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Skift Daily Travel Briefing

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Jun 18, 2024 • 4min

NYC’s Crackdown on Short-Term Rentals Detailed

Presented by Brand USAEpisode NotesNew York City has cracked down on short-term rentals by requiring hosts to register since last September. Since then, the city has only approved a little less than 2,300 applications, reports Executive Editor Dennis Schaal.Schaal writes the figure is a sign of the lack of short-term rentals in New York City. Christian Klossner, the Office of Special Enforcement’s executive director, said Local 18, which also requires hosts to be present during the stay, has helped reduce illegal short-term rental listings in the city. The office has only approved roughly 36% of applications submitted since September. Next, the Federal Aviation Administration is looking to tighten safety requirements on public charter airlines such as JSX. That could be a blow for companies like JSX, writes Airlines Reporter Meghna Maharishi. Maharishi notes that if the changes are approved, public charter airlines would fly under the same rules as commercial airlines. The FAA has said some public charter flights operate like commercial airlines. Major carriers such as American Airlines and Southwest Airlines have lobbied the U.S. government to consider more stringent rules on JSX, arguing that JSX was benefitting from a regulatory loophole. Maharishi writes that tougher safety rules would be a problem for carriers like JSX since part of their appeal is a private jet-like experience. JSX, for example, operates out of small private terminals, and passengers don’t go through a typical TSA security screening. . Finally, China is continuing to expand its visa waiver program, adding Australia and New Zealand to the list recently, reports Asia Editor Peden Doma Bhutia. Chinese Premier Li Qiang announced on Monday that China would include Australia in its visa waiver program. While Beijing hasn’t revealed the details of the new visa arrangement, Bhutia notes Chinese officials announced a similar decision concerning New Zealand passport holders last week. China’s moves to provide travelers from more countries visa-free access are part of its strategy to rejuvenate its tourism industry. The country only welcomed about 36% of its 2019 foreign visitor total last year. Get more travel news at https://skift.comProducer/Presenter: Jose Marmolejos
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Jun 14, 2024 • 3min

How to Plan a Successful AI Strategy in Travel

Presented by Brand USAEpisode NotesThe use of artificial intelligence in the travel industry has grown significantly in recent years. However, the industry still has a lot of work to do to get the most out of AI. Vivek Bhogaraju, advisory partner of data and AI at Skift, provides travel companies with ideas on how to develop AI strategies.Bhogaraju writes that this is just the beginning of the AI era. He urges companies to be flexible when using the technology, noting that new regulations will eventually be introduced. Bhogaraju also emphasized the importance of hiring the right chief data officers, who he said need extensive technical knowledge and a background in the travel industry. Although Bhogaraju writes that successful data and AI execution requires urgency and efficiency, he notes that projects that succeed take time and persistence. Next, LVMH said on Thursday it reached a deal with Accor to speed up the revival of the hotel company’s Orient Express brand, reports Senior Hospitality Editor Sean O’Neill.  LVMH said it would make an unspecified strategic investment in the Orient Express brand. O’Neill notes the joint venture will include ships in addition to trains and hotels. Meanwhile, LVMH downplayed rumors it would open a Louis Vuitton-branded hotel in Paris.Finally, Thailand has decided to scrap a proposed $8 fee on international tourists arriving by plane, writes Asia Editor Peden Doma Bhutia.Prime Minister Srettha Thavisin recently said his administration would abandon the previous government’s plan, which was approved in February 2023. Thai officials intended to use the revenue from the tourism fee to fund the management of insurance for international visitors. However, Bhutia notes the tourism fee faced significant opposition from private stakeholders. Plus, Thavisin said eliminating the tourist fee could produce greater economic benefits. Get more travel news at https://skift.comProducer/Presenter: Jane Alexander
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Jun 13, 2024 • 3min

Southwest CEO Is Staying Put

Presented by Brand USAEpisode NotesActivist fund Elliott Investment Management has called for a major shakeup at the top of Southwest Airlines after recently taking a $2 billion stake in the carrier. However, Southwest CEO Bob Jordan has no plans to resign, writes Airlines Reporter Meghna Maharishi.  Jordan said at a Politico event on Wednesday that he would consider Elliott’s feedback, adding that Southwest is ready to adapt its business model. Maharishi reports Elliott has been calling for Jordan and Chairman Gary Kelly to step down due to Southwest’s recent struggles. The carrier has yet to turn a profit this year. Next, hotel companies’ investments in wellness have grown enormously in recent years. Senior Hospitality Editor Sean O’Neill takes a look at emerging trends in hotel wellness.A report from consulting firm RLA Global revealed hotels with wellness offerings saw healthy growth in 2023. So-called upper upscale hotels performed best in wellness last year compared to luxury and upscale segments. In addition, a report from investment bank Truist found that spa treatment revenue per occupied room was up at least 30% relative to 2019 levels. Finally, cruise lines are expected to disclose all mandatory fees and taxes to U.S. consumers starting July 1 to comply with California’s junk fee law, writes Global Tourism Reporter Dawit Habtemariam.California Governor Gavin Newsom signed a bill last October banning junk fees. The law applies to all businesses with offices or customers in the Golden State. Consumers can sue companies allegedly breaking the law for at least $1,000 in damages. Royal Caribbean, Carnival and Norwegian Cruise Line all plan to meet the requirements of the new law. Habtemariam reports total prices won’t change — only the advertised prices shown upfront on cruise company channels will. Get more travel news at https://skift.comProducer/Presenter: Jane Alexander
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Jun 12, 2024 • 4min

IAG Loyalty Has Big Plans for Avios

Presented by Brand USAEpisode NotesIAG Loyalty has big plans to expand its frequent flyer currency Avios. IAG Loyalty CEO Adam Daniels discussed those ambitions and more in an interview with Airlines Reporter Meghna Maharishi. Daniels said one of IAG Loyalty’s goals is to make Avios a global currency. Avios has already entered into partnerships with Qatar Airways and Finnair, carriers outside of the IAG family. IAG’s airline brands include British Airways, Iberia and Aer Lingus. Daniels added Avios is in discussions with other airlines as well as hotel groups.Daniels also addressed the trend of devaluing frequent flyer miles. He acknowledged one criticism of loyalty programs is that collecting miles has been easier than using them. Daniels said IAG Loyalty is looking to change that.   Next, Marriott recently reached a deal with the U.S. Justice Department to comply with the Americans with Disabilities Act, reports Senior Hospitality Editor Sean O’Neill. Marriott will make improvements to its reservation processes to make it easier for guests to reserve and stay in rooms they need to accommodate their disabilities. O’Neill notes that Marriott aims to list all accessible rooms through its booking system. The Justice Department had investigated Marriott’s reservation practices after complaints from individuals with disabilities. Although Marriott contended it has complied with all ADA requirements, the company will pay a $50,000 civil penalty under the deal. Finally, Southwest Airlines is vehemently defending its strategy after activist fund Elliott Investment Management took a $2 billion stake in the company, writes Airlines Reporter Meghna Maharishi. Maharishi reports Elliott — now one of the airline’s largest investors — is pushing for major leadership changes at Southwest, including a shakeup at the top. Southwest said its board of directors and executive team are reviewing Elliott’s proposal. In addition, Southwest said it was taking steps to return to profitability, such as making new technology investments and cutting underperforming routes. Get more travel news at https://skift.comProducer/Presenter: Jose Marmolejos
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Jun 11, 2024 • 4min

Apple Makes Big Travel-Related Updates

Presented by Brand USAEpisode NotesApple unveiled new travel-related features for several of its products on Monday at the 2024 Apple Worldwide Developers Conference. Travel Technology Reporter Justin Dawes provides details about Apple’s updates. Dawes notes the Apple Watch will have a new translation app, live update features for flights and Uber, and a setting to alert users before it rains. In addition, Siri is getting a connection to OpenAI, which will enable users to ask Siri anything they can ask ChatGPT, including trip planning info for free. And travelers will be able to use Apple Vision Pro virtual reality headsets on not just planes — but trains as well. Next, InterContinental Hotels Group would like its property mix to include more premium, lifestyle and luxury brands. However, IHG is downplaying its plans due to its investors’ preference for mid-market and extended-stay brands, reports Senior Hospitality Editor Sean O’Neill. Although O’Neill notes moving upmarket is tantalizing for several reasons, IHG is responding to the demand it sees from hotel owners and investors. In addition, IHG’s Americas CEO Jolyon Bulley said that some owners who want to do deals are concerned about the state of the lending environment. O’Neill adds that conversions are more appealing to some investors because of obstacles in the market. Finally, Mallorca has seen massive protests over mass tourism that many residents believe has helped make housing unaffordable, among other problems. Travel Experiences Reporter Jesse Chase-Lubitz delves into the widespread anger on the island.Protests have erupted even in towns far from Mallorca’s most popular beaches, with Chase-Lubitz citing one small town without tourist attractions that’s been swarmed by tourists seeking lodging. One university professor and Mallorca native said the tourism boom has made it hard for residents to find affordable housing. The island’s capital city Palma de Mallorca and four other cities have seen residential property prices jump more than 10% this year. Chase-Lubitz adds several other incidents have fueled widespread Mallorcan anger about tourism, including a fight involving a group of young British men earlier this month. Get more travel news at https://skift.comProducer/Presenter: Jose Marmolejos
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Jun 7, 2024 • 4min

Venice Might Hike Entry Fee

Presented by Brand USAEpisode NotesAuthorities in Venice believe the roughly $5 entry fee it charges visitors has benefited the city. And a top tourism official told Skift Venice could raise the amount, writes Global Tourism Reporter Dawit Habtemariam. Simone Venturini, the city’s deputy mayor for tourism, said the fee is part of Venice’s strategy to preserve its beauty and pivot away from being “a cheap tourism capital.” Venturini added that everything has gone smoothly since the entry fee was implemented in April. He said the city is considering hiking it to roughly $10. Venturini said the entry fee mainly targets local day-trippers. He also disputed the notion that the majority of Venetians object to it, stating a protest that attracted 200 people didn’t represent the views of most residents.  Next, U.S. hotel demand growth is projected to slow down — even in the luxury sector, reports Senior Hospitality Editor Sean O’Neill. Data firms STR and Tourism Economics project a roughly 2% increase in average daily rates this year. That’s down from a previous estimate of 3%. STR President Amanda Hite said hotel industry figures believe there isn’t as much weekend demand for leisure as expected. Hite added she was surprised about the revised projection in the luxury segment. O’Neill notes the luxury sector faces greater risks due to a shift in the guest mix from leisure travelers toward more group bookings and business travelers. Finally, population shifts across the U.S. could drive vacation rental growth in certain markets, writes Reporter Elizabeth Casolo.AirDNA Chief Economist Jamie Lane said at the Skift Short-Term Rental Summit this year that the “mass exodus” of people from certain locations would impact where guests stay. Lane said that would result in people vacationing in entirely different markets, with Casolo citing Texas and Florida as states that have seen population growth. Lane added AirDNA had identified up-and-coming hot sports for vacation rentals. The four highest-ranked destinations AirDNA listed were all in Texas. Get more travel news at https://skift.comProducer/Presenter: Jose Marmolejos
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Jun 6, 2024 • 3min

What's Happening in Short-Term Rentals

Episode NotesBooking.com is targeting U.S. travelers to tap into the increasing demand for short-term rentals, writes Reporter Christiana Sciaudone. Eric Bergaglia, Booking.com’s vice president of Homes & Growth Segments, said at the Skift Short-Term Rental Summit that the company needs to be more U.S.-centric in how it develops products. Sciaudone reports Booking.com is focusing on in particular payments, liability insurance, damage policy to appeal to American consumers.  Bergaglia said that U.S. consumers aren’t as aware of Booking.com as those in other markets worldwide are.  Next, population shifts across the U.S. could drive vacation rental growth in certain markets, writes Reporter Elizabeth Casolo. AirDNA Chief Economist Jamie Lane said at the Skift Short-Term Rental Summit that the “mass exodus” of people from certain locations would impact where guests stay. Lane said that would result in people vacationing in entirely different markets, with Casolo citing Texas and Florida as states that have seen population growth. Lane added AirDNA had identified up-and-coming hot spots for vacation rentals. The four highest ranked destinations AirDNA listed were all in Texas. Finally, Marriott Bonvoy’s Homes & Villas unit is seeing a surge in international reservations — especially in non-traditional destinations, writes Travel Experiences Reporter Jesse Chase-Lubitz. International reservations are 38% of the unit’s total — up from 14% in 2021, according to Vice President Jennifer Hsieh. While Hseih said Italy, France, and Spain remain popular for guests, she added Marriott is seeing booking jumps in destinations such as Curaçao and the Greek island of Paros. Homes & Villas’ international listings have jumped 39% in the past year. Hsieh also addressed the matter of standardization. She said travelers aren’t looking for standardization in the home product design — instead they’re focused on consistency in cleanliness, safety and security. Get more travel news at https://skift.com
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Jun 5, 2024 • 3min

What Travel's Best AI Experts Told Us Yesterday

Episode NotesHotel tech has a long way to go before it can satisfy travelers’ demands, two executives said at the Skift Data + AI Summit in New York on Tuesday, writes Reporter Christiana Sciaudone.Chris Hemmeter, managing director at Thayer Ventures, and Kurien Jacob, partner and managing director of Highgate Technology Ventures, explained how hotel tech needs to evolve. Jacob noted how the travel industry is behind tech-wise – “room assignment can be automated,” he said. Hemmeter said the hospitality industry has been playing catch up while the traveler has changed. Next, large numbers of travelers are making plans for the summer. But one thing many of them won’t be doing is using trip-planning apps, writes Sciaudone.Gilad Berenstein, founder of investment firm Book Bay Capital, said the travel industry hasn’t proven there’s a lot of consumer demand for a trip-planning app. He noted that Google Maps and Google Calendar are the world’s most popular trip-planning tools. Skift Research found earlier this year that 78% of American travelers haven’t used ChatGPT or another AI-based app to plan a trip. As Sciaudone writes, one problem in the travel industry is the lack of shared information among potentially competing companies. Berenstein said the hotel industry in particular needs to be involved in the full journey.  Finally, Marriott is looking to do more than sell hotel rooms. The hotel company wants to tap into generative AI to reinvent itself as a travel retailer that creates personalized experiences, writes Sciaudone. Marriott Executive Vice President Drew Pinto said at the Skift Data + AI Summit that the company is undergoing its largest-ever tech transformation. Sciaudone reports that Marriott is transitioning to Amadeus IT and “attribute-based booking,” in which customers will be able to personalize their stay. Pinto likened creating a personalized stay to building a Mr. Potato Head. Get more travel news at https://skift.com.
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Jun 4, 2024 • 3min

Wyndham Targets Global and Upscale Growth

Presented by Brand USAEpisode NotesWyndham wants to shed its reputation for focusing on economy hotels in the U.S. The hotel group is looking to increase the number of upscale properties in its portfolio, reports Senior Hospitality Editor Sean O’Neill.  Wyndham CEO Geoffrey Ballotti said at a conference in New York on Monday that while the company loves the economy sector, it’s increasingly moving upscale. Ballotti added that Wyndham has added properties in Montreux, Switzerland and Detroit to its new lifestyle hotel brand HQ. Wyndham has also acquired several upscale brands across the world, including in Austria and India. Next, Spirit Airlines Chief Financial Officer Scott Haralson is leaving the company to assume the same role at Hertz, writes Airlines Reporter Meghna Maharishi. Spirit announced on Monday that Haralson will step down on June 14. Brian McMenamy, a vice president at Spirit, will be the carrier’s interim CFO. Haralson’s departure comes as Spirit has struggled to turn a profit since the pandemic, with its collapsed merger with JetBlue Airways and issues with Pratt & Whitney engines weighing on Spirit’s outlook. Finally, Accor wants to take advantage of India’s booming middle class, writes Asia Editor Peden Doma Bhutia.CEO Sebastien Bazin noted during its recent earnings call that India’sdemographic profile, especially its growing middle class, is its greatest asset. He added that at least 200 million Indians will enter the middle class within the next 10 years.  Accor currently operates 62 hotels in India across four segments: luxury, premium, mid-range, and economy. The company expects to open nine more properties this year.Despite Accor’s optimism about India, the company’s India business currently represents only 2% of its global operations. Bazin acknowledged that Accor would have to revamp its strategy in India and hopes to reveal more this year. Get more travel news at https://skift.comProducer/Presenter: Jose Marmolejos
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May 31, 2024 • 3min

In-Flight Wi-Fi's Evolution

Presented by BrandUSAEpisode NotesThe market for unlimited in-flight Wi-Fi connectivity is set to boom as airlines look to make it easier for travelers to stay connected in the skies. Reporter Ajay Awtaney provides background into the history of in-flight Wi-Fi.Awtaney writes in-flight internet connectivity has come a long way since what he calls painfully slow service more than 20 years ago. As technology has improved over the past two decades, airlines have used advertising or sponsorship deals — such as a partnership with a streaming service — to make in-flight Wi-Fi more affordable. More carriers in recent years — including Delta Air Lines — have offered free Wi-Fi to members of their loyalty programs. In addition, Airbus unveiled in 2022 the HBCplus system, which makes it easier for airlines to provide in-flight Wi-Fi.  Next, Airbnb hadn’t said much about its experiences offerings amid recent struggles. But the company’s Chief Financial Officer Ellie Mertz has explained what went wrong and how it plans to fix those problems, writes Executive Editor Dennis Schaal. When asked at a Bernstein conference why Airbnb experiences hasn’t been a success, Mertz said outside of packaged tours, consumers don’t go to a site and book everything — flights, lodging, cars, etc. — at the same time. Mertz also said Airbnb needs to ensure experiences are “appropriately priced” and that proper timing and personalization are keys to a successful experiences product. Finally, Skift recently reviewed the pay for more than two dozen top bosses at U.S. destination marketing organizations. However, Global Tourism Reporter Dawit Habtemariam notes a lot of factors go into the link between CEO pay and the performance of a tourism board. Habtemariam reports it’s hard to assess how much credit destination marketing organizations should get for tourism, adding a tourist may visit for reasons unrelated to marketing. One place the value is more clear: Meetings and conventions. “They are hugely important. That’s the only organization that can talk collectively with meeting planners,” said Vijay Dandapani, a member of NYC Tourism’s board of directors and CEO and president of the Hotel Association of New York City.But you can’t paint with too broad a brush. As one former DMO leader told us: “Some of these CEOs are probably underpaid, some of them are probably overpaid,” she said.

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