Skift Daily Travel Briefing

Episode NotesA U.S. appeals court has struck down the Department of Transportation’s rulemandating airlines disclose all fees upfront, pending a full review, writes Airlines Reporter Meghna Maharishi. A three-judge panel said the rule likely exceeds the department’s authority and would significantly harm airlines. The case will be heard during the next available oral argument panel. The Department of Transportation released a final rule in April requiring airlines disclose “junk fees” associated with purchasing airline tickets, including those for baggage and changes to reservations.Trade group Airlines for America — along with several prominent airlines — filed a lawsuit against the department in May, arguing the junk fee rule was a regulatory overreach that would cause confusion for customers. The DOT said it will continue defending the rule. Next, Spirit Airlines is targeting premium-focused passengers as part of its effort to return to profitability, writes Airlines Editor Gordon Smith. Spirit revealed four fare classes on Tuesday that CEO Ted Christie said represented a “new era” for the company. ‘Go Big’ — Spirit’s new top-tier option — includes perks such as priority check-in and boarding as well as complimentary onboard Wi-Fi. The changes at Spirit come shortly after Southwest Airlines announced moves to target premium travelers.Spirit has had a rough start to 2024. A federal judge blocked its proposed merger with JetBlue, and business models at U.S. low-cost airlines have come under pressure due to overcapacity and rising costs. We end today with a look at Venice’s efforts to manage visitor numbers. The city is banning group tours of more than 25 people starting August 1, writes Global Tourism Reporter Dawit Habtemariam.Tour guides will also be banned from using loudspeakers on the streets. In addition, group tours will not be allowed to park their vehicles on bridges. Habtemariam notes those restrictions aim to deter overcrowding, reduce noise pollution and make it easier for pedestrians to get around the city. Deputy Mayor Simone Venturini said the city banned loudspeakers because it’s not “a theme park.”Venice authorities also have plans to introduce new restrictions on short-term rentals in September. Producer/Presenter: Jose MarmolejosConnect with SkiftLinkedIn: https://www.linkedin.com/company/skift/X: https://twitter.com/skiftFacebook: https://facebook.com/skiftnewsInstagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the travel industry.

Episode NotesMeta AI recently released the newest version of its generative AI model, which it says outperforms that of OpenAI in nearly every metric. Travel Technology Reporter Justin Dawes tested how it works for trip planning. Dawes notes the Meta AI’s chatbot gave a list of suggested activities in the Vancouver area focused around hiking and cultural experiences — but not in the form of a traditional activity. The suggestions were grouped according to the type of activity, along with a suggestion for which day to complete each of them. Dawes added the chatbot provided useful suggestions for Vancouver-area restaurants. However, he reports two of the recommended restaurants are permanently closed. In addition, the chatbot didn’t provide links to any of the restaurant websites. Next, several prominent airlines are using the Paris Olympics to build brand recognition. Airlines Reporter Gordon Smith takes a look at carriers that have entered into Olympic-related partnerships.Delta Air Lines recently signed an eight-year partnership with the U.S. Olympic and Paralympic Committee, which covers the 2028 games in Los Angeles. Delta is managing travel for all athletes as part of the deal. In addition, Air Canada and Australia’s flag carrier Qantas have unveiled special designs on their aircraft to mark sponsorship deals of their country’s Olympic teams.Smith notes even low-cost carriers are using the Paris Olympics to market themselves. Budapest-based Wizz Air painted one of its planes gold to symbolize its deal as Team Hungary’s official airline. Finally, regulators in the United Arab Emirates published its gaming regulations over the weekend. Middle East Reporter Josh Corder explains why the country’s casino industry may be more local than expected.To receive a gaming license, Corder notes operators must have a “qualifying domestic entity” in the country or have a relationship with one. That entity must have a substantial financial and operational history in the United Arab Emirates. Corder cites Wynn and MGM are two companies with local partners. Analysts at real estate firm CBRE said Emirati casinos could generate as much as $8.5 billion in revenue, assuming Wynn is one of the companies to open casinos across the United Arab Emirates. Producer/Presenter: Jose MarmolejosConnect with SkiftLinkedIn: https://www.linkedin.com/company/skift/X: https://twitter.com/skiftFacebook: https://facebook.com/skiftnewsInstagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the travel industry.

Episode NotesThe Henley Passport Index has just released its rankings for the most powerful passports of 2024, and Singapore took the top spot, writes Asia Editor Peden Doma Bhutia. A Singaporean passport provides visa-free access to 195 countries. Japan and South Korea occupy the second and third spots in the index while the U.S. is in eighth place. The Henley Passport Index measures the strength of passports based on the number of destinations their holders can enter without a visa. Japan had occupied the top position in last year’s Henley Passport Index. Next, Southwest Airlines saw its profits drop significantly during the second quarter as it announced it’s making major changes to boost its bottom line, writes Meghna Maharishi.  Although Southwest posted record revenue, its net income dropped roughly 46%. As a part of its strategy to increase profits, Southwest announced on Thursday it would roll out premium seating and do away with its open boarding process. Maharishi notes those are significant changes considering Southwest has long been known for all-economy cabins and open seating. Elliott Investment Management, a hedge fund that has built a big stake in Southwest, called for the carrier to change its business model. Finally, Barcelona is changing its tourism slogan as part of its strategy to attract tourists interested in the city’s culture and history, writes Global Tourism Reporter Dawit Habtemariam. Barcelona’s tourism board is replacing its 15-year-old ‘Visit Barcelona’ with ‘This is Barcelona.’ Mateu Hernández, general director of Turisme de Barcelona, said the change represented a shift from the city’s efforts to promote mass tourism. The new campaign launches on August 22, the first day of the America’s Cup sailing in the city. Barcelona’s new strategy comes in the wake of recent large-scale protests against mass tourism. Roughly 3,000 people took to the streets earlier this month to call for a ban on short-term rentals and an end to tourism promotion, among other demands. Connect with SkiftLinkedIn: https://www.linkedin.com/company/skift/X: https://twitter.com/skiftFacebook: https://facebook.com/skiftnewsInstagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the travel industry.

Episode NotesGoogle recently announced it won’t get rid of the third-party cookies in its Chrome browser that enable companies to track consumers across other websites. Executive Editor Dennis Schaal examines what Google’s decision means for travel marketers.Skift Head of Research Seth Borko said Google’s move will help smaller travel advertisers. Borko noted larger companies were already devising ways to better use their own first-party data to track consumers if cookie capabilities disappeared. Meanwhile, Brian Harniman — an executive at digital agency From — blasted Google’s explanation for the decision, arguing it acknowledged the tech giant is beholden to its large advertisers. But Amber Carpenter, an executive at vacation rental property manager Vtrips, said Google’s move wouldn’t have much of an impact on travel brands.  Next, travel brands are increasingly showcasing the ways they use AI. But three hotel tech executives argue that AI isn’t living up to the hype, writes Travel Technology Reporter Justin Dawes.Cloudbeds CEO Adam Harris said hotel tech companies are heavily marketing AI tools that aren’t as impressive as they claim. Meanwhile, Mews founder Richard Valtr said he’s seen very little innovation regarding AI.And Stayntouch CEO Jacob Messina said AI will help workers with repetitive tasks, and that will free them up to truly innovate. Finally, dozens of airlines offer premium economy seats. However, Turkish Airlines isn’t one of them, writes Airlines Editor Gordon Smith. Turkish Airlines chairman Ahmet Bolat explained why the company doesn’t have an interest for premium economy, which it scrapped in 2016. Bolat said Turkish Airlines doesn’t need premium economy because he believes its prices for business travelers are already affordable. The carrier shared details of an all-new suite, branded as ‘Crystal Business Class,’ offering direct aisle access for all passengers, a sliding door for improved privacy, and a 76-inch lie-flat bed. Connect with Skift:LinkedIn: https://www.linkedin.com/company/skift/X: https://twitter.com/skiftFacebook: https://facebook.com/skiftnewsInstagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the travel industry.

Episode NotesDelta Air Lines is facing mounting pressure from travelers and the U.S. government as disruptions caused by a recent IT outage continue. The Department of Transportation is launching an investigation into the carrier, writes Airlines Reporter Meghna Maharishi. Delta has canceled more than 5,000 flights after the outage last Friday caused systems relying on Microsoft Windows to crash. Delta CEO Ed Bastian said on Sunday that the airline would provide Delta SkyMiles and travel vouchers as a “gesture of apology.” However, some customers said they haven’t received any vouchers and report long wait times to reach customer service where some have gotten conflicting information. In addition, the Department of Transportation said the Office of Aviation Consumer Protection would conduct the investigation due to the ongoing flight disruptions and reports of customer service issues. Next, Venice implemented a roughly $5 entry fee for day trippers earlier this year as part of its strategy to combat mass tourism. Global Tourism Reporter Dawit Habtemariam provides three takeaways from Venice’s experiment.Habtemariam notes the number of day trippers to Venice during the 29 days the entry fee was in effect decreased compared to 2023 levels. Venice collected more than $2.5 million in fees, which local officials intend to use to improve the city’s infrastructure. In addition, a city spokesperson said Venice is considering raising the entry fee next year and expanding the number of days it’s in effect. Finally, as business travel spending worldwide is expected to boom this year, American Express data has revealed the five U.S. markets seeing the fastest growth based on commercial customer hotel transactions, reports Senior Hospitality Editor Sean O’Neill.As business travel spending in North America has already reached pre-Covid levels, O’Neill reports college towns Princeton, New Jersey and Durham, North Carolina occupy the top two spots in Amex’s rankings. Amex compared business travel spending occurring between April 2023 and March 2024 with the same period a year earlier. Producer/Presenter: Jose MarmolejosConnect with SkiftLinkedIn: https://www.linkedin.com/company/skift/X: https://twitter.com/skiftFacebook: https://facebook.com/skiftnewsInstagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the travel industry.

Episode NotesMallorca recently saw another large demonstration against mass tourism, writes Global Tourism Reporter Dawit Habtemariam.More than 20,000 protestors marched the streets of Palma de Mallorca on Sunday as Spain continues to emerge as one of the hottest destinations in Europe. Demonstrators called for more affordable housing, fair wages, better conservation of natural spaces, and respect for local culture.The protests have not reduced the popularity of the destinations this summer. International flights bookings for Mallorca are up 6% for July and August. For Barcelona, they’re up 18%. Next, business travel spending worldwide is expected to hit an all-time high by the end of 2024, reports Senior Hospitality Editor Sean O’Neill.The Global Business Travel Association said that global business travel spending is projected to reach $1.48 trillion by year-end. That would top pre-Covid levels for the first time. The GBTA found that 68% of business travel managers report spending more in 2024 than last year. The association projects global business travel spending will surpass $2 trillion in 2028.Delta Air Lines canceled roughly 20% of its schedule on Monday as it grapples with the aftermath of the recent major IT outage, writes Airlines Reporter Meghna Maharishi. CEO Ed Bastian said on Sunday that Delta’s crew scheduling system was unable to process the large number of changes caused by the IT outage. Delta is also experiencing difficulties locating its crewmembers, which is helping cause the ongoing disruptions. Meanwhile, rivals American Airlines and United Airlines have restored their operations since the outage. Producer/Presenter: Jose MarmolejosConnect with SkiftLinkedIn: https://www.linkedin.com/company/skift/X: https://twitter.com/skiftFacebook: https://facebook.com/skiftnewsInstagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the travel industry.

Episode NotesHyatt is close to a deal to buy Standard International, operator of the upscale Standard Hotels, reports Senior Hospitality Editor Sean O’Neill. Negotiations between Hyatt and Standard International “are in advanced stages,” according to Bloomberg News. A source at Hyatt said the talks were ongoing and hadn’t been finalized, noting that Hyatt has walked away from deals at the last minute when there are issues. Next, United Airlines Chief Commercial Officer Andrew Nocella has blasted its low-cost rivals, arguing they’ve “largely run their course,” writes Airlines Reporter Meghna Maharishi. Nocella said during United’s second-quarter earnings call that the growth line of low-cost carriers is highly unprofitable. He added he doesn’t see any new opportunities available in the sector. Maharishi notes a surplus of domestic seats — much of which has been spurred by ultra-low-cost carriers — have dragged down United’s third-quarter outlook. Finally, Skift Meetings Executive Editor Andrea Doyle and Global Tourism Reporter Dawit Habtemariam examine how destinations estimate the number of visitors they attract. It's an important number: Politicians look at visitor counts when determining how much money to allocate to tourism promotion. But comparing data from different cities is difficult. A tourism executive from Las Vegas said there’s no one single method for estimating visitor numbers. One tourism board consultant said they’ve had to modify their definition of a visitor to satisfy a client. Connect with Skift:LinkedIn: https://www.linkedin.com/company/skift/X: https://twitter.com/skiftFacebook: https://facebook.com/skiftnewsInstagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the travel industry.

Episode NotesVirgin Atlantic is pulling out of China after serving the country for 25 years. Virgin becomes the latest Western carrier to retreat from China, writes Airlines Editor Gordon Smith.Virgin Atlantic cited “significant challenges and complexities” as the reason for its decision. The carrier’s final round-trip service to China will be London-Shanghai flights on October 25. Smith notes the closure of Russian airspace has made Virgin Atlantic’s journeys even longer and helped increase the company’s operating expenses. Virgin Atlantic’s decision comes weeks after Qantas said it was pulling out of mainland China later this month.Next, business travel spending by U.S. companies may finally top pre-Covid levels by the end of this year, writes Reporter Christiana Sciaudone.A newly released report by Deloitte found that U.S. companies’ business travel spending is expected to grow between 8% and 12% this year. A Deloitte executive said that figure is projected to increase in 2025 as well due an increase in trips and higher airfares and hotel rates. In addition, the Global Business Travel Association predicted earlier this year that most travel buyers expected their company’s business travel spending and volume to increase this year compared to 2023. Finally, Apollo Global Management’s pending acquisition of The Travel Corporation could be a sign of more private equity deals to come in the tour operator and travel agency sectors, writes Executive Editor Dennis Schaal. A source familiar with The Travel Corporation said multiple private equity firms had also expressed interest in the company.The source added that travel agencies geared toward luxury consumers are attractive targets coming out of the pandemic. The Travel Corporation is a family owned business and one factor driving the sale was that there was no heir apparent, the source said.For more travel stories and deep dives into the latest trends, head to skift.com. To find these stories and more insight into the business of travel, subscribe to the Skift daily newsletter at skift.com/daily.Connect with Skift:LinkedIn: https://www.linkedin.com/company/skift/X: https://twitter.com/skiftFacebook: https://facebook.com/skiftnewsInstagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the travel industry.

Episode NotesAmsterdam, one of the world’s most visited destinations, wants fewer tourists. The city’s Deputy Mayor Sofyan Mbarki discussed Amsterdam’s strategy to decrease visitor numbers and attract better-behaved travelers with Global Tourism Reporter Dawit Habtemariam.  Mbarki said more rental units need to be reserved for residents instead of tourists, and that Amsterdam plans to introduce new short-term rental regulations. The city is also placing limits on cruise ships and development of new hotels. And Amsterdam is once again running a “Stay Away” campaign, which aims to deter tourists from partying in the city’s Red Light District.  Next, United Airlines flight attendants will vote on whether to authorize a strike as negotiations with management have stalled, writes Airlines Reporter Meghna Maharishi. Flight attendants have been demanding better pay and working conditions since the pandemic. The Association of Flight Attendants, which represents United flight attendants, said it’s the first vote to authorize a strike at United since 2005 bankruptcy negotiations. However, Maharishi notes a strike isn’t imminent due to current regulations. United flight attendants have expressed frustration about, among other issues, not having received a pay raise since 2020.  Finally, private equity firm Apollo Global Management has acquired The Travel Corporation, a company that owns 18 travel brands, writes Travel Experiences Reporter Jesse Chase-Lubitz. The agreement between Apollo and TTC is expected to close in the fourth quarter of 2024. TTC, one of the world’s largest privately held travel companies, has been family-owned for more than a century. Apollo would acquire notable TTC tour brands such as Trafalgar, Contiki and Insight Vacations. Get more travel news at https://skift.comProducer/Presenter: Jose Marmolejos

Episode NotesLast-minute travel booking sites have often done well during economic downturns. Executive Editor Dennis Schaal provides information about companies like last-minute vacation rental site Whimstay, which has announced discounted inventory deals with several major travel brands.  Whimstay recently unveiled a partnership with Expedia Group and Vrbo that will furnish the company with up to 250,000 new listings. Whimstay, which targets Millennial and Gen Z travelers, gets its inventory from property managers eager to offer rooms at discounted rates rather than see them unoccupied. Schaal notes the partnership, to be implemented during the third quarter of this year, will enable travelers to access discounts on Whimstay, especially when they book within 30 days of the stay.    Next, tours and activity brand Viator has unveiled two new ads with the catchphrase “Regret Less. Do More” that highlight travel mishaps and how Viator could have helped avoid them, writes Travel Experiences Reporter Jesse Chase-Lubitz. One ad features a family on an empty, rundown bus in London while the other shows two people hanging from a cliff after a mountain biking trip goes haywire. The campaign emphasizes Viator’s offerings, such as guided tours and an option for free cancellations. Viator said it wants to avoid the temptation of producing typical ads with smiling people against beautiful backdrops. Finally, international air travel from China is making progress in its recovery from the pandemic. But getting back to 2019 levels is taking longer than anticipated, writes Reporter Christiana Sciaudone.Sciaudone notes the number of flights between China and the U.S. will be a quarter of pre-Covid levels this year due to China’s weak economy and geopolitical tensions between the two countries. In addition, a study by the Asian Development Bank found that the aviation industry should prepare for a “possible permanent reduction in future growth” in air travel from China. Get more travel news at https://skift.comProducer/Presenter: Jose Marmolejos