Skift

Episode Notes Israel had high hopes this year for its tourism sector this year as it sought to surpass 2019 visitor numbers. But Hamas’ surprise attack on the country, which has led to at least 1,000 deaths, has completely halted Israel’s tourism industry, writes Middle East Reporter Josh Corder and Asia Editor Peden Doma Bhutia.  Corder and Bhutia report that major airlines worldwide, including American Airlines and Air India, have stopped routes to Israel. Meanwhile, several governments, such as the U.S., have issued “Do Not Travel” warnings to Gaza and urged their citizens to exercise caution when traveling to Israel.  Israeli officials had expressed optimism earlier this year the country could set tourism records in 2023. However, Israel was already struggling to meet its targets before the recent attacks. Furthermore, carriers halting flights from the Americas and Europe, both large source markets, will likely have a major impact on visitor numbers for the rest of the year.     Next, Airbnb is ending its

Episode Notes Saudi Arabia has just announced it will bid to host the FIFA World Cup in 2034. A big question is, if chosen as the host, will the kingdom stage the first entirely alcohol-free World Cup, writes Middle East Reporter Josh Corder. Corder reports Saudi Arabia would have all the event spaces it needs as well as some of the world’s luxurious hotels by 2034. However, Saudi authorities would have to determine whether to ease the country’s long-standing ban on alcohol. Fellow Gulf State Qatar severely restricted the sale of alcohol when it hosted the World Cup last year after having initially announced that stadiums would serve booze. John Pagano, CEO of the Saudi government-owned Red Sea Global, said earlier this year that serving alcohol was not on the agenda for the country’s tourism industry.  Next, Europe’s short-term rental industry has been blamed for an array of problems affecting the continent, including overtourism. But sector representatives argue they shouldn’t be the scapegoat for bad polic

Episode Notes Hilton has just released its annual whitepaper documenting major travel trends. So what did it reveal? Senior Hospitality Editor Sean O’Neill documents the three trends he found most noteworthy. O’Neill reports that only a small percentage of Hilton’s guests are checking in via the company’s app despite its efforts to upgrade the platform. He adds that other hotel groups may see even lower percentages of guests checking in via apps. In addition, Hilton has joined rival Marriott in unveiling a series of non-alcoholic cocktails. O’Neill writes that’s a sign prominent corporations believe mocktails can generate a lot of revenue.  Hilton’s report also said that interest in all-inclusive resorts is booming, with O’Neill noting that event organizers are seemingly more eager to hold gatherings at resorts.  Next, Saudi Arabia has announced it will bid to host the FIFA World Cup in 2034, writes Middle East Reporter Josh Corder. The kingdom is looking to follow in the footsteps of fellow Gulf State Qatar,

Episode Notes The U.S. tourism industry has made progress in its recovery from the pandemic, but two major issues are hurting its ability to attract international travelers. What are they? Long wait times for visitor visas and outdated air infrastructure, writes Global Tourism Reporter Dawit Habtemariam.  Executives speaking at the recent Skift Global Forum said the U.S. is facing fierce competition from overseas destinations that have improved their tourism infrastructure. NYC Tourism+Conventions CEO Fred Dixon highlighted Saudi Arabia as one destination his city is competing against for tourists.  In addition, U.S. Travel Association CEO Geoff Freeman said long visa wait times in some top markets will cost the U.S. $12 billion in traveler spending. Freeman added those long waits don’t make the U.S. a welcoming environment. In addition, Freeman described air travel to the U.S. as a hassle as roughly 23% of all U.S. flights are delayed or canceled.  Next, Air France-KLM will take a minority stake in bankrupt

Episode Notes Executives speaking at the recent Skift Global Forum said hotel operators and short-term rental managers are not fighting for the same customers. However, hotel owners and Airbnb both have growth ambitions that could lead to more competition, reports Senior Hospitality Editor Sean O’Neill.   The heads of both Hilton and Airbnb said at the Forum that lodging isn’t a winner-take-all market but one in which multiple companies can coexist. Airbnb CEO Brian Chesky added the overlap between hotels and Airbnb is smaller than most people realize.  But, O’Neill writes the future of lodging will probably see hotels and short-term rental providers increasingly go after the same travelers. While Chesky argued hotels don’t serve people seeking extended stays well, O’Neill notes hotels are increasing extended-stay options. Nearly a third of the construction pipeline for hotels in the U.S. is extended-stay projects, according to industry advisory firm Lodging Econometrics.  Next, Marriott recently gave a 144-s

Episode Notes Travel executives from some of the industry’s most important companies will be speaking at the 10th annual Skift Global Forum this week in New York City and they’ll address a wide range of topics.  When it comes to the future of travel, Skift CEO and founder Rafat Ali has outlined four major themes that will impact travel the most: demographic shifts, the widespread loneliness crisis, the evolving future of work and the urgent need for climate adaptation.  All pose significant challenges – but also opportunities. As the world’s population ages rapidly, the travel industry can craft experiences for an older yet increasingly active population. To address loneliness, it can create group travels centered around shared interests and themes. Next, Hospitality group Ennismore has taken major steps to market its all-inclusive resorts in its push for 100 resorts by 2027, reports Senior Hospitality Editor Sean O’Neill. The company’s all-inclusive resort collection currently has 38 properties, and Ennismor

Episode Notes Hilton told hotel owners on Thursday it would move quickly to disclose mandatory fees upfront on all of its platforms, according to information Skift obtained, reports Senior Hospitality Editor Sean O’Neill.  O’Neill writes that Hilton’s support of fee transparency comes after it received legal pressure earlier this year. Texas’ Attorney General sued Hilton in May, alleging the company had a pattern of not disclosing the total price consumers would have to pay for a room upon booking. O’Neill adds a change in Hilton’s policy should help put an end to the lawsuit.  Hilton follows in the footsteps of Marriott and Hilton, both of which now display mandatory resort fees upfront on their websites and apps.  Next, U.S. tourism executives who recently visited China for the first time in four years said there’s growing demand there for travel to the U.S., writes Global Tourism Reporter Dawit Habtemariam.  Habtemariam reports that representatives from NYC Tourism + Conventions and Visit California have t

Episode Notes The travel industry now – for the first time – has an index to track public travel stocks. Skift unveiled on Wednesday the Skift Travel 200, the first benchmark for measuring the $1 trillion-plus market for public travel companies.  Senior Research Analyst Seth Borko reports the Skift Travel 200 will track travel company stock performance as well as analyze metrics such as revenue growth and profit margins. Borko adds that the Skift Travel 200 will be able to break down travel industry performance by sector. The index currently tracks 196 public companies from 34 countries, with each company classified into one of five travel sectors.  Next, Airbnb CEO Brian Chesky provided updates on Wednesday about verified listings on its platforms and cleaning fees, among other issues, writes Short-Term Rental Reporter Srividya Kalyanaraman. Chesky tweeted that the company is building a new system to verify its listings. Each verified listing will have a special icon, which Chesky said is part of Airbnb’s ef

Episode Notes A European parliament group has issued proposals to regulate short-term rentals that it believes will help make housing more affordable, writes Short-Term Rental Reporter Srividya Kalyanaraman. The Progressive Alliance of Socialists and Democrats has proposed, among other measures, requiring online platforms to share host information with authorities and display host registration numbers. The coalition has argued short-term rental platforms have contributed to the “touristification” of cities, impacting housing affordability and livability.  Kalyanaraman reports that several European destinations have taken steps to help manage visitor numbers. Venice’s city council said it will charge day trippers a fee after the main island saw a drop in the number of permanent residents. In addition, Florence has raised its tourist tax for rentals, including on Airbnb and bed and breakfasts.  Next, global corporations are finally increasing their investments in the tourism industry after taking a pandemic-era

Episode Notes California is looking to crack down on so-called junk fees at hotel and short-term rentals. The state’s legislators have passed two bills that could impact how California’s hotels and short-term rentals inform consumers about those fees, reports Senior Hospitality Editor Sean O’Neill.    Senate Bill 537 would prohibit businesses that sell lodging for up to 30 days in California from displaying room rates that don’t include all fees or charges, except for government-mandated taxes. Senate Bill 478 would block California businesses from advertising prices without including mandatory fees or charges, with some exceptions.  The bills are on the desk of Governor Gavin Newsom, who has yet to take a position on them. While the California Hotel & Lodging Association has expressed support for the final version of the bills, Expedia Group and Airbnb both raised concerns about it.  Next, Florida has seen an enormous boom in vacation rentals in recent years. But the state’s short-term rental industry is fac

Episode Notes Maui faces a long road to a full tourism recovery after wildfires decimated the western part of the island last month. Travelers have largely been slow to return to Maui out of sensitivity to local residents, writes Global Tourism Reporter Dawit Habtemariam. Although Hawaii tourism officials have said most of Maui is ready to welcome tourists, Habtemariam reports some travel businesses believe it’s too soon for visitors to come back. Alaska Air Group Chief Financial Officer Shane Tackett said a subset of travelers aren’t eager to vacation in a destination still suffering. In addition, airlines are continuing to cut flights to Maui in response to the wildfires.  Habtemariam adds tour operators have been cautious about taking guests back to Maui. G Adventures is considering making a return to the island in October or November. Its Vice President of Product Yves Marceau said it doesn’t want travelers to feel like they’re going back too early.  Next, Marriott International is making progress in redu

Episode Notes Airnbnb’s New York City listings for short-term stays dropped 77% over a three-month period during which the city enacted stringent host registration rules. A major New York City hotel operator believes that decrease will contribute to a significant tailwind for hotels next year, reports Executive Editor Dennis Schaal.  An New York City-based hotel executive, who declined to be identified, said Airbnb’s struggles could give his company a boost. The hotelier noted that revenue per available room for city hotels was already projected to jump roughly 10% in 2024 from pre-Covid levels. He added the figure could rise at least three percentage points given the clampdown on Airbnb listings.  However, Schaal writes not everyone in the hotel industry agrees. Some hotel owners have argued that Airbnb’s inventory numbers are too low to significantly impact hotels in New York City.  Next, Morocco was hit by a massive earthquake last week that caused nearly 3,000 deaths. Yet several tour operators are organi

Episode Notes The rise of artificial intelligence has been a major topic of discussion in the travel industry over the past year. So as the theme of this month’s Skift Global Forum is Connection in the Age of AI, what do major travel executives think about booming technology? Travel Technology Reporter Justin Dawes provides some of their opinions about it. Dawes cites Airbnb’s Brian Chesky and Uber’s Dara Khosrowshahi as two CEOs vocal about the impact of AI on their companies. Chesky said AI would be the driving force between a vastly different Airbnb. Meanwhile, Khosrowshahi said AI could improve user personalization by tracking preferences, such as preferred types of cars.  Dawes adds that executives around travel have spoken about how advancements in AI could change travel search and booking. Priceline and Booking.com have already released Google-powered tools on their respective apps.  Next, the United Arab Emirates has established a gaming authority to regulate its nascent gambling industry, writes Midd

Episode Notes Hyatt has seen signs that more workers in big cities are returning to their offices. That could result in the company eventually seeing more business travelers, reports Senior Hospitality Editor Sean O’Neill.  CEO Mark Hoplamazian said at a recent conference that some of its New York hotels are seeing increased levels of local traffic, a sign of more people back in their offices. Hoplamazian added the increased traffic doesn’t necessarily mean pre-Covid levels of business travel. But he said it’s an indication of more activity in offices that will eventually boost the sector’s recovery. Hoplamazian also expressed confidence that business travel would rebound fully.  Next, budget carriers Allegiant Air and Frontier Airlines are poised to profit significantlyif U.S. authorities approve JetBlue Airways’ proposed merger with Spirit Airlines, reports Edward Russell, editor of Skift publication Airline Weekly.   JetBlue said on Monday that Allegiant would receive Spirit’s assets at Boston Logan and Ne

Episode Notes Travel companies have just finished reporting their second quarter results. So what did we learn about the state of the industry? Senior Research Analyst Seth Borko outlines four major trends Skift Research discovered after studying more than 200 publicly traded companies.   Borko writes that second quarter revenue growth was still far higher than other sectors – but that it’s beginning to slow down to more normal rates. At the same time, he notes that profits for the travel industry hit a post-Covid peak. In addition, among five travel sectors Skift Research studied, travel tech posted the fastest revenue growth while accommodations had the highest profit margins.  Next, Hilton unveiled plans on Thursday to install Tesla electric vehicle chargers at 2,000 of its North American hotels, reported Senior Hospitality Editor Sean O’Neill.  O’Neill notes that Hilton is installing up to 20,000 Tesla Universal Wall Connectors. They’re designed to charge all North American electric vehicles, not just Tes

Episode Notes Trivago has struggled in recent years, with its shares currently trading for a little more than $1 per share. So the company is returning to its old playbook by looking to significantly beef up advertising, reports Executive Editor Dennis Schaal in his weekly column.   Schaal writes Trivago’s new leadership plans on intensifying its brand advertising, including on TV,by the end of the year. Schaal reports Trivago had built its brand as the place to find hotel deals through its seemingly ubiquitous TV ads. The company spent an average of 82% of annual revenue on advertising from 2015-2019. But the former CEO, who left in May, downplayed that strategy.  Next, Capital One will open a branded lounge at Washington-Dulles Airport on Thursday, marking the latest investment by a credit card company in the space, reports Edward Russell, editor of Skift publication Airline Weekly.   Russell writes the new lounge is a part of Capital One’s multi-year strategy to target high spenders. The company is investi

Episode Notes September 5 was the beginning of New York City’s host registration rules. However, the city’s electronic verification system isn’t ready yet, reports Executive Editor Dennis Schaal.  Three sources familiar with the new process said the city hadn’t completed implementing the system for verifying listings with short-term rental platforms like Airbnb. Hosts with shared rooms need to obtain registration from the city to legally accommodate a maximum of two guests. Hosts also need to be present during the stay.  Schaal notes that platforms such as Airbnb could face fines of $1,500 per transaction processed from an unverified listing. Airbnb said in a court filing this June that it has to remove a listing to avoid penalties when a verification fails.  Next, as the pandemic is over, what does the future of tourism look like? Global Tourism Reporter Dawit Habtemariam explores five critical issues industry executives will address at this month’s Skift Global Forum. Habtemariam writes that leaders from br

Episode Notes Washington, D.C. will spend roughly $20 million in an upcoming campaign to help boost the city’s lagging tourism recovery, writes Global Tourism Reporter Dawit Habtemariam.  The global campaign — called “There’s Only One DC” — will launch November 1. Habtemariam reports the campaign will support influencer collaborations, as well as advertising on social media and television. Destination DC, the city’s destination marketing organization, hopes the funding injection will help it in its efforts to attract international travelers. Washington, D.C. welcomed 1.2 million foreign tourists last year, which was just 60% of its pre-Covid figure. Habtemariam cited the absence of Chinese tourists, the city’s largest visitor market pre-pandemic, as one reason for Washington, D.C.’s international slump.  Next, U.S. hotel group Sonesta is facing a lawsuit about how it displays resort fees on its website and app, reports Senior Hospitality Editor Sean O’Neill. The suit alleges that Soneta made tens of millions

Episode Notes Airbnb hosts in New York City are rapidly approaching a September 5 deadline to register with the Mayor’s Office of Special Enforcement. So the company could see a large reduction in its New York City listings, reports Executive Editor Dennis Schaal.  Airbnb had 23,000 active listings in the city as of July and Schaal writes many would be unable to accept stays under new enforcement. Airbnb has said it generated $85 million of revenue in New York City last year. Schaal adds due to regulatory pressures and other factors, Airbnb is a shadow of itself in New York compared to pre-pandemic years. The company had 36,000 active listings in New York City in July 2019, according to AirDNA.  Next, the U.S. overseas travel boom is showing no signs of slowing down. Americans are traveling abroad in large numbers for Labor Day weekend, reports Associate Editor Rashaad Jorden. International travel bookings have risen 44% this Labor Day weekend from last year, according to travel organization AAA. The group al

Episode Notes Hyatt has joined MGM Resorts and Marriott in changing how they disclose resort fees on their websites and apps. However, those modifications still won’t quiet the growing uproar over so-called junk fees, reports Senior Hospitality Editor Sean O’Neill.  In July, Hyatt began displaying nightly rates plus mandatory resort fees upfront on a traveler’s first search of its site and app. Hyatt’s move to more clearly disclose resort fees follows in the footsteps of Marriott and MGM Resorts. However, O’Neill notes the three companies still face unresolved grievances from some consumer advocates and government representatives. He adds one of the lingering issues is how hotel rates and fees are displayed on online travel agencies’ websites and apps.  The three hotel groups have also quoted prices without including resort fees in ad and marketing campaigns.  Next, amusement park corporation Six Flags has become the latest travel brand to hop on the artificial intelligence bandwagon. Six Flags is planning to