Skift Daily Briefing: Recent Episodes
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Episode Notes The rise of artificial intelligence has been a major topic of discussion in the travel industry over the past year. So as the theme of this month’s Skift Global Forum is Connection in the Age of AI, what do major travel executives think about booming technology? Travel Technology Reporter Justin Dawes provides some of their opinions about it. Dawes cites Airbnb’s Brian Chesky and Uber’s Dara Khosrowshahi as two CEOs vocal about the impact of AI on their companies. Chesky said AI would be the driving force between a vastly different Airbnb. Meanwhile, Khosrowshahi said AI could improve user personalization by tracking preferences, such as preferred types of cars. Dawes adds that executives around travel have spoken about how advancements in AI could change travel search and booking. Priceline and Booking.com have already released Google-powered tools on their respective apps. Next, the United Arab Emirates has established a gaming authority to regulate its nascent gambling industry, writes Middle East Reporter Josh Corder. Corder notes the General Commercial Gaming Regulatory Authority will set guidelines for future casinos as well as a potential “Arabian Strip” gambling zone. The country’s media has reported the agency would look to help unlock gaming’s economic potential. The United Arab Emirates could earn roughly $6.6 billion in revenue yearly from gaming, according to Bloomberg Intelligence. Finally, tour operators are increasingly turning to African adventures to attract young travelers, writes Travel Experiences Reporter Selene Brophy. Brophy cites Contiki as one company that has significantly boosted its Africa offerings. Contiki, which organizes trips geared largely towards 18-35 year olds, has seen bookings for its Africa tours jump 57% from 2019 levels. Kyle Junkuhn, Contiki’s Operations Lead for Africa, said its itinerary design has been a major factor in its growth. Its guests can bungee jump and zip wire, among other activities, at Zimbabwe’s Victoria Falls.
Episode Notes Hyatt has seen signs that more workers in big cities are returning to their offices. That could result in the company eventually seeing more business travelers, reports Senior Hospitality Editor Sean O’Neill. CEO Mark Hoplamazian said at a recent conference that some of its New York hotels are seeing increased levels of local traffic, a sign of more people back in their offices. Hoplamazian added the increased traffic doesn’t necessarily mean pre-Covid levels of business travel. But he said it’s an indication of more activity in offices that will eventually boost the sector’s recovery. Hoplamazian also expressed confidence that business travel would rebound fully. Next, budget carriers Allegiant Air and Frontier Airlines are poised to profit significantlyif U.S. authorities approve JetBlue Airways’ proposed merger with Spirit Airlines, reports Edward Russell, editor of Skift publication Airline Weekly. JetBlue said on Monday that Allegiant would receive Spirit’s assets at Boston Logan and Newark Airports under divestiture agreements reached by JetBlue. In addition, Frontier would gain Spirit’s assets at New York’s LaGuardia Airport. Russell notes both Allegiant and Frontier could expand their operations at the above-mentioned airports. However, the agreements between JetBlue and Allegiant and Frontier are subject to the JetBlue-Spirit merger being approved by the U.S. government. The U.S. Justice Department has sued to block the deal on the basis of concerns about competition. Finally, business travel has made significant progress in its recovery, but will spending in the sector fully rebound? Associate Editor Rashaad Jorden turns to Ask Skift, our artificial intelligence chatbot, for answers. Jordan reports that the state of business travel’s recovery varies across the world. Corporate travel volumes were reported as of August to be at least 30% below 2019 levels globally. While a majority of India-based businesses expect business travel to increase this year, executives at several U.S. and European airlines have said in recent months the sector’s rebound has plateaued. But the Global Business Travel Association projected last month that corporate travel spending would surpass pre-Covid levels faster than expected. The group anticipates spending will hit $1.52 trillion in 2024, two years of a previous prediction.
Episode Notes Airbnb hosts in New York City are rapidly approaching a September 5 deadline to register with the Mayor’s Office of Special Enforcement. So the company could see a large reduction in its New York City listings, reports Executive Editor Dennis Schaal. Airbnb had 23,000 active listings in the city as of July and Schaal writes many would be unable to accept stays under new enforcement. Airbnb has said it generated $85 million of revenue in New York City last year. Schaal adds due to regulatory pressures and other factors, Airbnb is a shadow of itself in New York compared to pre-pandemic years. The company had 36,000 active listings in New York City in July 2019, according to AirDNA. Next, the U.S. overseas travel boom is showing no signs of slowing down. Americans are traveling abroad in large numbers for Labor Day weekend, reports Associate Editor Rashaad Jorden. International travel bookings have risen 44% this Labor Day weekend from last year, according to travel organization AAA. The group also said international hotel bookings have increased 82% from last year’s holiday. AAA Spokesperson Aixa Diaz said pent-up travel was a major factor in the high number of international bookings. Meanwhile, travel news site The Vacationer found 57% of American adults plan to travel over the Labor Day weekend. That’s a 4 percentage point jump from last year. Finally, Indian travelers looking for a U.S. visitor visa will now find the process substantially less time consuming. Visa applicants can book interviews at U.S. consulates in India with no wait time, writes Middle East and Asia Reporter Amrita Ghosh in the Skift India Newsletter. The U.S. Consulate General in Mumbai said that applicants can schedule appointments for visa interviews within the standard time frame. It added that more than 900,000 nonimmigrant visa applications are being processed at the moment. U.S. Ambassador to India Eric Garcetti had said the goal for 2023 was to process at least one million visas.
Episode Notes Hyatt has joined MGM Resorts and Marriott in changing how they disclose resort fees on their websites and apps. However, those modifications still won’t quiet the growing uproar over so-called junk fees, reports Senior Hospitality Editor Sean O’Neill. In July, Hyatt began displaying nightly rates plus mandatory resort fees upfront on a traveler’s first search of its site and app. Hyatt’s move to more clearly disclose resort fees follows in the footsteps of Marriott and MGM Resorts. However, O’Neill notes the three companies still face unresolved grievances from some consumer advocates and government representatives. He adds one of the lingering issues is how hotel rates and fees are displayed on online travel agencies’ websites and apps. The three hotel groups have also quoted prices without including resort fees in ad and marketing campaigns. Next, amusement park corporation Six Flags has become the latest travel brand to hop on the artificial intelligence bandwagon. Six Flags is planning to release generative AI tools in partnership with Google Cloud, writes Travel Technology Reporter Justin Dawes. Dawes reports Six Flags is looking to release AI chatbots on updated versions of its app and park websites later this year. Six Flags said the virtual assistants would provide personalized recommendations and answers for visitors planning their trips. Google CEO Thomas Kurian said generative AI would enable Six Flags to redefine guest experiences. Finally, India’s hotel occupancy and room rates have finally recovered to pre-pandemic levels, writes Middle East and Asia Reporter Amrita Ghosh in the Skift India Newsletter. Ghosh reports that soaring demand for next month’s G20 Summit is a major reason for India’s strong hotel performance. One travel executive said the roughly 200 G20 meetings already held throughout India have placed some lesser-known destinations on the global tourism map. Meanwhile, FCM Consulting’s latest Global Trends Report revealed that India had Asia’s highest hotel occupancy rates in the first half of this year.
Skift Short-Term Rental Report: Skift’s latest newsletter focuses on the business of short-term rentals. Don’t miss out on essential industry news. Get a Trial Subscription Episode Notes New York City is behind in reviewing hundreds of short-term rental applications prior to a September 5 deadline requiring hosts to register with the Mayor’s Office of Special Enforcement, reports Executive Editor Dennis Schaal. The enforcement office told Skift it’s only reviewed roughly 25% of the more than 3,200 host applications submitted to date. The office added that more than half of the applications came in after August 8, when a judge dismissed an Airbnb lawsuit challenging New York City’s efforts to enforce its host registration rules. Hosts face fines up to for any violations. Google shut down its Book on Google feature for flights for overseas travelers last year. But those in the U.S. will be able to book some flights on Google to take advantage of its flight price guarantee, reports Executive Editor Dennis Schaal. Schaal writes Google announced it would end the service in the U.S. on or after March 31 of this year. That leaves the end date open-ended, though Google still intends to terminate Book on Google. The tech giant is trying to find another way to implement its flight price guarantee in the U.S. Schaal notes the issue is important because of the fear Google could become more of a booking-oriented online travel agency like Booking.com or Expedia. Finally, this year’s Men’s Cricket World Cup is driving up travel demand in the host country India, reports Research Analyst Saniya Zanpure. Zanpure writes travel companies are looking to cash in the cricket frenzy, a sport deeply embedded in Indian culture. Accommodation searches in the 10 host cities for match days have risen, on average, by 237% over the past year. In addition, airfares to some prominent host cities have increased between 40% and 60% during the same period. The Men’s Cricket World Cup runs from October 5 to November 19.
Episode Notes A new report said JetBlue Airways is planning to raise airfares on routes flown by Spirit Airlines by as much as 40% if the two carriers’ proposed merger is approved, reports Edward Russell, editor of Skift publication Airline Weekly. JetBlue would increase fares between 24% and 40%, according to a report by legal news service Law360. The report cited documents released as part of a lawsuit brought by travelers looking to block the JetBlue-Spirit deal. The travelers suing JetBlue argued that the proposed merger would reduce competition for consumers. Russell notes their lawsuit is separate from the U.S. Department of Justice’s suit to stop the merger. JetBlue said in a statement that, without context, the information gave a “completely inaccurate picture of the facts” and that the proposed merger would result in low fares and better service. Russell adds that while airfares rose substantially last year, the average domestic airfare has dropped below pre-Covid levels. Next, travelers flying Qantas to the U.S. have historically arrived in Los Angeles to connect to other cities across the country. But the Australian carrier is looking to serve U.S. and Asian cities with a new plane order, reports Russell. Russell writes the airline has ordered 24 new long-range planes for both the U.S. and Asia that will see it add more nonstop flights to both regions. That means Qantas’ future will see more flying to Chicago and Seattle than Los Angeles. Qantas CEO Alan Joyce said on Thursday the new aircraft will enable the carrier to have more direct flights into the U.S. Finally, American Airlines has filed a federal lawsuit against hidden city flight platform Skiplagged, reports Executive Editor Dennis Schaal. Schaal writes that American alleges that Skiplagged sells flights without authorization and misleads flyers with deceptive offers, among other practices. Skiplagged is famous for offering hidden city flights, where passengers seeking a bargain ditch the rest of their journey at a layover. Schaal notes that airlines prohibit hidden city ticketing because of operational hassles and lost revenue. American is the latest major travel brand to sue Skiplagged, following Orbitz, United Airlines and Southwest Airlines. Skiplagged founder Aktarer Zaman told Skift he is fighting to protect consumer rights to find favorable airfares.
Episode Notes Maui’s tourism industry faces an uncertain future as the island recovers from the massive devastation caused by recent wildfires. Maui’s hotels have suffered enormously in the aftermath of the destruction, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam reports that nearly half of all hotel rooms in Maui were unfilled last week. The island’s hotel occupancy rates were 49% for the week ending August 19, according to commercial real estate information provider CoStar. Although the Hawaii Tourism Authority is encouraging travelers to visit areas of Maui away from the destruction, Habtemariam writes the state’s tourism leaders are facing a messaging challenge regarding the island. Three major U.S. airlines have cut their number of scheduled flights to Maui over the past week. The wildfires have claimed more than 110 lives in addition to causing billions of dollars of damage. Next, U.S. hotel companies have viewed China’s economic boom as a vehicle to boost hotel development. However, China’s economic turmoil could derail their plans, reports Senior Hospitality Editor Sean O’Neill. Hilton, Hyatt and Marriott are companies that have unveiled major expansion plans for China. Although O’Neill lists several reasons why hotel executives find China enticing, including the potential to expand quickly, he notes the country’s current economic woes are complicating growth plans. Hotel development in China recorded an 8% year-over-year drop in the second quarter. In addition, Bloomberg Economics Chief Economist Tom Orlik said China’s biggest challenge is that’s working-age population is decreasing. The country population’s fell last year, with O’Neill writing that an aging population will create multi-year problems economically. Finally, Wynn Resorts expects to obtain a gaming license soon for the United Arab Emirates’ first casino, reports Asia Editor Peden Doma Bhutia. Wynn Resorts CEO Craig Billings said recently the company has everything it needs to operate gaming at the Wynn Al Marjan property. Billings added that construction on the casino has already started. Skift reported last November that Wynn had confirmed the property would house a casino. However, Bhutia notes that questions about the casino have lingered to the country’s strict Islamic laws that typically don’t permit activities like gambling. The Wynn Marjan is scheduled to open in 2027
Episode Notes Europe is experiencing a major air traffic controller shortage. It’s not only delaying flights, it’s hurting the continent’s travel recovery, reports Edward Russell, editor of Skift publication Airline Weekly. European airspace manager Eurocontrol found flight delays have increased 6% from last year, attributing those disruptions in part to air traffic controller staffing shortages. Russell writes the staffing shortage appears the worst in France and Germany, the two countries at the heart of Europe’s air traffic control system. One industry executive said European air traffic controllers, often run by individual countries, are at least 700 controllers short of target staffing levels. Meanwhile, Lufthansa Group CEO Carsten Spohr said in July that air traffic control and other industry constraints would limit growth through at least 2024. Next, global investment in the travel industry has dropped from pre-pandemic levels. How much? Roughly $100 billion, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam reports that $856 billion was invested in the industry last year. While that’s an 11% jump from 2021, it’s substantially below 2019’s figure. Habtemariam notes worldwide investment in travel and tourism isn’t expected to return to pre-Covid levels until 2025. The three countries with the highest levels of investment in travel and tourism last year were the U.S., China and Saudi Arabia. Finally, the U.S. lifestyle and boutique hotel pipeline is projected to grow substantially in the near future, but those forecasts may be overly optimistic, reports Senior Hospitality Editor Sean O’Neill. Analysis by hotel consulting firm The Highland Group said developers and hotel groups are planning to open nearly 60,000 branded lifestyle, soft-branded and boutique hotels by the end of 2027. That figure would represent a 29% annual increase. However, Kim Bardoul, partner at The Highland Group, said those projections are likely too optimistic. Still, O’Neill writes that developers are interested in lifestyle and boutique hotels because of their recent positive financial performance, on par with the traditional, large hotel properties. And there’s growing demand from guests.
Episode Notes Hospitality brand Selina has seen a dramatic swing in its stock price as it attempts to escape from its penny stock status, reports Senior Hospitality Editor Sean O’Neill. The company saw its shares fall 41% last Friday although they rebounded 9% on Monday. O’Neill writes the stock price drop happened after Selina said that 8.6 million shares could be hitting the market soon. Two other hospitality brands, Sonder and Vacasa, have also seen stock prices go to penny stock status recently. Next, American Airlines pilots approved a new contract on Monday worth nearly $10 billion, becoming the second major U.S. carrier to finalize a pilot deal this year, reports Edward Russell, editor of Skift publication Airline Weekly. Russell writes pilots at American will immediately see a more than 21% pay raise under the four-year contract. It also includes roughly $1.2 billion in retroactive pay and bonuses. However, Russell notes that the deal was hardly a slam dunk for the Allied Pilots Association, which represents American’s pilots. Only about 73% of crew members voted for the deal. Pilots at Delta Air Lines had ratified a four-year contract of their own in March, which included an up to 34% pay increase. Finally, Omni Hotels knows it has the odds stacked against it in the fight to attract travelers. But it’s confident it can compete against global hotel giants, reports Senior Hospitality Editor O’Neill in this week’s Early Check-In column. Hotel giants have argued that smaller players such as Omni, which only has 51 hotels and resorts, can’t compete with their ability to use huge loyalty programs to lure guests. But Omni CEO Kurt Alexander touted the benefits of his company in an interview with Skift. Alexander said Omni is less expensive for hotel owners than bigger brands from a franchise and royalty fee standpoint. Alexander added he would like to partner more with institutional owners. He said that Omni is flexible on brand standards, which may make it more appealing than large hotel groups that often have an extensive list of requirements.
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Episode Notes Paid ChatGPT Plus users are now able to plan virtually every aspect of a trip in one place using the travel plugins available on the platform. So what worked well and what didn’t on those travel plugins? Travel Technology Reporter Justin Dawes provides answers in his Travel Tech Briefing. Dawes reports ChatGPT Plus wasn’t created to be a travel platform, but with some improvements, he notes it could be a very useful tool for planning trips. Paid ChatGPT Plus users have access to beta versions of third-party plugins such as Expedia, Kayak and Skyscanner. Dawes writes that users can, for example, ask about the availability of flights and hotels, and the chatbot will pull information from the plugins when it can. He also lists issues he experienced using the travel plugins, such as errors when trying to prompt for a detailed itinerary and booking options. Those errors force a user to start the process over again. Next, China recently announced it would ease restrictions on overseas group tours. But traveler numbers won’t likely hit 2019 levels for some time, reports Asia Editor Peden Doma Bhutia. Although Bhutia writes would-be travelers immediately started searching for trips in large numbers, numerous challenges remain for those looking to travel overseas in groups. International flights from China are at roughly 50% of pre-pandemic levels. In addition, Chinese travelers often face a complicated visa application process as well as surging prices for many popular tourist destinations. Bhutia adds another hurdle making group overseas travel difficult is high levels of youth unemployment. The unemployment rate among urban workers aged 16 to 24 was a little more than 21%. Finally, as airlines post record transatlantic profits, American Airlines will launch service to three European destinations next summer, reports Edward Russell, editor of Skift publication Airline Weekly. Russell writes American will start offering daily flights from its Philadelphia hub to Copenhagen, Naples and Nice next year. The company had hoped to add new European destinations to its schedule this summer but chose to wait until next year due to uncertainty about new Boeing 787 deliveries. American will also add new flights between Dallas-Forth Worth and Barcelona next June.
Episode Notes IHG has launched its 19th brand, called Garner, an IHG hotel, as part of its strategy to target mid-market travelers, reports Senior Hospitality Editor Sean O’Neill. O’Neill writes Garner aims to be more affordable for travelers than IHG’s other brands targeting this segment. The company expects to open more than 1,000 hotels under the Garner brand over the next two decades. O’Neill adds that until the launch of Garner, IHG didn’t have a brand that fit this price range. An added attraction: Garner will allow guests to bring pets into their rooms. Next, Booking Holdings is proposing concessions for an issue threatening European Commission regulatory approval of its deal to acquire flight tech company eTraveli Group. Booking’s plan is to show hotels from competitors when travelers book a flight, reports Executive Editor Dennis Schaal. Schaal writes European regulators are balking at approving the roughly $2 billion deal because they think it would strengthen Booking’s leading hotel business on the continent. As for a potential solution, Booking could use sister brand Kayak to offer choices from rival online travel agencies or the hotels themselves. Schaal adds such a scenario could also bolster the company’s already market-shaping hotels business. The European Commission is expected to make a decision on the deal by August 30. Finally, the proposed merger of JetBlue Airways and Spirit Airlines has been one of travel’s most watched developments over the past year. Associate Editor Rashaad Jorden provides a timeline of the planned deal poised to shake up the U.S. airline industry. Jorden lists the major twists and turns in the proposed JetBlue-Spirit deal by the month they occurred, which includes Spirit’s initial plans to merge with Frontier Airlines and JetBlue’s repeated attempts to acquire Spirit. The timeline also details the U.S. Department of Justice’s quest to block the JetBlue-Spirit merger, citing concerns the deal would reduce competition and raise airfares. The department’s lawsuit to thwart the proposed merger will go on trial this October.
Episode Notes Airbnb and Booking.com have delivered strong cash flow over the past year, giving them the flexibility for acquisitions and other transactions, reports Executive Editor Dennis Schaal in his Online Travel Briefing. Schaal looked at the companies’ free cash flow conversion, which measures how efficiently companies convert revenue into free cash flow after interest payments. A key factor in their favor: They are all asset light businesses, meaning they don’t own the hotels or short-term rentals that they offer. The companies’ high levels of free cash flow provides the needed resources for a range of investment, including acquisitions and product development. Next, global luxury travel network Virtuoso has seen a sales boom driven by surging interest in private experiences, writes Travel Experiences Reporter Selene Brophy. Brophy notes that Virtuoso guests are spending between $10,000 to $50,000 per trip on average. Virtuoso’s platform has a network of 20,000 luxury travel advisors and they are seeing growing demand for exclusive experiences, wellness travel and yacht bookings. We end today looking at Saudi Arabia’s big investment in its tourism industry. Associate Editor Rashaad Jorden examines why the kingdom is investing so heavily in the sector using Ask Skift, our artificial intelligence chatbot. Ask Skift provided four reasons why Saudi Arabia is planning to spend more than $1 trillion beefing up its tourism industry over the next decade. That investment is a key part of its strategy to wean away from its heavy reliance on oil revenue. Jordan writes that Saudi tourism officials are heavily targeting Chinese travelers, with the goal of attracting roughly 4 million visitors from the country annually by 2030. Saudi Arabia is also investing heavily in sports tourism, a sector that is expected to be worth more than $3 billion in the country by 2024. Saudi authorities view sports as a key part of its strategy to boost the kingdom’s profile. The country has hosted several major sporting events in recent years, including its first-ever Formula One Grand Prix race in 2021.
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Episode Notes The Texas state government has filed a lawsuit against Booking Holdings, alleging the company violates state law by not including certain fees when it initially displays room prices, reports Executive Editor Dennis Schaal. Schaal writes the Texas lawsuit comes as the Biden administration and Congress are increasingly taking aim at so-called junk fees, charges that aren’t disclosed to consumers upfront. The lawsuit includes Booking Holdings and its sub-brands, Booking.com and Kayak, and refers to so-called resort fees and other extras. Texas Attorney General Ken Paxton said while announcing the lawsuit that the state had recently sued Hilton and Hyatt for allegedly deceptively displaying their fees. Next, experiences and major tourist attractions have become significantly more expensive in the past four years, writes Travel Experiences Reporter Selene Brophy. Analysis from marketplaces GetYourGuide and TicketLens revealed prices from tours and admissions tickets globally rose on average 18% between June 2019 and June 2023. Charmaine Chua, GetYourGuide’s head of optimization, attributed the jump to factors such as tourism’s rebound and a shift in consumer spending toward experiences. TicketLens found that Turkey recorded the largest price increase for experiences globally, with a 35% jump from 2019. Meanwhile, Miami registered the biggest price hike at 27% for local tourism attractions in the U.S. Finally, major hotels and online travel agencies have benefitted from an enormous surge in travel demand in Asia and Europe in the first half of this year, reports Senior Research Analyst Pranavi Agarwal. Agarwal writes the strength in global demand has now shifted to Europe and Asia. She writes companies initially hurt by their exposure to Asia are now reaping the rewards as its rebound takes hold. Agarwal cites Accor as one example. The France-based hotel company, which derives about a third of its revenue from Asia and nearly half from Europe, saw its revenue jump 40% from last year.
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Episode Notes Tourism boards across the U.S. are increasingly supporting measures to get workers back into offices to help boost struggling downtowns, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam notes the U.S. Travel Association strongly backs President Joe Biden’s push to have federal employees spend more time in the office. An executive at the organization said getting federal workers back into the office was critical to the success of U.S. cities. Habtemariam reports cities are losing billions due to workers spending more time working remotely and fewer days in the office. Tourism bureaus are also taking steps to fill their offices. San Francisco Travel and LA Tourism, among others, have each required employees to head to the office several days a week. LA Tourism CEO Adam Burke said getting people back in office would help increase foot traffic in the city’s downtown. Meanwhile, NYC Tourism+Conventions plans to increase the number of days employees go to the office weekly this fall. Next, Trivago recently brought back commercials featuring ad pitchman, the Trivago Guy. However, it’s uncertain if he’ll be part of the company’s marketing efforts going forward, reports Executive Editor Dennis Schaal. Schaal writes that the Trivago Guy — played by Actor Tim Williams — was credited with helping make the company somewhat of a household name in North America. Trivago CEO Johannes Thomas said the company is trying to boost growth and taking a more experimental approach to its TV ads to help boost traveler engagement. Finally, the U.S. House of Representatives recently passed its version of a bill reauthorizing funding for the Federal Aviation Administration. Reporter Kristin Majcher explains five key issues the bill addresses. Majcher writes, beyond funding the agency for five more years, the reauthorization is important because it includes provisions about consumer protections and airline safety. She adds that some of those provisions have proven controversial. In particular, the Regional Airline Association has supported a proposal to increase the maximum age for pilots from 65 to 67 while the Air Lines Pilots Association has come out against it. Majcher reports the Senate needs to finalize its own version of the bill and both houses need to work out any differences by September 30. If the House and Senate miss the deadline, Congress would have to approve an extension.
Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode Notes U.S. tourism businesses were heavily dependent on Chinese visitors pre-pandemic and now are looking elsewhere to replace billions in tourist spending, writes Global Tourism Reporter Dawit Habtemariam. Brand USA CEO Chris Thompson said Chinese visitors spent $35 billion in 2019, making them the largest tourism market in the U.S. in terms of spend. So where are U.S. travel brands turning? NYC Tourism + Conventions CEO Fred Dixon cited Brazil as one market the city is focusing on. Meanwhile, LA Tourism CEO Adam Burke said his city is ramping up its marketing efforts in countries such as Australia, New Zealand and the United Kingdom. Next, tour operator group TUI has posted its first post-pandemic net profit. However, the company’s overall performance for the year is expected to be impacted by extreme weather throughout Europe, writes Travel Experiences Reporter Selene Brophy. TUI Group CEO Sebastian Ebel said on Wednesday that surging travel demand in its third quarter pushed its booking performance to a 6% gain. He added the company had seen a drop in bookings after recent wildfires in Greece’s Rhodes Island. Brophy reports an estimated 8,000 TUI customers were impacted by weather and wildlife disruptions. Although Ebel outlined several ways extreme weather could impact the travel industry and the company, including destinations with more moderate climates likely seeing a boom in popularity. TUI Group reported revenue of $5.8 billion during the third quarter, a 19% jump from last year. Finally, luxury travel subscription brand Inspirato has had its share of struggles recently, including mounting losses and another round of layoffs. But the company does see a path back to profitability, writes Short-Term Rentals Reporter Srividya Kalyanaraman. Inspirato CEO Brent Handler announced a partnership on Wednesday with investment firm Capital One Ventures, in which Capital One would provide Inspirato a $25 million convertible note. In addition, Inspirato has reduced supply, removing 60 residences from its portfolio due to non-renewal and/or early terminations of leases. Handler expressed confidence the company’s efforts to cut costs will be successful and said it can be profitable even without growth.
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Episode Notes Choice Hotels views its recent acquisition of Radisson Americas as an enormous success and it’s strongly considering making more deals, reports Senior Hospitality Editor Sean O’Neill. Choice CEO Patrick Pacious touted the benefits of the acquisition during Choice’s second quarter earnings call on Tuesday. As for future acquisition activity, Pacious said Choice is always looking for deals that could boost the return on investment for hotel owners and grow brands. He added that Choice sees opportunities to expand its portfolio outside of the United States. Choice reported that its revenue per available room — an important hotel industry metric — increased 20% from the same period in 2019. The company also set a quarterly record for revenue. Next, the Chinese government is limiting overseas group travel for its citizens to certain destinations. Those restrictions are stunting the global travel industry’s recovery, writes Travel Experiences Reporter Selene Brophy. Chinese travelers can only take group tours to less than half of the countries that were available to them pre-Covid. Brophy reports the U.S. is not on that list as Chinese travel agencies aren’t permitted to sell any group tour products to the U.S. Sienna Parulis-Cook, an executive at China-based marketing company Dragon Trail International, said Chinese outbound tourism to the U.S. is also limited in part because of visa delays. Chinese travel agents surveyed said visa delays were the biggest obstacle in selling outbound tourism in 2024. Chinese outbound travel hit 65% of 2019 level during the country’s most recent national holiday period. Finally, Turkish Airlines and Thai Airways have unveiled a plan to form a joint venturecovering flights between Europe and the Asia-Pacific region, reports Jay Shabat, senior analyst at Skift publication Airline Weekly. The two carriers already have a codeshare arrangement, which enables them to market each other’s flights. But Shabat notes joint ventures go deeper, often involving revenue sharing, collaborating pricing and cargo cooperation among other practices. Turkish and Thai haven’t yet detailed their exact plans, other than announcing that Thai will start serving Istanbul in December.
Episode Notes The U.S. expects visitor numbers from some major markets such as Canada and India to exceed pre-Covid levels this year. However, Brand USA CEO Chris Thompson says that progress won’t be enough to make up for the large-scale absence of Chinese visitors, writes Global Tourism Reporter Dawit Habtemariam. Thompson said in an interview with Skift that the U.S. won’t experience a full tourism recovery unless it attracts more Chinese tourists. China represented the U.S.’ largest tourism market prior to the pandemic. Thompson said Beijing’s refusal to lift the ban on overseas group travel for its citizens has impacted visitor numbers to the U.S. He added that West Coast destinations such as Los Angeles have been hit hard by the absence of Chinese travelers. Thompson also touched on what Brand USA is doing with the $250 million it received in federal funds to help boost international tourism. The organization used the funding to launch “This Is Where It’s At,” its largest ever single consumer campaign. It’s running in 10 out of Brand USA’s 11 markets, with the exception of China. Next, a newly published financial report said that the Expedia Group may be showing resilience against rival Booking.com in the U.S., reports Executive Editor Dennis Schaal. An analysis from global financial services firm BTIG listed reasons why Expedia Group may have blunted Booking.com’s market share gains. Schaal writes Expedia likely saw a faster increase in room nights than Booking.com. He adds that signs suggest that Expedia outperformed Booking.com in the U.S. He notes that’s important because Booking Holdings sees the U.S. as a relatively untapped market where it has ample room to grow. BTIG estimated that 60% of the Expedia Group presence is centered in the U.S. Finally, artificial intelligence has fundamentally altered the travel industry in recent years. Associate Editor Rashaad Jorden explains how, using answers provided by Ask Skift, our artificial intelligence chatbot. Ask Skift listed four areas where AI has significantly impacted travel, including predicting travel demand and providing personalized customer service. One travel executive said AI will likely uncover signals about travel demand from unlikely sources of information. In addition, Jorden reports travel brands are using AI to customize travel itineraries, enabling them to increase customer loyalty. Amazon Web has already used AI to make personalized recommendations for travelers, including suggesting hotels that matched their interests.
Episode Notes It’s still uncertain when business travel will make a full recovery. But Hyatt is optimistic that the sector is making substantial progress in its rebound from the pandemic, reports Senior Hospitality Editor Sean O’Neill. Hyatt CEO Mark Hoplamazian said on Thursday the company is seeing sustained corporate demand for group travel, which he added is showing no signs of slowing down. Hyatt booked roughly $500 million in future group business in the second quarter, and 42% of those group business were corporate. O’Neill writes that Hyatt’s more than 1,200 hotels and resorts are popular places to hold events, noting that corporate travel managers have reason to be encouraged about Hyatt’s upbeat report. Hyatt generated a net income of $68 million during the second quarter. The company’s revenue per available room — an important industry metric — rose 15% from last year. Next, the Lufthansa Group has lifted its profit outlook for the rest of the year due to robust travel demand in Europe, reports Edward Russell, editor of Airline Weekly, a Skift travel brand. CEO Carsten Spohr said on Thursday that the company has seen travel demand remain extraordinarily strong. Russell writes the Lufthansa Group has been boosted by premium leisure travelers who have become increasingly important to major airlines. He adds that people are still willing to pony up for travel within Europe and long-haul international routes. In addition, although corporate travel has plateaued at passenger volumes roughly 60% of 2019 levels, Spohr expressed optimism about the sector’s outlook for the fall. Finally, Airbnb believes its formula to continued growth includes providing better value than hotels and expanding throughout Europe, Latin America and Asia, reports Executive Editor Dennis Schaal. CEO Brian Chesky told analysts on Thursday that he heard last year that Airbnb was becoming less affordable compared to hotels. However, the short-term rental giant saw its rates rise 1% globally in the second quarter while the hotel industry saw an up to 10% jump. The company unveiled new pricing tools for hosts several months ago, which Chesky said will help make Airbnb stays more affordable for guests. Schaal notes that Airbnb saw bookings significantly rise in both Brazil and Germany during the second quarter. Chesky said Airbnb would apply the lessons it’s learned from those two fast growing markets to its global expansion strategy, especially in Asia. However, he said Airbnb isn’t planning to re-enter Mainland China, which the company withdrew from in 2022.
Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions
Episode Notes Trivago opted not to join the advertising unit that Google launched in May to attract hotel bookings. That decision contributed to the online travel agency’s disappointing second quarter performance, reports Executive Editor Dennis Schaal. Schaal writes that Trivago’s absence in the new unit — unlike rivals such as Booking.com, Priceline and Expedia — negatively impacted its second quarter financial results. Trivago’s revenue fell 14% from the previous year. Trivago Chief Financial Officer Matthias Tillmann said on Wednesday it decided not to participate in Google’s property promotions ads because they are a part of Google hotel ads, which don’t perform well for Trivago. Next, the chief technology officer of travel technology firm Sabre stepped down last month, a departure that coincides with other major job cuts and changes in leadership, writes Travel Technology Reporter Justin Dawes. Dawes reported that David Moore left Sabre last month after seven years with the company. The change comes as Sabre continues its biggest tech transformation ever, namely its transition to Google Cloud, which is expected to be completed by the beginning of 2025. Finally, Allegiant Air successfully rode its strategy of mostly flying on specific days[Access for Skift Pro and Airline Weekly subscribers only] and to its most popular destinations to a strong second quarter, reports Edward Russell, editor of Airline Weekly, a Skift publication. The Las Vegas-based discount carrier saw revenue increase 9% in the second quarter from last year. It also reported a $133 million operating profit. Russell writes Allegiant is unique among U.S. airlines in that it typically only flies on peak days, an approach that has helped it profitably serve many U.S. smaller and medium-sized cities. Russell adds that Allegiant’s rivals are taking steps to emulate its success. Southwest, Frontier and JetBlue have all unveiled plans to reduce flying on off-peak days.
Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions
Episode Notes The solid performance of Marriott’s premium hotels drove the world’s largest hotel company to a strong second quarter. And now, Marriott is looking to add midscale hotels to its portfolio, reports Senior Hospitality Editor Sean O’Neill. O’Neill writes one reason Marriott has raised its 2023 outlook for profitability was that its hotels are mostly premium or above. He adds that travelers able to afford Marriott stays were largely sheltered from the economic concerns hitting the general population. Marriott’s revenue per available room — a key hotel industry figure — rose roughly 13% in the second quarter from last year. Marriott has also taken steps to boost its number of midscale hotels, with CEO Anthony Capuano indicating that Marriott would make a midscale push in Europe. O’Neill writes one factor driving Marriott’s interest in the sector is that midscale properties are popular with developers, investors and owners. Midscale hotels tend to be fancier than economy hotels while still being considered affordable. Next, the Biden administration has repeatedly taken aim at so-called junk fees, charges that aren’t disclosed to consumers upfront. So what should the travel companies do? Give in. That’s the message from Skift CEO and founder Rafat Ali in an open letter to the travel industry. Ali argues that companies need to acknowledge that it’s a real issue and tackle it head on and. In most cases, that will mean being more transparent. In some cases, getting rid of certain fees. Ali adds that there’s bipartisan agreement in Washington, D.C. on the cracking down on junk fees and that consumer sentiment is 100% with it. Finally, India’s newest carrier Akasa Air has added an 20th aircraft to its fleet, making it eligible to fly internationally, writes Middle East and Asia Reporter Amrita Ghosh. Akasa Air CEO and founder Vinay Dube hailed the milestone as a major sign of the potential of India’s aviation industry. Ghosh notes that Indian regulations require airlines to have at least 20 aircraft in their fleet to be eligible for international operations. Dube has said Akasa Air, which launched last year, is looking to fly to the Middle East, Southeast Asia and Eastern Africa among other regions.
Episode Notes Soccer’s World Cup is coming to North America in 2026, but it’s uncertain where the final of the tournament will be held. Three U.S. cities are jockeying to host the event’s most prestigious match, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam writes that Dallas, Los Angeles and MetLife Stadium in New York City’s New Jersey suburbs are prime contenders to host the final. FIFA, soccer’s international governing body, is expected to announce in September which city will host the match. Travel executives from each city laid out reasons why their city should be chosen. NYC Tourism+Conventions CEO Fred Dixon cited New York City’s passion for soccer as one reason it should host the World Cup final. Next, the lengthy visa processing times have inhibited U.S. destination marketers’ ability to attract tourists from crucial international markets, writes Global Tourism Reporter Habtemariam. The average wait time for a U.S. embassy interview for a first-time visitor visa applicant in countries such as India, Brazil and China exceeds 400 days on average, according to the U.S. Travel Association. LA Tourism CEO Adam Burke said those long waits are the biggest issue facing the U.S. tourism industry. NYC Tourism+Conventions CEO Dixon said the city needs to attract travelers who need visas in order to boost tourism. Habtemariam notes there are large numbers of travelers with valid visitor visas in many key tourism markets. Burke said there are roughly 5 million people in India with a valid 10-year visa, and Dixon stated there’s a good base of business coming from that segment of travelers. A 2023 Skift Megatrend examined the impact of visa processing delays on the travel industry’s recovery. Finally, as international travel continues to recover from the pandemic, Associate Editor Rashaad Jorden turns to Ask Skift, our artificial intelligence chatbot, to find out what’s the world’s largest outbound travel market. Ask Skift revealed the answer is India, which overtook China as the world’s most populous nation in April of this year. India’s travel industry has been boosted by a growing middle class increasingly eager to venture overseas. India generated Asia’s highest outbound travel volume for the first time in 2022. In addition, international leisure flight bookings from India have jumped 40% for trips between June and August, compared to last year, according to travel software company RateGain.
Episode Notes Wyndham Hotels & Resorts reported a drop in profitability during the second quarter. That’s partly because the hot demand for its budget hotels is cooling, reports Senior Hospitality Editor Sean O’Neill. Wydham saw its net income fall 18% in the second quarter from last year. O’Neill writes its portfolio skews toward affordable roadside hotels, which surged in popularity immediately after the pandemic eased. Now, Chief Financial Officer Michele Allen said things are returning to normal. The company has also seen travel to big cities and international destinations rebound significantly. Meanwhile, Wyndham said it’s not worried about increased competition in the extended stay sector. The company launched its own extended stay brand last November in the U.S. and Canada. Extended stay has since emerged as one of the hottest categories in hotels, with Marriott, Hilton and Hyatt all addring brands. Next, Google executives had cited travel as a major source of revenue growth during the previous two quarters. However, the tech giant’s parent company Alphabet didn’t call out travel as a major priority this week, reports Executive Editor Dennis Schaal. Alphabet’s Chief Business Officer Philipp Schindler said that Google’s three main priority areas are artificial intelligence, retail and YouTube. Google had extensive layoffs at Google Flights earlier this year and recently replaced the head of Google Travel. Even so, Schaal writes Google surely still makes a lot of money from travel advertisers. And it announced in June that it had added some travel features to its AI-powered search experience. Finally, Royal Caribbean has raised its earning forecast this year by a third after a strong second quarter, writes Contributor Jess Wade. In addition to the increased earnings per share, the company said during its conference call on Thursday that consumer spending onboard is continuing to significantly surpass 2019 levels. A Royal Caribbean executive also pointed to “encouraging” bookings for its China cruises, which are expected to set sail in April 2024. Royal Caribbean recorded a net income of $459 million during the second quarter, in contrast to a loss the same period last year.
Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions
Episode Notes Hilton is seeing no signs of a slowdown in travel demand. The company said the second quarter was the best booking quarter in its history, reports Senior Hospitality Editor Sean O’Neill. O’Neill reports Hilton’s second quarter revenue per available room — an important hotel industry performance metric — rose 12% from last year. CEO Christopher Nassetta expressed optimism on Wednesday that the good news would continue into next year. O’Neill notes that leisure and corporate travel were major revenue drivers for the company. Roughly 85% of Hilton’s revenue comes from corporate travelers at small-to-medium sized businesses. Nassetta also hinted Hilton is considering adding a new luxury lifestyle brand to its portfolio, adding the company could launch something in the sector next year. Next, the ongoing FIFA Women’s World Cup is sparking a U.S.-led tourism boom in Australia, writes Reporter Jess Wade. An executive at Tourism Australia cited the enormous interest in two-time defending champion U.S. team as a reason Americans are the largest group traveling to Australia for the tournament. Tourism Australia expects the projected 55,000 World Cup visitors to inject $385 million into the country’s economy. Tourism Australia Managing Director Phillipa Harrison said the tournament comes at a crucial time for an Australian tourism industry still recovering from the pandemic. Finally, travelers and travel companies have increasingly expressed a desire in recent years to make the industry more sustainable. But are they making any progress in doing so?Associate Editor Rashaad Jorden provides answers using Ask Skift, our artificial intelligence chatbot, and further research. Although the vast majority of travelers have said greener travel is important to them, Jorden reports most of them aren’t willing to shell out more money for sustainable travel options. Skift Research revealed late last year only 23% of travelers had paid more for greener travel in the previous 12 months. However, Jorden adds that the travel industry has made some progress in reducing its massive carbon footprint. The U.S. National Park Service is moving toward adopting a 100% electric vehicle fleet as well as installing charging station infrastructure within its parks. In addition, the Grand Canyon National Park received $27.5 million in federal funding to electrify its bus shuttles.
Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions
Episode Notes Hilton Worldwide launched a major international marketing campaign exactly a year ago on Tuesday that focused on its ability to provide travelers with reliable lodging experiences. So has it been a success? Senior Hospitality Editor Sean O’Neill finds out. O’Neill reports Hilton has seen an increase in sales and market share following its largest marketing push in six years. While it’s uncertain if the ad blitz led to the gain, O’Neill noted other boosts Hilton has received in the last year. Company representatives said they saw an increase in consumers searching for “Hilton” and more travelers considering the brand for leisure travel. O’Neill adds that Hilton also bet much more heavily on TikTok and its account has attracted 20,000 new followers since the launch of a 10-minute video that featured Paris Hilton. Next, accommodation provider Sonder announced this week it’s asking shareholders to approve a reverse stock split in order to stay listed on Nasdaq, reports Executive Editor Dennis Schaal. Schaal notes that Sonder was warned by Nasdaq in April that its shares could be delisted because its price had dropped below $1 per share for 30 trading days in a row. He adds that a reverse stock split wouldn’t in itself impact Sonder’s valuation, but would get its share price much higher than $1 per share. Finally, the United Arab Emirates was the second fastest-growing international arrival destination in 2022, reports Asia Editor Peden Doma Bhutia in this week’s Middle East Travel Roundup. Bhutia writes that the United Arab Emirates trailed only Austria in the list of fastest-growing destinations for international arrivals last year. Skift’s State of Travel report for 2023 revealed that the United Arab Emirates was also the most visited country in the Middle East in 2022, attracting a little more than 22 million visitors. India and Russia were the top two source markets for the United Arab Emirates last year. Bhutia adds that while international travel in most regions still trails 2019 levels, the Middle East is the only region to see a full recovery of international travel in the first quarter of 2023.
Episode Notes Travelers might be uncertain if Sonder is a short-term rental operator like Airbnb or a hotel operator. Now, the company is launching its first hotel collection, writes Executive Editor Dennis Schaal. Schaal reports that Powered by Sonder includes 23 Sonder-operated properties in 13 markets. The company said those hotels are different from other hotels and multi-unit apartments in that they’re boutique hotel-oriented. In addition, Schaal notes the Powered by Sonder properties have their own design elements and features, such as onsite food and drinking facilities. Patrick Mitchell, Sonder’s vice president of marketing and distribution, said the boutique hotel experience at those Powered by Sonder properties appeal to millennials and Gen Z travelers. Next, the lifestyle hospitality brand Ennismore has launched a loyalty program that features no need to earn points as well as no tiers to climb. It’s an attempt to distinguish itself from complex loyalty programs run by rivals, writes Travel Experiences Reporter Selene Brophy. Ennismore is calling the concept “Dis-loyalty,” and the company’s Chief Brand Officer Martina Luger said it’s meant to encourage exploration of new venues and experiences. Members can start using their benefits, which include half off all new hotel openings, as soon as they sign up for the program, which launches July 27 with a monthly subscription fee of $18 Ennismore has 15 openings planned for the next 12 months. Brophy also reports that members qualify for discounts across the 75 participating Ennismore hotels and 10 of its participating brands. Senior Hospitality Editor Sean O’Neill said the lack of a tier-based model may signal a broader upheaval in hotel loyalty programs. Finally, India is poised to become a bigger force in the global travel industry in years to come. How big in fact? The country’s outbound tourism market is expected to reach a little more than $44 billion by 2032, writes Middle East and Asia Reporter Amrita Ghosh. Ghosh notes a recent report outlined the sector’s projected growth. The report also featured recommendations for growing outbound tourism from India, including issuing tax rebates and collaborating with destinations and airlines. International leisure flight bookings from India have jumped by 40% for trips between June and August compared to the same time in 2022, according to travel software company RateGain.
Episode Notes Hotel companies will report earnings over the next several weeks. So what will industry insiders be paying close attention to? Senior Hospitality Editor Sean O’Neill explains in this week’s Early Check-In column. O’Neill writes investors will look closely to estimate when sector revenues may return to pre-pandemic levels. The American Hotel and Lodging Association doesn’t expect U.S. hotels to hit their pre-Covid sales figures until 2024. O’Neill adds that analysts are eager to find out if hotel companies are still considering expansion. One analyst said the pace of hotel supply growth is noticeably below the historical average. Next, the U.S. travel industry is continuing to make enormous progress in its rebound from the pandemic as Americans travel in huge numbers this summer. Yet, the industry still hasn’t made a complete recovery. Associate Editor Rashaad Jorden delves into the reasons why with answers provided by Ask Skift, our artificial intelligence chatbot, and further research. Jorden cites the decrease in visitors from China, a major market for the U.S. tourism industry, as one factor in the U.S.’ inability to make full recovery. Although U.S. tourism boards have unveiled plans to increase marketing efforts in China, their efforts are complicated by the inability to restore flight schedules between the two countries to pre-pandemic levels. In addition, U.S. Travel Association CEO Roger Dow said a full complete travel company depends on reopening international markets. The U.S. welcomed 51 million overseas visitors last year, about 64% of its 2019 mark. Dow’s organization projected international inbound travel to the U.S. would hit three-quarters of its pre-Covid volume this year. Finally, Icelandair rode a surge in transatlantic travel to record profits in the second quarter. However, the company might see a drop in travel demand in Europe later this year, writes Edward Russell, editor of Airline Weekly, a Skift publication. Icelandair CEO Bogi Nils Bogason said during its earnings call on Friday that economic turbulence across Europe could stunt the company’s revenue growth in the second half of 2023. Bogason had acknowledged earlier this year that inflation would impact travel demand. However, Russell notes economic uncertainty hasn’t affected the company’s forecast of a 4-6% operating margin for the year. Icelandair reported a $21 million operating profit in the second quarter, its highest quarterly profit since 2016. The company also generated roughly $414 million worth of revenue during the quarter.
Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions
Episode Notes Destinations across the U.S., Canada and Mexico are ramping up their preparations to welcome soccer’s World Cup in 2026. And they’ll need a substantial influx of money to make hosting the event a success, writes Global Tourism Reporter Dawit Habtemariam. Officials at this week’s Destinations International Annual Convention addressed the challenges of welcoming thousands of visitors for the World Cup. Each of the 11 U.S. host cities is responsible for finding ways to pay for tournament-related expenses. Monica Paul, executive director of the Dallas Sports Commission, said the U.S. federal government doesn’t assume most of the cost of major international sporting events, unlike in other countries. Visit Kansas City CEO Kathy Nelson acknowledged the difficulties of securing the funding for World Cup-related operations. Nelson said the organization has to appease governors from both Kansas and Missouri, adding that it’s the most contentious issue she’s ever experienced. Next, several vacation rental markets that experienced a major post-Covid boom are feeling the effects of oversaturation. That’s causing rental rates to plummet and driving investors to sell their properties, writes Short-Term Rental Reporter Srividya Kalyanaraman. Kalyanaraman cites Palm Springs, California as one destination where the surge of licensed vacation rental properties has helped contribute to falling rental rates. She also notes that a growing number of investors in short-term rental properties are looking to exit the sector. Christopher Ledwidge, executive vice president of wholesale mortgage seller TheLender, said supply for rentals went up, and there was a slight drop in demand. Ledwidge also acknowledged that the cost of operating rentals has increased. Finally, American Airlines has raised its earnings outlook for 2023 after reporting a strong second quarter, writes Reporter Jess Wade. The company now expects to earn between $3 and $3.75 per share, an increase from its previous forecast of between $2.50 and $3.50. American said on Thursday it generated a little more than $14 billion in revenue during the second quarter, its highest-ever quarterly revenue. The company also recorded a $1.4 billion profit that Wade notes was made possible in part by a 35% decline in average jet fuel prices.
Episode Notes
The travel industry is continuing to make substantial progress in its recovery from the pandemic, but what challenges is it still facing? Skift Research answers that question and more in its newly released State of Travel 2023 report. The report contains more than 250 data slides documenting the current state of travel and trends shaping the industry’s future. For example, Americans are increasingly looking to vacation abroad as international travel has become easier. Skift Research compiled the data appearing in the report through its own research and information from third-party sources. The first section of the report delves into the travel industry’s performance as well as the wider economic landscape while the second is devoted to trends in the industry. Next, more airlines are offering travelers free Wi-Fi in an attempt to increase sign-ups to their loyalty programs, writes Reporter Ajay Awtaney. Awtaney cites Singapore Airlines and Delta Air Lines as two carriers that offer complimentary Wi-Fi to members of its loyalty programs. A Delta spokesperson said requiring SkyMiles membership for Wi-Fi access enables it to offer travelers a personalized experience different from what other airlines provide. Awtaney adds that some airlines are looking at complimentary Wi-Fi as a reward for being a frequent flier. Emirates earlier this year started offering all of its Skywards members some form of free connectivity, including free app messaging services during their flights. Finally, Mondee has released an updated version of its travel booking platform to include a mobile app and generative artificial intelligence chatbot, writes Travel Technology Reporter Justin Dawes. Dawes reports a chatbot named Abhi can provide users planning trips information such as links for booking flights, hotels, and more. Mondee’s updated booking platform also includes a shopping cart so users can save different aspects of a trip and then purchase them all together. Dawes adds that people from a group planning a trip can see the cart and book everything simultaneously instead of having to book individually. Mondee’s vice chairman Orestes Fintiklis said the update is the culmination of three years of work and a series of acquisitions that took place during the pandemic. The update comes exactly one year after the company went public.
Episode Notes Singapore has overtaken Japan as the country with the world’s most powerful passport while the U.S. dropped two spots in recently released rankings, writes Travel Experiences Reporter Selene Brophy. Citizens of Singapore have visa-free access to 190 destinations, according to the Henley Passport Index. The Index ranks the world’s passports by the number of destinations their holders can travel to without needing a visa. The U.S. passport is now tied with Lithuania for the world’s 8th most powerful, providing visa-free access to 184 destinations. Brophy notes the U.S. has seen a decade-long decline in passport power. A U.S. passport currently provides visa-free access to 12 more destinations than it did in 2013. Meanwhile, a Singaporean passport has obtained visa-free access to 25 more destinations over the past 10 years. Next, United Airlines is moving to take advantage of the Asia-Pacific region’s booming travel demand. The Chicago-based carrier unveiled on Tuesday three new routes serving the region, writes Reporter Jess Wade. Wade reports those routes will include direct flights from San Francisco to Manila as well from Los Angeles to Hong Kong and Tokyo-Narita. United will also become the only U.S. airline to fly nonstop to Manila. A company executive said demand for transpacific travel is as strong, if not stronger, than transatlantic travel. Wade notes that the new routes, which start service in October, will result in United’s transpacific network being 50% larger than all other U.S. airlines combined. Finally, Thailand is increasingly targeting the Middle East as a major source market for tourism. Thai authorities aim to attract 400,000 visitors from the region this year, reports Asia Editor Peden Doma Bhutia in Skift’s Middle East Travel Roundup. Bhutia writes Saudi Arabia is expected to surpass the United Arab Emirates as Thailand’s largest market. Thailand anticipates welcoming 150,000 visitors from Saudi Arabia this year following the resumption of direct flights between the two countries. Saudi Arabia accounted for a little more than a quarter of the visitors from the Middle East to Thailand in the first half of 2023. A Thai official said flight schedules between Thailand and the Middle East are currently 80% of pre-Covid levels. The Thai push to increase visitor numbers from the Middle East comes as Thailand expects tourist numbers from China, a major market for the country, to fall short of projections.
Episode Notes Twitter has increasingly lost its relevance as a tourism marketing tool in recent months. And now, a growing number of destination marketing organizations are turning to its new rival Threads, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam cites Destination Toronto, Visit Orlando and Visit Utah as some of the destination marketing organizations that have signed up for the direct competitor to Twitter. The brands have been able to grow their audiences quickly on Threads in large part due to the vast reach of Threads’ parent company Meta, which also owns Facebook and Instagram. Paula Port, Destination Toronto’s vice president of marketing, said the organization added most of its 10,000 followers on Threads in a short period of time. Habtemariam notes some destination marketing organizations haven’t posted anything on Threads yet while others like Visit Orlando have posted regularly. He adds any strategies they might develop for Threads will depend on the platform’s evolution. Next, people who made plans to travel this summer likely noticed the price of hotels and flights increasing. So why has travel gotten more expensive? Associate Editor Rashaad Jorden delves into the reasons why using responses provided by Ask Skift, our artificial intelligence chatbot, and additional research. Jorden found three reasons for why going on trips has gotten pricier — booming travel demand, overall inflation and airlines’ surging operational costs. Italy’s Minister of Enterprises Adolfo Urso recently blasted Italian airlines for raising airfares in response to Italy’s travel boom. Sky-high travel demand is one of the reasons airfares to and across Europe have jumped substantially this summer. Meanwhile, Skift Director of Research Seth Borko wrote last month that most hotel owners are increasing prices to keep pace with the rising cost of items such as food, fuel and heating. In addition, the aviation industry has been hit by an ongoing pilot shortage and aircraft delivery delays. With travel demand surpassing the supply of seats, airfares have risen. However, the trend is beginning to reverse: U.S. airfares dropped 8% in June from the previous month. Finally, Marriott International announced a licensing deal with MGM Resorts on Monday. Marriott Bonvoy loyalty members will be able to earn points during stays at 17 MGM resorts throughout the U.S. from October, reports Senior Hospitality Editor Sean O’Neill. Members of both companies’ loyalty programs would be able to exchange MGM Rewards points for Marriott Bonvoy points and vice versa. Bookings at 40,000 of MGM’s Las Vegas rooms will be available through Marriott’s site and app by the end of the year. O’Neill writes Marriott’s move represents its first attempt to make inroads in the gaming resort sector. Las Vegas has long been a difficult market for Marriott to crack because of the dominance of gaming resorts.
Episode Notes Some hotel executives have expressed concerns about the security and reliability of today’s generative artificial intelligence. However, industry experts are confident that AI will make room pricing more profitable, reports Senior Hospitality Editor Sean O’Neill. Former IHG executive Jeff Edwards said revenue management would be the perfect use for the technology because it is too complex for humans to manage in real-time. Future tech could also enable dynamic pricing for individual rooms. O’Neill notes an extra-spacious room appearing frequently on social media could, in theory, command higher rates. Ryan King, an executive at hotel software services firm Shiji Americas, said revenue management software platforms could assign specific rates for certain rooms based on perceptions of those rooms. O’Neill also writes that today’s revenue management systems often struggle to handle non-room revenue, including spending in hotel restaurants and spas. We head to San Francisco next. Global Tourism Reporter Dawit Habtemariam writes the city’s struggling downtown is holding back its tourism recovery. Although some neighborhoods outside of San Francisco’s downtown have seen an increase in visitors, Habtemariam reports several tour operators aren’t enthusiastic about taking groups to the center of the city. One tour operator, G Adventures, said it now starts tours in Las Vegas instead of San Francisco and that it has reduced the time its tours spend there. Another tour operator said he avoids group trips to the city. Local officials recently launched a global marketing campaign called “Always San Francisco” in an attempt to counter the city’s negative reputation. San Francisco Travel Association Chief Marketing Officer Lynn Bruni-Perkins said the organization wants to remind the public that the majority of visitors to the city last year said they wanted to return. We finish today in India, the host of the Cricket World Cup this fall. The country is racing to have budget hotels ready for the start of the event in October, writes Middle East and Asia Reporter Amrita Ghosh. The rush to provide cricket fans more budget accommodation options comes as event organizers expect to see an enormous demand for tickets. Budget hotel operator Oyo said it will add 500 hotels in host cities to its portfolio over the next three months. An Oyo executive said the hotels will be located near tournament venues. In addition, India-based online travel company MakeMyTrip has unveiled plans to increase its inventory of homestay properties during the cricket season.
Episode Notes Delta Air Lines saw a significant revenue bump during the second quarter thanks to a major surge in international travel to Europe and Latin America, reports Edward Russell, editor of Skift publication Airline Weekly. Delta President Glen Hauenstein said the company’s international revenue recorded a 61% increase while domestic revenue was only up 8%. Hauenstein added that Europe and Latin America were Delta’s strongest regions, with Russell noting the return of international travel is a big deal for global airlines. Although some long-haul international markets have recovered from the pandemic, Russell writes Delta doesn’t anticipate a full global recovery in passenger numbers until next year. Meanwhile, Delta expects an 11-14% increase in revenue during the third quarter. Next, the Grand Canyon National Park recently got a major boost in its efforts to go greener. The park secured $27.5 million in federal funding from the National Park Service to electrify its bus shuttles, writes Global Tourism Reporter Dawit Habtemariam. The park will replace its current fleet with 30 new buses as well as install charging infrastructure to support them. Habtemariam reports that national parks have been looking to reduce their carbon footprint. Zion National Park in Utah also received federal funding in recent years to electrify its fleet. Although electric vehicle adoption has been slow in the U.S., the Biden administration has set aside billions to help states and businesses invest in charging stations. Finally, India’s government has changed its tax rules for international tour packages four times in the past five months, reports Asia Editor Peden Doma Bhutia. Bhutia writes the flip-flops have left the industry frustrated and confused, with one executive describing the frequent changes as “amateurish.” Another executive said the policy changes are an inconvenience for companies trying to expand their outbound travel business. However, Bhutia notes industry leaders view the changes as more than an inconvenience — they believe the new taxes could put their companies at a disadvantage. She adds that a special tax on Indian tour operators could encourage travelers to book with international companies.
Episode Notes Expedia Group terminated its relationship on Wednesday with online travel agency Hopper over practices that Expedia considers anti-consumer, reports Executive Editor Dennis Schaal. Expedia had supplied rival Hopper with hotel and short-term rental inventory for several years. An Expedia spokesperson said the company cut ties with Hopper because it believes Hopper’s content confuses customers, leading them to purchase services they neither need nor completely understand. Schaal notes Expedia also has a competitive motive for terminating the relationship. Hopper is considered the third largest online travel agency in North America behind Expedia and Booking. Schaal writes it’s unclear how Expedia’s decision will impact Hopper. A Hopper spokesperson said Expedia’s move to end their relationship wouldn’t affect Hopper, adding that Expedia was one participant among many in Hopper’s marketplace. Schaal notes that Expedia might be supplying close to half of Hopper’s hotels. Next, three airlines — American Airlines, Lufthansa and EasyJet — and the Federal Aviation Administration are joining Google on an advisory committee to develop a model for reporting the climate impact of flights, reports Executive Editor Schaal in his weekly Online Travel Briefing. Schaal writes the committee could help provide travelers, travel agencies and corporations with more reliable data on flight emissions. Its goals include assessing the impact of non-carbon dioxide flight emissions and comparing emissions from flights to other transportation methods like trains. James Byers, who leads Google’s travel sustainability team, said the three airlines on the committee were selected for their mix — two network carriers and one low-cost carrier — and geographic balance. Finally, a growing number of people in India are making travel plans. And a recent survey reveals many of them are looking to make their trips more affordable, reports Asia Editor Peden Doma Bhutia. Nine in 10 travelers said in a survey by flight search engine Skyscanner that the rising cost of living will influence their plans for 2023. Bhutia writes that might mean choosing cheaper destinations or non-peak travel periods. The Skyscanner report also found that many Indians are willing to increase their travel budget to see live cricket matches. The country hosts the Cricket World Cup later this year.
Episode Notes Delta Air Lines is launching two routes this fall that will serve Austin. But that expansion may come too late for Delta to overtake the market share of rivals American and Southwest in the city, reports Edward Russell, editor of Skift Airline Weekly. Delta will connect Austin, one of the U.S.’ fastest-growing cities, to Las Vegas and Orlando daily beginning on October 9. Russell notes those routes follow frequency additions on seven existing Delta routes from Austin. The Atlanta-based carrier will operate up to 39 daily departures from Austin by August, a jump from 31 a day in May. However, Russell asks if Delta’s new service to Austin is a case of too little, too late. Delta trails both Southwest and American by double-digit percentage points in terms of market share in Austin. Russell adds that Delta is a long way from matching and setting itself apart from Southwest and American’s offerings in the city. American will offer close to double the number of seats from Austin this year as it did in 2019. Next, Sojern, a business-to-business marketing platform for travel brands, is expanding into hotel tech via its newest acquisition. Travel Technology Reporter Justin Dawes explains what Sojern is looking to accomplish. Sojern announced on Tuesday it acquired VenueLytics, a company that provides guest management and communications software for independent hotels. Dawes reports the tech from VenueLytics will power the new Sojern Guest Experience Solutions business. In addition, the new technology coming on board includes an artificial intelligence chatbot that can automatically send pre-stay greetings as well as automate guest interactions. Dawes notes desk staff at hotels should be freed up to perform more complicated duties. Sojern Chief Solutions Officer Kurt Weinsheimer said the company has seen hotels reduce front desk calls by up to 70% by implementing an AI-powered concierge. Finally, Middle Eastern carriers are playing a leading role in the aviation industry’s global recovery, reports Asia Editor Peden Doma Bhutia in Skift’s Middle East Travel Roundup. Airlines in the region saw traffic in May reach 17% above 2019 levels, according to a report by the International Air Transport Association. Middle Eastern carriers also saw a 31% traffic increase in May compared to the same month last year. Bhutia adds international aviation traffic in May hit 96% of pre-pandemic levels.
Episode Notes U.S. destination marketing organizations are eager to increase their marketing activities in China later this year. So how successful will those efforts be? Global Tourism Reporter Dawit Habtemariam writes that any success depends on flights between the countries returning to pre-pandemic levels. Gloria Lan, CEO of tour operator Tour America, said a lot of destination marketing organizations are planning to travel to China to start soliciting business. Habtemariam cites Visit California as one travel brand sending representatives to China in the near future. However, weekly flights between the two countries are far below 2019 levels. Habtemariam adds some destination marketing organizations don’t plan to invest heavily in China until air connectivity improves, citing Meet Boston as one example. We turn next to a comparison between hotel giants Marriott and Hilton. Skift Research’s new report examines the fierce competition the two companies are engaged in, especially in areas such as net unit growth. Senior Research Analyst Pranavi Agarwal writes Skift Research compares Marriott and Hilton and analyzes the differences in net unit growth, segment mix and profit margins coming into the second half of 2023. While Marriott is the largest branded hotel in the U.S., Agarwal notes its pipeline isn’t growing as fast as Hilton’s. Finally, India’s aviation industry is poised for a major hiring surge, writes Middle East and Asia Reporter Amrita Ghosh in Skift’s India Newsletter. Ghosh reports that Air India recently announced it would hire more than 1,000 pilots to support its fleet expansion. That comes after its low-cost subsidiary Air India Express hired more than 280 pilots and 250 cabin crew during a recruitment drive across three major cities. In addition, India’s civil aviation ministry has created more than 1,200 new jobs — close to 800 of which are to help overcome a shortage of air traffic control officers.
Episode Notes Accor executives have been hard at work to boost the Paris-based hotel company’s digital operations, but what does that entail exactly? Senior Hospitality Editor Sean O’Neill provides answers in this week’s Early Check-In column. O’Neill delves into what he considers the most notable findings from presentations Accor recently held for investors. The company runs a “digital factory,” which brings together roughly 800 developers, product managers and others to tackle the problems of hotel guests and operators. Chief Digital Officer Alix Boulnois said the Accor has the only digital factory at scale in the hospitality industry. And O’Neill writes that Accor wants to sell more than just rooms. The company has launched All Food, a platform for booking meals at its restaurants in select markets — including France. Next, India has unveiled plans to substantially improve its cruise infrastructure. It’s part of the government’s plan to generate nearly $5 billion in revenue from the industry by 2041, writes Middle East and Asia Reporter Amrita Ghosh. Ghosh reports that Indian authorities want to build three new international cruise ports by 2024 as well as attract 4 million cruise passengers annually by 2041. India is already home to 12 major and 200 minor ports. Ghosh notes that the country faces some noticeable hurdles in its quest to boost cruise tourism, such as its current tax policy and lack of coordination among government agencies. In addition, one India-based travel executive acknowledged much of the country’s cruise infrastructure is outdated. Finally, the U.S. hotels registered a modest increase in job growth last month. However, the hotel industry still has a way to go to reach pre-Covid employment levels, reports Associate Editor Rashaad Jorden. The Bureau of Labor Statistics revealed in its latest jobs report released on Friday that hotels added roughly 5,500 jobs in June. The sector had added only 1,300 jobs the previous month. American Hotel and Lodging Association CEO Chip Rogers expressed optimism that hotels would continue to attract job seekers. But he said a lot more has to be done to increase employment in the hotel industry. Overall employment in leisure and hospitality is down a little more than 2% from February 2020 levels.
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Episode Notes Taylor Swift is heading to Australia next February for her Eras Tour — but not New Zealand. However, Air New Zealand is boosting capacity for the thousands of Swifties eager to travel to Australia for her shows, writes Reporter Jess Wade. Wade reports 10,000 Kiwis have booked flights on Air New Zealand coinciding with the concert dates. One Air New Zealand executive said the surge is one of the greatest it’s ever seen for travel between the two countries. Wade adds the airline recently announced it’s adding 2,000 new seats from three major New Zealand cities to Melbourne and Sydney. Australia airlines have also seen enormous demand for Swift-related travel. Virgin Australia registered a more than 600% jump in bookings to Melbourne and Sydney during Swift concert dates. Next, the U.S. tourism industry is continuing to make strides in its recovery from the pandemic. International travel to the country hit 83% of pre-Covid figures in March, writes Global Tourism Reporter Dawit Habtemariam. More than 5 million overseas visitors came to the U.S. in March, according to the National Travel and Tourism Office’s latest data. That number is 83% percent of pre-pandemic levels. International visitor volume also topped 80% of pre-Covid levels in February of this year. Habtemariam notes the U.S.’ top overseas markets in March — outside of Canada and Mexico — were the UK, Germany and Japan. Finally, financial concerns are driving Europeans to modify their travel plans, writes Reporter Jess Wade. Wade reports a recent survey by the European Travel Commission is highlighting a shift in consumer behavior toward cheaper options. As 24% of European travelers worry about the overall rise in trip costs, the commission’s president Miguel Sanz said many people are looking for more affordable experiences or considering off-peak travel to stretch their budgets. The study found that 17% of travelers aim to travel off-season to get better prices while 14% plan to vacation in destinations they consider more affordable.
Episode Notes Today we present an excerpt from the latest episode of The Skift Podcast, featuring Senior Hospitality Editor Sean O’Neill interviewing Travel Tech Reporter Justin Dawes about his experience last week at the Hospitality Industry Technology Expo and Conference—better known as HITEC, "the world’s largest hospitality technology show.” You can listen to the full interview detailing Justin’s take aways about the conference and the state of hospitality tech on The Skift Podcast. Find all of Justin’s excellent reporting from Hitec at Skift.com, including comments from industry executives and videos of the cutting edge technology that was on display.
Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode Notes Hotels are increasingly viewing wellness as a way to attract travelers placing a greater emphasis on their physical and mental well-being. So what strategies are hotel brands taking? Senior Hospitality Editor Sean O’Neill reports in this week’s Early Check-In column that a recently published report is providing some answers. O’Neill writes a report by consultancy firm RLA Global is a rare effort to quantify wellness trends in hotels. That report analyzed data at more than 2,500 properties worldwide with some wellness, which include gyms, spas and yoga classes. O’Neill notes the report indicates hotels need to make significant investments in wellness activities for the sector to be profitable. He adds an extensive wellness offering typically translates into higher occupancy, higher average daily revenue gains and higher profit. Next, Tripadvisor’s Viator brand and GetYourGuide are two of the biggest players in the tours and activities sector. So after GetYourGuide recently announced a nearly $195 million investment round, how does it match up against Viator? Executive Editor Dennis Schaal looks for answers. Schaal acknowledges that it’s tough to say definitively if Viator is growing faster than GetYourGuide. While Tripadvisor is worth close to $2.5 billion, GetYourGuide is a private company that doesn’t publish its financial records. Although a source close to GetYourGuide argued that it’s larger than the standalone Viator brand, Schaal writes the edge in number of bookable tours and activities appears to go to Tripadvisor. Meanwhile, a partner at Tourpreneur, a company that provides advice to tour operators, said he believes Tripadvisor is likely leading in the U.S. while GetYourGuide holds the top spot in Europe. Finally, major airlines are getting a major boost from advances in the increasingly lucrative in-flight entertainment industry, reports Associate Editor Rashaad Jorden. Jorden writes that carriers such as American Airlines and JetBlue Airways have teamed up with streaming services in recent years. American offers the use of an Apple Music subscription to stream inflight without the purchase of Wi-Fi. Meanwhile, JetBlue will provide passengers the opportunity to stream content from Peacock starting this summer. A JetBlue executive said travelers with a Peacock account will be able to stream all of the platform’s content from their own devices during flights. Jorden adds that airlines’ efforts to enhance their in-flight entertainment options have gotten a helping hand from improved aircraft designs. Hawaiian Airlines and United Airlines are introducing new in-flight entertainment systems on aircraft that will start flying in the next two years.
Episode Notes Airlines flying out of the New York City area have had a terrible recent stretch, with severe weather and a shortage of air traffic controllers contributing to thousands of flight disruptions just before the Fourth of July. But perhaps the hardest hit carrier was United Airlines — especially at its hub Newark, reports Edward Russell, editor of Airline Weekly, a Skift publication. Newark was the only airport where United saw triple digit flight cancellations through Wednesday this week. So what helped cause the large number of disruptions? Russell notes New York City-area air travel was bound to face significant distress this summer. The Federal Aviation Administration acknowledged earlier this year it had a shortage of air traffic controllers. It even allowed airlines to reduce schedules by up to 10% at the three major New York City-area airports this summer. Russell notes the measure aimed to limit disruptions from severe weather while noting it was only a question of when those storms took place. Next, the U.S. government has invested billions of dollars to upgrade the country’s infrastructure. However, MGM Resorts International CEO Bill Hornbuckle believes too much of that infrastructure spending has been focused on aviation, reports Senior Hospitality Editor Sean O’Neill. Hornbuckle said in an interview with Skift that ground transportation is more important than air in most destinations and for more travelers. He added he wants to see ground transportation get a fair share of already approved budget money. Hornbuckle noted that at least $110 billion out of the federal money earmarked for infrastructure projects could be used to benefit tourism. O’Neill writes a U.S. Transportation Department had identified about 100 roads, railways and bridges that needed improvement to support tourism nationwide. Fifteen of them were deemed essential. Finally, advances in hotel technology took center stage at this week’s HITEC travel tech conference in Toronto, reports Travel Technology Reporter Justin Dawes in this week’s Travel Tech Briefing. Dawes reports that while property management systems and new door locks are critical for businesses, those aren’t the displays drawing crowds. He writes that robots and holograms are most popular. The conference showcased, among other products, an artificial intelligence-powered robot that could deliver wine directly to a guest’s room.
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Episode Notes Inflation is still a major concern for many American travelers, but rising prices aren’t putting a dent in travel demand. More than 50 million Americans are expected to travel for this year’s Fourth of July, reports Associate Editor Rashaad Jorden. Travel organization AAA projects the number of Americans traveling for this year’s holiday will surpass the record set in 2019. A AAA executive said consumers are still looking to travel in large numbers despite concerns about inflation. Roughly 64% of respondents to a survey by travel news site The Vacationer said surging prices were affecting their travel planes. Jorden notes the U.S. airline industry is also optimistic about a banner Fourth of July weekend. The TSA projects more than 17 million travelers will fly for the holiday. In addition, the agency anticipates setting a single-day record for screenings on June 30. Next, Priceline has become the latest online travel agency to enter the world of artificial intelligence. The company has released an AI-powered platform as well as an AI chatbot, writes Reporter Jess Wade. Wade writes Priceline’s new AI platform Trip Intelligence provides travelers a list of personalized hotel recommendations and enhanced payment security among other features. Meanwhile, Priceline’s AI chatbot — named Penny — can be used as a local guide, help desk contact and 24/7 concierge. The company added that Penny can complete bookings within the chatbot interface. Priceline’s announcement came shortly after Booking.com unveiled an AI-powered trip planner as part of its Genius travel rewards program. We end today with a look at the occupancy levels for short-term rentals. Are they up or down? Short-Term Rentals Reporter Srividya Kalyanaraman writes the answer depends on what data you’re looking at. Short-term rental firm platform Beyond reported that occupancy levels for this July were roughly 5 percentage points under the figure from the same month last year. However, short-term rental data provider AirDNA found occupancy levels were a little more than 5 percentage points above 2019 levels in May of this year. The company also said demand for short-rentals increased roughly 12 percentage points in May 2023 from the same month a year ago. Kalyanaraman writes there are several reasons for the discrepancies, including base-year comparisons and seasonal changes.
Episode Notes Several major U.S. cities are facing a similar challenge in their quest to make a full recovery from the pandemic — the absence of suburban residents. Urban destination marketing organizations acknowledge they need the critical group to help boost visitor numbers, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam reports that prior to the pandemic, suburban residents often commuted to the city for work and then attended various events. Those activities kept businesses running and cities vibrant, which benefited local tourism industries. However, destination marketing organizations admit to having to counter negative perceptions about crime in their cities. In addition, the rise of remote work has made promoting activities more difficult to suburbanites making fewer trips downtown. Habtemariam writes some cities are launching campaigns to convince suburban residents to frequent urban attractions, citing Chicago and Minneapolis as examples. He adds that suburbanites can be ambassadors for nearby destinations, often helping encourage travelers to spend time in major cities. Next, executives from Amazon Web Services are bullish on artificial intelligence transforming how travel companies offer personalized customer service — possibly as early as next year, writes Travel Technology Reporter Justin Dawes. Amazon Web Services representatives at this week’s HITEC travel tech conference in Toronto explained how they’re working with major travel brands eager to incorporate advanced AI into their operations. Amazon Web Services has found only 15 percent of travel companies are using AI at an advanced level. But one executive said she expects to see more hyper-personalized content in the travel industry. Amazon Web Services has already worked with Hyatt to help the hotel giant make personalized recommendations for customers, including specific hotels that matched their interests. Dawes adds that hyper-personalization means companies will be able to present images and text based on detailed data customers provide. Finally, Booking.com is rolling out on Wednesday an artificial intelligence-powered trip planner as part of its Genius travel rewards program. But that trip planner will use OpenAI’s ChatGPT as its base instead of Google Bard, reports Executive Editor Dennis Schaal. Schaal writes Booking.com’s decision is somewhat surprising considering its long relationship with Google. Booking.com is one of Google’s largest travel advertisers. However, Schaal notes critics have largely held OpenAI’s ChatGPT in higher regard than Google Bard. Booking.com said its own AI Trip Planner will field questions on its mobile app from travelers about destinations and accommodation options.
Episode Notes China was a major market for Carnival Corporation prior to the pandemic. But despite Beijing lifting the country’s strict travel curbs earlier this year, the cruise line isn’t returning to China in the near future, writes Global Tourism Reporter Dawit Habtemariam. Carnival CEO Josh Weinstein said on Monday the company’s strong second quarter did not reflect a return to China, and added the company would “be on the sidelines” for a few years. Roughly 1 million Carnival guests came from China in 2019. Meanwhile, Weinstein described the company’s onboard revenue as “off the charts.” Habtemariam reports more than a third of Carnival’s onboard revenue over the 12 months have been booked in advance. However, despite that higher consumer spending, the company’s shares fell 10 percent, after Carnival executives noted rising labor and fuel costs. Carnival Chief Financial Officer David Bernstein said the company incurred $13 million in higher fuel costs. Next, speaking of China, strong performance over the country’s most recent national holiday is a major sign international travel is rebounding, reports Asia Editor Peden Doma Bhutia. Bhutia writes China’s three-day Dragon Boat Festival holiday revealed a noticeable rebound in outbound travel. International border crossings during the holiday period hit 65 percent of 2019 levels, according to government officials. Bhutia notes that Hong Kong was the most popular destination for travelers living in Mainland China, with hotel bookings made by Mainland Chinese for Hong Kong trips recording a substantial increase from last year. China had the largest outbound travel market in the world before the pandemic, both in terms of number of trips and total spend. Finally, delays in Europe visitor visas are driving more Indian travelers to book trips closer to home, reports Asia Editor Bhutia and Middle East and Asia Reporter Amrita Ghosh. As one India-based travel executive admitted those delays are concerning to those looking to visit Europe, online travel company MakeMyTrip said Indian travelers are increasingly interested in Asian destinations. The company notes Thailand, Singapore and Malaysia are among the top five choices for Indian travelers. In addition, 92 percent of travelers expressed a desire to explore domestic destinations, according to a recent survey by budget hotel operator Oyo.
Episode Notes Hong Kong-based carrier Cathay Pacific said on Friday it expects to turn a profit in the first half of 2023 after years of losses. But the company’s slow recovery is a concern in the airline industry, reports Edward Russell, editor of Airline Weekly, a Skift publication. Cathay Pacific’s expected profit comes after it posted a roughly $320 million dollar loss in the first half of last year. Russell writes Cathay Pacific was hit hard by the Hong Kong government’s strict Covid-era travel curbs, most of which were only lifted last December. Those restrictions severely limited Cathay Pacific, an airline with no domestic market to serve. Although Cathay Pacific has seen a surge in travel demand, Russell adds it still lags behind regional rival Singapore Airlines. He notes that Singapore Airlines used the pandemic to accelerate plans to streamline its operations while Cathay Pacific is still focused on rebuilding its network. Next, the U.S. has unveiled plans to open consulates in the Indian cities Bengaluru and Ahmedabad. U.S. officials believe those consulates could help expedite the visa application process for Indian travelers, writes Middle East and Asia Reporter Amrita Ghosh. Ghosh reports visa delays represent the single biggest impediment to growth in travel between the U.S. and India, with India emerging as the U.S.’ second-largest visitor source market outside of North America. U.S. lawmakers have urged the Biden administration to tackle the issue of lengthy visa wait times. There has been some improvement: Wait times for visitor visas at some U.S. consulates in India have recently decreased in half, from more than 600 days. Finally, the owners of the Spain-based Hotel Finca Cortesín have opened a new propertylocated inside a 17th century palace, reports Contributor Leslie Barrie. Barrie notes the Mallorca-based Gran Hotel Son Net is the second hotel venture from the team behind the Finca Cortesín. Finca Cortesín Hotels Managing Director Rene Zimmer is adamant the new property isn’t a boutique hotel or resort. But Zimmer said it will have plenty of local touches, including serving mostly Mallorcan wine and food grown on the island. Barrie writes the Gran Hotel Son Net’s staff believes its focus on local themes will resonate with guests.
Episode Notes A growing number of affluent travelers are seeking extreme adventures, but are they pushing the boundaries for those popular excursions too far? Travel Experiences Reporter Selene Brophy seeks answers from executives responsible for organizing those trips. Carl Shephard, co-founder of travel company Insider Expeditions, said safety is always the priority, but added that the industry is providing valuable experiences. He said companies like his should push the boundaries. Virgin Galactic, a long-time Insider Expeditions client, recently took a group of 30 future astronauts on a trip to a remote island centered around a one-minute solar eclipse. Brophy notes she scheduled interviews for the story before the OceanGate submersible, the Titan, went missing while taking passengers to explore the Titanic wreck. The five passengers on board are believed to have died. Next, much of the discussion around artificial intelligence in travel has centered around how the technology can help increase bookings. But Travel Technology Reporter Justin Dawes reports in his Travel Tech Briefing that hotel tech startups are using AI to combat an ongoing labor shortage. Dawes cites HiJiffy as one tech company that’s gotten a boost from hotels struggling with staffing issues. Founder Tiago Araújo said the startup grew 150 percent during the pandemic due the industry-wide labor shortage, a challenge many hotels still face. The company said its so-called “pre-stay” product is able to quickly answer roughly 80 percent of guest questions about the hotel. Araújo added most of HiJiffy’s clients are doing well in terms of revenue. But he acknowledged many are having difficulties regarding staffing, which is driving them to automate as many processes as possible. We end today in Bhutan. The country is lowering its sustainable development fee — used to offset the carbon footprint of tourists — to encourage longer stays, reports Asia Editor Peden Doma Bhutia. Bhutia writes Bhutanese authorities relied on feedback from the country’s travel executives to develop options for longer stays. Garab Dorji, CEO of travel company Truly Bhutan, said the reduced fee will give tourists an opportunity to explore more of the country. Bhutan’s tourism department estimates the South Asian nation attracted roughly 52,000 tourists between late September 2022 and mid-May. Bhutia adds the country aims to hit pre-pandemic tourism figures by the end of 2024.
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Episode Notes Canadian travel brands took on large amounts of debt during the pandemic to weather the Covid-induced slowdown. But with those companies still struggling due to the country’s sluggish recovery, Global Tourism Reporter Dawit Habtemariam writes Canada’s travel industry could face business shutdowns in the near future. Tourism Industry Association of Canada CEO Beth Potter said a large number of travel companies are worried they’ll have to close up shop. A survey by the organization found nearly a third of businesses had more than $250,000 in outstanding debt. In addition, more than half of companies said they weren’t confident about making debt payments due in the next two years. Habtemariam notes a large portion of those debts are to the Canadian government, with the country’s businesses receiving loans from Ottawa to stay afloat during the pandemic. The tourism association is calling on the government to move payment deadlines, among other requests. About 45 percent of Canadian travel businesses said they could shut down within the next three years without government help. Next, a growing number of travel brands are turning to major sporting events to upsell and market their core services, writes Travel Experiences Reporter Selene Brophy. Mark McLaughlin, CEO of Dublin-based ticket distribution platform Coras, said travel companies can use sporting events to increase customer engagement. McLaughlin, whose company has partnered with some of Europe’s elite soccer clubs, added that fans visiting Barcelona consider going to a game as much of a bucket list item as seeing the city’s other major attractions. He also described sporting event tickets as high volume compared to the number of trips a tour operator can sell daily. Finally, India saw a 166 percent year-over-year increase in foreign visitors from January to April this year, writes Middle East and Asia Reporter Amrita Ghosh in Skift’s India Travel Daily. India’s Tourism Minister G Kishan Reddy said the country expects inbound travel to reach pre-pandemic levels later this year. India welcomed more than 6 million foreign tourists last year. The country’s tourism boom has also resulted in India’s revenue from the sector more than doubling in 2022 from the previous year. Indian authorities have also unveiled plans for marketing campaigns targeting international travelers.
Episode Notes The global travel industry is making consistent progress in its recovery from the pandemic. Skift Research’s Travel Health Index for May 2023 projects the industry’s travel performance will soon surpass 2019 levels. Research Analyst Saniya Zanpure reports the Index’s average global score in May hit 100 percent of pre-Covid levels, 2 percentage points higher than the previous month. Although that’s a 1 percentage point drop from April, Zanpure notes all regions except Europe have made a full recovery. And Europe is close to a complete rebound at 98 percent of 2019 levels. Fourteen out of the 22 destinations Skift Research has tracked have made complete recoveries from the pandemic. Zanpure adds Skift Research expects the others to do so soon, with the exception of Russia and Hong Kong. Next, Indian airlines are continuing their massive aircraft ordering spree, with the country’s largest carrier IndiGo picking up 500 Airbus jets this week. But those huge orders present a big risk for Indian airlines eager to expand internationally, reports Edward Russell, editor of Airline Weekly, a publication. IndiGo CEO Pieter Elbers said the order reaffirms the country’s confidence in an aviation boom in India, optimism that Russell writes is warranted. Elbers told Airline Weekly earlier this month that IndiGo would double in size by the end of the decade. However, Russell notes that numerous airlines have failed to tap the Indian market’s enormous potential, adding that infrastructure constraints are a persistent challenge. In addition, aviation data firm IBA has questioned whether the Indian market can accommodate the growing number of aircraft. Meanwhile, Elbers has outlined a three-part internationalization plan that includes new destinations and partnerships. Russell writes IndiGo will serve more international destinations by the end of the summer than it did before the pandemic. We end today with a look at the Urban Cowboy brand of boutique hotels, which Contributor Leslie Barrie says is looking to maintain a sense of community even while it expands. Urban Cowboy co-founder Lyon Porter admitted he didn’t have a real plan when the company opened his first hotel in Brooklyn in 2014. But Barrie writes Porter and fellow co-founder Jersey Banks have found their groove in building communal environments for “magical moments.” Urban Cowboy’s property in the Catskills in Upstate New York offers activities such as ax throwing and mushroom foraging. In addition, the brand’s Dive Motel in Nashville frequently hosts parties.
Episode Notes Chicago’s tourism industry has recently gotten a big boost from events like three sold out Taylor Swift concerts at Soldier Field. Local authorities hope the success of her shows can be the antidote to the city’s negative reputation, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam reports 45,000 people came to Chicago over a June weekend when it hosted a large oncology conference in addition to the Swift concerts. One local hotel industry official said it was the best weekend for hotels in Chicago’s history. In addition, Chicago tourism chief Lynn Osmond said there were no major incidents downtown despite the huge crowds, a sign she believes the Windy City is well prepared to host major events. However, Habtemariam writes the city — and its tourism industry — has had to confront public crimes that have made nationwide news. In response to concerns about crime, Osmond wrote a letter to industry partners informing them the city was taking steps to address public safety. Next, luxury travel lodging company Habitas is planning to create a so-called hotel circuit in Saudi Arabia through a $400 million fund, reports Senior Hospitality Editor Sean O’Neill. O’Neill writes Habitas aims to transfer guests around locations in Saudi Arabia, where the company is looking to add six properties to its portfolio. Habitas already operates two properties in the kingdom. A Habitas representative said the fund would be anchored by the Saudi Tourism Development Fund. Saudi officials have expressed a desire to attract 100 million tourists annually by 2030. Finally, Australia’s flag carrier Qantas recently unveiled the cabin design of its Airbus A350 jets, which will feature a wellness zone, reports Contributor Jessica Wade. Wade writes the cabin design represents a significant milestone in Qantas Project Sunrise, the title for its new nonstop routes from Sydney to London and New York. Qantas said it’s the first airline worldwide to develop a unique Wellbeing Zone on its aircraft. The zone includes a guided on-screen exercise and a hydration station. The nonstop flights from Sydney to London and New York are scheduled to take off in late 2025. Qantas also recently resumed service to New York for the first time in more than three years, with flights from Australia to New York via New Zealand. Australia’s flag carrier Qantas has resumed flights to New York City for the first time in more than years.
Episode Notes Travelers will likely notice that hotel room rates are up this summer travel season compared to last year, leading to charges that hotel owners are raising prices to take advantage of pent-up vacation demand. However, Senior Research Analyst Seth Borko argues that surging rates aren’t a case of price gouging. Borko acknowledges that the average price of a U.S. hotel room rose 13 percent in May from the same month last year. But he reports that jump doesn’t account for inflation, adding the price of everything rose during the pandemic. Hotel owners in particular have seen the cost of items such fuel, food and laundry supplies increase. Borko notes inflation data suggests that most hotel owners are raising rates to keep pace with their surging costs. He also writes that if hotel owners aren’t making more profits from the increased rates, that’s not price gouging. Next, more travel brands are turning to artificial intelligence tools to help users make bookings, with many companies believing the growing technology will help them operate more efficiently. But Travel Technology Reporter Justin Dawes writes not all of those booking tools will be successful. Dawes notes most companies want a virtual travel agent that can make bookings based on customers’ highly personalized preferences. Vacation rental listing platform HomeToGo is one company planning to release an AI booking tool. But Dawes writes it’s uncertain how small companies with limited data can compete against larger, wealthier rivals. He adds that the platforms that succeed will likely need to solve a unique problem or create a recognizable brand, feats many companies won’t be able to do. Finally, Australia’s flag carrier Qantas has resumed flights to New York City for the first time in more than three years. It’s another sign of airlines returning to normal after the pandemic, writes Jay Shabat, senior analyst at Airline Weekly, a Skift publication. Shabat reports that Qantas is initially flying to JFK Airport from Australia via Auckland, New Zealand three times a week. The company will increase that number up to four in October, a month that coincides with the start of Australia and New Zealand’s peak summer tourist season. Qantas views Auckland stopover as an interim measure until it receives a new set of ultra-long-range Airbus jets, possibly in 2025. CEO Alan Joyce said the company has seen enormous demand for the flights since they went on sale last year.
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Episode Notes The U.S. tourism industry has gotten a boost from the Biden administration lifting its vaccine requirement for inbound travelers in May. However, a prominent U.S. tourism official believes the industry won’t make a full recovery without the large-scale return of Chinese visitors, writes Global Tourism Reporter Dawit Habtemariam. Brand USA CEO Chris Thompson said at a U.S. Senate hearing this week that dropping the vaccine mandate has helped boost visitor numbers. But he acknowledged that the eased travel curbs won’t be enough to compensate for the lack of Chinese tourists. The U.S. welcomed over 540,000 Chinese travelers in April, a 81 percent drop from the same month in 2019. China reopened its borders earlier this year for international travel after more than two years of restrictions. Next, the short-term rental industry is poised to benefit enormously from the boom in summer travel, writes Short-Term Rental Reporter Srividya Kalyanaraman A study by short-term rental data company AirDNA found the sector should see growth this summer thanks to strong travel demand. Kalyanaraman reports that this year’s summer travel season is expected to be extended as travelers seek off-season rates. She adds that lower house prices and sustained high demand for rental properties have contributed to an increased housing supply. More homeowners are choosing to rent out their properties rather than sell in a market with low interest rates. Finally, the U.S. Department of Commerce is looking for help in staffing the office for the newly-created assistant secretary for travel and tourism, a position Congress created last December. So what assistance is the department requesting? Roughly $3.5 million, writes Global Tourism Dawit Habtemariam. National Travel and Tourism Office Director Brian Beall said at a Senate hearing this week that the agency needs the money from Congress to be able to carry out its duties. The office’s responsibilities include developing strategies to help meet the U.S. tourism industry’s goals, including increasing visitor numbers. Congress hadn’t included funding for the office upon passing legislation to create it. Meanwhile, the assistant secretary position hasn’t been filled yet.
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Episode Notes Travel demand among Chinese citizens has surged since Beijing eased the country’s strict Covid-era curbs in January. So how can travel brands tap into one of the world’s most lucrative markets? Skift Research examines in a new report what strategies companies should take to attract Chinese travelers. Senior Research Analyst Varsha Arora writes Skift Research explored various stages of the Chinese travel journey, including planning and booking. The report also touches on the general economic outlook for Chinese travelers, including their widespread optimism. The report concludes with key takeaways for destination marketing organizations, which Arora notes provide valuable tips on how to engage Chinese travelers. Next, a growing number of real estate investors are looking to combine hotels with members clubs. However, Gansevoort Hotel Group President Michael Achenbaum warns blending a hotel with a club is more difficult than it seems, reports Senior Hospitality Editor Sean O’Neill. Achenbaum acknowledged the challenges while speaking at a recent hotel conference, citing his own experiences with the members club model. He said investors shouldn’t focus on finding the coolest people for members clubs, which usually charge an annual fee for access to co-working spaces and food and beverage offerings. Achenbaum said that investors should instead concentrate on finding the right people who will truly use the various spaces. Achenbaum also noted another challenge of blending a hotel with a members club: Determining access for facilities, adding that not giving hotel guests access to certain spaces can be a problem. We end today looking at the highest-paid U.S. Airline CEOs for 2022, a year that featured a new twist for calculating executive salaries. United Airlines’ Scott Kirby took the top spot, bringing home $10 million, reports Contributor Kristin Majcher. Kirby replaced Delta Air Lines chief Ed Bastian as the highest paid U.S. CEO in 2022, both in terms of total pay package and a new method for determining executive salaries. A new U.S. Securities and Exchange Commission rule requires major, public companies to disclose a “compensation actually paid” figure. Majcher writes the new measure reflects the changing value of company shares, which usually represent a significant portion of an airline CEO’s compensation.
Try the AI Chatbot for the Travel Industry Episode Notes Airfares in India have been soaring recently, and a new report finds the country registered the highest increase in airfares in the Asia-Pacific region, reports Asia Editor Peden Doma Bhutia. A study conducted by Airports Council International attributed the surging airfares to factors such as rising fuel prices and pent-up travel demand. The report noted that fuel prices have jumped 76 percent compared to 2019. The CEO of India-based travel agency Nomad Travels said fares for routes such as Mumbai to Delhi have almost doubled. The study also found the airfares have increased elsewhere in the Asia-Pacific region, including Indonesia, Saudi Arabia and Japan. However, one airline industry expert said rising airfares are unlikely to stall the surge in Indian aviation, with the country’s major airlines having recently announced record profits for the 2022 financial year. Next, tours and activities platform GetYourGuide announced on Monday it’s launching a tour devoted to Formula 1 icon McLaren Racing. It’s part of the company’s strategy to take advantage of the surging interest in sports-themed tours, writes Travel Experiences Reporter Selene Brophy. Brophy reports the McLaren’ Originals tours will be available on a first-come, first-served basis starting on July 6. Jean-Gabriel Duveau, GetYourGuide’s vice president of brand, said the company has seen an explosion in demand for sports experiences. GetYourGuide’s booking data revealed demand for sports tours recorded a more than 130 percent year-over-year jump in the first half of 2023. Duveau added the company is working to develop behind the scenes tours of famous sporting venues. Finally, real estate investment firm Black Swan has acquired former short-term rental operator Lyric in an attempt to revive the brand, writes Short-Term Rental Reporter Srividya Kalyanaraman. Kalyanaraman writes Black Swan has bought Lyric’s domestic and international trademark rights as well as the lyric.com domain. Lyric was operating roughly 600 units in 17 markets during the first quarter of 2020 before closing many of its units early in the pandemic. The new Lyric is set to launch this summer, with Kalyanaraman noting that Black Swan’s real estate strategy will be to acquire trophy assets in key markets.
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Episode Notes Saturday’s Champions League final, perhaps soccer’s most prestigious annual event, drew tens of thousands of visitors to Istanbul. But local officials believe the action on the field is secondary to the boost the game will give the city’s tourism industry, writes Travel Technology Reporter Justin Dawes. While Dawes writes that visiting fans will surely inject a lot of money into Istanbul’s economy, he adds the event’s true value is the advertising power. Turkish Hotel Association President Muberra Eresin said this year’s Champions League final could enhance Istanbul’s reputation as a sought after destination for future events. The city has hosted several major sporting events in recent years, with Dawes noting that sports tourism is one of the fastest growing sectors of tourism. Next, spending by visitors to the U.S. in April surpassed that of Americans traveling abroad for the first time in seven months, writes Global Tourism Reporter Dawit Habtemariam. The National Travel and Tourism Office revealed that international travelers spent more than $17.3 billion on travel-related activities to and within the U.S. in April. Habtemariam reports international visitor spending has gone up 25 consecutive months. Meanwhile, Americans traveling abroad spent roughly $17.2 billion. Finally, Senior Hospitality Editor Sean O’Neill examines in this week’s Early Check-In column an issue that is causing sleepless nights for hotel executives. What is it? The rise of fintech. O’Neill writes industry leaders at two major hotel conferences admitted that they’re worried about fintech’s growth. Marriott’s Chief Financial Officer Leeny Oberg said there’s a tremendous amount of capital in the sector, with O’Neill adding it’s difficult to determine the possible impact of fintech players selling travel. Alex Cosmas, a partner at financial firm McKinsey, said the hotel industry has never previously competed directly with tech giants. However, O’Neill notes that some hotel executives believe the industry will rise to the occasion. Accor Deputy CEO Jean-Jacques Morin acknowledged that a lot of industry figures believed that online travel agencies and Airbnb would disrupt hotels. But he said hotels handled the increased competition very well.
Episode Notes Airline executives acknowledged this week they could be in the midst of a recession. But they’re largely unconcerned about an economic downturn impeding the industry’s ongoing recovery, reports Edward Russell, editor of Airline Weekly, a Skift publication. Leaders speaking at a major aviation conference in Istanbul expressed optimism about aviation’s boom continuing. International Air Transport Association Director General Willie Walsh said the airline industry is making progress in terms of profitability. The organization expects to record a more than $22 billion profit this year, a seven-fold increase from its forecast last December. However, Russell writes behind those optimistic projections is a turbulent backdrop, citing in particular the stalled corporate travel recovery. Corporate travel revenue has plateaued in the U.S. at between 75 and 80 percent of 2019 levels according to executives from several major U.S. airlines. United Airlines CEO Scott Kirby admitted the U.S. is experiencing a business recession. But the company’s Chief Commercial Officer Andrew Nocella said if airlines are in the middle of a recession, it’s the best recession the industry has ever seen. Next, Iceland’s tourism industry is getting a major boost from a new segment of tourists — hardcore music fans. It’s part of the country’s strategy to diversify its visitor base coming out of the pandemic, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam reports several recent concerts, including shows by bands such as Wilco and the Disco Biscuits, have helped bring thousands of American travelers to Iceland. An executive at Business Iceland said those concertgoers are the kind of visitors the organization wants, noting they’re eager to explore Iceland beyond Reykjavik and tend to spend a lot of money. Habtemariam adds that Icelandic officials are looking to take advantage of travelers increasingly seeking nature over urban experiences. The country is building more accommodation outside of Reykjavik. In addition, tour operator Intrepid Travel recently developed a one week camping trip that takes travelers to Iceland’s less crowded locations, including its national parks. Finally, U.S. legislators are calling on the White House to prioritize reducing the visa waits Indian travelers looking to visit the U.S. have endured, writes Middle East and Asia Reporter Amrita Ghosh in Skift’s India Travel Daily. Ghosh writes visa delays are the single biggest impediment to boosting Indian visitor numbers to the U.S. Although the U.S. has made progress in reducing visa wait times at some consulates in India, the average wait was roughly 330 days in early April, according to the U.S. Travel Association.
Episode Notes The short-term rental industry has experienced a major boom coming out of the pandemic. But Laurence Tosi, founder of investment firm WestCap, believes the sector’s enormous growth is slowing down, reports Associate Editor Rashaad Jorden. Tosi said that future growth for travel will moderate during a discussion at the Skift Short-Term Rental Summit on Wednesday. He also told Skift founder and CEO Rafat Ali that companies like Sonder and Vacasa aiming to become profitable need to focus on having sustainable business models. Tosi also touched on the rise of artificial intelligence in travel, urging travel brands to proceed carefully with how they use the technology. He cited Hopper as one company that has used AI extensively. Next, several airlines are removing first class seats from long-haul international routes. However, Emirates Airlines isn’t getting rid of the luxury offering, reports Edward Russell, editor of Airline Weekly, a Skift publication. Emirates President Tim Clark said at a conference in Istanbul this week that long-haul first class is very important for the company. He added that more than 80 percent of its long-haul aircraft has first class seats. However, Russell notes that long-haul first class is a gradually disappearing product. Indeed, Qatar Airways recently announced that it wouldn’t install first class on its future long-haul jets. Russell adds that airlines increasingly believe the necessary investment in the product isn’t often worth the cost. But some carriers have unveiled plans for first class seats on their longest flights, including Qantas Airways and Lufthansa. Russell writes those investments are driven in part by the increase in premium leisure travelers coming out of the pandemic. Finally, the European Union and Google are teaming up to create a reliable measurement for flying’s climate impact, which has long been challenging for the travel industry, reports Executive Editor Dennis Schaal. The European Union Aviation Safety Agency and Google announced on Wednesday they are teaming up to develop a framework for measuring a flight’s emissions impact. Schaal writes that finding accurate measurements has been a thorny issue because the science is inexact. He adds the collaboration will help Google and partners develop its Travel Impact Model, a publicly accessible model for measuring flight emissions per passenger. The Lufthansa Group has agreed to provide data for the emissions calculations. An executive at the safety agency said he believes the information will help travelers determine which flights may be more environmentally friendly.
Episode Notes Hotel executives expressed optimism this week for a continued boom despite inflation and a possible recession, reports Senior Hospitality Editor Sean O’Neill. Accor CEO Sébastien Bazin said at an event organized by New York University that the future for the hotel industry has never been as strong as it currently is. Bazin added that hotel rates in Paris have been 50 percent above 2019 levels for the past six months. O’Neill writes a limited supply of travel lodging has boosted the pricing power of existing hotels, with one executive describing low supply as music to her friends. O’Neill adds that hotel CEOs are bullish on a surge in travel from Asia, noting that Chinese travelers still haven’t returned en masse. In addition, Bazin said he envisioned India emerging as a major source of business, with the country’s rapidly expanding middle-class increasingly looking to travel abroad. Next, as short-term rentals sit at an inflection point after several years of enormous growth, Skift Research takes a deep look at what lessons industry giant Vacasa can provide the sector after its own boom. Senior Research Analyst Seth Borko writes Vacasa, the largest branded property manager in the U.S., is an important bellwether for short-term rentals that can help answer questions about the sector’s trajectory. Borko notes that Vacasa is a publicly traded company involved in practically every aspect of the industry. Despite experiencing a surge in occupancy rates compared to 2019 levels, Skift Research also found that Vacasa has seen demand cool down, with the period of pandemic-fueled growth coming to an end. Finally, Indian budget carrier IndiGo is closing in on a record deal to buy 500 jets from Airbus, according to Reuters. That’s the latest in a series of massive aircraft orders by Indian airlines, writes Middle East and Asia Reporter Amrita Ghosh in Skift’s India Travel Daily. Ghosh reports that Airbus is the frontrunner for an order that would surpass Air India’s purchase of 470 jets this February. The projected $50 billion deal comes as India — the world’s third largest aviation market — has seen a strong travel rebound coming out of the pandemic. Furthermore, IndiGo CEO Pieter Elbers recently said international expansion is on the horizon for the company. IndiGo is one of Airbus’ largest customers and had already ordered a total of 830 jets from the Europe-based plane maker.
Episode Notes Expedia Group CEO Peter Kern recently accused rival online travel agency Agoda of undercutting the nightly rates posted on official hotel websites, and that’s anathema to hotels. So how has Agoda been able to discover cheaper rates? Executive Editor Dennis Schaal explains how in his weekly Online Travel Briefing. Schaal includes a video of then-Agoda CEO John Brown at Skift Forum East in 2019 detailing his company’s mindset on hotel prices. Brown said the company has the responsibility to customers to find the cheapest hotel rates found online even though that caused friction with hoteliers. A spokesperson from Booking Holdings, Agoda’s parent company, said Agoda gets many different rates by contact from its partners. But Kern of Expedia said many hotels don’t realize how their rates are being mishandled. Schaal adds that Expedia has a tech tool that helps hotels weed out rates appearing in unauthorized outlets. smart_toy Next, generative artificial intelligence — which includes the creation of images, audio and video — could fundamentally change travel. So how do prominent executives in the travel industry view this emerging form of technology? Travel Technology Reporter Justin Dawes features several companies’ plans for generative AI in his weekly Travel Tech Briefing. Airbnb CEO Brian Chesky is among the growing group of travel executives bullish on the potential for generative AI. He said the company could use the technology to learn more about prospective guests in a personal manner. In addition, Damian Scokin, the CEO of Argentina-based online travel agency Despegar, said his company sees opportunities for generative AI in areas such as software development and customer service. Finally, Miami-based vacation rental software platform Hostaway has raised $175 million in funding, with the aim of expanding globally, writes Short-Term Rental Reporter Srividya Kalyanaraman. Kalyanaraman reports that Hostaway also plans to use the funds to increase staffing and seek opportunities to expand market share. Hostaway recently launched a GhatGPT-powered artificial intelligence tool, which the company aims to manage listings. It also signed a distribution partnership with global travel technology provider Amadeus earlier this year.