Skift

Presented by Brand USA Episode Notes Destinations across Europe are grappling with extreme heat, with soaring temperatures contributing to the deaths of five tourists in Greece. Authorities on the continent are struggling to develop strategies to combat the heat, writes Travel Experiences Reporter Jesse Chase-Lubitz.  Chase-Lubitz notes policy experts in the European Union believe governments are unprepared for the heat despite having access to information about possible heatwaves. European Climate Pact Ambassador Cinzia de Marzo said countries are responding to emergencies instead of putting plans in place to deal with extreme heat.  The World Meteorological Organization released data recently showing that five of the most severe heat waves since 1950 took place in just the past three years. Next, a large number of Asian sports fans have traveled to Europe for the Euro 2024, the continent’s soccer championships, reports Asia Editor Peden Doma Bhutia. Online travel company Trip.com Group reported a 125% incre

Presented by Brand USA Episode Notes New York City has cracked down on short-term rentals by requiring hosts to register since last September. Since then, the city has only approved a little less than 2,300 applications, reports Executive Editor Dennis Schaal. Schaal writes the figure is a sign of the lack of short-term rentals in New York City. Christian Klossner, the Office of Special Enforcement’s executive director, said Local 18, which also requires hosts to be present during the stay, has helped reduce illegal short-term rental listings in the city. The office has only approved roughly 36% of applications submitted since September.  Next, the Federal Aviation Administration is looking to tighten safety requirements on public charter airlines such as JSX. That could be a blow for companies like JSX, writes Airlines Reporter Meghna Maharishi.  Maharishi notes that if the changes are approved, public charter airlines would fly under the same rules as commercial airlines. The FAA has said some public charte

Presented by Brand USA Episode Notes The use of artificial intelligence in the travel industry has grown significantly in recent years. However, the industry still has a lot of work to do to get the most out of AI. Vivek Bhogaraju, advisory partner of data and AI at Skift, provides travel companies with ideas on how to develop AI strategies. Bhogaraju writes that this is just the beginning of the AI era. He urges companies to be flexible when using the technology, noting that new regulations will eventually be introduced. Bhogaraju also emphasized the importance of hiring the right chief data officers, who he said need extensive technical knowledge and a background in the travel industry.  Although Bhogaraju writes that successful data and AI execution requires urgency and efficiency, he notes that projects that succeed take time and persistence.  Next, LVMH said on Thursday it reached a deal with Accor to speed up the revival of the hotel company’s Orient Express brand, reports Senior Hospitality Editor Sean

Presented by Brand USA Episode Notes Activist fund Elliott Investment Management has called for a major shakeup at the top of Southwest Airlines after recently taking a $2 billion stake in the carrier. However, Southwest CEO Bob Jordan has no plans to resign, writes Airlines Reporter Meghna Maharishi.   Jordan said at a Politico event on Wednesday that he would consider Elliott’s feedback, adding that Southwest is ready to adapt its business model. Maharishi reports Elliott has been calling for Jordan and Chairman Gary Kelly to step down due to Southwest’s recent struggles. The carrier has yet to turn a profit this year.  Next, hotel companies’ investments in wellness have grown enormously in recent years. Senior Hospitality Editor Sean O’Neill takes a look at emerging trends in hotel wellness. A report from consulting firm RLA Global revealed hotels with wellness offerings saw healthy growth in 2023. So-called upper upscale hotels performed best in wellness last year compared to luxury and upscale segments.

Presented by Brand USA Episode Notes IAG Loyalty has big plans to expand its frequent flyer currency Avios. IAG Loyalty CEO Adam Daniels discussed those ambitions and more in an interview with Airlines Reporter Meghna Maharishi.  Daniels said one of IAG Loyalty’s goals is to make Avios a global currency. Avios has already entered into partnerships with Qatar Airways and Finnair, carriers outside of the IAG family. IAG’s airline brands include British Airways, Iberia and Aer Lingus. Daniels added Avios is in discussions with other airlines as well as hotel groups. Daniels also addressed the trend of devaluing frequent flyer miles. He acknowledged one criticism of loyalty programs is that collecting miles has been easier than using them. Daniels said IAG Loyalty is looking to change that.    Next, Marriott recently reached a deal with the U.S. Justice Department to comply with the Americans with Disabilities Act, reports Senior Hospitality Editor Sean O’Neill.  Marriott will make improvements to its reservation

Presented by Brand USA Episode Notes Apple unveiled new travel-related features for several of its products on Monday at the 2024 Apple Worldwide Developers Conference. Travel Technology Reporter Justin Dawes provides details about Apple’s updates.  Dawes notes the Apple Watch will have a new translation app, live update features for flights and Uber, and a setting to alert users before it rains. In addition, Siri is getting a connection to OpenAI, which will enable users to ask Siri anything they can ask ChatGPT, including trip planning info for free. And travelers will be able to use Apple Vision Pro virtual reality headsets on not just planes — but trains as well.  Next, InterContinental Hotels Group would like its property mix to include more premium, lifestyle and luxury brands. However, IHG is downplaying its plans due to its investors’ preference for mid-market and extended-stay brands, reports Senior Hospitality Editor Sean O’Neill.  Although O’Neill notes moving upmarket is tantalizing for several re

Presented by Brand USA Episode Notes Authorities in Venice believe the roughly $5 entry fee it charges visitors has benefited the city. And a top tourism official told Skift Venice could raise the amount, writes Global Tourism Reporter Dawit Habtemariam.  Simone Venturini, the city’s deputy mayor for tourism, said the fee is part of Venice’s strategy to preserve its beauty and pivot away from being “a cheap tourism capital.” Venturini added that everything has gone smoothly since the entry fee was implemented in April. He said the city is considering hiking it to roughly $10.  Venturini said the entry fee mainly targets local day-trippers. He also disputed the notion that the majority of Venetians object to it, stating a protest that attracted 200 people didn’t represent the views of most residents.   Next, U.S. hotel demand growth is projected to slow down — even in the luxury sector, reports Senior Hospitality Editor Sean O’Neill.  Data firms STR and Tourism Economics project a roughly 2% increase in averag

Episode Notes Booking.com is targeting U.S. travelers to tap into the increasing demand for short-term rentals, writes Reporter Christiana Sciaudone.  Eric Bergaglia, Booking.com’s vice president of Homes & Growth Segments, said at the Skift Short-Term Rental Summit that the company needs to be more U.S.-centric in how it develops products. Sciaudone reports Booking.com is focusing on in particular payments, liability insurance, damage policy to appeal to American consumers.   Bergaglia said that U.S. consumers aren’t as aware of Booking.com as those in other markets worldwide are.   Next, population shifts across the U.S. could drive vacation rental growth in certain markets, writes Reporter Elizabeth Casolo.  AirDNA Chief Economist Jamie Lane said at the Skift Short-Term Rental Summit that the “mass exodus” of people from certain locations would impact where guests stay. Lane said that would result in people vacationing in entirely different markets, with Casolo citing Texas and Florida as states that have

Episode Notes Hotel tech has a long way to go before it can satisfy travelers’ demands, two executives said at the Skift Data + AI Summit in New York on Tuesday, writes Reporter Christiana Sciaudone. Chris Hemmeter, managing director at Thayer Ventures, and Kurien Jacob, partner and managing director of Highgate Technology Ventures, explained how hotel tech needs to evolve. Jacob noted how the travel industry is behind tech-wise – “room assignment can be automated,” he said. Hemmeter said the hospitality industry has been playing catch up while the traveler has changed.  Next, large numbers of travelers are making plans for the summer. But one thing many of them won’t be doing is using trip-planning apps, writes Sciaudone. Gilad Berenstein, founder of investment firm Book Bay Capital, said the travel industry hasn’t proven there’s a lot of consumer demand for a trip-planning app. He noted that Google Maps and Google Calendar are the world’s most popular trip-planning tools. Skift Research found earlier this y

Presented by Brand USA Episode Notes Wyndham wants to shed its reputation for focusing on economy hotels in the U.S. The hotel group is looking to increase the number of upscale properties in its portfolio, reports Senior Hospitality Editor Sean O’Neill.   Wyndham CEO Geoffrey Ballotti said at a conference in New York on Monday that while the company loves the economy sector, it’s increasingly moving upscale. Ballotti added that Wyndham has added properties in Montreux, Switzerland and Detroit to its new lifestyle hotel brand HQ. Wyndham has also acquired several upscale brands across the world, including in Austria and India.  Next, Spirit Airlines Chief Financial Officer Scott Haralson is leaving the company to assume the same role at Hertz, writes Airlines Reporter Meghna Maharishi.  Spirit announced on Monday that Haralson will step down on June 14. Brian McMenamy, a vice president at Spirit, will be the carrier’s interim CFO. Haralson’s departure comes as Spirit has struggled to turn a profit since the p

Presented by BrandUSA Episode Notes The market for unlimited in-flight Wi-Fi connectivity is set to boom as airlines look to make it easier for travelers to stay connected in the skies. Reporter Ajay Awtaney provides background into the history of in-flight Wi-Fi. Awtaney writes in-flight internet connectivity has come a long way since what he calls painfully slow service more than 20 years ago. As technology has improved over the past two decades, airlines have used advertising or sponsorship deals — such as a partnership with a streaming service — to make in-flight Wi-Fi more affordable. More carriers in recent years — including Delta Air Lines — have offered free Wi-Fi to members of their loyalty programs.  In addition, Airbus unveiled in 2022 the HBCplus system, which makes it easier for airlines to provide in-flight Wi-Fi.   Next, Airbnb hadn’t said much about its experiences offerings amid recent struggles. But the company’s Chief Financial Officer Ellie Mertz has explained what went wrong and how it p

Presented by BrandUSA Episode Notes American Airlines CEO Robert Isom has paid tribute to outgoing Chief Commercial Officer Vasu Raja. But Isom has indicated it was time for Raja to go amid American’s struggles, reports Airlines Editor Gordon Smith. Isom admitted at a conference on Wednesday that American has dug itself a hole during the second quarter, with the company’s financial outlook having been downgraded. While praising Raja’s creative thinking and passion, Isom acknowledged that American needed a reset. The company has underperformed compared to rivals Delta and United across multiple key metrics, including operating margin — an important measure of profitability.  Next, Glenn Fogel, CEO of both Booking Holdings and Booking.com, was the highest-paid travel CEO in 2023, reports Executive Editor Dennis Schaal.  Fogel received a total pay package of $46.7 million last year, according to the Wall Street Journal. Delta Airlines CEO Ed Bastian came in second among travel CEOs, with a pay package of $34.2

Presented by BrandUSA Episode Notes Google has made further inroads in the travel industry in recent months with several AI-powered products it’s launched. Travel Technology Reporter Justin Dawes delves into four of them. Dawes notes that Google has incorporated new AI features into software for physical products, including mobile phones. A new feature on Android devices enables users to translate content on the screen without having to switch apps. Travel technology firm Sabre recently unveiled a new AI-powered retailing platform for airlines called SabreMosaic, which is meant to help airlines create and sell personalized retail experiences.  Meanwhile, Alaska Airlines is planning to launch a trip planner built with tech from Google. IHG Hotels & Resorts has plans to release a trip planning tool powered by Google’s AI within its One Rewards mobile app later this year. Next, New York City hotel rates have hit record highs in large part due to a supply crunch, writes Senior Hospitality Editor Sean O’Neill. Th

Presented by BrandUSA Episode Notes OpenAI, Google and Meta have big plans for AI chatbots that can serve as personal assistants for travelers. Travel Technology Reporter Justin Dawes provides takeaways after reviewing the latest updates. OpenAI is releasing new voice translation capabilities in the near future that can understand non-verbal cues and recognize different voices in group conversations. Dawes notes OpenAI’s voicebot could break down language barriers that could keep travelers from visiting certain destinations. OpenAI and Meta are also promoting their tech’s visual translation capabilities, which help travelers, for example, figure out a menu not in their native language.  While Dawes notes OpenAI is the furthest along in creating a virtual personal assistant that can be a tour guide, he writes Google is the furthest along in developing trip planning tools integrated with booking options.   Next, Chase Travel saw its sales grow as fast as Booking Holdings’ last year. But Chase said it faces some

Presented by BrandUSA Episode Notes Airbnb recently said its average daily rates can be cheaper than those of hotels. But there are lot of factors to consider, reports Executive Editor Dennis Schaal. The company said the average daily rate in March of a one-bedroom Airbnb worldwide was $114 while data firm CoStar reported the equivalent rate for a hotel room was $140. But Schaal notes there is a lot of nuance in those numbers, adding they don’t include Airbnb cleaning fees, hotel resort fees or taxes.  In addition, Jan Freitag, a CoStar executive, said the issue of whether an Airbnb or a hotel room is cheaper depends on the market and time of the year, among other factors.  Next, Scandinavia is seeing a surge in tour and activity bookings for this summer in part due to the region’s moderate climate, writes Travel Experiences Reporter Jesse Chase-Lubitz.  Data from GetYourGuide, Viator and TourRadar all indicate a significant jump in bookings compared to last year. The spike may be connected to traditionally p

The World Economic Forum recently released its 2024 Travel & Tourism Index. Global Tourism Reporter Dawit Habtemariam and Senior Hospitality Editor Sean O’Neill profile five countries the organization named as among the most-improved economies for enabling travel and tourism development since 2019.  Habtemariam and O’Neill highlight Albania, Indonesia, Egypt, Tanzania and El Salvador. In particular, Albania has seen a 141% increase in daily flight traffic since 2019. Meanwhile, Indonesian authorities boosted domestic tourism last year by launching a program that gave financial support to more than 170 festivals and cultural events.  Habtemariam and O’Neill note that the World Economic Forum has recommended that tourism leaders develop strategies to combat challenges such as labor shortages and climate change.  Next, the Four Seasons is betting that luxury travelers will be willing to make a long journey to the remote Pacific island of Palau, writes Columnist Colin Nagy.  The Four Seasons is planning to open a

Episode Notes Marriott and Hilton are in fierce competition regarding the growth of their portfolios and loyalty programs. But Marriott is the clear winner in terms of fees earned from services for hotel owners, writes Senior Hospitality Editor Sean O’Neill in this week’s Early Check-In.  Hotel groups charge owners fees for managing or franchising hotels. Marriott generated $1.24 billion in gross fee revenue last year while Hilton generated $773 million. While Hilton’s fee revenue is growing faster than Marriott’s, O’Neill notes that Marriott’s lead is so large that it would take Hilton 40 years to catch up if current trends remained the same.  Next, Google recently launched AI-driven search capabilities as well as a more advanced Gemini AI model. Skift CEO and founder Rafat Ali provided his take on the new offerings.  Ali writes that AI Overview stands out as a key feature in Google Search, and provides comprehensive summaries for complex travel queries. One query – “What’s the best time to visit London?” – 

Episode Notes Airlines have recently gotten a big boost from a segment many airlines thought would continue to struggle — business travel, writes Airlines Reporter Meghna Maharishi.  Delta Air Lines said corporate bookings were up 14% in the first quarter. Delta President Glen Hauenstein said 90% of the companies it surveyed said they plan to increase travel in the second quarter. United Airlines and Alaska Airlines both recorded significant increases in corporate bookings during the first quarter, with Alaska stating business travel for the carrier has fully recovered to pre-Covid levels.  Next, Chase now offers its cardholders something its rivals and online travel agencies don’t — the opportunity to book Southwest Airlines flights through its own travel platform, reports Executive Editor Dennis Schaal.  A Chase spokesperson said this week that cardholders are able to book Southwest flights on Chase Travel using points or cash. Cardholders who wanted to book Southwest flights in the past would’ve had to pho

Episode Notes This year’s Summer Olympics are boosting short-term rental bookings in Paris, writes Reporter Elizabeth Casolo.  Short-term rental bookings in Paris between July 26 through August 11 are up 46% compared to the prior two weeks, according to data analytics firm AirDNA. Bookings in Paris’ suburbs for the Olympics are up 112%. However, AirDNA Chief Economist Jamie Lane said short-term rental rates during the Olympics are beginning to drop. Lane added AirDNA expects rates to continue falling because hosts will get worried their units aren’t booked.   Next, Generation Z travelers are spending big on travel — especially hotels, writes Senior Hospitality Editor Sean O’Neill.  Generator and Freehand hotel brands — both of which heavily target guests between the ages of 18 and 28 — saw revenue jump 15% in 2023 from the previous year. The two brands have seen bookings jump 40% this year in markets such as Miami, Madrid and New York. Alastair Thomann, CEO of the two brands, attributed that growth to spendin

Episode Notes Google is going deeper into the AI-powered trip planning world. The tech giant is adding itinerary-building capabilities on Gemini Advanced, its paid generative AI chatbot, writes Travel Technology Reporter Justin Dawes. Google Vice President Sissie Hsiao said Gemini Advanced can create a personalized vacation plan using multiple sources of information. The trip-planning capability is coming to Gemini Advanced this summer. In addition, Google is also boosting trip-planning options for AI Overviews, the AI feature it released earlier this year.  Next, Ariane Gorin took over as CEO of Expedia Group this week. She explained what she's looking to accomplish during an interview with Executive Editor Dennis Schaal. Gorin said that organic growth is one of her priorities, having recently completed a tech migration that brought together several of its brands onto one platform. She added Expedia is focused on growing internationally, but will take a measured approach in doing so.  Gorin added Expedia nee