Skift

Episode Notes It’s still uncertain when business travel will make a full recovery. But Hyatt is optimistic that the sector is making substantial progress in its rebound from the pandemic, reports Senior Hospitality Editor Sean O’Neill. Hyatt CEO Mark Hoplamazian said on Thursday the company is seeing sustained corporate demand for group travel, which he added is showing no signs of slowing down. Hyatt booked roughly $500 million in future group business in the second quarter, and 42% of those group business were corporate. O’Neill writes that Hyatt’s more than 1,200 hotels and resorts are popular places to hold events, noting that corporate travel managers have reason to be encouraged about Hyatt’s upbeat report.  Hyatt generated a net income of $68 million during the second quarter. The company’s revenue per available room — an important industry metric — rose 15% from last year.  Next, the Lufthansa Group has lifted its profit outlook for the rest of the year due to robust travel demand in Europe, reports E

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode Notes Trivago opted not to join the advertising unit that Google launched in May to attract hotel bookings. That decision contributed to the online travel agency’s disappointing second quarter performance, reports Executive Editor Dennis Schaal.   Schaal writes that Trivago’s absence in the new unit — unlike rivals such as Booking.com, Priceline and Expedia — negatively impacted its second quarter financial results. Trivago’s revenue fell 14% from the previous year. Trivago Chief Financial Officer Matthias Tillmann said on Wednesday it decided not to participate in Google’s property promotions ads because they are a part of Google hotel ads, which don’t perform well for Trivago.   Next, the chief technology officer of travel technology firm Sabre stepped down last month, a departure that coincides with other major job cuts and changes in leadership, writes Travel Technology Reporter Justin Dawes.  Dawes reported that David

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode Notes The solid performance of Marriott’s premium hotels drove the world’s largest hotel company to a strong second quarter. And now, Marriott is looking to add midscale hotels to its portfolio, reports Senior Hospitality Editor Sean O’Neill. O’Neill writes one reason Marriott has raised its 2023 outlook for profitability was that its hotels are mostly premium or above. He adds that travelers able to afford Marriott stays were largely sheltered from the economic concerns hitting the general population. Marriott’s revenue per available room — a key hotel industry figure — rose roughly 13% in the second quarter from last year.  Marriott has also taken steps to boost its number of midscale hotels, with CEO Anthony Capuano indicating that Marriott would make a midscale push in Europe. O’Neill writes one factor driving Marriott’s interest in the sector is that midscale properties are popular with developers, investors and owner

Episode Notes Soccer’s World Cup is coming to North America in 2026, but it’s uncertain where the final of the tournament will be held. Three U.S. cities are jockeying to host the event’s most prestigious match, writes Global Tourism Reporter Dawit Habtemariam.  Habtemariam writes that Dallas, Los Angeles and MetLife Stadium in New York City’s New Jersey suburbs are prime contenders to host the final. FIFA, soccer’s international governing body, is expected to announce in September which city will host the match. Travel executives from each city laid out reasons why their city should be chosen. NYC Tourism+Conventions CEO Fred Dixon cited New York City’s passion for soccer as one reason it should host the World Cup final. Next, the lengthy visa processing times have inhibited U.S. destination marketers’ ability to attract tourists from crucial international markets, writes Global Tourism Reporter Habtemariam. The average wait time for a U.S. embassy interview for a first-time visitor visa applicant in countri

Episode Notes Wyndham Hotels & Resorts reported a drop in profitability during the second quarter. That’s partly because the hot demand for its budget hotels is cooling, reports Senior Hospitality Editor Sean O’Neill.  Wydham saw its net income fall 18% in the second quarter from last year. O’Neill writes its portfolio skews toward affordable roadside hotels, which surged in popularity immediately after the pandemic eased. Now, Chief Financial Officer Michele Allen said things are returning to normal. The company has also seen travel to big cities and international destinations rebound significantly. Meanwhile, Wyndham said it’s not worried about increased competition in the extended stay sector. The company launched its own extended stay brand last November in the U.S. and Canada. Extended stay has since emerged as one of the hottest categories in hotels, with Marriott, Hilton and Hyatt all addring brands.  Next, Google executives had cited travel as a major source of revenue growth during the previous two q

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode Notes Hilton is seeing no signs of a slowdown in travel demand. The company said the second quarter was the best booking quarter in its history, reports Senior Hospitality Editor Sean O’Neill.  O’Neill reports Hilton’s second quarter revenue per available room — an important hotel industry performance metric — rose 12% from last year. CEO Christopher Nassetta expressed optimism on Wednesday that the good news would continue into next year. O’Neill notes that leisure and corporate travel were major revenue drivers for the company. Roughly 85% of Hilton’s revenue comes from corporate travelers at small-to-medium sized businesses.  Nassetta also hinted Hilton is considering adding a new luxury lifestyle brand to its portfolio, adding the company could launch something in the sector next year. Next, the ongoing FIFA Women’s World Cup is sparking a U.S.-led tourism boom in Australia, writes Reporter Jess Wade. An executive at T

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode Notes Hilton Worldwide launched a major international marketing campaign exactly a year ago on Tuesday that focused on its ability to provide travelers with reliable lodging experiences. So has it been a success? Senior Hospitality Editor Sean O’Neill finds out.  O’Neill reports Hilton has seen an increase in sales and market share following its largest marketing push in six years. While it’s uncertain if the ad blitz led to the gain, O’Neill noted other boosts Hilton has received in the last year. Company representatives said they saw an increase in consumers searching for “Hilton” and more travelers considering the brand for leisure travel.  O’Neill adds that Hilton also bet much more heavily on TikTok and its account has attracted 20,000 new followers since the launch of a 10-minute video that featured Paris Hilton.   Next, accommodation provider Sonder announced this week it’s asking shareholders to approve a reverse st

Episode Notes Travelers might be uncertain if Sonder is a short-term rental operator like Airbnb or a hotel operator. Now, the company is launching its first hotel collection, writes Executive Editor Dennis Schaal.  Schaal reports that Powered by Sonder includes 23 Sonder-operated properties in 13 markets. The company said those hotels are different from other hotels and multi-unit apartments in that they’re boutique hotel-oriented. In addition, Schaal notes the Powered by Sonder properties have their own design elements and features, such as onsite food and drinking facilities.  Patrick Mitchell, Sonder’s vice president of marketing and distribution, said the boutique hotel experience at those Powered by Sonder properties appeal to millennials and Gen Z travelers.  Next, the lifestyle hospitality brand Ennismore has launched a loyalty program that features no need to earn points as well as no tiers to climb. It’s an attempt to distinguish itself from complex loyalty programs run by rivals, writes Travel Expe

Episode Notes Hotel companies will report earnings over the next several weeks. So what will industry insiders be paying close attention to? Senior Hospitality Editor Sean O’Neill explains in this week’s Early Check-In column.  O’Neill writes investors will look closely to estimate when sector revenues may return to pre-pandemic levels. The American Hotel and Lodging Association doesn’t expect U.S. hotels to hit their pre-Covid sales figures until 2024. O’Neill adds that analysts are eager to find out if hotel companies are still considering expansion. One analyst said the pace of hotel supply growth is noticeably below the historical average.  Next, the U.S. travel industry is continuing to make enormous progress in its rebound from the pandemic as Americans travel in huge numbers this summer. Yet, the industry still hasn’t made a complete recovery. Associate Editor Rashaad Jorden delves into the reasons why with answers provided by Ask Skift, our artificial intelligence chatbot, and further research.  Jorde

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode Notes Destinations across the U.S., Canada and Mexico are ramping up their preparations to welcome soccer’s World Cup in 2026. And they’ll need a substantial influx of money to make hosting the event a success, writes Global Tourism Reporter Dawit Habtemariam.  Officials at this week’s Destinations International Annual Convention addressed the challenges of welcoming thousands of visitors for the World Cup. Each of the 11 U.S. host cities is responsible for finding ways to pay for tournament-related expenses. Monica Paul, executive director of the Dallas Sports Commission, said the U.S. federal government doesn’t assume most of the cost of major international sporting events, unlike in other countries.  Visit Kansas City CEO Kathy Nelson acknowledged the difficulties of securing the funding for World Cup-related operations. Nelson said the organization has to appease governors from both Kansas and Missouri, adding that it’s

Episode Notes The travel industry is continuing to make substantial progress in its recovery from the pandemic, but what challenges is it still facing? Skift Research answers that question and more in its newly released State of Travel 2023 report. The report contains more than 250 data slides documenting the current state of travel and trends shaping the industry’s future. For example, Americans are increasingly looking to vacation abroad as international travel has become easier. Skift Research compiled the data appearing in the report through its own research and information from third-party sources. The first section of the report delves into the travel industry’s performance as well as the wider economic landscape while the second is devoted to trends in the industry.   Next, more airlines are offering travelers free Wi-Fi in an attempt to increase sign-ups to their loyalty programs, writes Reporter Ajay Awtaney.  Awtaney cites Singapore Airlines and Delta Air Lines as two carriers that offer compliment

Episode Notes Singapore has overtaken Japan as the country with the world’s most powerful passport while the U.S. dropped two spots in recently released rankings, writes Travel Experiences Reporter Selene Brophy. Citizens of Singapore have visa-free access to 190 destinations, according to the Henley Passport Index. The Index ranks the world’s passports by the number of destinations their holders can travel to without needing a visa. The U.S. passport is now tied with Lithuania for the world’s 8th most powerful, providing visa-free access to 184 destinations.  Brophy notes the U.S. has seen a decade-long decline in passport power. A U.S. passport currently provides visa-free access to 12 more destinations than it did in 2013. Meanwhile, a Singaporean passport has obtained visa-free access to 25 more destinations over the past 10 years.  Next, United Airlines is moving to take advantage of the Asia-Pacific region’s booming travel demand. The Chicago-based carrier unveiled on Tuesday three new routes serving th

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode Notes Twitter has increasingly lost its relevance as a tourism marketing tool in recent months. And now, a growing number of destination marketing organizations are turning to its new rival Threads, writes Global Tourism Reporter Dawit Habtemariam.  Habtemariam cites Destination Toronto, Visit Orlando and Visit Utah as some of the destination marketing organizations that have signed up for the direct competitor to Twitter. The brands have been able to grow their audiences quickly on Threads in large part due to the vast reach of Threads’ parent company Meta, which also owns Facebook and Instagram. Paula Port, Destination Toronto’s vice president of marketing, said the organization added most of its 10,000 followers on Threads in a short period of time.    Habtemariam notes some destination marketing organizations haven’t posted anything on Threads yet while others like Visit Orlando have posted regularly. He adds any strat

Episode Notes Some hotel executives have expressed concerns about the security and reliability of today’s generative artificial intelligence. However, industry experts are confident that AI will make room pricing more profitable, reports Senior Hospitality Editor Sean O’Neill.  Former IHG executive Jeff Edwards said revenue management would be the perfect use for the technology because it is too complex for humans to manage in real-time. Future tech could also enable dynamic pricing for individual rooms. O’Neill notes an extra-spacious room appearing frequently on social media could, in theory, command higher rates. Ryan King, an executive at hotel software services firm Shiji Americas, said revenue management software platforms could assign specific rates for certain rooms based on perceptions of those rooms.  O’Neill also writes that today’s revenue management systems often struggle to handle non-room revenue, including spending in hotel restaurants and spas.   We head to San Francisco next. Global Tourism

Episode Notes Delta Air Lines saw a significant revenue bump during the second quarter thanks to a major surge in international travel to Europe and Latin America, reports Edward Russell, editor of Skift publication Airline Weekly.  Delta President Glen Hauenstein said the company’s international revenue recorded a 61% increase while domestic revenue was only up 8%. Hauenstein added that Europe and Latin America were Delta’s strongest regions, with Russell noting the return of international travel is a big deal for global airlines. Although some long-haul international markets have recovered from the pandemic, Russell writes Delta doesn’t anticipate a full global recovery in passenger numbers until next year. Meanwhile, Delta expects an 11-14% increase in revenue during the third quarter.  Next, the Grand Canyon National Park recently got a major boost in its efforts to go greener. The park secured $27.5 million in federal funding from the National Park Service to electrify its bus shuttles, writes Global Tou

Episode Notes Expedia Group terminated its relationship on Wednesday with online travel agency Hopper over practices that Expedia considers anti-consumer, reports Executive Editor Dennis Schaal.  Expedia had supplied rival Hopper with hotel and short-term rental inventory for several years. An Expedia spokesperson said the company cut ties with Hopper because it believes Hopper’s content confuses customers, leading them to purchase services they neither need nor completely understand. Schaal notes Expedia also has a competitive motive for terminating the relationship. Hopper is considered the third largest online travel agency in North America behind Expedia and Booking.  Schaal writes it’s unclear how Expedia’s decision will impact Hopper. A Hopper spokesperson said Expedia’s move to end their relationship wouldn’t affect Hopper, adding that Expedia was one participant among many in Hopper’s marketplace. Schaal notes that Expedia might be supplying close to half of Hopper’s hotels.  Next, three airlines — Am

Episode Notes Delta Air Lines is launching two routes this fall that will serve Austin. But that expansion may come too late for Delta to overtake the market share of rivals American and Southwest in the city, reports Edward Russell, editor of Skift Airline Weekly.    Delta will connect Austin, one of the U.S.’ fastest-growing cities, to Las Vegas and Orlando daily beginning on October 9. Russell notes those routes follow frequency additions on seven existing Delta routes from Austin. The Atlanta-based carrier will operate up to 39 daily departures from Austin by August, a jump from 31 a day in May.   However, Russell asks if Delta’s new service to Austin is a case of too little, too late. Delta trails both Southwest and American by double-digit percentage points in terms of market share in Austin. Russell adds that Delta is a long way from matching and setting itself apart from Southwest and American’s offerings in the city. American will offer close to double the number of seats from Austin this year as it

Episode Notes U.S. destination marketing organizations are eager to increase their marketing activities in China later this year. So how successful will those efforts be? Global Tourism Reporter Dawit Habtemariam writes that any success depends on flights between the countries returning to pre-pandemic levels.  Gloria Lan, CEO of tour operator Tour America, said a lot of destination marketing organizations are planning to travel to China to start soliciting business. Habtemariam cites Visit California as one travel brand sending representatives to China in the near future. However, weekly flights between the two countries are far below 2019 levels. Habtemariam adds some destination marketing organizations don’t plan to invest heavily in China until air connectivity improves, citing Meet Boston as one example. We turn next to a comparison between hotel giants Marriott and Hilton. Skift Research’s new report examines the fierce competition the two companies are engaged in, especially in areas such as net unit g

Episode Notes Accor executives have been hard at work to boost the Paris-based hotel company’s digital operations, but what does that entail exactly? Senior Hospitality Editor Sean O’Neill provides answers in this week’s Early Check-In column. O’Neill delves into what he considers the most notable findings from presentations Accor recently held for investors. The company runs a “digital factory,” which brings together roughly 800 developers, product managers and others to tackle the problems of hotel guests and operators. Chief Digital Officer Alix Boulnois said the Accor has the only digital factory at scale in the hospitality industry.  And O’Neill writes that Accor wants to sell more than just rooms. The company has launched All Food, a platform for booking meals at its restaurants in select markets — including France.  Next, India has unveiled plans to substantially improve its cruise infrastructure. It’s part of the government’s plan to generate nearly $5 billion in revenue from the industry by 2041, wri

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode Notes Taylor Swift is heading to Australia next February for her Eras Tour — but not New Zealand. However, Air New Zealand is boosting capacity for the thousands of Swifties eager to travel to Australia for her shows, writes Reporter Jess Wade. Wade reports 10,000 Kiwis have booked flights on Air New Zealand coinciding with the concert dates. One Air New Zealand executive said the surge is one of the greatest it’s ever seen for travel between the two countries. Wade adds the airline recently announced it’s adding 2,000 new seats from three major New Zealand cities to Melbourne and Sydney.  Australia airlines have also seen enormous demand for Swift-related travel. Virgin Australia registered a more than 600% jump in bookings to Melbourne and Sydney during Swift concert dates.  Next, the U.S. tourism industry is continuing to make strides in its recovery from the pandemic. International travel to the country hit 83% of pre-C