Skift

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 internation

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 ul

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 durin

Episode Notes JetBlue Airways is focusing on how it can be profitable following its failed merger with Spirit Airlines. So JetBlue is looking at ways to cut costs and offer more leisure routes, writes Airlines Reporter Meghna Maharishi. JetBlue is grappling with rising costs due to new labor contracts and also has engine issues that have currently grounded seven aircraft. JetBlue Chief Financial Officer Ursula Hurley said the company would offer crew members voluntary buyouts to help offset some of those costs. The New York-based carrier also plans to defer $2.5 billion in aircraft spending to the end of the decade.  And as JetBlue is increasingly targeting leisure travelers, the company is expanding service to popular destinations such as Florida, the Caribbean and Mexico.  Next, protesters have blocked crucial rail access to Machu Picchu in anger over the Peruvian government’s new online ticketing system for tourist attractions, writes Global Tourism Reporter Dawit Habtemariam.  Habtemariam reports tour ope

Episode Notes Fans heading to Las Vegas for the Super Bowl on February 11 will likely pay the highest hotel room rates in the event’s history, writes Global Tourism Reporter Dawit Habtemariam.  The average daily rate for a Las Vegas hotel room between February 9 and 11 is projected to be $573, according to industry data company STR. That figure would break the record set in Miami four years ago. Habtemariam reports that visitors coming for the Super Bowl are expected to book about 350,000 room nights. Next, Ryanair CEO Michael O’Leary has come out in support of beleaguered planemaker Boeing, and called out United Airlines CEO Scott Kirby for saying his company would consider a future without the Max 737 10 in its fleet, reports Airlines Editor Gordon Smith. O’Leary called Kirby’s comments on the Max 10 “stupid” during Ryanair’s third-quarter earnings call on Monday. The Max 10 isn’t certified yet and United has more than 200 of them on order – it has already been waiting five years for the first deliveries of

Episode Notes Alaska Airlines said it would take a $150 million financial hit from the Boeing 737 Max 9 grounding that prompted the airline to cancel roughly 3,000 flights, writes Airlines Reporter Meghna Maharishi.  Alaska CEO Ben Minicucci said during its fourth-quarter earnings call that the company would put pressure on Boeing to produce better planes. Minicucci told NBC News this week he was angry at Boeing for the blowout aboard an Alaska flight earlier this month. He did express optimism that consumer confidence in the Max 9 would eventually come back.   Alaska posted a $2 million net loss during the fourth quarter.  Next, Oracle Hospitality, one of the largest players in hotel tech, is selling what it considers a simplified system for hotel tech operations, writes Travel Technology Reporter Justin Dawes.  Dawes reports Stockholm-based Scandic Hotels Group is already piloting an expanded version of Oracle Hospitality’s cloud-based system. The system, known as Opera Cloud Central, includes a property ma

Episode Notes Los Angeles is launching its largest-ever global advertising campaign to help remain competitive in the fight to attract tourists, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam reports the city will unveil next week the latest iteration of its “Now Playing” campaign, which has showcased Los Angeles’ arts, food and lifestyle. The multi-million dollar campaign will target the UK, France and South Korea, among other markets. LA Tourism CEO Adam Burke said the city is increasing its international marketing efforts in response to the emergence of other competing destinations, including Saudi Arabia. Next, Qantas’ new 10-minute long safety video has been largely panned by viewers who found it tedious among other complaints, writes Airlines Editor Gordon Smith. The new video features Qantas crew and passengers sharing some of their favorite destinations. But with renewed focus on pre-flight briefings in recent weeks, some commenters on social media have argued Qantas’ film lacks critica

Episode Notes United Airlines is taking another look at its fleet plan due to delivery delays with the Boeing 737 Max 10, writes Airlines Reporter Meghna Maharishi. The Max 10 hasn’t been certified by the Federal Aviation Administration yet. And given the Max 9 groundings, United executives said during the airline’s fourth-quarter earnings call on Tuesday that it’s unrealistic to expect deliveries will be on time. Maharishi notes United is focused on the Airbus A350.  Meanwhile, United posted net income of $600 million during the fourth quarter. However, the Chicago-based carrier said Monday it expects a first-quarter loss due to the grounding of the Max 9 following a blowout aboard an Alaska Airlines flight earlier this month.   Next, Expedia CEO Peter Kern is urging hotel owners to clamp down on rogue wholesale rates, reports Executive Editor Sean O’Neill.  Kern said at the Americas Lodging Investment Summit this week that hotels aren’t doing enough to keep their wholesale rates off of smaller retail travel

Episode Notes Global hotel dealmaking is expected to make a major rebound in 2024 thanks to a more positive financing environment, reports Senior Hospitality Editor Sean O’Neill.  At least $58 billion in hotel deals are set to take place this year, according to investment advisory firm JLL Hotels & Hospitality. That would surpass 2023’s total by at least 15%. JLL believes one reason for the increased dealmaking is that struggling hotel owners are looking for buyers to take problem properties off their hands.  The company expects hotels in major cities like London, Paris and New York to see the most investor interest.  Next, Google is planning to change how it displays flight search results in European Union countries. But eDreams Odigeo, a major flights seller, argues Google’s plan isn’t going far enough to let rivals compete, reports Executive Editor Dennis Schaal.  Spain-based eDreams Odigeo said Google’s plan will allow it to favor Google Flights over competing flight-selling services. Google is under orde

Episode Notes The travel industry has gone from deep struggles during Covid to a major boom, with the high demand for “revenge travel.” So what’s in store for travel in 2024? Skift Research believes the industry will return to normal, writes Head of Research Seth Borko. Skift Research said in its newly published 2024 Global Travel Outlook that revenue growth for the travel industry will likely decelerate. However, Borko writes the slowdown isn’t a sign of weakness. He adds that economic conditions appear poised to support further spending and that consumers increasingly prioritize travel.  Next, Airbnb argues that New York City hasn’t delivered on the benefits it promised residents after it enacted a de facto ban on short-term rentals in the city, writes Executive Editor Dennis Schaal.  New York City enacted the law, which requires hosts be present for stays shorter than 30 days, as part of its efforts to increase housing availability and lower rents. Taylor Marr, Airbnb’s senior housing economist, said there

Episode Notes A federal judge blocked the proposed JetBlue-Spirit merger, putting an end to the two airlines’ attempt to create the fifth-largest carrier in the U.S. Why did JetBlue pursue a merger with Spirit Airlines? One key reason is Florida, writes Airlines Reporter Meghna Maharishi and Jay Shabat, senior analyst for Skift’s Airline Weekly.  While Florida is a major market for JetBlue, the New York-based airline doesn’t have much pricing power for those flights. Maharishi and Shabat note that absorbing Spirit in a merger would have eliminated a major competitor known for pushing down airfares. Travelers would have had one less option and probably would have seen higher fares. U.S. District Court Judge William Young wrote the merger would lead to less competition in the industry since Spirit is the largest ultra-low-cost carrier. JetBlue and Spirit directly compete on roughly 40 routes to Florida.  Next, Airbnb has announced it’s forming a housing council to help the company better engage with communities

Episode Notes A U.S. District Court judge blocked the proposed $3.8 billion merger between JetBlue Airways and Spirit Airlines, the first time in 20 years Washington has rejected an airline merger, writes Airlines Reporter Meghna Maharishi. Maharishi reports the ruling represents a victory for the Biden administration, which has supported more competition in the airline industry. Four airlines control 80% of the U.S. market following a series of mergers the U.S. government has approved in the last two decades. Maharishi adds the judge’s decision is a major setback for JetBlue, which had been seeking ways to become more competitive against the giants of the U.S. airline industry.  JetBlue would have fully absorbed Spirit’s operations if the merger had been approved.  Next, flight disruptions are continuing to mount after a severe winter storm battered the Northeastern United States, writes Airlines Reporter Maharishi.  There were close to 2,000 cancellations and 5,000 delays across the U.S. as of Tuesday after

Episode Notes Tripadvisor plans to release a metaverse experience later this year that would provide travelers the chance to virtually see popular attractions before booking, writes Travel Technology Justin Dawes.  Tripadvisor has signed a contract with Meet Kai, a company that creates metaverse and artificial intelligence products. Dawes reports it’s still too early for Tripadvisor to share specifics on exactly how the metaverse experience will look, but the company looks to partner with travel brands to create digital spaces — such as shops in Paris — that users can explore.  Adam Ochman, Tripadvisor’s global director of marketing solutions, said travel is one of the most expensive things that consumers can purchase without trying it beforehand.  Next, London Heathrow Airport is coming off an enormously busy 2023, which saw 24 of its routes break the million-passenger milestone. Airlines Editor Gordon Smith takes a look at the airport’s busiest routes last year. Routes from Heathrow serving the U.S. represe

Episode Notes The recent blowout aboard an Alaska Airlines flight is far the only problem that Boeing has experienced with its 737 Max aircraft. Associate Editor Rashaad Jorden takes a look at some of those issues using our artificial intelligence chatbot Ask Skift and additional reporting.  The 737 Max was grounded globally for 20 months following fatal crashes in 2018 and 2019 in Ethiopia and Indonesia. But even after being recertified by the Federal Aviation Administration in November 2020, the aircraft has had technical problems. More than 100 737 Max jets were grounded in April 2021 after the discovery of a potential electrical program, which the FAA said could impact certain systems.  In addition, Boeing asked airlines last month to inspect all of their 737 aircraft for a possible loose bolt in the rudder system, which is used to control planes during a flight.  Next, Travel Technology Reporter Justin Dawes takes a look at the Apple Vision Pro, a virtual reality headset going on the market in February t

Episode Notes Skift has revealed its Megatrends for 2024, the 12th edition of its annual forecast of big-picture trends poised to shape the year in travel. The 12 megatrends delve into a wide range of topics: The impact on travel of demographic shifts, how the industry will react to the rise in loneliness. What we see developing out of India and the Middle East. Where you’ll see investments in hotels, aviation and how AI will impact travel jobs.  Next, federal officials investigating the recent blowout on an Alaska Airlines plane are examining whether the bolts meant to keep a door plug in place were ever installed, writes Airlines Reporter Meghna Maharishi.  National Transportation Safety Board Chair Jennifer Homendy said that four bolts should have secured the left door plug to prevent it from separating from the Boeing 737 Max 9. Maharishi notes those four bolts were missing when the agency recovered the door plug. Homendy added it’s uncertain if the bolts were ever installed or if they came out during the

Episode Notes Choice Hotels has long relied on traditional broadcast and outdoor billboard advertising to drum up brand awareness. But the company is turning to streaming platforms including Spotify and using a touch of celebrity in its new year-long marketing campaign, reports Senior Hospitality Editor Sean O’Neill.  Choice Hotels is experimenting with digital-video ads and podcast placements, which are cheaper than traditional TV sports, to better target demographic groups. The company will also feature Emmy winner Keegan-Michael Key in a set of six spots. Chief Marketing Officer Noha Abdalla said a celebrity like Key could help Choice Hotels grab consumers’ attention quickly on TikTok in particular.  Next, we turn to the fallout from the recent accident aboard an Alaska Airlines aircraft that’s temporarily grounded certain Boeing 737 Max planes. Although Alaska and United Airlines both canceled hundreds of flights over the weekend, both airlines may not suffer a major financial hit from the grounding, repo

Episode Notes A trip to Paris is getting more expensive this year. Visitors to the French capital have been hit with higher tourist taxes as the city prepares to host the 2024 Summer Olympics, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam reports that tourist taxes on stays in Paris have more than doubled. In addition, some tour operators have seen their room rates surge due to the Olympics. An executive at Kensington Tours said it’s seen year-over-year increases of at least 20% in the weeks leading up to the Olympics.  Habtemariam adds that some of Paris’ major tourist attractions, such as the Louvre, have bumped up their prices.  Next, luxury travel is expected to continue its boom this year. Travel Experiences Reporter Selene Brophy outlines seven key trends to look out for in luxury travel, according to several figures in the sector.   Brophy reports that group travel bookings will once represent big business for tour operators. Trips aboard private yachts for small groups are also expecte

Ryanair is in a conflict with several major online travel agencies. The Irish-based airline said that “pirates” throughout the sector stopped selling its flights last month, reports Executive Editor Dennis Schaal. Ryanair said that Booking.com, Kayak and Kiwi removed Ryanair flights from their websites in early December. Ryanair called those online travel agencies “pirates” for allegedly stealing what it considers its proprietary information and intellectual property. Although Ryanair expects a drop in bookings for December and January, the company doesn’t expect its full year traffic for 2024 to be significantly impacted.   Next, a leading hotel analyst sees good things on the horizon for several major companies in the industry, reports Senior Hospitality Editor Sean O’Neill.   David Katz, managing director of Jefferies Research, offered his predictions for the hotel industry in a report released this week. Katz believes average room rates will slightly increase this year while overall average occupancy rate

Episode Notes Officials in Venice have recently approved a measure to cap tour group sizes to help the city better manage tourist arrivals, writes Global Tourism Reporter Dawit Habtemariam.  Tour groups of more than 25 people will be banned from the city center and three of its islands starting June 1. A local tourism official said that limiting large group tours would help preserve Venice’s infrastructure and reduce overcrowding. Habtemariam notes the city is also banning portable loudspeakers used by tour guides.  Travel investor Greg O’Hara said at last year’s Skift Global Forum that Italians have been deterred from visiting Venice in part because of the huge crowds it attracts. Next, Tripnotes got a lot of buzz in 2023 as one of the first ChatGPT-powered AI trip planners. But by December, it sold itself and shut down the site, writes Travel Technology Reporter Justin Dawes.  Dawes notes that Tripnotes was one of the first travel companies to commit to building a generative AI-powered trip planner. Tripnot

Episode Notes The U.S. Department of Transportation has launched an investigation into whether airlines’ loyalty programs are deceiving customers, writes Airlines Reporter Meghna Maharishi.  The DOT is examining whether airlines have devalued the frequent flier miles in their loyalty programs and made it more difficult for customers to book tickets using their rewards. The department is also looking into how airlines alert customers of changes to their frequent flier programs, among other practices, according to Reuters Next, Skift will release its 11th annual Megatrends — trends poised to shape the year in travel — next month. So how did this year’s Megatrends play out? Executive Editor Dennis Schaal takes a look at five of them. Skift projected that India would become the new China in terms of emerging as Asia’ largest outbound tourism market. Indeed, several destinations have recently granted Indian nationals visa-free entry to help boost visitor numbers from the booming market. In addition, Skift’s projec