Skift Daily Travel Briefing
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Episode Notes Airbnb will introduce a new cancellation policy in June that will cover weather-related disruptions, reports Executive Editor Dennis Schaal. Airbnb’s “Major Disruptive Events Policy” would enable guests to cancel reservations and receive refunds when a natural disaster causes government travel restrictions or mass outages of utilities, such as electricity or water. Airbnb’s new policy would allow guests to cancel reservations mid-trip during a covered event. However, the short-term rental giant explicitly said its new policy would not cover Covid-19 or flu outbreaks. Next, Marriott Vacations Worldwide has launched its first collection of timeshares in cities, a sign of the increasing demand for timeshares outside of resort locations, writes Senior Hospitality Editor Sean O’Neill. The Marriott Vacation Clubs City Collection has properties in seven U.S. cities, including Boston, New York and San Francisco. While city timeshares will still be the minority of the group’s portfolio, executives say they’ve seen more interest in urban timeshares. O’Neill reports Waikiki and Charleston are among the locations where Marriott Vacations Worldwide will open its next city clubs. Finally, Las Vegas will start welcoming low-cost, long-haul flights from London later this year, writes Airlines Editor Gordon Smith. The route, which will be operated by Norse Atlantic Airways, is due to start on September 12. As flights from Las Vegas to London run between 10 and 11 hours, Norse will be the only low-cost carrier flying such a long route from the Nevada city. Meanwhile, Smith notes that economy passengers on the Las Vegas-London flights will be paying for services for checked bags and inflight meals.
Episode Notes Google is launching several new artificial intelligence-powered tools to help travelers plan trips, writes Travel Technology Reporter Justin Dawes. The new tools will allow Google Search to create itineraries based on prompts from users. Dawes reports users can search for a trip itinerary, and they’ll see flight and hotel options as well as suggestions for attractions and dining. Google said the AI tools use information appearing online and reviews that users post about businesses. Google is also enhancing its Maps app to provide users more details about certain destinations in the U.S. and Canada. Next, the U.S. State Department will receive $50 million to help it cut visa wait times and passport backlogs, writes Global Tourism Reporter Dawit Habtemariam. President Joe Biden recently signed a bill into law that would provide the department more resources to tackle lengthy visa wait times, one of the travel industry’s most pressing issues. The average wait time for a first-time visitor visa for the U.S.’ top inbound markets is roughly 400 days, according to the U.S. Travel Association. More than 300 travel industry professionals recently lobbied federal lawmakers to take action on the issue of excessive visa wait times. Finally, Australia saw a record number of visitors from India last year. Asia Editor Peden Doma Bhutia turned to Nishant Kashikar, Tourism Australia’s country manager for India, to find out about Australia's recent success in attracting Indian tourists. Australia welcomed roughly 402,000 arrivals from India from February 2023 to January 2024. India is now Tourism Australia’s fifth largest inbound market. Kashikar partly attributed that record number to an increase in weekly flights from India to Australia and a simplified visa application process for Indian travelers. Kashikar added that Australia has seen a significant surge in business travel from India.
Episode Notes Hilton has built the largest pipeline of hotels in its history, an achievement CEO Chris Nassetta attributed to the power of the group’s brands. Nassetta touched on Hilton’s pipeline growth and more in an interview with Senior Hospitality Editor Sean O’Neill. Hilton has also seen membership growth in its loyalty program surpass that of its rivals in the last five years. Nassetta cited partnerships Hilton has entered into and improvements in the program’s app as reasons for the membership boom. He also addressed Hilton’s work to reduce carbon emissions in its franchised hotels. Next, Breeze Airways announced it’s launching a co-branded credit card and re-branded loyalty program, writes Airlines Reporter Meghna Maharishi. Chief Commercial Officer Lukas Johnson said Breeze was eager to launch the co-branded credit card as part of its effort to revamp its loyalty program. The credit card, in partnership with Barclays, would allow customers to earn 10 times the points for checked baggage and premium seating, among other services. Johnson said he was confident Breeze could attract enough sign-ups for the card. Meanwhile, Breeze’s loyalty program will be known as “Breezy Rewards” instead of “BreezePoints.” Finally, Hawaiian officials recently launched a marketing campaign to reassure travelers that all of Maui is ready for visitors following last August’s wildfires, writes Global Tourism Reporter Dawit Habtemariam. The campaign is called Mākaukau Maui, which means “Maui is Ready,” and it’s part of efforts to attract tourists amid the island’s slow recovery. Visitor spending in Maui fell 19% in January 2024 from the previous year. Maui lost an estimated $120 million in revenue. In addition, Maui is facing fierce competition from other sun-and-sea destinations looking to lure American tourists. Producer/Presenter: Jose Marmolejos
Episode Notes Amex GBT announced plans on Monday to acquire CWT for $570 million, a deal that would combine two of the world’s largest corporate travel agencies. Travel Technology Reporter Justin Dawes explains why Amex GBT executives are pushing for the megadeal. Amex GBT CEO Paul Abbott said acquisitions are a key part of its growth strategy, noting the combined company would generate revenue of at least $3 billion. Abbott added acquiring CWT would strengthen several areas of Amex GBT, citing CWT’s footprint in industries such as the media, entertainment and sports. In addition, Amex GBT also said the acquisition would help produce savings of $155 million within three years. Next, Boeing’s senior leadership team is undergoing a major overhaul. CEO Dave Calhoun announced he’s leaving the role at the end of the year, writes Airlines Editor Gordon Smith and Airlines Reporter Meghna Maharishi. In addition to Calhoun stepping down, Commercial Airplanes Division CEO Stan Deal is retiring while board chair Larry Kellner will not run for re-election. Those senior personnel changes come as Boeing has experienced a rough start to 2024, including a blowout aboard an Alaska Airlines flight in January. Smith and Maharishi note that major airline CEOs and the U.S. government have been increasingly critical of Boeing in recent weeks. Finally, Booking.com is ending a program that highlighted properties the company believed were standouts in sustainability, writes Executive Editor Dennis Schaal. Dutch regulators said that Amsterdam-based Booking.com’s “Travel Sustainable” program, which awarded certain properties green leaves as badges, was possibly misleading. Dutch officials said properties might be conducting sustainable practices that weren’t recognized. Booking.com reported last year that more than 100,000 properties on its site had received a Travel Sustainable badge. Producer/Presenter: Jose Marmolejos
Episode Notes Hilton recently held a private presentation for investment analysts at its U.S. headquarters. Senior Hospitality Editor Sean O’Neill lists the three biggest takeaways from the presentation’s 223 slides. First, Hilton claims the world’s largest hotel pipeline. The company said it controls about 20% of the rooms under construction worldwide. Hilton added its loyalty members are responsible for 64% of its total room nights booked, which it claims is an industry high. The company said it’s aiming to get that number up to 75%. In addition, Hilton said it’s increasing its investment in technology to help sell more ancillary services to guests. Only 13% of its bookings include these upsells. Next, United Airlines will allow friends and family to create joint accounts for pooling frequent flier miles through its loyalty program, writes Airlines Reporter Meghna Maharishi. Any adult United MileagePlus user can be “pool leader” and create a joint account on United’s website. United MileagePlus Chief Operating Officer Luc Bondar said the move is intended to make it easier for friends and family to use miles when booking flights. Bondar added United’s decision was driven by a surge in family and friends travel since the pandemic. Maharishi reports United is the first of the Big Four U.S. airlines to allow pooling miles with no extra fees. Finally, China’s economy is going through a rough patch now, but that probably won’t stop large numbers of Chinese from traveling overseas, writes Global Tourism Reporter Dawit Habtemariam. Several executives speaking at the recent ITB Berlin travel show said those in China with the means to travel internationally will do so. One CEO stated about 100 million Chinese travelers have enough money for a long distance trip. In addition, Philip Dickinson, an executive at Visit Qatar, said the Gulf State has seen a surge in Chinese tourists since Beijing lifted its group travel ban on Qatar last August. However, one obstacle for Chinese tourism to the West has been flight availability. Flight schedules from China to Germany, the U.S. and the U.K., among other destinations, haven’t recovered to pre-Covid levels.
Episode Notes Ennismore co-CEO and founder Sharan Pasricha believes India is a sleeping giant in the lifestyle hotel sector, writes Middle East Reporter Josh Corder. Pasricha told Senior Hospitality Editor Sean O’Neill at the Skift India Summit on Wednesday that the new wave of lifestyle hotels could be in India. Ennismore currently doesn’t have any hotels in India in its portfolio. But Pasricha said that could change as soon as this year, citing India’s growing middle class and infrastructure improvements as reasons why lifestyle hotels could thrive in the country. Next, Eric Garcetti, U.S. Ambassador to India, is eager to see U.S. travel demand for India increase, writes Travel Technology Reporter Justin Dawes. Garcetti told Skift CEO and founder Rafat Ali at the Skift India Summit that Americans don’t know India as well as Indians know the U.S. Garcetti said a lot of work needs to be done to promote India as a tourism destination. But he noted India’s tourism infrastructure has gotten a boost from the growth of the country’s aviation industry. Garcetti also addressed the lengthy waits many Indian travelers have endured to obtain U.S. visitor visas. Although the U.S. government has been able to reduce average wait times, he said there’s work to do as travel demand to the U.S. increases. We end today with a look at Keshav Suri, a hotel owner looking to increase support for India’s LGBTQ+ community. Suri, the executive director of the LaLiT Suri Hospitality Group, told Senior Hospitality Editor O’Neill at the Skift India Summit that his company has a loyal customer base among the LGBTQ+ community. He added that being supportive of the community is a competitive advantage. Suri, whose company operates roughly a dozen hotels across India, added that he would like to see more research done on the LGBTQ+ market.
Air India has major goals. CEO Campbell Wilson is looking to turn the company into a “top-tier and world-class airline” after decades of underinvestment by Indian officials, writes Airlines Reporter Meghna Maharishi. Wilson discussed Air India’s strategy during a discussion with Asia Editor Peden Doma Bhutia at the Skift India Summit today. The company has undergone a major overhaul in recent months that includes new business class cabins and a new logo. In addition to going on a major hiring spree, Air India has also recently placed an order for 470 aircraft — one of the largest orders in commercial aviation. Next, the CEOs of India’s two largest online travel agencies said they’re not at war with each other. But they acknowledged they’re in a race to take advantage of India’s huge potential for growth, writes Middle East Reporter Josh Corder. MakeMyTrip CEO Rajesh Magow said at the Skift India Summit that there’s room for multiple competitors in the sector considering the huge size and potential of India’s travel industry. While Magow added competition is healthy, Yatra Online CEO Dhruv Shringi said during the discussion with Executive Editor Dennis Schaal he doesn’t worry about what Yatra’s rivals are doing. Both executives also said that companies operating in India need to focus on promoting domestic travel and finding ways to reach the country’s growing middle class. Finally, Oberoi Group has unveiled plans to develop an ultra-luxury hotel brand, writes Middle East Reporter Corder. Oberoi Group CEO and Managing Director Vikram Oberoi told Senior Hospitality Editor Sean O’Neill that the new brand is part of the company’s push to double its overall room count by 2030. Oberoi also discussed the company’s “Oberoi Nature” project, which is its plan to develop hotels close to nature. He said Oberoi Group wants to add 50 new hotels to its portfolio by 2030.
Episode Notes Indian weddings are a billion dollar business — and not just in India. Asia Editor Peden Doma Bhutia delves into the increasingly lucrative phenomenon. Bhutia writes Indian weddings aren’t just celebrations — they’re massive economic engines. The roughly 3.5 million couples that got married in India between November 23 and December 15 last year spent about $57 billion on wedding-related expenses. Meanwhile, the more than 900 weddings Marriott hosted in India last year generated close to 10% of its revenue in the country. Bhutia cites Thailand and the United Arab Emirates as destinations eager to attract wealthy Indians looking to get married. A Thai tourism official said the country hosts between 400 and 500 Indian weddings annually. Next, United Airlines CEO Scott Kirby has sought to reassure travelers after a spate of recent mishaps aboard United flights, writes Airlines Reporter Meghna Maharishi. Kirby sent a memo to customers on Monday stating that United is working to improve safety. United has had five incidents during the past month, including one where a Boeing jet landed in Medford, Oregon with an external panel missing. Kirby said United is reviewing the details of each and plans to use information from those reviews to develop its safety procedures. Finally, Egypt’s tourism chief said the ongoing Israel-Hamas war has hurt the country’s growth, writes Global Tourism Reporter Dawit Habtemariam. Minister of Tourism and Antiquities Ahmed Issa said tourism grew 6% in the first two months of 2024 compared to last year. The government was expecting a 20% increase. Issa added Egypt has seen a decrease in the number of American tourists, with two tour operator executives stating bookings from the U.S. have yet to make a full recovery. Presenter/Producer: Jose Marmolejos
Episode Notes The growing push to ban TikTok in the U.S. has raised questions about how travel brands would market themselves without the popular app. Global Tourism Reporter Dawit Habtemariam writes several state tourism offices have already directed more resources toward Instagram and YouTube. Habtemariam notes Visit Utah has increased its investment in Instagram Reels after Utah’s governor banned state government agencies from using TikTok in 2022. Katlyn Svendsen, an executive at Travel South Dakota, said the state took a similar approach after South Dakota enacted its own state government ban on TikTok that year. Svendsen said the agency has had success reaching audiences on platforms such as Instagram Reels and YouTube Shorts. Next, business travel could make a full recovery from the pandemic in 2024, writes contributor Justin Bachman. Business travel is expected to hit 95% of 2019 levels this year, according to the U.S. Travel Association. However, some major corporations could send more staff on the road if the U.S. economy achieves a so-called “soft landing,” which would see inflation slowing and interest rates easing. Executives from both Alaska Airlines and Delta Air Lines said at a recent investor conference they’re seeing business traffic increase. Finally, Middle East Reporter Josh Corder profiles the new Ritz-Carlton Reserve in Saudi Arabia, which is set to be the Middle East’s most expensive hotel. A night at the new Ritz-Carlton Reserve, which opens for bookings on May 26, will set guests back roughly $3,400. The property — known as Nujuma — will be home to 63 villas. Nujuma is slated to include a spa, swimming pools, and a retail area, among other features. Nujuma is located in a coastal tourism project called The Red Sea, which will eventually house 50 hotels.
Episode Notes Skift on Wednesday unveiled its newest venture: Executive Search. The aim: Address the growing demand for skilled and visionary leaders within the travel sector. The people we place will define the future of travel. Skift has helped thousands of travel industry leaders establish connections at our events throughout the years, often indirectly acting as a recruitment firm. The Executive Search unit is the next step in assisting companies looking not only to acquire talent but better understand prospective candidates. We turn next to the growing push to ban TikTok in the U.S. Although it’s uncertain the U.S. government will enact such a measure, Global Tourism Reporter Dawit Habtemariam breaks down how a TikTok ban would impact the U.S. travel industry. U.S. lawmakers have expressed concerns over China's government having access to personal data of American citizens, with TikTok being owned by a Chinese company. Habtemariam notes a ban on TikTok would disrupt the global travel industry as many travel brands have offices in the U.S. Travel brands would also lose the ability to advertise on TikTok, a popular platform for promoting destinations and products. Finally, visa requirements are easing for travelers worldwide, according to a recently published report by UN Tourism, reports Associate Editor Rashaad Jorden. UN Tourism’s Tourism Visa Openness Report revealed 47% of people globally last year needed a traditional visa. A traditional visa is a standard paper visa placed in a passport after submitting paperwork and/or conducting an in-person interview. That figure is a 12-percentage point drop from 2018. However, 84% of the world’s population still needs a traditional visa to travel to North America. Meanwhile, the percentage of travelers able to obtain an e-visa has increased significantly in recent years. About 18% of the world’s population can apply for e-visas, up from 7% in 2018.
Episode Notes A total solar eclipse will pass diagonally across the U.S. on April 8, a development that’s poised to spark a tourism surge. So are destinations prepared to take advantage of the visitor boom? Global Tourism Reporter Dawit Habtemariam examines the issue. The eclipse will cross the country from the south to the east, touching roughly a dozen states. Habtemariam cites Niagara Falls, New York as one destination expecting to see large crowds for the eclipse. A local tourism executive said the region is expecting 1 million visitors. In addition, domestic flight bookings for cities where viewers can see the full eclipse have increased fourfold from April 1 to 7 last year. However, Habtemariam notes communities will have set aside massive resources to serve the large number of projected visitors. One Texas country has already declared a state of emergency ahead of the eclipse due to concerns about the impact on local infrastructure. Next, airlines went on a hiring spree after the pandemic to address the labor shortage that had plagued the industry. However, that hiring surge could be ending, writes Airlines Reporter Meghna Maharishi. Southwest Airlines CEO Bob Jordan said there even could be job cuts. He cited Boeing delivery delays and the demand for airline jobs returning to pre-Covid levels as reasons hiring has plateaued. Maharishi notes Southwest isn’t the only airline to slow pilot hiring. United Airlines recently told staff it’s planning to pause pilot hiring this spring due to delivery issues with the Max 10. Meanwhile, Delta Air Lines is slowing pilot hiring in 2024 with job demand in the industry starting to level off. Finally, Middle East Reporter Josh Corder profiles the Aman Dubai, which could be the most expensive hotel in the United Arab Emirates. Aman Resorts CEO Vlad Doronin made the claim at the hotel’s unveiling this week. Corder notes Aman Dubai, which is scheduled to open in 2027, will have a 350-meter private beach and its own members-only club, among other features. While it’s uncertain how many rooms the property will have, Doronin said that Aman’s city hotels don’t exceed 90 rooms. Producer/Presenter: Jose Marmolejos
Episode Notes Airbnb announced on Monday it’s banning the use of all indoor security cameras, writes Short-Term Rental Reporter Srividya Kalyanaraman. The company said the change comes after it received feedback from guests, hosts and advocacy groups. Indoor cameras had been permitted in common areas of homes under certain conditions, but the cameras had to be disclosed to guests and not be in private spaces. Hosts not complying with the new policy by April 30 could see their listings or accounts removed. Next, Saudi Arabian officials believe its latest tourism campaign featuring soccer icon Lionel Messi can help it overcome negative perceptions, writes Global Tourism Reporter Dawit Habtemariam. Fahd Hamidaddin, CEO of the Saudi Tourism Authority, addressed the kingdom’s efforts to increase visitor numbers in an interview with Skift. Saudi Arabia recently launched a campaign titled “Go Beyond What You Think” in which Messi attempts to break down stereotypes about the country. Hamidaddin said thus far the campaign has performed better than the agency’s previous marketing efforts. Hamidaddin added Saudi Arabia is looking to attract 150 million visitors by 2030, up from its previous target of 100 million. Finally, columnist Colin Nagy addresses the decline in American hospitality that he argues is making travel less pleasant for visitors to the U.S. . Nagy writes that international travelers often encounter sloppiness, rudeness and ineptitude. He cited Dubai Airports CEO Paul Griffiths’ four-and-a-half hour delay at immigration at JFK Airport last year as an example of worsening hospitality in the U.S. Nagy added if the service at airports, hotels and restaurants continues to decline, international travelers would be less willing to come to the U.S.
Episode Notes Millions of travelers look to TikTok for help in planning their next trip. So we discussed the company’s influence in the travel industry, among other topics, with Stuart Flint, head of TikTok’s global business solutions for Europe and Israel. Flint told Global Tourism Reporter Dawit Habtemariam that several major travel brands are working with TikTok, including Booking.com. Although TikTok doesn’t currently allow travelers to book directly on the platform, Flint acknowledged that could change as commerce is a huge part of its growth. He also addressed TikTok’s role in the growing trend of “travel dupes,” which are possibly cheaper and less crowded alternatives to popular destinations. Next, United Airlines is putting a pause on pilot hiring in the spring due to aircraft delivery delays from Boeing, writes Airlines Reporter Meghna Maharishi. New-hire classes won’t take place in May and June while some may resume in July, according to a staff memo. The memo cited new aircraft certification and manufacturing delays at Boeing as the reason why the carrier is slowing the pace of pilot hires. United CEO Scott Kirby had expressed his frustrations with Max 10 delivery delays earlier this year. United, one of Boeing’s biggest customers, had expected to receive an order of 80 Max 10s in 2024. Maharishi notes United isn’t expecting that order to be fulfilled this year due to the certification delays. Finally, The European Union’s Digital Markets Act, which is designed to ensure fair competition for online platforms, went to effect on Thursday. However, the EU Travel Tech association argues that Google isn’t complying with the new law, reports Executive Editor Dennis Schaal. The group said in a letter to the European Commission that Google’s own products for hotels, flights and travel services appeared more prominently than those for its competitors. EU Travel Tech added that Google’s efforts to change how it displays search results haven’t satisfied the new law’s requirements. The association has also demanded Google propose new ways to show search results. A Google spokesperson said, in addition to changing search result displays, it’s been seeking feedback from consumers as well as hotels and airlines.
Episode Notes Speculation has been rife about what company could be behind the possible sale of Tripadvisor since the news first broke last month that it was in play. Executive Editor Dennis Schaal writes about recent reporting that one possible buyer is private equity firm Apollo Global Management. Apollo has expressed interest in a bid , according to Bloomberg. Schaal notes that Apollo’s exploration of any purchase is believed to be in an early phase. Tripadvisor has formed an independent committee to vet any offers, which analysts and travel industry insiders believe will come from private equity firms. Tours and activities leader Viator is the fastest-growing in Tripadvisor’s portfolio of brands. In speaking to travel industry insiders, most agreed that buying Tripadvisor and then selling Viator made the most sense. Next, the alleged rape of a Brazilian tourist in India has raised questions about whether the country is safe for female tourists, reports Asia Editor Peden Doma Bhutia. Bhutia writes the incident has triggered criticism of India across social media, with one travel executive stating the widespread coverage would hurt the country’s marketing efforts. The CEO of a company organizing backpacking trips in India for a largely female clientele said it would take years to undo the damage. However, Chirag Gupta, CEO of online platform Deyor, said he hasn’t received any cancellations despite concerns from international travelers. Finally, one travel executive believes artificial intelligence could replace generic top 10 lists and travel guides, writes Global Tourism Reporter Dawit Habtemariam. Barry Rogers, the head of Dublin City Tourism Unit, said ChatGPT could enhance tourism marketing. Speaking during a panel discussion at the ITB Berlin travel trade show, Rogers added that AI will be able to give travelers personalized itineraries. The Dublin City Council and OpenAI announced a partnership to develop AI-powered itineraries.
American Airlines is changing its strategy. The company is turning to smaller U.S. cities and its loyalty program to boost revenue, writes Airlines Reporter Meghna Maharishi. American Chief Commercial Officer Vasu Raja cited the Sun Belt region as a location the carrier is focusing on. The region has accounted for 75% of U.S. population growth in the past decade, according to U.S. Census data. American’s focus on smaller U.S. cities lies in contrast to rivals like Delta and United, which have chosen to emphasize capacity across long-haul international routes. American is also looking to increase membership in its frequent-flier program. Roughly 65% of the company’s revenue came from members of its AAdvantage program. Next, Airbnb is poised to unveil a new series of non-core services as part of its quest to become a “super brand for travel,” reports Executive Editor Dennis Schaal. Airbnb is looking to expand co-hosting, a service some homeowners use to manage their listings if they don’t want to do it themselves or don’t live locally. Chief Financial Officer Ellie Mertz also said Airbnb is studying how to use artificial intelligence to solve both guest and host issues. Schaal notes Airbnb hosts have complained at times about the quality of support coming from the company. Airbnb is planning to resurrect its dormant experiences product. However, Mertz didn’t provide any details about what it might include. Finally, Turkish Airlines has recently launched service to Australia, a development that could concern Qantas, writes Airlines Editor Gordon Smith. Smith notes that Turkish Airlines’ three times a week service via Singapore isn’t a major threat to Qantas in itself. But he writes the Singapore aspect of the new Turkish Airlines route treads on Qantas’ toes. It allows the airlines to drop off and pick up passengers in Singapore when flying between Istanbul and Australia. The Australian government approved an increase in the number of weekly services to and from Turkey last December.
Episode Notes Airbnb said on Monday it’s approaching 1.5 million verified listings, a key part of its strategy to build trust among users, reports Executive Editor Dennis Schaal. The company added that badges will be pinned to listings that have completed the verification process. Airbnb has long struggled to deal with fake listings and scammers, Airbnb’s verification push is designed to combat those issues. The short-term rental giant said it removed 59,000 fake listings last year. Airbnb first pledged to verify all of its listings in November 2019. The company recently said it had 7.7 million active listings at the end of last year. Next, JetBlue Airways announced that it has reached an agreement with Spirit Airlines to end their proposed merger, writes Airlines Reporter Meghna Maharishi. A federal judge had blocked the merger in January on the grounds that the combined airline would raise fares and hurt consumers. Both airlines said they believed it was unlikely that all the conditions for the merger would be approved by July 24. JetBlue CEO Joanna Geraghty said the company would focus on its strategy to return to profitability while Spirit CEO Ted Christie said he believed it could survive as an independent airline. Some Wall Street analysts have speculated that Spirit could either face a potential bankruptcy or have to find another buyer if it couldn’t merge with JetBlue. Finally, American Airlines has announced it’s ordering 260 new jets from three different manufacturers. Airlines Editor Gordon Smith delves into what the company is getting. American has confirmed it ordered 85 Boeing 737 Max 10 jets. It’s the company’s first order of the Max 10, which has yet to be certified to fly commercially. American ordered the exact same number of Airbus A321neos. In addition, the carrier placed an order for 90 Embraer E175s, which will be equipped with high-speed satellite Wi-Fi.
Timeshare operator rivals Hilton Grand Vacations, Marriott Vacations Worldwide and Travel and Leisure Company have all reported financial results recently. Senior Hospitality Editor Sean O’Neill delves into those reports to search for broader trends in the segment. HGV executives said they’ve seen more consumers hesitant to agree to deals in part because of inflation. However, O’Neill notes that HGV has actually had to deal with more demand than the group can efficiently handle. Meanwhile, both Travel and Leisure and Marriott Vacations have seen business boom, with each company generating at least $3.5 billion in net revenue last year. Next, Airlines Editor Gordon Smith lists three takeaways from Air France-KLM Group’s full-year results. Smith notes geopolitical issues in the Middle East and Africa have hurt the supergroup’s profitability. KLM has yet to resume service to Israel. Meanwhile, instability in several West African countries has impacted Air France’s bottom line. However, group CEO Ben Smith said Air France might see a slight bump in the amount it earns from each passenger flown during this year’s Paris Olympics. Ben Smith added that the surge in premium leisure travel could make up for any weakness in business travel. Finally, Visit California is launching its first tourism campaign in a decade as part of the state’s efforts to reintroduce itself to travelers, writes Global Tourism Reporter Dawit Habtemariam. The roughly $33 million campaign — titled “The Ultimate Playground” — is looking to remind travelers about the Golden State’s abundance of activities. Habtemariam notes Visit California hadn’t been able to market itself extensively during the pandemic, when the state’s image took a hit due to widespread coverage of issues such as urban crime and wildfires.
Episode Notes Gilda Perez-Alvarado surprised some hotel industry insiders when she left JLL to become Accor’s chief strategy officer last October. Perez-Alvarado outlined her plans for Accor in her first interview since taking the new role. Perez-Alvarado touched on Accor’s efforts to make inroads in the U.S., among other subjects, with Senior Hospitality Editor Sean O’Neill. She said Accor would target markets and segments in the country where the company believes it should be present. Perez-Alvarado added that Accor would be increasingly open to dealmaking with interest rates stabilizing. Next, the Federal Aviation Administration told Boeing it has 90 days to create a plan to tackle its quality control issues, writes Airlines Reporter Meghna Maharishi. FAA chief Michael Whitaker revealed the timeline after the agency had an all-day discussion with the planemaker. Boeing’s 737 Max aircraft has been plagued with a litany of issues, including a blowout aboard an Alaska Airlines flight this January. Whitaker said he expects the plan to take into account the latest results from the FAA’s audit of Boeing’s production processes. Finally, Vacasa’s workforce is undergoing major changes again. The company announced it is laying off 320 employees while Chief Operating Officer John Banczak is leaving the vacation rental operator, reports Executive Editor Dennis Schaal. Schaal writes Vacasa’s latest round of layoffs, which represent 5% of the company’s overall workforce, will cost it between $4 million and $5 million. Meanwhile, Banczak will stay on in his current role through March 31. Vacasa said his departure as chief operating officer isn’t the result of any disagreements between him and the company.
Episode Notes American Airlines and United Airlines are among the major carriers that have increased baggage fees in recent months. Airlines Reporter Meghna Maharishi explains why checking bags at airports has gotten more expensive. Maharishi writes that nearly every carrier cited inflation, higher fuel and operating costs as reasons they hiked baggage fees. JetBlue Airways said it raised baggage fees as part of its plan to return to profitability. Airlines may also be increasing bag fees to help boost sign ups for their loyalty programs and co-branded credit cards. An airline consulting firm executive said expensive bag fees increase the value of airline-branded credit cards. American said its loyalty program members and credit card holders can check their first bag for free. Next, New York City hotels could see a $380 million boost in revenue this year from the city’s de facto ban on short-term rentals, writes Short-Term Rental Reporter Srividya Kalyanaraman. A new report from real estate firm JLL revealed the New York City hotels could book an additional 2.2 million nights this year. A city law requiring hosts to be present for stays shorter than 30 days went into effect last September. In addition to the crackdown on short-term rentals, New York City’s hotel industry also stands to benefit from a projected surge in international tourists this year. Finally, Katerina Giannouka has left her role as CEO of Jumeirah Group, writes Middle East Reporter Josh Corder. Giannouka became Jumeirah’s first female CEO in December 2022 after having previously served as the Asia-Pacific president for Radisson. During her brief time at Jumeirah, she said she was looking to double the group’s portfolio, including signing more hotels outside of the United Arab Emirates. Jumeirah’s current Chief Operating Officer Thomas B. Meier will serve as interim CEO, according to an internal document seen by Skift.
Episode Notes Hotel guests in Las Vegas during Super Bowl weekend earlier this month paid the highest room rates in continental U.S. history, writes Global Tourism Reporter Dawit Habtemariam. Industry data company STR said guests shelled out on average $800 for rooms in Las Vegas that weekend, the highest ever for any Saturday and Sunday in the continental U.S. Hotel guests on the Las Vegas Strip paid an even higher rate on Super Bowl Sunday — $962 on average. Meanwhile, short-term rentals in Las Vegas also saw average daily rates during Super Bowl weekend surge 19% from the previous weekend. Next, a Federal Aviation Administration panel reported on Monday that Boeing’s efforts to improve its safety culture are inadequate, writes Airlines Reporter Meghna Maharishi. The panel found a “disconnect” between Boeing executives and employees involved in the planemaker’s safety culture. Congress had mandated the report into Boeing’s safety culture after two fatal 737 Max 8 crashes. The FAA report revealed, among other findings, that most Boeing employees were unaware of the company’s safety culture efforts. Finally, Ryanair CEO Michael O’Leary said a shortage of aircraft could cause airfares to jump 10% in Europe this summer, reports Airlines Editor Gordon Smith. O’Leary said delays in delivering the Boeing 737 Max are a factor for the potential shortage. Fifty-seven Max planes are due to arrive at Ryanair by the end of March, the official start of the airline industry’s summer season. However, O’Leary acknowledged that only 40 to 45 jets may be ready for this summer. Produced and Presented by Jose Marmolejos
Episode Notes Wyndham executives say the company’s efforts to fend off Choice Hotels’ hostile bid weighted on its results in the fourth quarter, reports Senior Hospitality Editor Sean O’Neill. Wyndham CEO Geoff Ballotti said its fourth quarter could have been better without the distractions from Choice Hotels’ merger proposal. The company’s revenue and income in 2023 both fell from the previous year, which may have been a result of Wyndham devoting resources to prevent the hostile merger. Wyndham said it’s spent $75 million related to the deal so far, including answering antitrust queries from regulators. Next, Expedia Group has pulled a Vrbo ad in Canada because its use of a traditional folk song from Newfoundland and Labrador sparked an uproar, writes Executive Editor Dennis Schaal. The ad, which aired during both the Grammys and Super Bowl, used the folk song I’se the B’y as its theme. Schaal notes the ad was intended to take a dig at rival Airbnb. But the provincial government and local tourism executives demanded Expedia remove the ad because they believed using the folk song was disrespectful. Finally, Bali has implemented a tourist tax as part of its efforts to combat overtourism, writes Global Tourism Reporter Dawit Habtemariam. Visitors to the popular Indonesian destination have to pay about $10, which will go toward conservation efforts and improving the island’s infrastructure. Mark Howarth-Archer, an executive at tour operator G Adventures, said Bali’s infrastructure can’t handle the surge in tourists.
Episode Notes Marriott and Hilton have both released their annual financial reports for 2023. Senior Hospitality Editor Sean O’Neill lists 12 noteworthy takeaways after comparing the companies’ 10-K filings. The two hotel giants have a rivalry in terms of loyalty program membership numbers. Marriott currently has roughly 16 million more loyalty program members than Hilton. But O’Neill notes Hilton could overtake Marriott in 2025 if the two companies maintain their most recent growth rates this year. O’Neill adds that both companies were considerably more profitable in 2023 than they were six years prior. Next, Airbnb CEO Brian Chesky believes the company can create a new artificial intelligence interface that will help transform it into a cross-vertical company, writes Executive Editor Dennis Schaal. Chesky said the planned interface could be one of the most innovative ever created. He added that it would enable Airbnb to become a cross-vertical company: Think Amazon when it expanded beyond books and Apple when it launched the app store. Chesky also said Airbnb would make announcements later this year regarding new products and services. Finally, American Express has opened the world’s largest Centurion Lounge at Atlanta’s Hartsfield-Jackson International Airport, writes Airlines Editor Gordon Smith. The 26,000-square foot lounge, which includes indoor and outdoor areas, is American Express’ latest effort to target high-spending travelers. It also includes a whiskey bar serving cocktails designed by Centurion’s mixologist. American Express Travel President Audrey Hendley said a new Atlanta lounge was a major priority for the company.
Episode Notes Some analysts had wondered if Airbnb could increase its supply of hosts and listings to meet the growing demand from travelers worldwide. That question has been put to rest, writes Executive Editor Dennis Schaal. Airbnb said during its fourth-quarter earnings call on Tuesday it has around 7.7 million active listings. That’s an increase of more than 1 million from the end of 2022. The company ended 2023 with a roster of more than 5 million hosts, also a jump of roughly 1 million from the previous year. Airbnb also said its supply of listings increased 18% in the fourth quarter from the same period in 2022. Next, Marriott had a banner 2023, especially in the luxury sector, reports Senior Hospitality Editor Sean O’Neill. Marriott said during its fourth-quarter earnings call that it generated $3 billion worth of net income and a 48% profit margin last year. The company was boosted by its strength in luxury. Marriott had a company record of 58 luxury signings last year. It says its portfolio of luxury hotels is 50% larger than its nearest competitor. Finally, billionaire investor Carl Icahn has again bought a stake in an airline — this time in JetBlue Airways, writes Airlines Reporter Meghna Maharishi. Icahn reported a 9% stake in JetBlue, making him the airline’s third-largest investor. JetBlue shares rose by more than 16% after news of Icahn’s stake became public. That’s welcome news for a company that has experienced its share of struggles in recent years, including declining revenues. Icahn acquired a more than 20% stake in Trans World Airlines in 1985. He helped TWA grow, but it was saddled with debt and filed for bankruptcy twice.
Episode Notes The Bahamas saw a drop in short-term rental bookings and hotel reservations in January after a U.S. State Department safety alert to travelers, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam notes short-term rental bookings fell 7% in January from the same month in 2023. Meanwhile, hotels in the Bahamas also registered weekly occupancy declines from last year throughout the month. While higher average daily rates may have deterred bookings, those drops followed a U.S. Embassy alert warning Americans about crime in Nassau. A State Department spokesperson said the overall Travel Advisory for the Bahamas is at Level 2, which advises U.S. citizens to be cautious in the country due to crime. Next, Expedia Group’s equity stake in American Express Global Business Travel has taken a beating — to the tune of $326 million, reports Executive Editor Dennis Schaal. Expedia said on Monday the fair value of its equity stake in Amex GBT has dropped 40% since 2021. Expedia took a 19% stake in Amex GBT following its sale of corporate travel agency Egencia. However, Schaal notes Expedia may have benefited from the deal on several levels, including enabling it to offer hotel stays and vacation rentals to business travelers through Amex GBT. Finally, flying taxis could take to the skies in Dubai by 2026 after local officials signed a deal with electric aircraft maker Joby Aviation, writes Airlines Editor Gordon Smith. Joby’s contract with Dubai’s Road and Transport Authority gives the company exclusive rights to operate flying taxis in Dubai for six years. Smith notes Joby believes it could even operate air taxis next year, ahead of the planned 2026 launch. Joby has also signed a deal with infrastructure company Skysports, which will build and run take-off and landing areas for flying taxis in Dubai. Still, it’s no sure thing: As with all pioneering technologies, progress in the sector has been peppered with pitfalls.
Episode Notes Expedia Group will have a new CEO soon. Ariane Gorin, currently president of Expedia for Business, will succeed Peter Kern starting on May 13, writes Executive Editor Dennis Schaal. Schaal reports Gorin will also take a seat on Expedia Group’s expanded board of directors, effective February 12. Expedia Group Chair Barry Diller said the company was looking for an internal candidate to succeed Kern. As president of Expedia for Business, the company’s business-to-business arm, Gorin was responsible for a large portion of Expedia Group’s revenue and profits. Meanwhile, Kern will continue to serve as Expedia Group’s vice chairman and a member of its board. Next, Spirit Airlines has experienced its share of struggles in recent years, including $1 billion worth of debt due next year. But CEO Ted Christie is refuting any talk the company could go bankrupt, writes Airlines Reporter Meghna Maharishi. Christie expressed confidence Spirit will survive during the airline’s fourth-quarter earnings call, citing steps it’s taking to strengthen its finances. It recently netted $419 million in cash through selling and leasing back 25 aircraft. In addition, Spirit plans to make adjustments to its network, including reducing service to less lucrative destinations. Finally, a spokesperson for Taylor Swift says she has bought double the carbon credits needed to offset emissions caused by her Eras Tour. However, it’s uncertain if carbon credits are effective in reducing emissions, writes Airlines Reporter Maharishi. A study from the Institute of Policy Studies found a private jet emits at least 10 times more carbon emissions than a commercial jetliner. As for carbon offsets, Maharishi notes they can include replanting trees in the rainforest or introducing energy-efficient methods to struggling communities. Commercial airlines often provide customers the opportunity to buy carbon offsets when purchasing flight tickets. But Maharishi cites research that revealed 78% of carbon reducing emissions projects could be considered “junk.”
Episode Notes Taylor Swift’s massive influence on U.S. culture and the economy isn’t slowing down anytime soon. And as her ongoing Eras Tour continues to pack stadiums and boost tourism worldwide, Editor-in-Chief Sarah Kopit explains why Swift might be the most powerful person in travel. Swift’s impact on the travel sector is vast, with major influence over tourism dollars, hospitality spending and the short-term rental market. Kopit notes that each Swift concert has the economic impact of the Super Bowl – and it’s not just once a year. U.S. cities hosting a Eras Tour concert have seen their monthly hotel room revenue jump more than 7% on average. In addition, one short-rental executive said the Eras Tour has been responsible for double-digit increases in occupancy and average daily rates. Skift Research estimates the tour generated an incremental $1.2 billion for the U.S. travel industry in 2023 across flights, hotels, short-term rentals and other expenditures. Next, Hilton is considering making acquisitions, a shift from its longtime strategy of creating brands internally, writes Senior Hospitality Editor Sean O’Neill. Hilton CEO Christopher Nassetta said the current economic environment might be more conducive for acquisitions. O’Neill notes rumors have surfaced that Hilton is in talks to acquire both Graduate Hotels and NoMad Hotels, a luxury lifestyle hotels brand. Nassetta said Hilton intends to enter the luxury lifestyle sector this year. Finally, the upcoming Super Bowl between the San Francisco Chiefs and Kansas City Chiefs is driving a surge in short-term rental rates in Las Vegas, writes Short-Term Rental Reporter Srividya Kalyanaraman. Short-term rental demand in Las Vegas from February 9 to 11 is 87% higher than the same period in 2023, according to AirDNA. Kalyanaraman adds that average daily rates have increased 51% from last year. Meanwhile, searches for Airbnb rentals in the Las Vegas area during Super Bowl week have jumped 65% compared to the same period last year.
Episode Notes A preliminary report from the National Transportation Safety Board has provided information about what possibly caused the January blowout aboard Alaska Airlines Flight 1282. Four bolts appeared to be missing on a door plug that blew off that Boeing 737 Max 9 jet, writes Airlines Reporter Meghna Maharishi. Maharishi notes it’s not exactly clear how the four bolts meant to keep the door plug intact went missing. The board said it plans to interview Boeing and aircraft supplier Spirit Aerosystems. The report said the door plug Spirit delivered to Boeing last August had come with certain defects. Next, U.S.’ low-cost carriers have generally struggled in recent years. But Frontier Airlines believes its new three-point plan can help boost profitability, writes Airlines Editor Gordon Smith. Smith notes that Frontier is planning to thoroughly overhaul its network, with fewer flights to oversaturated markets such as Las Vegas and Orlando. Frontier is also looking to increase service to more lucrative destinations where it aims to charge higher fares. The second part of Frontier’s three-point plan is a new product called “BizFare,” which would enable businesses to save on corporate travel expenses. In addition, Frontier is unveiling a revamped website and app, which the company hopes will help boost sales on its platforms. Finally, Chinese travelers are showing less interest in visiting Europe this year, writes Global Tourism Reporter Dawit Habtemariam. A survey by the European Travel Commission found roughly 57% of Chinese travelers plan to travel to Europe in 2024. That’s a 14 percentage point drop from last year. Habtemariam notes one reason for the drop is Chinese travelers’ growing desire to explore locations closer to home, with several Asian destinations easing their visa policies.
Episode Notes Nearly 94% of 737 Boeing Max 9s are back in service after the aircraft was grounded for roughly three weeks in January, writes Airlines Reporter Meghan Maharishi. The Federal Aviation Administration said that 135 Max 9s have been inspected and returned to service following a blowout aboard an Alaska Airlines flight in early January. The grounding of the Max 9 forced United Airlines and Alaska — the only two U.S. carriers operating the aircraft — to cancel thousands of flights last month. Next, Brand USA, the U.S.’ tourism marketing agency, will air a Super Bowl ad internationally for the first time, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam reports the 15-second ad will air in both Germany and the United Kingdom, two major sources of tourism for the U.S. Brand USA established a partnership with the NFL in Germany and the UK last year. Staci Mellman, the agency’s chief marketing officer, said partnering with the NFL has enabled it to tap into the growing number of international travelers interested in American football. We end today looking ahead to soccer’s World Cup in 2026. Officials in Dallas are disappointed they won’t get to host the final match but they still got one big win: hosting the most matches of any city, writes Global Tourism Reporter Habtemariam. Dallas will host nine matches during the tournament, including a semifinal. One local sports executive said the economic impact would be similar to that of nine Super Bowls. A study by the Boston Consulting Group found the 2026 World Cup should generate between $90 million and $480 million for the cities.
Episode Notes Skift Research has published its Global Travel Outlook 2024, which sees Asia leading the travel industry’s growth while Europe’s travel boom will likely slow down. The forecast shows Asia Pacific growing 20% over 2023. Research Analyst Saniya Zanpure writes the region has gotten a big boost from China easing its strict Covid-era regulations in January 2023. Meanwhile, Europe’s travel revenue is projected to register only a 5% increase from last year, with Zanpure noting that Europe faces challenges such as inflation and climate-related concerns. Next, Frontier Airlines announced on Thursday that it’s launching a business fare as part of its strategy to attract corporate travelers, writes Airlines Reporter Meghna Maharishi. Frontier said that “BizFare” would enable businesses to save on corporate travel expenses. The ticket would be available through a company’s global distribution channel. Maharishi added the new fare could help Frontier cater to travelers that wouldn’t normally fly with an ultra-low-cost carrier for business trips. Finally, Royal Caribbean believes the new Icon of the Seas, the world’s largest cruise ship, will help the company better compete against destinations like Las Vegas and Orlando for family vacations, writes Global Tourism Reporter Dawit Habtemariam. Royal Caribbean Group CEO Jason Liberty said during the company’s fourth-quarter earnings call that it can hold its own against longtime popular tourist destinations. The $2 billion, 20-floor ship contains eight different sections, each with a different experience for guests. Liberty added Royal Caribbean plans to innovate further to reduce the value gap between the company and land-based vacations.
Episode Notes Boeing CEO Dave Calhoun issued an apology for the recent Alaska Airlines blowout amid the reeling planemaker’s struggles with its 737 Max 9 aircraft, writes Airlines Reporter Meghna Maharishi. Calhoun said during Boeing’s fourth-quarter earnings call that the company has a lot of work to do to earn the public’s trust back. While Calhoun didn’t speculate on what possibly caused the blowout, he acknowledged Boeing was responsible. The 737 Max has been plagued with problems in recent years, and Max 9 was grounded by the Federal Aviation Administration for roughly three weeks in January. Boeing didn’t issue any financial targets for 2024, with Calhoun saying the company needs to “focus on every next airplane.” It is unclear how big of a financial hit Boeing will take. Next, GetYourGuide is rolling out its largest-ever advertising campaign as part of its strategy to challenge Viator in the U.S., reports Senior Hospitality Editor Sean O’Neill. GetYourGuide recently aired a 30-second commercial during the NFL playoffs and it plans to run more national TV ads during major events such as the Academy Awards. O’Neill writes that GetYourGuide’s ads aim to reach 70% of Americans this year. Only 25% of the company’s customers are located in the U.S. Finally, travelers can easily visit Machu Picchu again as protests blocking critical rail access to Peru’s most famous landmark are over, writes Global Tourism Reporter Dawit Habtemariam. Protesters had blocked rail service to Machu Picchu for five days in anger over the government’s contract with private company Joinnus to distribute tickets to tourist attractions. Peruvian officials signed an agreement on Tuesday night that includes ending the contract. A representative from Inca Rail said travelers can now book rail service to Machu Picchu.
