Skift

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

Episode Notes Universal Studios is looking at England for its next theme park. The company has bought land near London to possibly build its next big project, writes Travel Experiences Reporter Selene Brophy.   Universal said it’s examining how viable a new theme park resort in the United Kingdom would be. Brophy notes the attractions operator expects to make its final decision about the project after several months of stakeholder and community engagement. If Universal decides to build the theme park, Brophy writes it would be its most significant foray into Europe.  A Universal representative told Theme Park Insider that roughly half of the UK population lives within two hours of the proposed site.  Next, the retailer Tommy Bahama is famous for producing Hawaiian-themed attire. The company is now taking its beach vibes to the hotel industry — it recently opened its first hotel, reports Senior Hospitality Editor Sean O’Neill.  Tommy Bahama CEO Doug Wood said the retailer decided to enter the hotel business on

Episode Notes A volcano in Iceland that erupted on Monday, December 18th, is not currently posing any direct danger to either residents or tourism, according to officials.  The capital of Reykjavik and much of the rest of the country remain unaffected, and major tour operators are still running trips as planned, writes Dawit Habtemariam, Skift’s global tourism reporter. Flights are operating through Keflavik International Airport on schedule. Answering a list of frequently asked questions about the Icelandic volcano’s impact, Habtemariam said that the eruption has been shrinking. However, areas near the eruption, like the town of Grindavik, have been evacuated as a precaution. The nearby Blue Lagoon spa expects to stay closed through December 27th. Next, Uber has partnered with expense management companies Brex and Ramp to automatically match Uber rides and Uber Eats meal receipts to corporate expense reports. This new integration eliminates the need for business travelers to manually submit receipts, writes

Episode Notes The U.S. Department of Transportation has hit Southwest Airlines with a $140 million fine over consumer-protection violations during last year’s holiday travel meltdown, writes Airlines Reporter Meghna Maharishi.  Maharishi reports the fine is 30 times larger than any previous DOT penalty for consumer-protection violations. The DOT said most of that money will go toward compensating future Southwest passengers for any disruptions. The department had concluded that Southwest didn’t do enough to protect travelers during a massive winter storm that forced airlines to cancel thousands of flights.  Next, destinations worldwide are increasingly waving visitor visa requirements. Associate Editor Rashaad Jorden delves into the impact of visa-free travel on tourism, using our artificial intelligence chatbot Ask Skift and additional reporting. Jorden writes that destinations view lifting visa requirements as part of their strategy to increase visitor numbers. Visa processing delays have been a significant

Episode Notes Major U.S. airlines have made improvements this year on cancellation rates. However, the industry has seen an enormous increase in passenger complaints, writes Airlines Reporter Meghna Maharishi.  Consumer complaints against airlines in the first five months of 2023 topped 2022 levels during the same timeframe, according to a report from the U.S. Public Interest Research Group, with data from the U.S. Department of Transportation. Maharishi notes the DOT received so many complaints it had to delay the release of the data. U.S. travelers made more than 38,000 complaints, according to the report Roughly 35% of consumer complaints pertained to flight issues, whether they be cancellations, delays or missed connections.  Next, Middle East Reporter Josh Corder takes a look at Dubai, host of the Skift Global Forum East conference. The city has completed its journey from a “dot in the desert” to a global hub, believes one local tourism executive. Issam Kazim, CEO of Dubai Tourism, said at the Forum on T

Episode Notes Dubai is poised to become the next big name in luxury travel, and two of the city’s luxury hoteliers are looking to expand their properties globally, writes Middle East Reporter Josh Corder.  Emaar Hospitality head Mark Kirby and Atlantis’ Global President Timothy Kelly spoke about their strategy in Dubai at the Skift Global Forum East conference on Wednesday. Kirby said Dubai has been a strong contributor to Emaar’s growth, and that the company wants to bring Dubai’s success overseas. Kelly expressed his desire for Atlantis to be a global brand, adding the goal is to open properties on every continent. Corder notes that Atlantis is in discussion with national governments about expansion rather than investors due to the scale of its planned projects.  Next, China’s outbound travel recovery is currently at just over half of 2019 levels. A Trip.com executive believes cumbersome visa regulations are hurting outbound travel, reports Asia Editor Peden Doma Bhutia. Trip.com Managing Director Boon Sian

Episode Notes Choice Hotels believes it’s taken another key step toward its planned takeover of Wyndham Hotels & Resorts. Choice Hotels said on Tuesday it had bought enough Wyndham stock to nominate candidates to Wyndham’s board, reports Senior Hospitality Editor Sean O’Neill.  Choice Hotels said it purchased more than $110 million of Wyndham stock. In addition, it is putting forth an exchange offer to present to Wyndham shareholders for a vote next year. Wyndham said its board is reviewing the offer and would give a recommendation to its shareholders within 10 days.  But Wyndham stated Choice’s offer seems to be unchanged from one it previously rejected.  Next, Canada won’t surpass its pre-Covid visitor numbers until 2025. One reason why is China’s ongoing ban on group travel into Canada, writes Global Tourism Reporter Dawit Habtemariam.  Meaghan Ferrigno, Destination Canada’s chief data and analytics officer, said Canada’s tourism industry would get a major boost from Beijing ending the ban. Ferrigno added

Episode Notes A large number of Americans are planning to travel this holiday season. How many? Roughly 115 million, according to the latest forecast from AAA, which predicts this holiday season will be one of its largest on record.  It projects 7.5 million travelers will fly this year, topping the record set in 2019, noted Airlines Reporter Meghna Maharishi, who added that U.S. airlines are under pressure to be ready for any extreme weather. Winter storms caused airlines to cancel thousands of flights last year.  Next, Hilton went public 10 years ago Monday in the hotel industry’s biggest IPO ever. Senior Hospitality Editor Sean O’Neill lists 10 takeaways from one of the industry’s most significant events. O’Neill notes one lesson for investors is that a well-priced public debut at the right company can be a great investment. In addition, Hilton used the proceeds from the IPO to pay down debt as well as help it expand. The company currently has twice as many rooms under development than it did at the time of

Episode Notes The Middle East was the fastest-growing tourism region this year until the Israel-Hamas war began in October. No other region in the world saw its tourism fully recover this year — let alone surpass their pre-pandemic level, reports Dawit Habtemariam, Skift's Global Tourism Reporter. Through September, the Middle East saw its international tourist arrivals rise 20% above pre-pandemic levels, according to the UN World Tourism Organization. Two factors boosting Middle Eastern tourism were expanded air connectivity by airlines like Emirates and investments by tour operators like Intrepid Travel. Those ongoing strengths may help the broader region rebound if a truce in Gaza is brokered. Next, more travel companies are investing in the potential for artificial intelligence to help overhaul both customer sales and internal operations. Amazon Web Services had a conference last week, sharing AI-based updates to services used by travel companies such as Accor, Cathay Pacific, and Booking.com, reports Jus

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode Notes Navan, a travel and expense management startup, has laid off 5% of employees at the company, accounting for about 145 people, writes travel tech reporter Justin Dawes. Kelly Soderlund, a spokesperson for Navan, said in an email that the layoff affected teams across departments. She said in a statement that Navan is “refocusing efforts to move faster toward profitability” as its enters the next phase of its company.  Navan has raised well over $1 billion in venture capital, most recently $154 million in October 2022.  Next, a summit about mental health highlighted the risk for pilots, writes airline reporter Edward Russell. The issue received new attention in October after an Alaska Airlines pilot Joseph Emerson nearly brought down a plane while suffering a mental health crisis. Emerson said that he had experienced depression-like symptoms since the death of a friend in 2018 — some five years before the incident. More