hotel resort fees or taxes. 

In addition, Jan Freitag, a CoStar executive, said the issue of whether an Airbnb or a hotel room is cheaper depends on the market and time of the year, among other factors. 

Next, Scandinavia is seeing a surge in tour and activity bookings for this summer in part due to the region’s moderate climate, writes Travel Experiences Reporter Jesse Chase-Lubitz. 

Data from GetYourGuide, Viator and TourRadar all indicate a significant jump in bookings compared to last year. The spike may be connected to traditionally popular destinations like Italy, Spain and Greece increasingly experiencing summertime heat waves and wildfires. Viator says Norway is the fastest-growing country in its portfolio while TourRadar reports bookings in Denmark and Sweden are surpassing average growth rates. 

Finally, Southwest Airlines fares are now appearing on Google Flights, which had been considered unlikely, writes Airlines Reporter Megnha Maharishi. 

Southwest said in a statement that it was looking to extend its reach, with Maharishi noting the carrier hadn’t previously listed its fares on Google Flights or online travel agencies as a way to cut distribution costs. Southwest is also conducting an in-depth study into consumer preferences as it considers making more changes to its model. CEO Bob Jordan recently said that Southwest is weighing whether to implement assigned seating and add premium cabins to its fleet. Today's podcast looks at Airbnb prices, summer travel in Scandinavia, and booking Southwest on Google Flights. 

Producer/Presenter: Jose Marmolejos

The World Economic Forum recently released its 2024 Travel & Tourism Index. Global Tourism Reporter Dawit Habtemariam and Senior Hospitality Editor Sean O’Neill profile five countries the organization named as among the most-improved economies for enabling travel and tourism development since 2019. 

Habtemariam and O’Neill highlight Albania, Indonesia, Egypt, Tanzania and El Salvador. In particular, Albania has seen a 141% increase in daily flight traffic since 2019. Meanwhile, Indonesian authorities boosted domestic tourism last year by launching a program that gave financial support to more than 170 festivals and cultural events. 

Habtemariam and O’Neill note that the World Economic Forum has recommended that tourism leaders develop strategies to combat challenges such as labor shortages and climate change. 

Next, the Four Seasons is betting that luxury travelers will be willing to make a long journey to the remote Pacific island of Palau, writes Columnist Colin Nagy. 

The Four Seasons is planning to open a permanent hotel development in Palau in the next few years. Armando Kraenzlin, a longtime Four Seasons general manager, described Palau as “one of the last true remaining frontiers.” The Great Barrier Reef Foundation reported that Palau is the only country to have protected 80% of its offshore marine environment. 

In addition, Nagy notes the Four Seasons has relocated its liveaboard ship, the Explorer, from the Maldives to Palau, as well as moved some diving instructors and marine biologists. 

Finally, airlines are scrambling to acquire the five new slots for long-distance flights departing from Reagan National Airport, writes Airlines Reporter Meghna Maharishi. 

President Joe Biden recently signed a bill with a provision approving the new slots. Maharishi reports the slots have to be allocated within 60 days of the act becoming law. 

American Airlines had already announced a partnership with San Antonio International Airport to launch flights between the city and Reagan National. In addition, Alaska Airlines plans to apply for flights between San Diego and the airport. San Diego is currently the largest market without nonstop service to Reagan National.  

Episode Notes

Marriott and Hilton are in fierce competition regarding the growth of their portfolios and loyalty programs. But Marriott is the clear winner in terms of fees earned from services for hotel owners, writes Senior Hospitality Editor Sean O’Neill in this week’s Early Check-In. 

Hotel groups charge owners fees for managing or franchising hotels. Marriott generated $1.24 billion in gross fee revenue last year while Hilton generated $773 million. While Hilton’s fee revenue is growing faster than Marriott’s, O’Neill notes that Marriott’s lead is so large that it would take Hilton 40 years to catch up if current trends remained the same. 

Next, Google recently launched AI-driven search capabilities as well as a more advanced Gemini AI model. Skift CEO and founder Rafat Ali provided his take on the new offerings. 

Ali writes that AI Overview stands out as a key feature in Google Search, and provides comprehensive summaries for complex travel queries. One query – “What’s the best time to visit London?” – generated a curated overview with suggested itineraries, travel tips and related multimedia content. 

The travel information landscape is now infinitely more complex, as Google is pulling results from across many different media and display formats. Reddit as a source of competition for any travel information query is the biggest new change in search in 2024.

Finally, Spirit Airlines has joined fellow ultra-low-cost carrier Frontier in dropping change and cancellation fees, writes Airlines Reporter Meghna Maharishi. 

Maharishi reports Spirit appeared to quietly remove most change and cancellation fees from its website this past weekend. Spirit now doesn’t charge any fare classes, except for group bookings. The company had charged between $69 and $119 to change or cancel a reservation, depending on the number of days before departing. 

Spirit said the move was part of its strategy to return to profitability. Spirit and Frontier are among a growing number of U.S. carriers that have eliminated change fees in recent years. American, Delta and United all scrapped change fees during the pandemic, except for the cheapest and most restrictive fares. 

Episode Notes

Airlines have recently gotten a big boost from a segment many airlines thought would continue to struggle — business travel, writes Airlines Reporter Meghna Maharishi. 

Delta Air Lines said corporate bookings were up 14% in the first quarter. Delta President Glen Hauenstein said 90% of the companies it surveyed said they plan to increase travel in the second quarter. United Airlines and Alaska Airlines both recorded significant increases in corporate bookings during the first quarter, with Alaska stating business travel for the carrier has fully recovered to pre-Covid levels. 

Next, Chase now offers its cardholders something its rivals and online travel agencies don’t — the opportunity to book Southwest Airlines flights through its own travel platform, reports Executive Editor Dennis Schaal. 

A Chase spokesperson said this week that cardholders are able to book Southwest flights on Chase Travel using points or cash. Cardholders who wanted to book Southwest flights in the past would’ve had to phone Chase Travel customer service. Schaal notes Southwest’s official website was the only place to book its flights for years, adding that online travel agencies that tried to offer Southwest flights received cease and desist letters. 

It’s uncertain though if other credit card companies will enable cardholders to book Southwest flights through their travel portals. 

Finally, Saudi Arabia is looking to attract 70 million international tourists annually by 2030. They can’t all stay in the luxury hotels that get so much attention, writes Middle East Reporter Josh Corder.

Fahd Hamidadin, CEO of the Saudi Tourism Authority, said that no more than 20% of visitors will be staying in four- or five-star hotels, adding that the real business of tourism is far from luxury. Indeed, an Accor executive said most people in the world are basically economy and mid-scale brand consumers. 

However, roughly 82% of the rooms in Saudi Arabia’s hotel pipeline are in the luxury and upscale categories, according to real estate consultancy firm Knight Frank.

Episode Notes

This year’s Summer Olympics are boosting short-term rental bookings in Paris, writes Reporter Elizabeth Casolo. 

Short-term rental bookings in Paris between July 26 through August 11 are up 46% compared to the prior two weeks, according to data analytics firm AirDNA. Bookings in Paris’ suburbs for the Olympics are up 112%.

However, AirDNA Chief Economist Jamie Lane said short-term rental rates during the Olympics are beginning to drop. Lane added AirDNA expects rates to continue falling because hosts will get worried their units aren’t booked.  

Next, Generation Z travelers are spending big on travel — especially hotels, writes Senior Hospitality Editor Sean O’Neill. 

Generator and Freehand hotel brands — both of which heavily target guests between the ages of 18 and 28 — saw revenue jump 15% in 2023 from the previous year. The two brands have seen bookings jump 40% this year in markets such as Miami, Madrid and New York. Alastair Thomann, CEO of the two brands, attributed that growth to spending by Gen Z travelers. 

O’Neill notes Gen Z is financially better off than young people in prior generations, with youth unemployment in the world’s seven most well-off countries the lowest since 1991. 

Next, Europe’s largest tour operator TUI is facing several challenges due to ongoing Boeing delivery delays, writes Travel Experiences Reporter Jesse Chase-Lubitz. 

TUI CEO Sebastian Ebel said the company received fewer Boeing jets than expected, which drove TUI to extend leases on older aircraft. Ebel added that maintenance expenses associated with older aircrafts helped drive up costs for TUI. However, he said the tour operator expects to receive compensation from Boeing. 

Despite the challenges brought about by delivery delays, TUI still had a strong second quarter. The company generated just below $4 billion of revenue, a 16% increase from last year.

Episode Notes

Google is going deeper into the AI-powered trip planning world. The tech giant is adding itinerary-building capabilities on Gemini Advanced, its paid generative AI chatbot, writes Travel Technology Reporter Justin Dawes.

Google Vice President Sissie Hsiao said Gemini Advanced can create a personalized vacation plan using multiple sources of information. The trip-planning capability is coming to Gemini Advanced this summer. In addition, Google is also boosting trip-planning options for AI Overviews, the AI feature it released earlier this year. 

Next, Ariane Gorin took over as CEO of Expedia Group this week. She explained what she's looking to accomplish during an interview with Executive Editor Dennis Schaal.

Gorin said that organic growth is one of her priorities, having recently completed a tech migration that brought together several of its brands onto one platform. She added Expedia is focused on growing internationally, but will take a measured approach in doing so. 

Gorin added Expedia needs to make improvements to its vacation-rental brand Vrbo. Expedia recently trimmed its 2024 outlook growth mainly due to Vrbo’s slower-than-anticipated recovery. 

Finally, Qantas is pulling out of mainland China as it increasingly faces fierce competition from local carriers, writes Airlines Reporter Gordon Smith.

Australia’s flag carrier is citing “low demand” as the reason it will no longer fly from Sydney to Shanghai starting on July 28. Qantas International CEO Cam Wallace said flights between the two cities have often been half full since the company relaunched service following the pandemic. Meanwhile, Chinese carriers operate 102 flights weekly between mainland China and Australia’s three largest cities.