Skift

Episode Notes Meta AI recently released the newest version of its generative AI model, which it says outperforms that of OpenAI in nearly every metric. Travel Technology Reporter Justin Dawes tested how it works for trip planning.  Dawes notes the Meta AI’s chatbot gave a list of suggested activities in the Vancouver area focused around hiking and cultural experiences — but not in the form of a traditional activity. The suggestions were grouped according to the type of activity, along with a suggestion for which day to complete each of them.  Dawes added the chatbot provided useful suggestions for Vancouver-area restaurants. However, he reports two of the recommended restaurants are permanently closed. In addition, the chatbot didn’t provide links to any of the restaurant websites.  Next, several prominent airlines are using the Paris Olympics to build brand recognition. Airlines Reporter Gordon Smith takes a look at carriers that have entered into Olympic-related partnerships. Delta Air Lines recently signed

Episode Notes The Henley Passport Index has just released its rankings for the most powerful passports of 2024, and Singapore took the top spot, writes Asia Editor Peden Doma Bhutia.  A Singaporean passport provides visa-free access to 195 countries. Japan and South Korea occupy the second and third spots in the index while the U.S. is in eighth place. The Henley Passport Index measures the strength of passports based on the number of destinations their holders can enter without a visa.  Japan had occupied the top position in last year’s Henley Passport Index.  Next, Southwest Airlines saw its profits drop significantly during the second quarter as it announced it’s making major changes to boost its bottom line, writes Meghna Maharishi.   Although Southwest posted record revenue, its net income dropped roughly 46%. As a part of its strategy to increase profits, Southwest announced on Thursday it would roll out premium seating and do away with its open boarding process.  Maharishi notes those are significant c

Episode Notes Google recently announced it won’t get rid of the third-party cookies in its Chrome browser that enable companies to track consumers across other websites. Executive Editor Dennis Schaal examines what Google’s decision means for travel marketers. Skift Head of Research Seth Borko said Google’s move will help smaller travel advertisers. Borko noted larger companies were already devising ways to better use their own first-party data to track consumers if cookie capabilities disappeared.  Meanwhile, Brian Harniman — an executive at digital agency From — blasted Google’s explanation for the decision, arguing it acknowledged the tech giant is beholden to its large advertisers. But Amber Carpenter, an executive at vacation rental property manager Vtrips, said Google’s move wouldn’t have much of an impact on travel brands.   Next, travel brands are increasingly showcasing the ways they use AI. But three hotel tech executives argue that AI isn’t living up to the hype, writes Travel Technology Reporter J

Episode Notes Delta Air Lines is facing mounting pressure from travelers and the U.S. government as disruptions caused by a recent IT outage continue. The Department of Transportation is launching an investigation into the carrier, writes Airlines Reporter Meghna Maharishi.  Delta has canceled more than 5,000 flights after the outage last Friday caused systems relying on Microsoft Windows to crash. Delta CEO Ed Bastian said on Sunday that the airline would provide Delta SkyMiles and travel vouchers as a “gesture of apology.” However, some customers said they haven’t received any vouchers and report long wait times to reach customer service where some have gotten conflicting information.  In addition, the Department of Transportation said the Office of Aviation Consumer Protection would conduct the investigation due to the ongoing flight disruptions and reports of customer service issues.  Next, Venice implemented a roughly $5 entry fee for day trippers earlier this year as part of its strategy to combat mass

Episode Notes Mallorca recently saw another large demonstration against mass tourism, writes Global Tourism Reporter Dawit Habtemariam. More than 20,000 protestors marched the streets of Palma de Mallorca on Sunday as Spain continues to emerge as one of the hottest destinations in Europe. Demonstrators called for more affordable housing, fair wages, better conservation of natural spaces, and respect for local culture. The protests have not reduced the popularity of the destinations this summer. International flights bookings for Mallorca are up 6% for July and August. For Barcelona, they’re up 18%.  Next, business travel spending worldwide is expected to hit an all-time high by the end of 2024, reports Senior Hospitality Editor Sean O’Neill. The Global Business Travel Association said that global business travel spending is projected to reach $1.48 trillion by year-end. That would top pre-Covid levels for the first time. The GBTA found that 68% of business travel managers report spending more in 2024 than las

Episode Notes Hyatt is close to a deal to buy Standard International, operator of the upscale Standard Hotels, reports Senior Hospitality Editor Sean O’Neill.  Negotiations between Hyatt and Standard International “are in advanced stages,” according to Bloomberg News. A source at Hyatt said the talks were ongoing and hadn’t been finalized, noting that Hyatt has walked away from deals at the last minute when there are issues.  Next, United Airlines Chief Commercial Officer Andrew Nocella has blasted its low-cost rivals, arguing they’ve “largely run their course,” writes Airlines Reporter Meghna Maharishi.  Nocella said during United’s second-quarter earnings call that the growth line of low-cost carriers is highly unprofitable. He added he doesn’t see any new opportunities available in the sector. Maharishi notes a surplus of domestic seats — much of which has been spurred by ultra-low-cost carriers — have dragged down United’s third-quarter outlook.  Finally, Skift Meetings Executive Editor Andrea Doyle and G

Episode Notes Virgin Atlantic is pulling out of China after serving the country for 25 years. Virgin becomes the latest Western carrier to retreat from China, writes Airlines Editor Gordon Smith. Virgin Atlantic cited “significant challenges and complexities” as the reason for its decision. The carrier’s final round-trip service to China will be London-Shanghai flights on October 25. Smith notes the closure of Russian airspace has made Virgin Atlantic’s journeys even longer and helped increase the company’s operating expenses.  Virgin Atlantic’s decision comes weeks after Qantas said it was pulling out of mainland China later this month. Next, business travel spending by U.S. companies may finally top pre-Covid levels by the end of this year, writes Reporter Christiana Sciaudone. A newly released report by Deloitte found that U.S. companies’ business travel spending is expected to grow between 8% and 12% this year. A Deloitte executive said that figure is projected to increase in 2025 as well due an increase

Episode Notes Amsterdam, one of the world’s most visited destinations, wants fewer tourists. The city’s Deputy Mayor Sofyan Mbarki discussed Amsterdam’s strategy to decrease visitor numbers and attract better-behaved travelers with Global Tourism Reporter Dawit Habtemariam.   Mbarki said more rental units need to be reserved for residents instead of tourists, and that Amsterdam plans to introduce new short-term rental regulations. The city is also placing limits on cruise ships and development of new hotels. And Amsterdam is once again running a “Stay Away” campaign, which aims to deter tourists from partying in the city’s Red Light District.   Next, United Airlines flight attendants will vote on whether to authorize a strike as negotiations with management have stalled, writes Airlines Reporter Meghna Maharishi.  Flight attendants have been demanding better pay and working conditions since the pandemic. The Association of Flight Attendants, which represents United flight attendants, said it’s the first vote

Episode Notes Last-minute travel booking sites have often done well during economic downturns. Executive Editor Dennis Schaal provides information about companies like last-minute vacation rental site Whimstay, which has announced discounted inventory deals with several major travel brands.   Whimstay recently unveiled a partnership with Expedia Group and Vrbo that will furnish the company with up to 250,000 new listings. Whimstay, which targets Millennial and Gen Z travelers, gets its inventory from property managers eager to offer rooms at discounted rates rather than see them unoccupied.  Schaal notes the partnership, to be implemented during the third quarter of this year, will enable travelers to access discounts on Whimstay, especially when they book within 30 days of the stay.     Next, tours and activity brand Viator has unveiled two new ads with the catchphrase “Regret Less. Do More” that highlight travel mishaps and how Viator could have helped avoid them, writes Travel Experiences Reporter Jesse Ch

Episode Notes Despite a record number of people traveling this summer, quarterly results from Delta — one of the most profitable U.S. airlines — fell short of expectations, writes Airlines Reporter Meghna Maharishi. Delta reported record revenues for the second quarter but profits dropped 29% largely due to a surplus of seats and higher fuel costs. President Glen Hauenstein said domestic seat growth this summer has surpassed demand, affecting main cabin revenues. Hauenstein added that Delta expects to take a $100 million revenue hit this summer to the Paris Olympics.  Next, 12 companies in the travel industry raised at least $100 million during the first half of 2024, writes Travel Technology Reporter Justin Dawes. Dawes notes a big jump from the same period last year, when only two travel startups raised that amount of money. Travel startups raised roughly $2.8 billion through the end of June, more than double the figure last year. Skift Research predicts that 2024 will see fewer deals than 2023, but their l

Paris is expecting to see a small bump in overseas visitors for the upcoming Summer Olympics, but no large-scale boom, writes Global Tourism Reporter Dawit Habtemariam.  Less than 15% of the projected roughly 11 million Olympic visitors will be foreign, according to the city’s tourism board. Paris tourism chief Corinne Menegaux had previously told us that most Olympic ticket holders will be French. Habtemariam notes many travelers are avoiding the popular tourist destination because of the Olympics.   Meanwhile, international flight bookings to Paris for the Olympic period — from July 26 to August 11 — have increased by 8% from the same timeframe last year. That figure is a substantial decrease from the last pre-Covid Summer Olympics.  Next, speaking of the French capital, Qantas will debut a roughly 17-hour nonstop flight from Perth to Paris on Friday, writes Airlines Editor Gordon Smith and Reporter Pranjal Pande.  The Perth-Paris flights will operate four times a week prior to the second week of August, af

Episode Notes Air travel is breaking records. But a recent Newsweek poll found that 44% of respondents won’t be traveling anywhere in the next three months, while 53% said they would’ve gone on vacation if the cost of living had been cheaper. Meanwhile, luxury hotel occupancy was up 1.8% in the first five months of 2024 while economy hotel occupancy was down 3.4% Next, Marriott has debuted an online travel booking portal for small-to medium-sized businesses. It’s part of the company’s strategy to attract more direct bookings for business travelers, reports Senior Hospitality Editor Sean O’Neill.   Marriott’s new platform will enable users to book hotels, flights and car rentals without having to rely on third-party services such as American Express Global Business Travel. The hotel giant’s business travel model provides customers discounted rates at Marriott properties worldwide as well as access to Marriott Bonvoy loyalty program benefits, among other features.  Finally, the Indigenous Tourism Association of

Episode Notes Boeing will accept a guilty plea deal from the Department of Justice over charges the planemaker misled federal authorities on certain aspects of the 737 Max 8, which has been involved in fatal crashes. Airlines Reporter Meghna Maharishi lists three takeaways from Boeing’s deal with the Justice Department.  Boeing will have to pay a more than $240 million criminal offense fine and invest at least $455 million in compliance and safety programs. The planemaker will be on probation for three years, during which it would need to install an independent monitor to oversee its compliance and safety. In addition, Boeing wouldn’t have any protection from any ongoing or future federal investigations.  Next, Airbnb has unveiled a new ad urging travelers heading to Paris for the Olympics to avoid hotels to discover the true essence of the French capital, reports Executive Editor Dennis Schaal. Airbnb’s ad features a family of four dealing with common tourist come-ons outside of a hotel before the hotel coll

Presented by Brand USA Episode Notes A growing number of companies have reduced their travel budgets in recent years, but that hasn’t slowed down business travel’s rebound, writes Reporter Christiana Sciaudone.  Roughly 60% of travel buyers said their companies have cut their travel budgets in the past few years, according to a recent BCD Travel survey. In addition, 96% said their companies have introduced cost control policies.  However, Sciaudone notes 2024 is shaping up to be a strong year for business travel. The global business travel market is expected to hit pre-Covid levels this year, according to British data analytics firm GlobalData. Roughly 220 million outbound business trips are projected to take place in 2024, up from 174 million last year.  Next, American Airlines announced it’s reached a conditional purchase agreement with startup ZeroAvia for 100 hydrogen-electric engines, writes Airlines Reporter Meghna Maharishi.  American CEO Robert Isom said the hydrogen-electric engines would help the co

Episode Notes Nat Pieper has the task of helping lead 13 airlines as the CEO of the oneworld alliance, one of the world’s three major airline groups. Pieper discussed the challenges he faces and industry trends in an interview with Airlines Editor Gordon Smith. Oneworld has opened airport lounges in Seoul and Amsterdam this year, but Pieper acknowledged he doesn’t have a magic number in mind for how many lounges he’d like to open. He did note that the revenue outlook this summer for oneworld looks healthy despite post-pandemic revenge travel having run its course. And he sees the premium travel experience as a trend that’s here to stay.  Next, visitors to Japan no longer have free access to Mount Fuji’s popular Yoshida Trail, writes Global Tourism Reporter Dawit Habtemariam.  Local authorities have implemented both a mandatory $12 fee to climb Mount Fuji on the trail and a daily cap of 4,000 hikers. Officials have also set up a new reservation system and entry gate to enforce the cap. A Japanese tourism execu

Presented by Brand USA Episode Notes The National Transportation Safety Board has blasted Boeing, arguing the planemaker shared sensitive information with the media, writes Airlines Editor Gordon Smith.  The NTSB said that Boeing had violated the agency’s investigative rules by disclosing information to the press about the January blowout on an Alaska Airlines flight. The agency also said Boeing improperly speculated about possible causes of the blowout.  As a result, Boeing will no longer have access to the investigative information that the federal agency produces as it continues its probe into the January 5 accident. In a statement, Boeing acknowledged that it overstepped and apologized.  Next, short-term rental price comparison business HomeToGo plans to show total cost, including fees and taxes, to comply with California’s new junk fee law that starts on July 1, reports Executive Editor Dennis Schaal.  HomeToGo CEO Patrick Andrae said his company is going further than Airbnb, which plans to display the n

Presented by Brand USA Episode Notes A Microsoft executive believes Xbox can teach the travel industry several things about the customer experience, writes Travel Technology Reporter Justin Dawes.  Shane O’Flaherty, a Microsoft executive who spoke this week at hospitality tech event HITEC, said Xbox has found ways to drive digital engagement with consumers. O’Flaherty explained that Xbox tracks every player’s movement and constantly presents them content that will improve their experiences.  So how might that approach work in travel? O’Flaherty provided an example of a hotel that knows some guests love whiskey might create an impromptu tasting event and send a note about the event to those guests.  Next, activist investor Elliott Investment Management has blasted Southwest Airlines for its weaker second-quarter financial outlook, writes Airlines Reporter Meghna Maharishi.  Elliott, which took a nearly $2 billion stake in Southwest earlier this month, argued the carrier is led by a team unable to adapt to the

Presented by Brand USA Episode Notes The U.S. hotel industry’s performance has had mixed fortunes so far this year. The luxury sector has experienced robust growth in demand and room rates while economy hotels have struggled, reports Senior Hospitality Editor Sean O’Neill.  Luxury hotel occupancy was up 1.8% in the first five months of 2024, according to CoStar. However, economy hotel occupancy was down a little more than 3%. O’Neill writes affluent travelers might be benefitting from a recent sharp run-up in stock prices and increased home values, which might make them feel comfortable spending on luxury hotels.  Meanwhile, O’Neill adds high inflation for core things for lower-income households may force them to prioritize essential expenses instead of discretionary travel.  Next, the Lufthansa Group — the parent company of several major airlines — says it can’t afford the additional costs of the European Union’s new environmental regulations on its own. So Lufthansa is adding a surcharge of up to $77 to fli

Presented by Brand USA Episode Notes Travelers heading to New York City for the Fourth of July weekend aren’t booking as many short-term rentals as they did last year. Bookings are instead surging at destinations along the Atlantic coast, writes Global Tourism Reporter Dawit Habtemariam.  AirDNA revealed that New York City is no longer a top 10 market for the holiday and has been replaced by coastal destinations in Delaware and Maryland. Short-term rental bookings at coastal destinations for this Fourth of July weekend are up more than 7% from last year. Bookings for urban destinations saw a 10% drop from last year’s holiday weekend, which AirDNA attributes to a decrease in supply. Next, Jeff Miller, the longtime CEO and president of Travel Portland, will retire in December, writes Global Tourism Reporter Dawit Habtemariam.  Miller, who has led the organization for 19 years, has been an outspoken advocate for the city against what he’s seen as negative news coverage of Portland. He said widespread reports abo

Presented by Brand USA Episode Notes Venture capital investment in the travel industry hit its lowest level in a decade in 2023, one finding from a new Skift Research report examining the state of venture capital investment in travel.  The travel industry had only $2.9 billion of venture capital investment in 2023, compared to nearly $9 billion in 2019. Senior Research Analyst Pravani Agarwal also notes the number of deals last year in the travel industry dropped more than 20% from the previous year. That’s the second steepest since the start of the pandemic. But while the trend is for fewer deals, they are on pace to be of a larger average size than 2023. This should lead to an overall increase in travel VC funding in 2024, Agarwal writes. The growth areas are in tours and experiences, AI & automation and hospitality employment. Next, starting July 1, Airbnb will display the total price before taxes of a stay in California to comply with the state’s new law banning junk fees, writes Executive Editor Dennis S