Skift Daily Briefing

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Oct 24, 2024

00:02:55

Episode Notes

Anthropic, a generative AI startup, has unveiled new tech that indicates how an AI-powered travel agent would look, writes Travel Technology Reporter Justin Dawes.

Anthropic recently released three demonstrations of the tech, one of which was for making travel plans. A more advanced version of the tech could eliminate the friction of manually navigating options, comparing prices and making reservations. In addition, Dawes notes users might bypass online travel agencies like Booking.com to rely on AI to find the best deals on their behalf.

Hilton reported a record for room growth during the third quarter. But the company trimmed its annual room revenue forecast amid signs of softening domestic travel demand, writes Senior Hospitality Editor Sean O’Neill.

Hilton said on Wednesday it added 6,000 rooms to its portfolio in the third quarter — the highest quarterly room addition in its history. The company also opened 531 hotels during the same timeframe. However, Hilton also said it now expects its revenue per available room to grow between 2% and 2.5% this year, a slight decrease from its projections in both April and August.

Finally, Boeing has had a rough year thus far, and its struggles include a reported $6 billion third-quarter loss, writes Airlines Reporter Meghna Maharishi.

Boeing CEO Kelly Ortberg acknowledged the planemaker is at a crossroads, adding that trust in the company has eroded. Ortberg said he believes the company’s issues, including lapses in its performance, have disappointed many of its customers. He told staff earlier this month that Boeing would delay the first deliveries of the 777X to 2026.

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Oct 23, 2024

00:03:47

Episode Notes

NYC Tourism + Conventions, the city’s destination marketing organization, announced on Tuesday it named Julie Coker as its next president and CEO, writes Global Tourism Reporter Dawit Habtemariam.

Coker, who has held the same roles at the San Diego Tourism Authority since 2020, will assume her new position on December 9. She succeeds Fred Dixon, who served as NYC Tourism’s CEO for close to a decade before stepping down earlier this year to lead Brand USA

Coker will take the helm as New York City’s tourism chief as the region prepares to welcome several major events, including the FIFA World Cup final in 2026.

Next, InterContinental Hotels Group had a strong third quarter in terms of hotel openings. But the company also saw a slowdown in revenue growth, reports Senior Hospitality Editor Sean O’Neill.

IHG added 17,500 rooms across 98 hotels, more than doubling its growth pace from the same period in 2023. O’Neill notes that a lot of that growth came from a deal with the German hotel group Novum Hospitality, which added roughly 6,000 rooms to IHG’s portfolio.

However, IHG only saw a 1.5% growth in revenue per available room worldwide during the third quarter. O’Neill notes a weak economy in China and turmoil in the Middle East contributed to the slowdown in revenue growth.

Finally, Cathay Pacific recently unveiled the Aria Suite, the carrier’s new business class cabin. And the company has plans for a new first class cabin that its chairman called “mindblowing” in an exclusive interview with Airlines Editor Gordon Smith.

Cathay Chair Patrick Healy told Skift that having a world-class cabin is part of the carrier’s aspirations to be one of the best premium airlines in the world. CEO Ronald Lam said Cathay plans to reveal the new cabin in 2025 or 2026, with Smith noting the carrier is awaiting Boeing’s new 777X aircraft before launching a new first-class cabin.

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Oct 22, 2024

00:03:37

Episode Notes

The growth of U.S. vacation rental and short-term rental supply has been slowing down, a trend that will likely continue next year, reports Senior Hospitality Editor Sean O’Neill.

Vacation rental and short-term rental supply in the U.S. has grown 10% in 2024 from last year, according to analytics firm Key Data. However, that’s down from 20% two years ago. Key Data said one factor for the supply deceleration is a shortage of housing.

Analysts at Truist Securities said that supply growth may continue to slow as some units become long-term rentals and migrant-focused corporate housing.

Next, Saudi Arabia is targeting Chinese travelers as part of its strategy to attract 150 million tourists by 2030, writes Editor-in-Chief Sarah Kopit.

Tourism Minister Ahmed Al Khateeb said in an interview with Skift that the kingdom believes it can attract 20-25% of the Chinese tourists who take mid-to-long-haul flights, often to Europe and the Middle East. It’s a “huge market,” he said, with an interest in traveling for culture and heritage.

Al Khateeb added Saudi Arabia has been actively promoting itself in China, including organizing a Saudi Travel Festival in Beijing recently.

Finally, travelers are largely aware of the importance of sustainability. But there’s a gap between awareness and action, according to a new survey, writes Asia Editor Peden Doma Bhutia.

Trip.com’s Sustainable Travel Consumer Report found that 92% of travelers acknowledge the importance of sustainable travel. However, a little less than 57% of respondents said they practice sustainable travel. A major reason for the relative lack of action is general uncertainty about the concept, according to the survey. The divide is more apparent when it comes to paying extra for sustainable travel options, especially when it comes at a time of economic challenge and soaring living costs

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Oct 18, 2024

00:03:13

Episode Notes

Uber has explored buying the Expedia Group, according to a report this week in the Financial Times. It’s all speculation at this point, but the deal, if it were to happen, would bring about the biggest shakeup the travel industry has seen in years. Travel Technology Reporter Justin Dawes answers 10 questions about it.

Dawes notes there are currently no active discussions between the two companies. But an acquisition would bring Uber closer to becoming a superapp, a single app with multiple services, including transport, social media and food delivery.

However, Dawes adds there would be many roadblocks standing in the way of any deal between Uber and Expedia.

Even if it was just a trial balloon, the news raises other possibilities: Expedia, a big brand with a depressed stock price, could attract other potential acquirers or activist investors.

Next, foreign visitor spending in Japan in the first nine months of 2024 topped the full-year record set last year, writes Asia Editor Peden Doma Bhutia.

International tourists spent roughly $39 billion between January and September, according to the Japan Tourism Agency. That amount is $4 billion more than the previous full-year record. Japan welcomed close to 27 million foreign visitors during the first three quarters of the year.

Finally, Cathay Pacific recently unveiled the Aria Suite, its new business class cabin. Airlines Editor Gordon Smith provides information about arguably the industry’s most anticipated new business class product.

Smith writes the Aria Suite isn’t exactly a game changer but it’s a solid product that hits all the right notes. It features a sliding privacy door, wireless charging and a 24-inch monitor. Vivian Lo, Cathay Pacific’s head of customer experience and design, said the new-age tech in the suite is almost invisible on purpose. Lo added the airline was looking to create “a cocoon oasis of personal space.”

The first Aria-equipped jet will enter passenger service on Friday between Hong Kong and Beijing.

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Oct 17, 2024

00:03:17

Episode Notes

Hotel executives gathered at The Lodging Conference recently to discuss emerging trends in the industry. Senior Hospitality Editor Sean O’Neill listed five key takeaways from the event as executives look forward to 2025.

O’Neill notes hotel leaders are cautiously optimistic about the economic outlook for next year. Executives generally believe that the Fed’s recent interest rate cut will boost enthusiasm for U.S. hotel development in 2025. Luxury hotels will likely see a boom in guests as global wealth is projected to increase by about a third by 2027.

However, O’Neill writes attracting and retaining talented workers still remains a challenge in the hotel industry.

Next, Airbnb has officially launched an expanded co-host network designed to make it easier for hosts to manage their properties, reports Executive Editor Dennis Schaal.

Co-hosts would be able to manage lists, respond to reservation inquiries and message guests under the program. Airbnb has piloted an online service for several years where hosts can find and hire co-hosts. But Schaal notes it’s the first time the service is available in the Airbnb app and on its website.

Airbnb Chief Business Officer Dave Stephenson said he believes the co-hosting feature will help increase Airbnb’s listings from both new hosts and existing ones.

Finally, Airlines Reporter Meghna Maharishi provides four takeaways from United Airlines’ better-than-expected third quarter earnings report.

United received a substantial boost from business travel’s rebound as the company’s corporate revenues for the company were up 13% compared to last year. However, despite bringing back its Los Angeles-Shanghai route, United isn’t expecting to substantially increase bookings for flights to China. Chief Commercial Officer Andrew Nocella acknowledged demand for China has changed coming out of the pandemic.

CEO Scott Kirby said he was optimistic planemaker Boeing could overcome its many issues, which include laying off 10% of its staff. In addition, United said it expects travel to slow during the weeks surrounding Election Day.

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Oct 16, 2024

00:03:18

Episode Notes

Visit Florida launched a new campaign this week to inform tourists much of the state is ready to welcome visitors after Hurricanes Helene and Milton, writes Global Tourism Reporter Dawit Habtemariam.

Visit Florida will share images and videos of destinations largely unaffected by the hurricanes via social media over the next two weeks. The tourism board has also recently launched social media campaigns with the messaging “Stronger Than the Storm” for in-state audiences and “Florida is Resilient” for domestic markets.

Habtemariam reports that Visit Florida plans to survey destination marketing organizations across the state and determine when they will be ready to welcome visitors again.

Next, Sphere Entertainment has announced Abu Dhabi will be the location of its second development, writes Middle East Reporter Josh Corder.

Corder reports the new sphere, which is said to “echo the scale” of the original in Las Vegas, is a joint venture between Sphere Entertainment and officials in Abu Dhabi. The sphere in Abu Dhabi is expected to have a similar capacity to the Las Vegas Sphere of around 20,000 seats. However, details such as the location, opening date or budget haven’t been revealed yet.

Finally, Uber is launching a new black-car service aimed at business travelers, writes Travel Technology Reporter Justin Dawes.

Dawes reports the service, called Uber Business Black, includes newer luxury vehicles and more flexible booking options. Riders with Uber Business Black will have access to a 24/7 line to human customer service agents for up to 72 hours after a ride. In addition, the service enables executive assistants to book and change rides on someone else’s behalf.

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Oct 15, 2024

00:03:25

Episode Notes

Thousands of Barcelona residents took to the streets this past Sunday to demand the city stop hosting the America’s Cup sailing competition and other huge tourism events. It’s the latest of large-scale protests in Spain against mass tourism, writes Global Tourism Reporter Dawit Habtemariam.

Habtemariam notes protestors burned a replica of the America’s Cup trophy at the end of the demonstration. The group, “No to the America’s Cup,” which organized the protest, alleges the city council and event organizers have misled the public about the number of visitors and economic benefits of the America’s Cup.

The group also argues the event would contribute to an increase in pollution and a surge in rents.

Next, roughly 5,000 hotel workers are on strike across the U.S., with recent walkouts occurring at hotels in Boston and Seattle, writes Senior Hospitality Editor Sean O’Neill.

More than 600 workers in Boston, including staff at the city’s largest hotel, joined strikes over the weekend. In addition, 300 workers in Seattle walked off their hotel jobs on Monday. Hotel workers union United Here said roughly 40,000 hotel workers in 22 North American markets have authorized potential walkouts before the end of the year.

Finally, a growing number of destinations are looking to attract Indian tourists by increasing the number of locations serving Indian food, reports Senior Research Analyst Varsha Arora.

More than half of Indian travelers consider having access to Indian food crucial, according to Booking.com’s Travel Confidence Index 2023. A report published last year revealed a 25% growth in Indian restaurants globally over the past five years. Arora cites Dubai and Abu Dhabi as two destinations where Indian restaurants have become a staple.

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Oct 11, 2024

00:03:06

Episode Notes

United Airlines is adding eight new, off-the-beaten-path destinations to its summer 2025 schedule, betting that travelers will fly to less popular locations, writes Airlines Reporter Meghna Maharishi.

United’s new destinations for summer 2025 include the capitals of Mongolia, Senegal and Greenland. Maharishi notes many of its new destinations are in contrast to American and Delta, two carriers with summer schedules that typically revolve around more popular routes.

However, United isn’t completely ignoring big-name destinations as it’s adding flights to Nice and Venice from Dulles International Airport.

Next, Disneyland guests are paying more for the theme park’s attractions after the Walt Disney Company increased ticket prices on Wednesday, writes Global Tourism Reporter Dawit Habtemariam.

Prices went up for most single-day tickets under Disney’s tier system, with some increasing by as much as 6.5%. Most of Disneyland’s multi-day ticket prices increased by roughly the same percentage. Habtemariam notes the price hike comes as Americans are increasingly cutting back on travel spending in response to rising cost of living.

Finally, Sharjah, one of the UAE’s seven emirates, is aiming to attract what one official calls “invisible” tourism — unlike neighboring Dubai, writes Middle East Reporter Josh Corder.

Corder notes Sharjah is focused on becoming the national center of cultural tourism with plans to create camps and eco-resorts. Sharjah leaders are also working to preserve large portions of the emirate in its “Heart of Sharjah” project, which aims to restore historic structures.

Sharjah is the most conservative of the seven emirates and the only one that still outlaws alcohol. This is in stark contrast to the rest of the country, which is becoming more and more Western, notably giving the green light for casinos earlier this month.

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Oct 10, 2024

00:03:01

Episode Notes

Marriott has reached an agreement with 49 states and Washington, D.C., to pay $52 million to settle charges related to data security, writes Senior Hospitality Editor Sean O’Neill.

O’Neill notes the settlement with the states relates to a database security incident in 2018 in the guest reservations system of Starwood, a hotel group Marriott had just acquired.

And the Federal Trade Commission is requiring Marriott to put in place a new data security program following three breaches from 2014 to 2020 that affected over 300 million people worldwide.

Next, 2025 might not be full of blockbuster activity for online travel agencies. The sector is projected to see more stock buybacks but not a lot of mergers and acquisitions, writes Executive Editor Dennis Schaal.

A BTIG research report revealed that Airbnb, Booking Holdings and Expedia Group will likely generate between $15 billion and $16 billion in free cash flow next year. Those companies are expected to allot $13 billion of that amount to stock buybacks.

However, the report said the online travel agency industry probably won’t see large-scale consolidation in the near future, with Schaal noting the regulatory environment in the U.S. and Europe isn’t particularly friendly to big-time mergers.

Finally, Hyatt and American Airlines will make significant changes to the collaboration between their loyalty programs, writes Senior Hospitality Editor Sean O’Neill.

Both companies will offer more redemption options to their most loyal customers. Starting next year, members who link their programs can earn rewards from the partner program at various loyalty tiers. However, the ability for members to earn miles and points at the same time on stays and flights will end on December 31.

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Oct 09, 2024

00:03:45

Episode Notes

Marriott International announced on Tuesday that it’s expanding its City Express by Marriott brand into the U.S. and Canada, reports Senior Hospitality Editor Sean O’Neill.

O’Neill reports the expansion represents Marriott’s foray into the “affordable midscale” category in the two countries. Marriott bought the City Express brand in Mexico in May 2023, and has run properties under the City Express by Marriott brand in the Caribbean and Latin America. The company hasn’t yet revealed how many deals it’s signed for the brand in the U.S. and Canada.

However, one Marriott executive said the company is optimistic about hotel openings in both countries in the near future.

Next, the Routes World 2024 conference featured several heavy hitters of the Middle East’s aviation industry sharing their plans for 2025. Airlines Editor Gordon Smith provides highlights.

Tony Douglas, the CEO of new Saudi carrier Riyadh Air, said the airline is “well advanced” in obtaining its Air Operator Certificate, a key regulatory milestone required to start commercial operations. He added Riyadh Air would be up and running next year.

Air Arabia CEO Adel Abdullah Ali said the carrier is looking to grow outside its traditional markets in the Middle East, citing Egypt as an example. And Steven Greenway, CEO of Saudi low-cost carrier flyadeal, revealed plans to more than double its fleet size over the next four years.

Finally, Wynn Reports has upped its budget, financial projections and ambitions for its casino project in the United Arab Emirates. Middle East Reporter Josh Corder lists several takeaways from a presentation Wynn gave to investors and analysts on Tuesday.

Corder notes the project is targeting very wealthy consumers. Wynn expects 37% of its gross gaming revenues to come from what it considers ultra-high-net-worth international customers. India and Europe will be among Wynn’s core markets, with CEO Craig Billings noting India is home to a lot of wealth.

Wynn also said it expects the gaming market in the UAE to be worth between $3 billion and $5 billion.

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Oct 08, 2024

00:03:21

Airlines and airports are getting ready for Hurricane Milton, a “potentially catastrophic” storm expected to hit southwest Florida on Wednesday, writes Airlines Reporter Meghna Maharishi.

Tampa International Airport and Orlando International have announced they plan to suspend operations in anticipation of Hurricane Milton. Several airlines — including American, Delta and United — have issued travel waivers in Florida. Citi analyst Stephen Trent said cancellations from the storm could cause Southwest and Spirit to suffer a major hit to their earnings because of their exposure to Tampa.

Next, new Mandarin Oriental CEO Laurent Kleitman is looking to double the number of properties in the company’s portfolio, writes Senior Hospitality Editor Sean O’Neill, who spoke with Kleitman in his first major interview as CEO.

Mandarin Oriental currently manages 41 hotels, but Kleitman says he sees a sweet spot of between 80 and 100 properties for the luxury hotel brand. Kleitman added Mandarin Oriental will focus on key markets where the company doesn’t have a presence. He cited Budapest and Rome as locations Mandarin Oriental will expand to.

In addition, Kleitman said growing in the Americas is one of the company’s goals. Mandarin Oriental manages only three hotels in the U.S.

Finally, the Skift Travel Health Index for August 2024 reveals that the travel industry is thriving despite concerns about a recession.

The global travel industry registered 9% growth from last year, which was led by the Asia-Pacific region and North America. Research Analyst Saniya Zanpure notes the travel boom in the Asia-Pacific region is largely due to the area’s delayed reopening after the pandemic. Meanwhile, passenger volumes in the U.S. are at an all-time high.

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Oct 04, 2024

00:03:17

Episode Notes

Accor CEO Sebastien Bazin said the Paris-based hotel group has 47 brands in its portfolio. And the company has plans to add more, writes Middle East Reporter Josh Corder.

Bazin said at the Future Hospitality Summit in Dubai that Accor doesn’t have too many brands. He noted in the era of technology, customers have enough resources to discover them all. Bazin also said it’s important that no two brands are the same and that all of them are relevant.

As for global growth, Bazin thinks China and India will be the largest markets in the medium- and long-term.

Next, G Adventures launched a new brand this week targeting solo travelers interested in connecting with others on group tours, writes Global Tourism Reporter Dawit Habtemariam.

The new brand — called “Solo-ish Adventures” — is geared toward travelers not wanting to wait on others to book a trip or feel like a “third wheel” on group tours. The trips, which will run on average 12 days, will feature activities such as cooking classes and food walking tours on the first night to encourage interaction.

Trips to 12 destinations are currently available under the Solo-ish brand, which G Adventures plans to increase to 60 over the next two years.

Finally, Moroccan officials have expressed concern about overtourism when the country co-hosts soccer’s World Cup in 2030, writes Middle East Reporter Josh Corder.

Morocco expects 26 million tourists in 2030, almost double the number from 2023. Tourism Minister Fatim-Zahra Ammor said the country is looking at promoting — and investing in — experiences over accommodation, which she believes would give travelers reasons to visit destinations in Morocco outside its major cities.

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Oct 03, 2024

00:03:07

Episode Notes

The global hotel industry has seen some markets thrive this year while some others have struggled, reports Senior Hospitality Editor Sean O’Neill.

A recent report by CBRE Hotels Research revealed U.S. revenue per available room would grow roughly 1% for the full year. That’s close to a 2 percentage point drop from its forecast in February. O’Neill notes that U.S. urban and airport hotels are set to overperform while those in resort locations will likely underperform relative to their post-pandemic boom.

However, hotels in the United Arab Emirates saw their revenue per available room jump 30% from 2019 levels during the first half of this year. And Saudi Arabian hotels registered a 44% increase during the same period.

Next, Priceline is the first travel company to say it’s incorporating the latest voice tech from OpenAI into its AI chatbot, writes Travel Technology Reporter Justin Dawes.

Users can interact with its AI chatbot Penny by speaking or typing to search for hotels — but not flights or rental cars yet. The first version of Penny Voice went live on Tuesday, and the company said it has plans to unveil updates in the near future.

Finally, online travel agency Klook celebrates its 10th anniversary this month. Senior Hospitality Editor Sean O’Neill examines how the company is looking to evolve.

Klook — Asia-Pacific’s largest online seller of travel experiences — is expanding into domestic travel and social commerce, among other areas. President and co-founder Eric Gnock Fah said Klook has built up domestic travel offerings. Fah noted all of Klook’s sales pre-Covid were cross-border.

Klook is also leveraging social media for marketing and sales, with Fah attributing much of its recent growth in China to social media-driven sales. Popular chat and payment apps are increasingly letting influencers sell services.

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Oct 02, 2024

00:03:33

Moxy Hotels, Marriott’s first brand aimed at travelers in their 20s, is celebrating its tenth anniversary this year. Senior Hospitality Editor Sean O’Neill takes a look at how Moxy has looked to stay relevant in the marketplace throughout the years.

O’Neill notes that Moxy doesn’t subscribe to the commonly held premise in the hotel industry that the room is everything. Moxy’s compact rooms have appealed to some Millennials used to cramped urban residences or minimalist lifestyles. In addition, hotel investors and owners have seen the cost advantages of fitting more rooms into smaller footprints.

Moxy was the first Marriott brand without a formal front desk and guests check in at bars. O’Neill writes hotel operators like how Moxy creates bustling social spaces that attract both guests and locals, and that the lively lobbies and bars drive high-profit food and beverage revenue.

Next, Amtrak launched its first major marketing campaign in three years on Tuesday. It’s part of the company’s effort to convince travelers that trains are a better alternative to planes and cars, writes Global Tourism Reporter Dawit Habtemariam.

The campaign, called “Retrain Travel,” showcases advantages Amtrak now offers: No middle seats. Plenty of legroom. Freedom to walk around.

An Amtrak executive said “Retrain Travel” — which will appear on social media, the radio and other platforms — is part of its efforts to distinguish itself from its competitors, mainly airlines and cars.

Finally, Dubrovnik will launch a “special traffic regime zone” in its UNESCO-listed Old Town starting in 2025. The zone will use a custom mobile app to regulate tour buses and decrease the number of authorized taxis significantly. Tour buses will need to pre-book slots on the city’s app to pass through the zone.

Dubrovnik has seen a tourism boom thanks to the popularity of Game of Thrones. Tours based on the hit show have generated more than $24 million in revenue for the city.

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Oct 01, 2024

00:03:37

Episode Notes

Carnival Corp. said demand for travel to Alaska is “off the charts,” writes Global Tourism Reporter Dawit Habtemariam.

Carnival CEO Josh Weinstein said Alaska has emerged as one of the cruise line’s top destinations in 2024, especially for first-time cruisegoers. Weinstein’s comments came as residents in the state capital Juneau are voting on a measure that would ban large cruise ships from docking in the city on Saturdays and the Fourth of July.

Meanwhile, Carnival is seeing no signs of a consumer spending slowdown – it’s been able to charge higher prices and maintain strong bookings into 2025.

Next, 13 travel startups have raised over $600 million in venture capital over the past two weeks, writes Travel Technology Reporter Justin Dawes.

Dawes notes two of this year’s 10 biggest startup fundraises have happened during the same period. Renewable jet fuel production startup Twelve raised $200 million. Twelve also secured $400 million in project equity, which will go toward building production facilities. This is one of the largest financing rounds for a sustainable aviation fuel startup to date.

In addition, business travel platform Engine raised $140 million. The company said the funding would go toward product development.

Finally, Singapore’s hotel market is surging ahead of Hong Kong’s. Senior Hospitality Editor Sean O’Neill examines the rivalry between the two Asian travel hubs.

O’Neill notes Singapore has sought to attract marquee live entertainment and high-profile sporting events, as well as luxury travelers. Singapore saw its hotel occupancy soar to a March record of 83% this year in large part due to a series of Taylor Swift concerts in the city-state.

As for Hong Kong, O’Neill reports it’s grappling with a softer corporate market due to a shift of offices to other cities in recent years. In addition, Hong Kong’s luxury sector has been hit hard as a growing number of Chinese consumers have been pulling back on luxury retail shopping.

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Sep 27, 2024

00:03:06

Episode Notes

Hotel companies are trying to figure out how artificial intelligence will impact their businesses. Leaders in the industry aren’t quite sure yet, reports Senior Hospitality Editor Sean O’Neill, who attended the Destination AI summit in Washington, D.C.

Jess Petitt, an executive at Hilton, said the number of hotel bookings made using generative AI is minuscule but added the technology would make a huge impact on the industry. However, some experts are skeptical about generative AI significantly changing the balance of power regarding how hotels attract customers. O’Neill writes if hotel companies don’t adequately invest in the technology, they’ll be out-competed technologically.

Next, Mallorca continues to be a tourism hotspot despite recent large-scale protests against mass tourism to the island, writes Global Tourism Reporter Dawit Habtemariam.

Mallorca recorded more than 8.5 million overnight hotel stays in August, the highest of any tourist region in Spain. The island also had the highest weekend hotel occupancy at 90%. Despite widespread coverage of the protests, a recently released survey by Mallorca’s tourism board found roughly 90% of American visitors were unaware of the anti-mass tourism demonstrations.

Finally, Southwest Airlines has raised its revenue outlook for the third quarter as it plans to make more changes to its business operations, writes Airlines Reporter Meghna Maharishi, who was in Dallas for Southwest’s “Investor Day” presentations.

Southwest expects its revenue per available seat mile to increase between 2% and 3%, up from previous estimates. The company attributed the increase in part to a surge in travel demand. Meanwhile, to help boost profits, Southwest has unveiled plans to introduce premium seating and red-eye flights.

Southwest projects the seating changes will generate an additional $1.5 billion in revenue.

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Sep 26, 2024

00:03:13

Episode Notes

Skift is taking another big step to shape the future of travel. We’ve launched Skift Elevate, an initiative that aims to empower underrepresented voices in the industry.

Skift President Carolyn Kremins calls Elevate a movement to drive meaningful, collective action across the travel industry. Its inaugural event took place at the recent Skift Global Forum, where several prominent women in travel addressed topics such as gender equity, leadership development and inclusive workplaces.

Skift’s plans for Elevate include a series of additional events, content initiatives and industry partnerships.

Next, the Ray-Ban Meta AI-powered glasses will have a new feature that could help travelers overcome language barriers — live voice translation, writes Travel Technology Reporter Justin Dawes.

Meta CEO Mark Zuckerberg demonstrated the new feature, among other updates, at the Meta Connect developer conference. Zuckerberg said a user wearing the glasses should be able to hear a real-time English translation of Spanish, French, or Italian through a speaker in the glasses. A translation from English to the other language comes through the app.

Meta didn’t reveal when the update would come out but said it has plans to add more languages in the future.

Finally, Senior Hospitality Editor Sean O’Neill compares the state of hotel giants Choice and Wyndham following Choice’s failed attempt to merge with Wyndham earlier this year.

O’Neill uses figures gathered by three research analysts to list Choice and Wyndham’s strengths and weaknesses. Wyndham is taking advantage of the expected $1.5 trillion infrastructure investment in the U.S., which could increase demand for its three extended-stay brands. However, Wyndham has reset its full-year guidance lower, indicating some strain on its revenue per available room.

As for Choice, it’s in a position to generate higher fees per room on average due to most of its rooms being in the midscale or upper midscale sector. But the company’s revenue per room growth in the U.S. has been underwhelming.

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Sep 25, 2024

00:03:02

Episode Notes

Residents of Juneau, Alaska, are set to vote next Tuesday on a measure that would ban large cruise ships from docking in the city on Saturdays and July 4, writes Global Tourism Reporter Dawit Habtemariam.

The ban would apply to any large cruise ship with more than 250 passengers. The measure requires a simple majority to pass. Karla Hart, who helped gather enough signatures to put the proposal on the ballot, said overtourism has pushed some fellow residents out of the city.

The initiative comes as Juneau’s popularity as a cruise destination has surged. Habtemariam notes that on some days, 20,000 cruise passengers visit the city. Cruise visitors were responsible for $30 million in direct spending on Saturdays last year.

Next, Elliott Investment Management said on Tuesday it would call for a special meeting at Southwest Airlines as it continues to push for more changes at the carrier, writes Airlines Reporter Meghna Maharishi.

Elliott’s push for a special meeting comes two days before Southwest’s investor day, where Elliott is expected to reveal more changes to the airline’s business model. The hedge fund could use the special meeting to elect new members to Southwest’s board. Elliott has already proposed 10 possible candidates.

Elliott, one of Southwest’s largest investors, took a roughly $2 billion stake in the carrier this June.

Finally, Etihad Airways has plans to launch around 10 new routes, reports Airlines Editor Gordon Smith.

Chief Commercial Officer Arik De told Skift the new routes will be announced in late November. Regarding what locations they’ll serve, De said nine routes would fly to brand new destinations for the airline. De also hinted that the 10 new routes are unlikely to be Etihad’s last, adding the airline is currently accepting pitches from airports interested in joining the Etihad network.

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Sep 24, 2024

00:03:29

Episode Notes

Concerns have grown in recent weeks about how a potential recession could impact travel. But while the travel industry isn’t recession-proof, it could be recession-resistant, reports Senior Research Analyst Pranavi Agarwal.

There are signs of weakness. The Skift Travel 200 Stock Index is up only 3% since the start of the year, and travel executives have noted of a slowdown in demand on recent earnings calls.

But Agarwal writes travel today could be a little more insulated than it has been in the past. Spending on travel is still discretionary, but it is more important to consumers than ever before. She cites travel’s emergence as a more fundamental need coming out of the pandemic as one reason the industry is recession-resistant.

Next, the U.S. hotel industry is bracing for widespread work stoppages as 40,000 hotel workers have contracts that have expired or will expire by year’s end, writes Senior Hospitality Editor Sean O’Neill.

More than 1,500 San Francisco hotel workers went on strike on Sunday, demanding improved pay and working conditions from Hilton, Marriott and Hyatt. Gwen Mills, president of labor union Unite Here, said the lapse in contracts has set the stage for more strikes across the hotel sector if issues remain unresolved.

Finally, the Federal Aviation Administration has hit its air-traffic controller hiring goal for the fiscal 2024. But the agency is still dealing with a shortage that may last for years, writes Airlines Reporter Meghna Maharishi.

The FAA had set a goal of hiring 1,800 air-traffic controllers, and the agency has beat that target. However, the FAA is still short roughly 3,000 air traffic controllers despite a hiring surge last year. In addition, United Airlines CEO Scott Kirby said he doesn’t expect the shortage to be resolved anytime soon.

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Sep 20, 2024

00:03:12

Episode Notes

Expedia Group CEO Ariane Gorin said at the Skift Global Forum on Thursday that some of its brands took a hit during its recently completed tech migration, writes Travel Technology Reporter Justin Dawes.

But the new CEO said Expedia, which was the least disrupted of its core brands, has done well, with growth in room nights of 20% in the second quarter.

Now Gorin is focused on getting more customers for Vrbo. The tech migration could help as Vrbo and Expedia Group’s brands can share inventory more easily. The company has also been adding comparison shopping features and rebuilding its group trip planning feature, among other changes.

Next, JetBlue CEO Joanna Geraghty acknowledged at the Skift Global Forum that she has faced numerous challenges nine months into her tenure, writes Airlines Reporter Meghna Maharishi.

Geraghty said she doesn’t see any mergers in JetBlue’s future after the federal government blocked its acquisition of Spirit Airlines. JetBlue is expected to ground several of its aircraft this year due to issues with Pratt & Whitney geared turbofan engines, which Geraghty said has been frustrating for JetBlue. That number could increase in the next two years.

JetBlue announced on Thursday it would open its first-ever lounges at its New York and Boston hubs as part of its plan to attract more premium travelers. Geraghty maintained that JetBlue would remain a low-cost airline — just one with a premier segment.

Finally, MGM Resorts is building its own “Dubai Sphere,” which it argues will be as compelling as the Las Vegas Sphere, writes Middle East Reporter Josh Corder.

CEO Bill Hornbuckle said the company’s $2 billion project, which has been in flux since 2017, will include 300 seats with a mini showroom. While Dubai’s iteration wouldn’t be as big as the one in Las Vegas, Hornbuckle added the Emirati version would have all the typical features of a sphere.

Original plans for the Dubai Sphere said it would be a part of an entertainment tower located in the center of a complex with three MGM Resorts brands.

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Sep 19, 2024

00:03:04

Episode Notes

Airbnb aims to focus on a lot more than short-term rentals. The company has plans to consistently launch new lines of business going forward, including those that may not be geared toward travel, writes Travel Technology Reporter Justin Dawes.

CEO Brian Chesky said at the Skift Global Forum on Wednesday he anticipates launching two or three ventures annually that could eventually generate a billion dollars a year in revenue. He acknowledged not all of those ventures will be successful, but added now is the right time for the company to grow beyond the core business.

Chesky also said that stays between 30 and 90 days could represent a huge area of growth for Airbnb, noting that online travel agencies wouldn’t likely provide travelers that opportunity.

Next, Las Vegas officials believe the city needs to host more big sporting events to help maintain tourism growth, writes Global Tourism Reporter Dawit Habtemariam.

Steve Hill, CEO of the Las Vegas Convention and Visitors Authority, said at the Skift Global Forum the city aims to have a marquee event in the first or second quarter of each year in addition to the annual Formula 1 race. Las Vegas hosted the Super Bowl this February, which generated $1 billion in incremental economic impact.

Sandra Douglass Morgan, president of the NFL’s Las Vegas Raiders, said the city wouldn’t be the same if it stopped hosting large sporting events. Las Vegas is scheduled to host Wrestlemania and the College Football Playoff National Championship next year.

Finally, Dubai is synonymous with luxury tourism. But the city is looking to rely less on its famous landmarks and celebrity campaigns in favor of what it considers a more authentic tourism experience, writes Middle East Reporter Josh Corder.

Dubai Tourism CEO Issam Kazim said the city needed landmark projects and luxury hotels to attract tourists in the beginning. But he said Dubai Tourism is working to showcase the city’s residents and hidden gems, citing its arts and culture.

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Sep 18, 2024

00:03:32

Episode Notes

Skift Global Forum kicked off in New York City on Tuesday with big news in the U.S. travel industry. U.S. Deputy Secretary of State Richard Verma said U.S. travelers will have the option of renewing their passports online starting on Wednesday, writes Airlines Reporter Meghna Maharishi.

Verma told Skift CEO Rafat Ali that the State Department believes half of passport renewals will be done online in the near future. However, Verma acknowledged that the online option wouldn’t necessarily be faster than the in-person process – but said that it would be a better customer experience. The State Department recently tested an online renewal process, which attracted 200,000 participants.

Next, Booking Holdings’ short-term rental business is growing fast as it tries to compete with Airbnb, reports Travel Technology Reporter Justin Dawes.

CEO Glenn Fogel told Executive Editor Dennis Schaal during Skift Global Forum that Booking Holdings is now selling two-thirds of the room nights for short-term rentals as Airbnb. Fogel added his company has grown its short-term rental business faster than Airbnb in 12 of the past 13 quarters.

Booking Holdings has close to 8 million short-term rental listings worldwide, but only a small number of them are in the U.S. But Fogel said its lack of U.S. listings represent an opportunity for significant growth.

Finally, Tripadvisor has informed its vacation rental guests and hosts that it will discontinue direct bookings on its platform, writes Executive Editor Dennis Schaal.

Schaal reports that reservations with check-in dates on or after November 1 will be canceled, and guests will be entitled to a full refund. However, those cancellations don’t represent the end of vacation rentals for Tripadvisor. A Tripadvisor spokesperson told Skift the company will turn to third-party providers to accept vacation rental bookings, like it does with hotels.

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Sep 17, 2024

00:03:54

Episode Notes

Thayer Ventures and Derive Ventures are teaming up to create Thayer Investment Partners, an investment platform the two VC firms believe will boost innovation in travel technology, writes Senior Hospitality Editor Sean O’Neill.

The new platform aims to offer a full-service venture capital approach, with plans to invest in business-to-business and consumer startups. Thayer Investment Partners will consider startups in most destinations, with the exception of China, where it lacks expertise.

O’Neill notes the quasi-merger comes as the travel industry grapples with emerging opportunities in AI and the adoption of cloud-native technologies.

Next, major U.S. airlines are optimistic they’ll see strong demand for Europe continue into next summer, but they’re facing headwinds in China. Patrick Quayle, United Airlines’ senior vice president of global network planning and alliances, discussed the carrier’s operations in China with Airlines Reporter Meghna Maharishi.

Quayle said restrictions on Western carriers flying over Russian airspace have created an unequal playing field for U.S. and European airlines. He noted that United can’t fly from Washington, D.C. or from New York to China because it would have to fly over Russia.

Quayle added that while United has resumed service from Los Angeles to Shanghai, its scheduled flights to China are still below pre-pandemic levels.

Finally, Columnist Colin Nagy argues that luxury hotels have, for too long, tolerated rude behavior from guests that ruins others’ experiences. He writes in his latest column that hotels need to crack down on guests’ bad behavior.

Nagy cites the example of being disturbed last year in Tokyo by guests loudly discussing a TV show and showing each other videos on their phones. He writes that everyone’s self-awareness dropped during the pandemic, adding that public spaces have turned into private living rooms.

Nagy calls on hotels to enforce standards that align with their ambiance, location and overall message. He notes that he was inspired by Hôtel du Cap, where its rules are prominently displayed on cards in guestrooms and dress codes are strictly enforced. Nagy says hotels and guests can work together to create standards for each property.

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Sep 13, 2024

00:03:22

Episode Notes

Google Wallet will soon allow users to store a digital version of a U.S. passport, one of the app’s newest travel features, writes Travel Technology Reporter Justin Dawes.

Google said on Thursday that the digital passport will work at select TSA checkpoints. The U.S. passport is the first one Google is adding to Wallet, an app the tech giant began rolling out in July 2022. Google also started enabling users to save select U.S. state IDs to Wallet last year.

Dawes notes rival Apple has yet to enable users to store digital versions of their passports.

Next, hotel workers in New York City are protesting a bill that would require hotels in the city to meet stricter regulations, writes Senior Hospitality Editor Sean O’Neill.

Intro 991, the so-called “Safe Hotels Act,” would mandate hotels get a new “hotel license” to operate. Local labor unions support the bill because it would bar hotels from using subcontractors for core functions such as housekeeping, front desk and security. Roughly 700 hotels in New York City would be affected by the bill.

Supporters of the Safe Hotels Act have argued the bill will improve safety for guests and workers as well as ensure better working conditions. But critics of the measure have said it could increase operational costs, potentially driving up room rates.

Finally, Iceland’s Blue Lagoon has seen a rebound in guest bookings after repeated closures due to nearby volcanic activity, writes Global Tourism Reporter Dawit Habtemariam.

Occupancy for September and October at the popular attraction is around 70%. That figure is in line with last year’s numbers, according to Siggi Thorsteinsson, an executive at Blue Lagoon. The geothermal spa had several closures between November 2023 and August 2024 due to earthquakes caused by volcanoes.

Although the Blue Lagoon hasn’t been damaged by eruptions or earthquakes, Habtemariam notes heavy news coverage of volcanic activity has given many potential visitors the impression the spa and Iceland in general may not be safe. The country only saw a 1% increase in foreign tourists coming by air between January and July from last year.

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Sep 12, 2024

00:03:09

Episode Notes

A growing number of women are making waves in leadership positions throughout the travel industry, and Skift is featuring 25 of them in our inaugural list, Generation Next: The Women Shaping Travel’s Future. We’re showcasing disruptors and innovators poised to take the industry to new places.

We’re highlighting executives such as Standard International CEO Amber Asher, who has helped take the brand global, and Amelia DuLuca, who is playing a leading role in Delta Air Lines’ sustainability efforts. Our list includes leaders in all sectors of the travel industry around the world, such as Saudi Arabia’s Vice Minister of Tourism Princess Haifa.

Next, Airbnb has relaunched the application process for experiences sign-ups after a roughly year-and-a half pause, writes Executive Editor Dennis Schaal.

Airbnb confirmed the relaunch after a LinkedIn user saw a prompt to host an experience. Schaal notes that experiences have been a passion project of CEO Brian Chesky for years. However, the company hasn’t established a successful product yet.

The short-term rental giant halted experiences during the pandemic, restarted them later and then paused accepting new host applications for experiences around April 2023.

Finally, a recently published report reveals Saudis are exploring their own country in bigger numbers while foreign visitors are spending large amounts of money, writes Middle East Reporter Josh Corder.

A report by the International Monetary Fund said Saudis were largely responsible for the surge in visitor numbers. Domestic tourists represented about 75% of visits in the kingdom last year. Although the Saudi government doesn’t share how it defines a domestic tourist, the country’s tourism authority told Skift it partly involves tracking mobile phone signals to see when people cross land borders.

Meanwhile, international travelers were the driving force behind the increase in tourism spending. Overseas visitors spent a little more than $37 billion last year — roughly $7 billion more than domestic travelers.

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Sep 11, 2024

00:03:34

Episode Notes

Rome is considering introducing a reservation system to clamp down on overcrowding at Trevi Fountain, one of the world’s most popular attractions, writes Global Tourism Reporter Dawit Habtemariam.

Rome’s Deputy Mayor of Tourism Alessandro Onorato wants to introduce a ticketing reservation system around the fountain to better manage the flow of visitors. Residents of the Italian capital would still be able to visit Trevi Fountain for free, but tourists would have to pay a two euro “symbolic fee.” Revenue would go toward stewards who would help protect the monument.

Next, Southwest Airlines chair Gary Kelly plans to step down from the company’s board following pressure from a major shareholder, writes Airlines Reporter Meghna Maharishi and Airlines Editor Gordon Smith.

Kelly will retire at the end of his term in 2025 following Southwest’s annual shareholder meeting. The news comes after Southwest’s board of directors met with Elliott Investment Management this week. Elliott, which has an 11% economic stake in the airline, has pushed for the resignations of Kelly and CEO Bob Jordan.

The hedge fund has also called for other big changes at the struggling airline, including implementing baggage fees.

Finally, Skift Research recently unveiled its State of Travel 2024 report, an in-depth look at the industry. Senior Research Analyst Varsha Arora examines three standout charts for a closer look.

Arora notes a significant shift Skift Research has seen is the growing focus on experiences over material goods, which has boosted the demand for experiential travel. In addition, social media platforms are becoming an increasingly powerful tool not just for inspiration but for actual travel bookings. Skift Research found that 34% of travelers are very comfortable booking directly through social media platforms.

Meanwhile, the appeal of travel loyalty programs is diminishing, especially among younger travelers. Producer/Presenter: Jose Marmolejos

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Sep 10, 2024

00:03:40

Episode Notes

Apple revealed more details on Monday about how it’s incorporating generative AI into its latest iPhones. Travel Technology Reporter Justin Dawes delves into how the new products could help travelers.

The iPhone 16 and iPhone 16 Pro have been built with a dedicated camera button that can activate a tool to ask AI about visuals. Dawes notes the new iPhone can obtain information such as hours and ratings when pointed at a restaurant. In addition, the iPhone can save details about an event appearing on a flier to its calendar.

However, Dawes reports a demo didn’t show whether the camera works for recognizing landmarks or translating text.

Next, the Greek government has announced two new measures to combat overtourism, writes Global Tourism Reporter Dawit Habtemariam.

Prime Minister Kyriakos Mitsotakis said recently that cruise passengers that step foot on the islands Santorini and Mykonos would be charged around $20 during the peak summer season. Revenue from the cruise fee would be used to mitigate the impact of the increased traffic.

In addition, Mitsotakis announced that new short-term rental leases will be banned in three of Athens’ central districts for at least a year. The prime minister added the government will expand the ban to more districts if the number of short-term rentals exceeds a certain figure.

Finally, Viator has unveiled data revealing the most popular travel experiences. Senior Hospitality Editor Sean O’Neill provides information about Viator’s findings.

The data showed a surge in interest in hands-on experiences, with bookings for photography tours, sports lessons and painting classes all registering a 50% year-over-year increase. In addition, nearly half of Viator’s top experiences involved open-air activities like kayaking and mountain biking.

Viator also revealed that bookings to cities with cooler climates — in particular, Helsinki and Stockholm — are booming as well as those to popular Asian destinations, such as Beijing and Osaka.

Producer/Presenter: Jose Marmolejos

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Sep 06, 2024

00:03:06

Episode Notes

The Department of Transportation officially launched a probe on Thursday into whether the loyalty programs of the four largest U.S. airlines are engaging in deceptive or noncompetitive practices, writes Airlines Reporter Meghna Maharishi.

Transportation Secretary Pete Buttigieg sent a letter to American, Delta, United and Southwest requesting that they provide records about their loyalty programs. The department said its probe would focus on how frequent flyer programs are impacted by extra fees and hidden pricing as well as reduced competition and choice.

The Transportation Department first announced last November it would investigate the fairness of loyalty programs.

Next, Poland-based online travel agency group eSky is buying tour operator Thomas Cook for roughly $40 million. Senior Hospitality Editor Sean O’Neill provides takeaways from the deal.

O’Neill notes eSky’s acquisition is part of its strategy to expand its package holiday business in Western Europe. ESky expects the deal to increase package sales by over $255 million next year. However, O’Neill adds eSky faces challenges in reviving a tarnished brand as Thomas Cook went bankrupt in 2019.

Finally, Hyatt wants to own fewer properties, and executives say they have reached a goal of $2 billion in gross proceeds from selling real estate, writes Senior Hospitality Editor Sean O’Neill.

CEO Mark Hoplamazian said at a conference on Thursday that Hyatt will continue to selectively buy, renovate and sell properties to increase its brand portfolio. Since 2017, Hyatt has generated $5.6 billion in gross proceeds from asset sales. The company is also looking to make deals like its recent acquisition of hotel booking site Mr & Mrs Smith, which quickly added 700 hotels to Hyatt’s loyalty program and caters to Hyatt’s high-end clientele.

Sep 05, 2024

00:03:18

Episode Notes

Skift has unveiled its Power Rankings, our list of the most influential people in the travel industry. With the help of Skift Research, our editors spent several months establishing a methodology, crunching the numbers and weighing each leader’s influence to create our list of travel’s 30 most powerful people.

Hilton CEO Chris Nassetta takes the top spot on our list. During his time as Hilton CEO, Nassetta has more than doubled Hilton’s global room. Number two is Airbnb CEO Brian Chesky, who has helped change how many people travel around the world. And just behind Chesky is United Airlines CEO Scott Kirby, the driving force behind the Chicago-based carrier being one of the U.S.’ most profitable airlines.

Next, both Marriott and Hilton recently reached milestones in terms of portfolio growth. What company is leading the hotel growth race though? Senior Hospitality Editor Sean O’Neill delves into the matter.

Hilton and Accor have seen their property counts increase by at least 6% in the past five years. Meanwhile, Hyatt registered a 25% growth spurt although O’Neill notes it was a jump from a significantly smaller base. As for room count, Hyatt was the largest gainer, recording a roughly 16% increase in the last five years.

Finally, Expedia Group CEO Ariane Gorin has defended its $25 billion B2B business, arguing it isn’t diluting the company’s consumer businesses, writes Executive Editor Dennis Schaal.

Gorin said at a recent investor conference that the B2B business is “incremental” to Expedia’s consumer businesses — including Expedia.com, Hotels.com and Vrbo. She noted that 60% of the bookings in the B2B business take place at points of sale on partner sites outside of the U.S. As for Expedia’s total business, including its consumer brands, only about 36% of revenue last year was generated outside of the U.S.

However, Skift Senior Research Analyst Pranavi Agarwal argues that Expedia is creating more competition for itself.

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Sep 04, 2024

00:03:51

Episode Notes

Thousands of hotel workers went on strikeacross several large U.S. cities between Sunday and Tuesday. Senior Hospitality Editor Sean O’Neill examines why the strikes are taking place and what they mean for the hotel industry.

More than 9,000 workers at 21 hotels in 9 cities went on strike on Tuesday. O’Neill notes that hotels are struggling to balance maximizing profits with worker demands for better pay and improved working conditions. Gwen Mills, president of union Unite Here, told Skift in June that workers want increased wages as hotel revenue per room had gone up in recent months.

Roughly 40,000 hotel workers in 22 North American markets have union contracts that could expire in the next year. Unite Here has threatened to expand strikes to 65 hotels in up to a dozen cities if its demands aren’t met.

Next, investor Elliott Investment Management now owns 10% of Southwest Airlines’ common stock shares. That enables Elliott to hold a special meeting during which it could vote to make big changes at the airline, writes Airlines Reporter Meghna Maharishi.

Regulatory filings posted on Tuesday revealed that Elliott managed to convert 10% of its economic stake in Southwest into common stock. Elliott could use a special meeting to force a vote on whether to oust Southwest CEO Bob Jordan and chair Gary Kelly. Special meetings are typically used to request shareholder votes on issues that can’t wait until the next general meeting.

Elliott said it wants a leadership change at Southwest in part because the carrier’s stock has lost 50% of its market value in the last three years.

Finally, New Zealand has announced it will nearly triple entry fees for visitors, reports Associate Editor Rashaad Jorden.

Travelers to the country will pay roughly $62 U.S. starting on October 1, up from a little more than $21. The increased entry fee is intended to help cover the costs of environmental protection around the country. Tourism Minister Matt Doocey argued the increased entry fee wouldn’t hurt travel since the new amount represents less than 3% of most visitors’ spending.

However, some tourism executives believe the entry fee hike will make it more challenging for New Zealand to attract tourists.

Producer/Presenter: Jose Marmolejos

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Aug 30, 2024

00:03:21

Episode Notes

Airports worldwide are investing large amounts in tech upgrades for a projected huge increase in passenger traffic. Travel Technology Reporter Justin Dawes profiles five U.S. airports making upgrades.

JFK Airport shared plans earlier this year for its new terminal 6, which will include digital concierge services as well as a self check-in and bag drop. The airport said its new terminal 1 would feature a state-of-the-art baggage handling system. San Francisco International Airport has started working on a $2.6 billion project to modernize terminal 3, which will include automated bag drop stations and new security checkpoints.

And Pittsburgh International Airport is building a new terminal with more streamlined ticketing stations and baggage claim systems.

Next, Qantas unveiled details about its all-new aircraft on Thursday. Airlines Editor Gordon Smith takes a look at the Airbus A321XLR, which the Australian carrier will start receiving next April.

Qantas says the aircraft — which Airbus has coined the “XLR” or “Xtra Long Range” — will open up direct domestic and short-haul international routes. It’s a direct replacement for Qantas’ existing Boeing 737s, which are due to leave the carrier’s fleet over the next decade. The XLR can fly around 1,500 nautical miles further than the outgoing 737s.

Finally, Edinburgh’s city council recently approved a proposal to levy Scotland’s first tourist tax. Local officials are worried the tax could make the city less competitive, writes Global Tourism Reporter Dawit Habtemariam.

The “Transient Visitor Levy” will charge guests staying at paid accommodations in Edinburgh 5% per room night. Capped at seven consecutive days, the tax will go into effect in 2026. Edinburgh officials will use the funds for affordable housing, infrastructure and destination management, among other areas.

Habtemariam notes some tourism businesses are concerned the new tax will make the Scottish capital more expensive for tourists. Marc Crothall, chief executive of the Scottish Tourism Alliance, described Edinburgh’s new tax as a contentious matter, citing concerns about the possible impact on future bookings.

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Aug 29, 2024

00:03:36

Episode Notes

A growing number of short-term rental hosts are turning to amenities such as pools, hot tubs and mini golf to help stand out from the competition. Reporter James Farrell examines what one executive calls an “amenities arms race.”

Farrell writes hosts and owners willing to invest in developing properties with high-end amenities are likely to see benefits. Analysis from AirDNA found that listings with pools and hot tubs posted higher revenues and occupancy rates than listings without them. Luxury listings with high-quality amenities saw more pronounced revenue benefits than budget or economy listings.

Farrell adds the push for more amenities might be driven partly by the desire of hosts to appeal to families as well as wellness or adventure travelers. David Krauss, CEO of advocacy group Rent Responsibly, said members of those groups tend to expect high-quality amenities.

Next, Saudi Arabia says it’s a destination for all types of travelers in its new tourism campaign, writes Middle East Reporter Josh Corder.

A video titled “This Land is Calling” showcases several of the kingdom’s attractions, including skyscrapers and seaside resorts. Corder notes the campaign aims to highlight the nature in the country as well as its culture and entertainment options. The video’s narrator is a solo female traveler as Saudi Arabia attempts to send a message that it’s a welcoming environment for female travelers.

The campaign launched on Wednesday in the UK, the U.S., France, Italy and Germany.

Finally, the Air France-KLM Group has officially become a shareholder in SAS Scandinavian Airlines, having formally acquired a roughly 20% stake in the company. Airlines Editor Gordon Smith lists three things to pay attention to.

SAS will join the SkyTeam group of airlines on September 1 after having long been a member of rival Star Alliance. Smith notes one of the biggest implications of the shift pertains to loyalty programs, with members of SAS and Air France-KLM’s programs soon being able to enjoy reciprocal frequent flyer benefits.

Smith adds that flyers will find buying tickets and connecting between flights operated by the airlines easier. For example, Air France-KLM passengers will have easier access to 33 destinations in Northern Europe via SAS hubs. In addition, SAS confirmed it recently completed bankruptcy proceedings in the U.S., which CEO Anko van der Weff said represents a new era for the company.

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Aug 28, 2024

00:04:00

Episode Notes

Columnist Colin Nagy believes a growing number of luxury travelers are looking for depth instead of hyper glitz. With that in mind, he provides his list of this summer’s biggest innovators in travel as well as information about more than a dozen noteworthy trends in the industry.

Nagy writes his list is inspired by brands that build and execute with integrity and vision. He praised Belmond, his choice for hospitality brand of the year, for embracing the idea of slow luxury. Nagy also commended the Mandarin Oriental for showing a deep respect to Oman’s culture in the opening of the company’s newest property in the country.

In addition, Nagy cited Sri Lanka and the Pacific island nation of Palau as destinations he’s paying close attention to.

Next, the National Park Foundation recently received a $100 million grant to help combat overtourism at the country’s national parks. Global Tourism Reporter Dawit Habtemariam lists three ways national parks are looking to manage visitor numbers.

More parks are requiring visitors to make a reservation for peak periods. Glacier and Mount Ranier National Parks have implemented vehicle reservation systems for popular entrances while Yosemite reinstated its requirement that visitors book their visits in advance during certain periods.

The National Park Service also plans to implement a uniform permit application process for tour operators. In addition, some parks — including Zion and Glacier — have raised camping fees to cover maintenance costs, while others have submitted proposals for fee increases next year.

Finally, Trip.com Group reports that China’s senior citizens are spending a large amount of money on travel. So the company is taking more steps to appeal to that growing segment of China’s population, writes Asia Editor Peden Doma Bhutia.

Trip.com Group recently launched the Old Friends Club, which is geared toward travelers older than 50. The company said Chinese senior citizens have spent more than $224 million on its platform this year. CEO Jane Sun said during its earnings call this week that seniors are showing a growing interest in customized tours.

Bhutia notes China’s population is aging rapidly, with 28% of Chinese projected to be older than 60 by 2040.

Producer/Presenter: Jose Marmolejos

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Aug 27, 2024

00:03:44

Episode Notes

Recent data suggests Americans are traveling in large numbers for Labor Day, and short-term rentals are seeing a surge in bookings for the holiday weekend, writes Global Tourism Reporter Dawit Habtemariam.

More than 2.4 million nights have been booked on short-term rental platforms for the four-day period ending on September 1. That’s a 13% jump from last year, according to data analytics firm AirDNA. Short-term rental daily room rates are up 13% from last year. However, short-term rentals at urban destinations increased by only 1%, which AirDNA attributes to New York City’s crackdown on the sector.

Domestic travel for the Labor Day weekend is projected to be up 9% from last year, according to AAA

Next, American Express Global Business Travel is increasingly using AI to handle trip requests via e-mail, which can help free up agents to take care of more critical tasks, reports Senior Hospitality Editor Sean O’Neill.

Chief Marketing and Strategy Officer Evan Konwiser said agents manually reading, routing and responding to every message creates bottlenecks and inconsistent service. Natural language processing enables Amex GBT agents to categorize incoming messages accurately, such as urgent flight changes and routine invoice requests.

Amex GBT is also benefiting as large corporate clients grapple with net-zero commitments – it is developing tools to help corporations make travel choices that cut their carbon impacts.

Finally, the Middle East is seeing a tourism surge, largely driven by an increase in Saudi Arabia, writes Middle East Reporter Josh Corder.

Saudi Arabia saw a combined 60 million international and domestic tourists in the first half of this year. Those travelers injected roughly $38.1 billion into the economy. Saudi officials didn’t disclose the split between international and domestic tourists. The kingdom also has the most hotels under construction among Middle Eastern countries.

Meanwhile, Dubai saw a 9% increase in international overnight visitors in the first six months of 2024 from last year. And Qatar saw a 28% jump from the same period.

Producer/Presenter: Jose Marmolejos

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Aug 23, 2024

00:03:22

Episode Notes

Hotels are devising plans to bypass traditional booking intermediaries to help boost direct bookings from corporations and businesses. Senior Hospitality Editor Sean O’Neill explains why the shift could disrupt how business travel is sold.

Some hotel executives believe they can attract business travelers to book directly if they provide more enticing offers that can’t be found via third parties. Several large hotels are testing a new pricing and booking process called attribute-based booking. Hotel executives have argued the new process will help corporations better understand their spending.

Attracting more direct bookings could help hotels save money. However, O’Neill notes a transition to attribute-based booking faces several hurdles, including a lack of industry-wide standards.

Next, Viking CEO Torstein Hagen said the luxury cruise line doesn’t see any sign of a slowdown in travel, writes Global Tourism Reporter Dawit Habtemariam.

Hagen said during its second-quarter earnings call on Tuesday that Viking doesn’t see any reason for concern going into 2025. He added the company recently had one of its strongest booking weeks ever. Habtemariam notes roughly 95% of Viking’s passenger cruise days for 2024 were booked as of August 11.

Viking Holdings generated $1.6 billion worth of revenue during the second quarter, a roughly 9% increase from last year.

Finally, a growing number of companies are organizing regular in-person gatherings to bring staff together. That’s driving travel managers and hotels to modify their offerings to cater to the boom in smaller meetings and events, writes Reporter Christiana Sciaudone.

Travel management firm Reed & Mackay recently doubled its meetings and events staff to address growing demand for offsite internal events. DeAnne Dale, an executive at the company, said clients are doubling or tripling their number of yearly gatherings and reorganizing how they operate.

Meanwhile, Hilton has made it easier for companies to book room blocks and meeting spaces online with customized packages. CEO Chris Nassetta said during a recent earnings call that the company is poised to get a boost from meetings and events.

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Aug 22, 2024

00:03:22

Episode Notes

The world’s largest hotel groups have made huge strides in signing up guests for their loyalty programs in recent years. But which one has the largest loyalty program? Senior Hospitality Editor Sean O’Neill provides the answer.

Marriott has the largest loyalty program membership with more than 210 million members as of June 30. Hilton, IHG and Wyndham occupy the next three spots, with each of them recording more than 100 million members. Skift reported earlier this year that Hilton has grown its loyalty program faster than Marriott, which could result in Hilton overtaking Marriott's membership count next year.

Next, Expedia’s short-term rental platform Vrbo is portraying itself as a stress-free alternative to rivals like Airbnb in its latest campaign, writes reporter James Farrell.

Vrbo’s new campaign is centered around the slogan “Relax, you host on Vrbo.” While none of Vrbo’s ads directly mention Airbnb, Farrell notes Vrbo is taking veiled shots at its biggest rival, explaining the big differences between the two platforms — like Vrbo’s tendency to attract longer-term guests and its fledgling OneKey rewards program. Airbnb is considered an outlier in the hospitality industry due to its lack of a loyalty program.

One Vrbo ad featuring a man and a boy relaxing in a fishing boat invites hosts to “sit back and attract repeat guests” at their properties.

Finally, Visit Florida has removed an LGBTQ Travel page from its website. Global Tourism Reporter Dawit Habtemariam examines the impact of its move.

The page provided information on LGBTQ-friendly beaches, destinations, businesses and museums. Habtemariam notes Visit Florida’s decision could further damage relations with LGBTQ travelers, two years after Governor Ron DeSantis signed into law a bill dubbed “Don’t Say Gay” by critics. .

Former Visit St. Pete-Clearwater CEO David Downing said the DMO used to have strong marketing efforts with the LGBTQ community. Other destination marketing organizations in Florida have kept similar pages geared toward LGBTQ travelers on their websites.

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Aug 21, 2024

00:03:41

Episode Notes

Hyatt announced plans on Tuesday to buy the five brands owned by Standard International, reports Senior Hospitality Editor Sean O’Neill.

Hyatt will pay $150 million upfront, with up to an additional $185 million over time as more properties join its portfolio. Hyatt won’t acquire any physical assets in the deal, but it is buying the management, franchise and license contracts for hotels with roughly 2,000 rooms. Hyatt and Standard International expect the deal to close this year, subject to approvals.

Next, Marriott International and Sonder Holdings announced this week they had signed a 20-year strategic licensing deal that enables members of Marriott’s loyalty program to earn points at any Sonder property. O’Neill lists 10 things to know about the growing trend of loyalty licensing tie-ups.

Although the past year has seen several new loyalty licensing deals, O’Neill notes those partnerships are far from a novel concept. IHG signed a license agreement with Las Vegas Sands in 2010. Hotels also see loyalty licensing deals as part of their plan to show an increase in room growth.

In addition, major hotel groups have viewed loyalty licensing deals as a way to enter difficult-to-access markets — such as Las Vegas. Loyalty partnerships enable hotel groups to give guests access and allow gaming resorts to take advantage of hotel groups’ cost advantages in marketing and distribution.

Finally, Despegar, Latin America’s largest online travel agency, is teaming up with pop star Shakira for upcoming marketing campaigns, reports Executive Editor Dennis Schaal.

A Despegar spokesperson said the Colombia-born singer will be featured in reels and full-length videos on the company’s YouTube channel and social media accounts. Shakira will also appear on billboards across several Latin American cities. Schaal notes Despegar’s first campaign with Shakira is still under development.

Producer/Presenter: Jose Marmolejos

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Aug 20, 2024

00:03:44

Episode Notes

Marriott International and Sonder Holdings have signed a 20-year strategic licensing deal, reports Senior Hospitality Editor Sean O’Neill.

Marriott will receive a royalty fee based on a percentage of Sonder’s gross room revenues. The deal will also increase the number of locations where Marriott Bonvoy loyalty program members can earn and redeem points. O’Neill adds Marriott will benefit from Sonder’s ability to run apartment buildings as licensed hotels, which has enabled Sonder to operate in some neighborhoods with limited hotels.

Sonder gets new marketing and distribution power through the licensing deal. It has been on shaky ground: It has faced a Nasdaq delisting, conducted several rounds of layoffs and piled up losses.

Next, Global Tourism Reporter Dawit Habtemariam writes that a crackdown on short-term rentals in Mallorca has led to a drop in bookings.

Short-term rental bookings in Mallorca’s capital Palma fell 8% in July from last year, according to data analytics firm AirDNA. Mallorcan authorities enacted new restrictions on short-term rentals earlier this year, including imposing heavy fines on apartment buildings with at least 12 short-term rental units. In addition, large-scale protests against mass tourism erupted in July, with many protestors blaming short-term rentals for making Palma unaffordable for locals.

Finally, data detailing the number of unique nonstop destinations served from each airport in the first half of this year has been released. Istanbul takes the top spot, writes Airlines Editor Gordon Smith.

Istanbul Airport served 309 destinations nonstop during the first six months of 2024, according to aviation analytics firm Cirium. Smith notes the airport’s connectivity is helped by Turkish Airlines flying to more countries than any other carrier — 130 as of June 2024. Frankfurt Airport in Germany takes the runner-up spot, serving 296 destinations nonstop.

The highest-ranking U.S. airport is Chicago-O’Hare, which is tied for fourth place with Amsterdam’s Schiphol Airport.

Producer/Presenter: Jose Marmolejos

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Aug 16, 2024

00:03:15

Episode Notes

The Skift Research team on Thursday unveiled its State of Travel 2024 report, a 400-page document with over 350 slides on industry performance and consumer and business trends in travel.

The State of Travel 2024 is strong, reports head of research Seth Borko. Travel businesses are growing with healthy margins. The report contains information on, among other topics, the state of international travel after the pandemic. It contains detailed tourism figures for each major global region. In addition, the report examines some short-term issues, such as the likelihood of moderate growth in 2024 and beyond.

Next, Booking Holdings and Expedia spent an enormous amount on marketing last year — nearly $13 billion combined. But there are key differences in how they spend, writes Senior Research Analyst Pranavi Agarwal.

As a share of expenses, Agarwal notes Expedia spent more on marketing last year than it did in 2019 while Booking spent less. Expedia also needed to spend more than Booking to drive bookings. Expedia spent nearly 6% of its gross bookings on marketing in 2023 while Booking spent 4.5%.

Skift Research’s analysis shows Booking has a higher return on ad spend from Google’s sponsored listings than Expedia in every region.

Finally, Nashville has long been known as a popular destination for country music fans. But tourism officials in Tennessee’s capital are looking to branch out and attract mega events, writes Global Tourism Reporter Dawit Habtemariam.

Deana Ivey, CEO of the Nashville Convention & Visitors Corp., said it is a key objective for the city. Nashville has its sights set on hosting the Super Bowl and Wrestle Mania, among other events. The city has already hosted the NASCAR Ally 400.

Ivey said another priority is attracting more international visitors. She acknowledged Nashville needs nonstop flights from its largest overseas markets to help boost visitor numbers.

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Aug 15, 2024

00:03:33

Episode Notes

Travel executives still believe artificial intelligence will transform the industry — even if it’s taking longer than expected. Travel Technology Reporter Justin Dawes provides recent insights from several executives on AI.

Booking Holdings CEO said the latest advances in AI could help make connected trips — travel experiences in which consumers can book all parts of a trip in one place — a reality. AI has already significantly boosted revenue for Tripadvior. CEO Matthew Goldberg said travelers using its AI-powered trip planner have generated, on average, 15 times more revenue than TripAdvisor’s platform-wide average.

Airbnb CEO Brian Chesky said the company has been working on integrating AI for nearly two years since ChatGPT launched. One learning is that it will take years to rebuild Airbnb into a fully AI-powered digital travel concierge that learns and adapts to each individual user.

Next, the U.S. Federal Trade Commission has finalized a rule that would discipline businesses for buying or selling fake reviews. Senior Hospitality Editor Sean O’Neill explains what the measure means for the travel industry.

The FTC’s new rule prohibits the creation, purchase or sale of fake reviews, including those generated by AI. The agency could enact civil penalties of up to roughly $52,000 per violation against the creators and posters of fake content. O’Neill cites travel agencies, travel booking platforms and price-comparison services as travel brands that could face penalties if they don’t police fake reviews.

Fake reviews have long been an issue in the travel industry. Tripadvisor said it caught and removed more than 1 million reviews in 2022.

Finally, activist investor Elliott Investment Management has published a list of 10 candidates it would like to see serve on Southwest Airlines’ board, writes Airlines Gordon Smith.

Smith notes four of the 10 candidates have held CEO roles in the airline industry. Elliott said in an open letter that the nominees would offer Southwest shareholders a different approach, arguing the carrier’s current board has delivered poor returns for shareholders. There are currently 15 members on Southwest’s board of directors.

Elliott took a nearly $2 billion stake in Southwest in June, making it one of the carrier’s largest investors.

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Aug 14, 2024

00:04:07

Episode Notes

Delta Air Lines is launching free onboard Wi-Fi across its global network in the next several months. So how will Delta handle the complexities of international expansion? Airlines Editor Gordon Smith examines the matter in addition to comparing rivals’ Wi-Fi services.

Smith notes Delta already offers free Wi-Fi on around 90% of its 700 domestic mainline aircraft, however, international expansion is much more complex. It is currently undergoing what it calls a “Wi-Fi transition period.” That means the company is making significant upgrades in its global coverage, with additional satellites being placed to improve the reach of the service. Delta is launching free overseas Wi-Fi on a route-by-route basis as the carrier aims to duplicate its successful domestic rollout strategy of prioritizing certain city pairs.

Next, luxury hotels in Paris enjoyed a nice bump in occupancy during the Olympics, writes Global Tourism Reporter Dawit Habtemariam.

Close to 86% of high-end hotels in the Greater Paris metropolitan area were occupied between July 23 and August 6, according to the city’s tourism office. That’s a roughly 17 percentage point jump from last year. Growth overall was much more modest, especially if you consider the run-up to the Games.

Habtemariam writes the Olympics have been a drag on visitor numbers to Paris throughout the entire summer, with many travelers opting not to visit due to increased traffic and congestion in the city. Over the entire summer period, Paris is expected to have 9.5 million overnight visitors, which is similar to 2023 levels.

Finally, luxury hospitality brand Inspirato has a new CEO and a deal for $10 million in equity financing. The company is also laying off 15% of its workforce, writes Executive Editor Dennis Schaal.

Inspirato’s third round of layoffs since early 2023 — as well as its move to terminate underperforming leases — are part of its efforts to save $25 million annually. As for the $10 million deal that new CEO Payam Zamani is bringing, $4.6 million was expected to close on Tuesday. The rest is slated to close in September.

Producer/Presenter: Jose Marmolejos

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Aug 13, 2024

00:04:04

Episode Notes

Disney has unveiled expansion plans for its parks, cruise line and digital platforms, writes Travel Experiences Reporter Jesse Chase-Lubitz.

Disney announced it will debut four new cruise ships between 2027 and 2031, an expansion that will increase its cruise line fleet to 13 ships. Meanwhile, the Disneyland Resort in California will feature a water-based Avatar attraction and Disney’s Animal Kingdom in Florida will be home to Indiana Jones and Encanto-themed attractions.

In addition, Disney is working with Epic Games to incorporate its characters into digital environments linked to the popular online game Fortnite.

Next, India’s outbound travel market is projected to reach $55.4 billion by 2034. And the country’s clout in the global travel industry is expected to continue growing, writes Asia Editor Peden Doma Bhutia.

Several travel executives addressed India’s role in global tourism during recent earnings calls. Accor CEO Sebastien Bazin said the number of Indian outbound travelers could double in the near future, which would have a big impact on Southeast Asia and Middle East hotel markets. And Airbnb CEO Brian Chesky said Airbnb is a crucial market, with the company seeing a 30% increase in nights booked in 2023 from the previous year.

Finally, the three largest U.S.-based sellers of vacation ownership, or timeshares, have reported a pullback in consumer spending behavior, writes Senior Hospitality Editor Sean O’Neill.

Executives at Hilton Grand Vacations, Marriott Vacations Worldwide and Wyndham Destinations said they noticed an increased consumer hesitancy to buy timeshares, particularly for new buyers in the bottom-third of income. O’Neill notes the pullback follows a high level of demand. The sector saw sales volume hit $11 billion last year, marking a full recovery from pre-Covid levels.

Where will growth come from? “Global” was the most-used word by timeshare executives in recent earnings calls. Marriott Vacations Worldwide is planning a new resort in Thailand. Hilton Grand Vacations sees opportunities in boosting its sales of units to Japanese buyers. And Travel and Leisure Co. saw its international tour flow jump over 50% in the second quarter.

Producer/Presenter: Jose Marmolejos

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Aug 09, 2024

00:03:15

Episode Notes

Expedia Group — like several other major travel brands — has seen “softening” travel demand recently, but it registered growth in several key metrics during the second quarter, writes Executive Editor Dennis Schaal.

CEO Ariane Gorin said Expedia Group is facing a more challenging environment since July, leading the company to adjust its expectations for the rest of the year. But Expedia Group said room nights at flagship brand Expedia.com jumped 20% from last year. In addition, booked room nights grew 10% overall at Expedia Group, topping both Airbnb and Booking Holdings.

Next, Delta argues the software company CrowdStrike’s offer of onsite help came too late to resolve the carrier’s IT outage, writes Airlines Reporter Meghna Maharishi.

Delta lawyer David Boies said CrowdStrike didn’t provide an “automatic” solution to solve an IT outage that eventually became a meltdown for Delta. The airline canceled roughly 7,000 flights after a July 19 CrowdStrike outage. CrowdStrike said earlier this week that Delta declined its offer for onsite assistance.

However, Delta claims CrowdStrike’s offer was “unhelpful and untimely.” Boies notes the offer came four days after the IT outage and by that time, Delta had already restored most of its critical systems. In a statement, Crowdstrike said “Delta continues to push a misleading narrative” and that if offered support within hours of the incident.

Finally, Tripadvisor’s controlling shareholder is looking to do a deal with travel and tourism investment firm Certares, writes Executive Editor Dennis Schaal.

Liberty Tripadvisor Holdings CEO Greg Maffei said the company is in “active discussions” with Certares about possible transactions. Schaal notes those “active discussions” would revolve around the $325 million preferred stock investment Liberty Tripadvisor must repay Certares by March 2025. Certares became a strategic investor in Liberty Tripadvisor in March 2020.

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Aug 08, 2024

00:02:59

Episode Notes

Hilton has raised its forecast for a profit this year. However, the company believes the post-Covid travel surge is cooling off — especially in the U.S., reports Senior Hospitality Editor Sean O’Neill.

CEO Christopher Nassetta said during Hilton’s second-quarter earnings call that domestic travel demand is “definitely softening.” However, he emphasized demand is “not cratering in any way.” Hilton expects its full-year revenue per available room to grow between 2% and 3% as Nassetta said the company expects to see growth in all segments during the full year.

Next, Disney executives expect theme park attendance and revenue to soften in the next several months, writes Global Tourism Reporter Dawit Habtemariam.

The company said it believes its theme parks and experiences division’s operating income will decline by mid-single digits compared to last year. Disney CEO Bob Iger said the lower income consumer is “feeling a little bit of stress” and that higher-income consumers are looking to travel overseas more. Habtemariam notes several travel executives have expressed concerns about a slowdown in U.S. domestic spending on travel.

Finally, one year after one of the deadliest wildfires in Hawaii’s history, Maui faces a steep climb to make a full tourism recovery, writes Global Tourism Reporter Dawit Habtemariam.

On August 8, 2023, a wildfire devastated the town of Lahaina, killed nearly 100 people and destroyed thousands of homes. The western portion of Maui, which was battered by the wildfire, didn’t fully reopen for tourism until November.

Maui welcomed 1.1 million visitors in the first half of 2024, a 24% drop from last year.

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Aug 07, 2024

00:03:45

Episode Notes

Airbnb’s second-quarter earnings revealed the company’s growth slowed down in several key areas, writes Executive Editor Dennis Schaal.

The company forecasts that guests are making bookings with shorter lead times, and it is seeing “some signs of slowing demand from U.S. guests.” Airbnb said that in the third quarter, it expects a “sequential moderation” in year-over-year nights and experiences booked compared with the 9% growth in the second quarter.

But Schaal notes Airbnb can point to many positives during the second quarter, including an increase in active listings from 7 million last year to 8 million.

Next, InterContinental Hotels Group said it’s not seeing signs of weakening demand outside of China, reports Senior Hospitality Editor Sean O’Neill.

IHG CEO Elie Maalouf said the company hasn’t been impacted by a possible recession yet. IHG added the post-pandemic tourism surge has moderated and normalized to pre-Covid levels. The company reported a 3% rise in its revenue per available room — a key industry metric — during the first half of this year.

While IHG saw its revenue per available room fall by 2.6% in China, O’Neill notes that drop didn’t dramatically impact its overall performance.

Finally, travel stocks were the best performers on a bad day overall for the broader U.S. stock market this Monday. However, travel has been the worst performing group of stocks over the past year, making it one of the sectors most vulnerable to a recession, writes Head of Research Seth Borko.

Borko notes concerns about a recession are clear in the performance of the Skift Travel 200, our own index of travel stocks. Cruise lines have been the best performing travel sector in 2024, followed by accommodations. Even though these businesses outperformed their travel peers, there is still no major travel subsector in the green so far.

Producer/Presenter: Jose Marmolejos

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Aug 06, 2024

00:04:10

Episode Notes

July’s weaker-than-expected job growth sparked a selloff in global financial markets and raised concerns about a recession. Editor-in-Chief Sarah Kopit explains the impact on the travel industry.

In the airline sector, Delta and United have gotten a boost from the rise in premium long-haul demand fueled by travelers more willing to spend freely. As of the second quarter, that support was still there. But if there is a recession, it could benefit low-cost carriers since they do well when budgets are tight.

Kopit reports early signals from hotel earnings suggest signs of a second-half slowdown, adding the picture will be clearer when IHG, Hyatt and Hilton, among other companies, report this week. However, cruise executives said they haven’t seen any slowdown in bookings and guest spending. “Overall, the short answer is no cracks, no deterioration,” said the chief financial officer of Norwegian Cruise Line.

Next, software company CrowdStrike said it didn’t cause the Delta Air Lines meltdown that resulted in thousands of flight cancellations and delays, said Airlines Reporter Meghna Maharishi.

Delta CEO Ed Bastian recently told CNBC the airline would “have no choice” but to sue CrowdStrike. Bastian said he expects Delta to take a $500 million hit from the disruptions that stem from a loss in revenue and the amount it owes in compensation to passengers. Meanwhile, CrowdStrike lawyer Michael Carlinsky argued that Delta didn’t accept the company’s offer of onsite help and asked why Delta’s competitors recovered much more quickly.

Finally, travelers have increasingly sought assistance from travel agents coming out of the pandemic. However, Booking Holdings CEO Glenn Fogel believes AI will eventually lead to a decline in traditional travel agents, writes Executive Editor Dennis Schaal.

Fogel, speaking in an interview on the Decoder podcast, said the position of traditional travel agents will continue to be reduced “as we create the virtual travel agents and as we use all the skills we have in AI.” To compete, Fogel also said it will be important for Booking to offer a higher level of service for its best customers.

However, Zane Kerby, CEO of the American Society of Travel Advisors, pushed back on Fogel’s prediction. Kerby said the customer service travel advisors provide can’t be replicated by AI, comparing online travel agencies to vending machines – a low cost, low service option.

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Aug 02, 2024

00:03:15

Episode Notes

Spirit Airlines had a rough second quarter, posting a significantly higher loss than last year. CEO Ted Christie is promising big changes to the company’s operations, writes Airlines Editor Gordon Smith.

Spirit said it registered a roughly $193 million net loss during the second quarter — up from a $2.3 million loss last year. Airline Weekly Senior Analyst Jay Shabat said a surplus of domestic seats and an increase in operating costs have hurt Spirit’s bottom line.

Spirit is making changes to hit its goal of $100 million in annual savings. The company has temporarily frozen pilot and flight attendant recruitment in addition to furloughing about 240 pilots. Spirit is also deferring all incoming orders with Airbus for deliveries that were due to arrive between the second quarter of 2025 and the end of 2026.

Next, the Biden administration is proposing a rule that would prohibit airlines from charging junk fees to seat families together on flights, writes Airlines Reporter Meghna Maharishi.

Airlines would be barred from charging fees to assign seats to children 13 years of age or younger next to their parents or accompanying adults. The Department of Transportation said the proposed rule could save a family of four as much as $200 if seat selection fees cost $25 each.

Airlines would also have to give families the option of a refund if adjacent seats aren’t available at the time of booking.

Finally, Saudi Arabia has revealed its plans for hotels, stadiums and airports as part of its bid for the 2034 FIFA World Cup, writes Middle East Reporter Josh Corder.

The kingdom’s 245-page bid book calls for ten of thousands of additional hotel rooms and 11 new stadiums, among other investments. Saudi officials said that all five proposed host cities will have modern airports connecting more than 250 international destinations. However, the bid book does not mention alcohol, which is prohibited in Saudi Arabia.

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Aug 01, 2024

00:03:05

Episode Notes

Marriott executives are optimistic they’ll see growth throughout the year despite emerging headwinds, writes Senior Hospitality Editor Sean O’Neill.

CEO Anthony Capuano said the company saw strong travel demand during the second quarter. Marriott said it expects its revenue per available room — a key hotel industry metric — to grow between 3% and 4% this year. But that’s down slightly from a previous forecast of up to 5%. And O’Neill notes Marriott faces several challenges, such as China’s struggling economy and the U.S. presidential election’s likely impact on travel patterns in November.

Next, a U.S. Senate committee has advanced a bill that would create a national standard for hotel pricing in the U.S., writes Senior Hospitality Editor Sean O’Neill.

The Hotel Fees Transparency Act would require hotels, short-term rentals and online travel agencies to display the total price of a stay, including all mandatory fees, upfront. The bill now awaits a full Senate vote, which would bring it one step closer to becoming law.

The American Hotels & Lodging Association has come out in support of the bill, which O’Neill notes is a reversal of its long-time stance opposing legislation around so-called junk fees.

Finally, Norwegian Cruise Line executives haven’t seen a reduction in guest spending, writes Global Tourism Reporter Dawit Habtemariam.

Spending on Norwegian Cruise ships remained strong in large part due to onboard amenities such as specialty restaurants while pre-cruise bookings for amenities were up 15%. Chief Financial Officer Mark Kempa said the company benefits from having more time to sell products to guests than hotels do, for example.

In addition, guests tend to book cruise trips much further in advance, making it easier for Norwegian Cruise to market onboard activities.

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Jul 31, 2024

00:03:59

Episode Notes

A U.S. appeals court has struck down the Department of Transportation’s rulemandating airlines disclose all fees upfront, pending a full review, writes Airlines Reporter Meghna Maharishi.

A three-judge panel said the rule likely exceeds the department’s authority and would significantly harm airlines. The case will be heard during the next available oral argument panel. The Department of Transportation released a final rule in April requiring airlines disclose “junk fees” associated with purchasing airline tickets, including those for baggage and changes to reservations.

Trade group Airlines for America — along with several prominent airlines — filed a lawsuit against the department in May, arguing the junk fee rule was a regulatory overreach that would cause confusion for customers. The DOT said it will continue defending the rule.

Next, Spirit Airlines is targeting premium-focused passengers as part of its effort to return to profitability, writes Airlines Editor Gordon Smith.

Spirit revealed four fare classes on Tuesday that CEO Ted Christie said represented a “new era” for the company. ‘Go Big’ — Spirit’s new top-tier option — includes perks such as priority check-in and boarding as well as complimentary onboard Wi-Fi. The changes at Spirit come shortly after Southwest Airlines announced moves to target premium travelers.

Spirit has had a rough start to 2024. A federal judge blocked its proposed merger with JetBlue, and business models at U.S. low-cost airlines have come under pressure due to overcapacity and rising costs.

We end today with a look at Venice’s efforts to manage visitor numbers. The city is banning group tours of more than 25 people starting August 1, writes Global Tourism Reporter Dawit Habtemariam.

Tour guides will also be banned from using loudspeakers on the streets. In addition, group tours will not be allowed to park their vehicles on bridges. Habtemariam notes those restrictions aim to deter overcrowding, reduce noise pollution and make it easier for pedestrians to get around the city. Deputy Mayor Simone Venturini said the city banned loudspeakers because it’s not “a theme park.”

Venice authorities also have plans to introduce new restrictions on short-term rentals in September.

Producer/Presenter: Jose Marmolejos

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Jul 30, 2024

00:03:56

Episode Notes

Meta AI recently released the newest version of its generative AI model, which it says outperforms that of OpenAI in nearly every metric. Travel Technology Reporter Justin Dawes tested how it works for trip planning.

Dawes notes the Meta AI’s chatbot gave a list of suggested activities in the Vancouver area focused around hiking and cultural experiences — but not in the form of a traditional activity. The suggestions were grouped according to the type of activity, along with a suggestion for which day to complete each of them.

Dawes added the chatbot provided useful suggestions for Vancouver-area restaurants. However, he reports two of the recommended restaurants are permanently closed. In addition, the chatbot didn’t provide links to any of the restaurant websites.

Next, several prominent airlines are using the Paris Olympics to build brand recognition. Airlines Reporter Gordon Smith takes a look at carriers that have entered into Olympic-related partnerships.

Delta Air Lines recently signed an eight-year partnership with the U.S. Olympic and Paralympic Committee, which covers the 2028 games in Los Angeles. Delta is managing travel for all athletes as part of the deal. In addition, Air Canada and Australia’s flag carrier Qantas have unveiled special designs on their aircraft to mark sponsorship deals of their country’s Olympic teams.

Smith notes even low-cost carriers are using the Paris Olympics to market themselves. Budapest-based Wizz Air painted one of its planes gold to symbolize its deal as Team Hungary’s official airline.

Finally, regulators in the United Arab Emirates published its gaming regulations over the weekend. Middle East Reporter Josh Corder explains why the country’s casino industry may be more local than expected.

To receive a gaming license, Corder notes operators must have a “qualifying domestic entity” in the country or have a relationship with one. That entity must have a substantial financial and operational history in the United Arab Emirates. Corder cites Wynn and MGM are two companies with local partners.

Analysts at real estate firm CBRE said Emirati casinos could generate as much as $8.5 billion in revenue, assuming Wynn is one of the companies to open casinos across the United Arab Emirates.

Producer/Presenter: Jose Marmolejos

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Jul 26, 2024

00:03:15

Episode Notes

The Henley Passport Index has just released its rankings for the most powerful passports of 2024, and Singapore took the top spot, writes Asia Editor Peden Doma Bhutia.

A Singaporean passport provides visa-free access to 195 countries. Japan and South Korea occupy the second and third spots in the index while the U.S. is in eighth place. The Henley Passport Index measures the strength of passports based on the number of destinations their holders can enter without a visa.

Japan had occupied the top position in last year’s Henley Passport Index.

Next, Southwest Airlines saw its profits drop significantly during the second quarter as it announced it’s making major changes to boost its bottom line, writes Meghna Maharishi.

Although Southwest posted record revenue, its net income dropped roughly 46%. As a part of its strategy to increase profits, Southwest announced on Thursday it would roll out premium seating and do away with its open boarding process.

Maharishi notes those are significant changes considering Southwest has long been known for all-economy cabins and open seating. Elliott Investment Management, a hedge fund that has built a big stake in Southwest, called for the carrier to change its business model.

Finally, Barcelona is changing its tourism slogan as part of its strategy to attract tourists interested in the city’s culture and history, writes Global Tourism Reporter Dawit Habtemariam.

Barcelona’s tourism board is replacing its 15-year-old ‘Visit Barcelona’ with ‘This is Barcelona.’ Mateu Hernández, general director of Turisme de Barcelona, said the change represented a shift from the city’s efforts to promote mass tourism. The new campaign launches on August 22, the first day of the America’s Cup sailing in the city.

Barcelona’s new strategy comes in the wake of recent large-scale protests against mass tourism. Roughly 3,000 people took to the streets earlier this month to call for a ban on short-term rentals and an end to tourism promotion, among other demands.

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Jul 25, 2024

00:03:16

Episode Notes

Google recently announced it won’t get rid of the third-party cookies in its Chrome browser that enable companies to track consumers across other websites. Executive Editor Dennis Schaal examines what Google’s decision means for travel marketers.

Skift Head of Research Seth Borko said Google’s move will help smaller travel advertisers. Borko noted larger companies were already devising ways to better use their own first-party data to track consumers if cookie capabilities disappeared.

Meanwhile, Brian Harniman — an executive at digital agency From — blasted Google’s explanation for the decision, arguing it acknowledged the tech giant is beholden to its large advertisers. But Amber Carpenter, an executive at vacation rental property manager Vtrips, said Google’s move wouldn’t have much of an impact on travel brands.

Next, travel brands are increasingly showcasing the ways they use AI. But three hotel tech executives argue that AI isn’t living up to the hype, writes Travel Technology Reporter Justin Dawes.

Cloudbeds CEO Adam Harris said hotel tech companies are heavily marketing AI tools that aren’t as impressive as they claim. Meanwhile, Mews founder Richard Valtr said he’s seen very little innovation regarding AI.

And Stayntouch CEO Jacob Messina said AI will help workers with repetitive tasks, and that will free them up to truly innovate.

Finally, dozens of airlines offer premium economy seats. However, Turkish Airlines isn’t one of them, writes Airlines Editor Gordon Smith.

Turkish Airlines chairman Ahmet Bolat explained why the company doesn’t have an interest for premium economy, which it scrapped in 2016. Bolat said Turkish Airlines doesn’t need premium economy because he believes its prices for business travelers are already affordable. The carrier shared details of an all-new suite, branded as ‘Crystal Business Class,’ offering direct aisle access for all passengers, a sliding door for improved privacy, and a 76-inch lie-flat bed.

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Jul 24, 2024

00:03:53

Episode Notes

Delta Air Lines is facing mounting pressure from travelers and the U.S. government as disruptions caused by a recent IT outage continue. The Department of Transportation is launching an investigation into the carrier, writes Airlines Reporter Meghna Maharishi.

Delta has canceled more than 5,000 flights after the outage last Friday caused systems relying on Microsoft Windows to crash. Delta CEO Ed Bastian said on Sunday that the airline would provide Delta SkyMiles and travel vouchers as a “gesture of apology.” However, some customers said they haven’t received any vouchers and report long wait times to reach customer service where some have gotten conflicting information.

In addition, the Department of Transportation said the Office of Aviation Consumer Protection would conduct the investigation due to the ongoing flight disruptions and reports of customer service issues.

Next, Venice implemented a roughly $5 entry fee for day trippers earlier this year as part of its strategy to combat mass tourism. Global Tourism Reporter Dawit Habtemariam provides three takeaways from Venice’s experiment.

Habtemariam notes the number of day trippers to Venice during the 29 days the entry fee was in effect decreased compared to 2023 levels. Venice collected more than $2.5 million in fees, which local officials intend to use to improve the city’s infrastructure. In addition, a city spokesperson said Venice is considering raising the entry fee next year and expanding the number of days it’s in effect.

Finally, as business travel spending worldwide is expected to boom this year, American Express data has revealed the five U.S. markets seeing the fastest growth based on commercial customer hotel transactions, reports Senior Hospitality Editor Sean O’Neill.

As business travel spending in North America has already reached pre-Covid levels, O’Neill reports college towns Princeton, New Jersey and Durham, North Carolina occupy the top two spots in Amex’s rankings. Amex compared business travel spending occurring between April 2023 and March 2024 with the same period a year earlier.

Producer/Presenter: Jose Marmolejos

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Jul 23, 2024

00:03:31

Episode Notes

Mallorca recently saw another large demonstration against mass tourism, writes Global Tourism Reporter Dawit Habtemariam.

More than 20,000 protestors marched the streets of Palma de Mallorca on Sunday as Spain continues to emerge as one of the hottest destinations in Europe. Demonstrators called for more affordable housing, fair wages, better conservation of natural spaces, and respect for local culture.

The protests have not reduced the popularity of the destinations this summer. International flights bookings for Mallorca are up 6% for July and August. For Barcelona, they’re up 18%.

Next, business travel spending worldwide is expected to hit an all-time high by the end of 2024, reports Senior Hospitality Editor Sean O’Neill.

The Global Business Travel Association said that global business travel spending is projected to reach $1.48 trillion by year-end. That would top pre-Covid levels for the first time. The GBTA found that 68% of business travel managers report spending more in 2024 than last year.

The association projects global business travel spending will surpass $2 trillion in 2028.

Delta Air Lines canceled roughly 20% of its schedule on Monday as it grapples with the aftermath of the recent major IT outage, writes Airlines Reporter Meghna Maharishi.

CEO Ed Bastian said on Sunday that Delta’s crew scheduling system was unable to process the large number of changes caused by the IT outage. Delta is also experiencing difficulties locating its crewmembers, which is helping cause the ongoing disruptions. Meanwhile, rivals American Airlines and United Airlines have restored their operations since the outage.

Producer/Presenter: Jose Marmolejos

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Jul 19, 2024

00:02:47

Episode Notes

Hyatt is close to a deal to buy Standard International, operator of the upscale Standard Hotels, reports Senior Hospitality Editor Sean O’Neill.

Negotiations between Hyatt and Standard International “are in advanced stages,” according to Bloomberg News. A source at Hyatt said the talks were ongoing and hadn’t been finalized, noting that Hyatt has walked away from deals at the last minute when there are issues.

Next, United Airlines Chief Commercial Officer Andrew Nocella has blasted its low-cost rivals, arguing they’ve “largely run their course,” writes Airlines Reporter Meghna Maharishi.

Nocella said during United’s second-quarter earnings call that the growth line of low-cost carriers is highly unprofitable. He added he doesn’t see any new opportunities available in the sector. Maharishi notes a surplus of domestic seats — much of which has been spurred by ultra-low-cost carriers — have dragged down United’s third-quarter outlook.

Finally, Skift Meetings Executive Editor Andrea Doyle and Global Tourism Reporter Dawit Habtemariam examine how destinations estimate the number of visitors they attract.

It's an important number: Politicians look at visitor counts when determining how much money to allocate to tourism promotion. But comparing data from different cities is difficult. A tourism executive from Las Vegas said there’s no one single method for estimating visitor numbers. One tourism board consultant said they’ve had to modify their definition of a visitor to satisfy a client.

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Jul 18, 2024

00:03:02

Episode Notes

Virgin Atlantic is pulling out of China after serving the country for 25 years. Virgin becomes the latest Western carrier to retreat from China, writes Airlines Editor Gordon Smith.

Virgin Atlantic cited “significant challenges and complexities” as the reason for its decision. The carrier’s final round-trip service to China will be London-Shanghai flights on October 25. Smith notes the closure of Russian airspace has made Virgin Atlantic’s journeys even longer and helped increase the company’s operating expenses.

Virgin Atlantic’s decision comes weeks after Qantas said it was pulling out of mainland China later this month.

Next, business travel spending by U.S. companies may finally top pre-Covid levels by the end of this year, writes Reporter Christiana Sciaudone.

A newly released report by Deloitte found that U.S. companies’ business travel spending is expected to grow between 8% and 12% this year. A Deloitte executive said that figure is projected to increase in 2025 as well due an increase in trips and higher airfares and hotel rates.

In addition, the Global Business Travel Association predicted earlier this year that most travel buyers expected their company’s business travel spending and volume to increase this year compared to 2023.

Finally, Apollo Global Management’s pending acquisition of The Travel Corporation could be a sign of more private equity deals to come in the tour operator and travel agency sectors, writes Executive Editor Dennis Schaal.

A source familiar with The Travel Corporation said multiple private equity firms had also expressed interest in the company.

The source added that travel agencies geared toward luxury consumers are attractive targets coming out of the pandemic. The Travel Corporation is a family owned business and one factor driving the sale was that there was no heir apparent, the source said.

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