Skift

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

Skift Short-Term Rental Report: Skift’s latest newsletter focuses on the business of short-term rentals. Don’t miss out on essential industry news. Get a Trial Subscription Episode Notes New York City is behind in reviewing hundreds of short-term rental applications prior to a September 5 deadline requiring hosts to register with the Mayor’s Office of Special Enforcement, reports Executive Editor Dennis Schaal.  The enforcement office told Skift it’s only reviewed roughly 25% of the more than 3,200 host applications submitted to date. The office added that more than half of the applications came in after August 8, when a judge dismissed an Airbnb lawsuit challenging New York City’s efforts to enforce its host registration rules. Hosts face fines up to for any violations.  Google shut down its Book on Google feature for flights for overseas travelers last year. But those in the U.S. will be able to book some flights on Google to take advantage of its flight price guarantee, reports Executive Editor Dennis Sch

Episode Notes A new report said JetBlue Airways is planning to raise airfares on routes flown by Spirit Airlines by as much as 40% if the two carriers’ proposed merger is approved, reports Edward Russell, editor of Skift publication Airline Weekly.  JetBlue would increase fares between 24% and 40%, according to a report by legal news service Law360. The report cited documents released as part of a lawsuit brought by travelers looking to block the JetBlue-Spirit deal. The travelers suing JetBlue argued that the proposed merger would reduce competition for consumers. Russell notes their lawsuit is separate from the U.S. Department of Justice’s suit to stop the merger.  JetBlue said in a statement that, without context, the information gave a “completely inaccurate picture of the facts” and that the proposed merger would result in low fares and better service.  Russell adds that while airfares rose substantially last year, the average domestic airfare has dropped below pre-Covid levels.  Next, travelers flying Q

Episode Notes Maui’s tourism industry faces an uncertain future as the island recovers from the massive devastation caused by recent wildfires. Maui’s hotels have suffered enormously in the aftermath of the destruction, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam reports that nearly half of all hotel rooms in Maui were unfilled last week. The island’s hotel occupancy rates were 49% for the week ending August 19, according to commercial real estate information provider CoStar.  Although the Hawaii Tourism Authority is encouraging travelers to visit areas of Maui away from the destruction, Habtemariam writes the state’s tourism leaders are facing a messaging challenge regarding the island. Three major U.S. airlines have cut their number of scheduled flights to Maui over the past week. The wildfires have claimed more than 110 lives in addition to causing billions of dollars of damage. Next, U.S. hotel companies have viewed China’s economic boom as a vehicle to boost hotel development. However,

Episode Notes Europe is experiencing a major air traffic controller shortage. It’s not only delaying flights, it’s hurting the continent’s travel recovery, reports Edward Russell, editor of Skift publication Airline Weekly. European airspace manager Eurocontrol found flight delays have increased 6% from last year, attributing those disruptions in part to air traffic controller staffing shortages. Russell writes the staffing shortage appears the worst in France and Germany, the two countries at the heart of Europe’s air traffic control system. One industry executive said European air traffic controllers, often run by individual countries, are at least 700 controllers short of target staffing levels.  Meanwhile, Lufthansa Group CEO Carsten Spohr said in July that air traffic control and other industry constraints would limit growth through at least 2024.  Next, global investment in the travel industry has dropped from pre-pandemic levels. How much? Roughly $100 billion, writes Global Tourism Reporter Dawit Habt

Episode Notes Hospitality brand Selina has seen a dramatic swing in its stock price as it attempts to escape from its penny stock status, reports Senior Hospitality Editor Sean O’Neill.  The company saw its shares fall 41% last Friday although they rebounded 9% on Monday. O’Neill writes the stock price drop happened after Selina said that 8.6 million shares could be hitting the market soon. Two other hospitality brands, Sonder and Vacasa, have also seen stock prices go to penny stock status recently.   Next, American Airlines pilots approved a new contract on Monday worth nearly $10 billion, becoming the second major U.S. carrier to finalize a pilot deal this year, reports Edward Russell, editor of Skift publication Airline Weekly.   Russell writes pilots at American will immediately see a more than 21% pay raise under the four-year contract. It also includes roughly $1.2 billion in retroactive pay and bonuses. However, Russell notes that the deal was hardly a slam dunk for the Allied Pilots Association, whic

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode Notes Paid ChatGPT Plus users are now able to plan virtually every aspect of a trip in one place using the travel plugins available on the platform. So what worked well and what didn’t on those travel plugins? Travel Technology Reporter Justin Dawes provides answers in his Travel Tech Briefing. Dawes reports ChatGPT Plus wasn’t created to be a travel platform, but with some improvements, he notes it could be a very useful tool for planning trips. Paid ChatGPT Plus users have access to beta versions of third-party plugins such as Expedia, Kayak and Skyscanner. Dawes writes that users can, for example, ask about the availability of flights and hotels, and the chatbot will pull information from the plugins when it can.  He also lists issues he experienced using the travel plugins, such as errors when trying to prompt for a detailed itinerary and booking options. Those errors force a user to start the process over again.  Next,

Episode Notes IHG has launched its 19th brand, called Garner, an IHG hotel, as part of its strategy to target mid-market travelers, reports Senior Hospitality Editor Sean O’Neill. O’Neill writes Garner aims to be more affordable for travelers than IHG’s other brands targeting this segment. The company expects to open more than 1,000 hotels under the Garner brand over the next two decades. O’Neill adds that until the launch of Garner, IHG didn’t have a brand that fit this price range. An added attraction: Garner will allow guests to bring pets into their rooms.  Next, Booking Holdings is proposing concessions for an issue threatening European Commission regulatory approval of its deal to acquire flight tech company eTraveli Group. Booking’s plan is to show hotels from competitors when travelers book a flight, reports Executive Editor Dennis Schaal.   Schaal writes European regulators are balking at approving the roughly $2 billion deal because they think it would strengthen Booking’s leading hotel business on

Episode Notes Airbnb and Booking.com have delivered strong cash flow over the past year, giving them the flexibility for acquisitions and other transactions, reports Executive Editor Dennis Schaal in his Online Travel Briefing. Schaal looked at the companies’ free cash flow conversion, which measures how efficiently companies convert revenue into free cash flow after interest payments.  A key factor in their favor: They are all asset light businesses, meaning they don’t own the hotels or short-term rentals that they offer. The companies’ high levels of free cash flow provides the needed resources for a range of investment, including acquisitions and product development.  Next, global luxury travel network Virtuoso has seen a sales boom driven by surging interest in private experiences, writes Travel Experiences Reporter Selene Brophy.  Brophy notes that Virtuoso guests are spending between $10,000 to $50,000 per trip on average. Virtuoso’s platform has a network of 20,000 luxury travel advisors and they are s

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode Notes The Texas state government has filed a lawsuit against Booking Holdings, alleging the company violates state law by not including certain fees when it initially displays room prices, reports Executive Editor Dennis Schaal. Schaal writes the Texas lawsuit comes as the Biden administration and Congress are increasingly taking aim at so-called junk fees, charges that aren’t disclosed to consumers upfront. The lawsuit includes Booking Holdings and its sub-brands, Booking.com and Kayak, and refers to so-called resort fees and other extras. Texas Attorney General Ken Paxton said while announcing the lawsuit that the state had recently sued Hilton and Hyatt for allegedly deceptively displaying their fees.  Next, experiences and major tourist attractions have become significantly more expensive in the past four years, writes Travel Experiences Reporter Selene Brophy.  Analysis from marketplaces GetYourGuide and TicketLens re

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode Notes Tourism boards across the U.S. are increasingly supporting measures to get workers back into offices to help boost struggling downtowns, writes Global Tourism Reporter Dawit Habtemariam.  Habtemariam notes the U.S. Travel Association strongly backs President Joe Biden’s push to have federal employees spend more time in the office. An executive at the organization said getting federal workers back into the office was critical to the success of U.S. cities. Habtemariam reports cities are losing billions due to workers spending more time working remotely and fewer days in the office.    Tourism bureaus are also taking steps to fill their offices. San Francisco Travel and LA Tourism, among others, have each required employees to head to the office several days a week. LA Tourism CEO Adam Burke said getting people back in office would help increase foot traffic in the city’s downtown. Meanwhile, NYC Tourism+Conventions pla

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode Notes U.S. tourism businesses were heavily dependent on Chinese visitors pre-pandemic and now are looking elsewhere to replace billions in tourist spending, writes Global Tourism Reporter Dawit Habtemariam.  Brand USA CEO Chris Thompson said Chinese visitors spent $35 billion in 2019, making them the largest tourism market in the U.S. in terms of spend.   So where are U.S. travel brands turning? NYC Tourism + Conventions CEO Fred Dixon cited Brazil as one market the city is focusing on. Meanwhile, LA Tourism CEO Adam Burke said his city is ramping up its marketing efforts in countries such as Australia, New Zealand and the United Kingdom.   Next, tour operator group TUI has posted its first post-pandemic net profit. However, the company’s overall performance for the year is expected to be impacted by extreme weather throughout Europe, writes Travel Experiences Reporter Selene Brophy.   TUI Group CEO Sebastian Ebel said on We

Ask Skift Is the AI Chatbot for the Travel Industry Ask Skift Your Questions Episode Notes Choice Hotels views its recent acquisition of Radisson Americas as an enormous success and it’s strongly considering making more deals, reports Senior Hospitality Editor Sean O’Neill. Choice CEO Patrick Pacious touted the benefits of the acquisition during Choice’s second quarter earnings call on Tuesday. As for future acquisition activity, Pacious said Choice is always looking for deals that could boost the return on investment for hotel owners and grow brands. He added that Choice sees opportunities to expand its portfolio outside of the United States.   Choice reported that its revenue per available room — an important hotel industry metric — increased 20% from the same period in 2019. The company also set a quarterly record for revenue.  Next, the Chinese government is limiting overseas group travel for its citizens to certain destinations. Those restrictions are stunting the global travel industry’s recovery, wri

Episode Notes The U.S. expects visitor numbers from some major markets such as Canada and India to exceed pre-Covid levels this year. However, Brand USA CEO Chris Thompson says that progress won’t be enough to make up for the large-scale absence of Chinese visitors, writes Global Tourism Reporter Dawit Habtemariam.  Thompson said in an interview with Skift that the U.S. won’t experience a full tourism recovery unless it attracts more Chinese tourists. China represented the U.S.’ largest tourism market prior to the pandemic. Thompson said Beijing’s refusal to lift the ban on overseas group travel for its citizens has impacted visitor numbers to the U.S. He added that West Coast destinations such as Los Angeles have been hit hard by the absence of Chinese travelers.  Thompson also touched on what Brand USA is doing with the $250 million it received in federal funds to help boost international tourism. The organization used the funding to launch “This Is Where It’s At,” its largest ever single consumer campaign.