Episode NotesFans heading to Las Vegas for the Super Bowl on February 11 will likely pay the highest hotel room rates in the event’s history, writes Global Tourism Reporter Dawit Habtemariam. The average daily rate for a Las Vegas hotel room between February 9 and 11 is projected to be $573, according to industry data company STR. That figure would break the record set in Miami four years ago. Habtemariam reports that visitors coming for the Super Bowl are expected to book about 350,000 room nights.Next, Ryanair CEO Michael O’Leary has come out in support of beleaguered planemaker Boeing, and called out United Airlines CEO Scott Kirby for saying his company would consider a future without the Max 737 10 in its fleet, reports Airlines Editor Gordon Smith.O’Leary called Kirby’s comments on the Max 10 “stupid” during Ryanair’s third-quarter earnings call on Monday. The Max 10 isn’t certified yet and United has more than 200 of them on order – it has already been waiting five years for the first deliveries of the plane. O’Leary said Ryanair would gladly accept Max 10 jets if United chose to cancel any deliveries. Ryanair has orders for the largest Max 10, which it isn’t due to receive until 2027.Finally, Vrbo took some not-so-subtle shots at Airbnb in two commercials that aired during the National Football League playoffs on Sunday, reports Executive Editor Dennis Schaal.Schaal writes the two ads — titled Relax/Rooster and Relax/Spaceship — are part of a Vrbo multimedia campaign. The narrator in both ads urges travelers to choose a vacation rental that will meet their expectations unlike others. While the Vrbo advertisements don’t mention Airbnb by name, Schaal notes they depict the “other vacation rentals” as those offered by Airbnb.

Episode NotesAlaska Airlines said it would take a $150 million financial hit from the Boeing 737 Max 9 grounding that prompted the airline to cancel roughly 3,000 flights, writes Airlines Reporter Meghna Maharishi. Alaska CEO Ben Minicucci said during its fourth-quarter earnings call that the company would put pressure on Boeing to produce better planes. Minicucci told NBC News this week he was angry at Boeing for the blowout aboard an Alaska flight earlier this month. He did express optimism that consumer confidence in the Max 9 would eventually come back.  Alaska posted a $2 million net loss during the fourth quarter. Next, Oracle Hospitality, one of the largest players in hotel tech, is selling what it considers a simplified system for hotel tech operations, writes Travel Technology Reporter Justin Dawes. Dawes reports Stockholm-based Scandic Hotels Group is already piloting an expanded version of Oracle Hospitality’s cloud-based system. The system, known as Opera Cloud Central, includes a property management system, central reservation system and distribution services on a single platform. Dawes adds that using a single system removes the need to transfer information between systems. An Oracle Hospitality executive said the company believes it will disrupt the traditional hospitality ecosystem. Finally, Jolyon Bulley, IHG’s CEO of the Americas, aims to grow the group’s luxury and lifestyle portfolio at what he calls ‘China speed,” writes Senior Hospitality Editor Sean O’Neill.Bulley, IHG’s former CEO for Greater China, said in an interview with Skift he sees potential for growth in the Americas. IHG’s luxury and lifestyle brands represent 22% of its global hotel development pipeline, roughly double the figure from five years ago. Burley also expressed optimism he could use lessons from China, where IHG’s portfolio has doubled over the past five years, to guide the expansion in the Americas. However, O’Neill notes that one obstacle to growth is IHG doesn’t have a great reputation among hotel owners for luxury in the Americas. 

Episode NotesLos Angeles is launching its largest-ever global advertising campaign to help remain competitive in the fight to attract tourists, writes Global Tourism Reporter Dawit Habtemariam.Habtemariam reports the city will unveil next week the latest iteration of its “Now Playing” campaign, which has showcased Los Angeles’ arts, food and lifestyle. The multi-million dollar campaign will target the UK, France and South Korea, among other markets. LA Tourism CEO Adam Burke said the city is increasing its international marketing efforts in response to the emergence of other competing destinations, including Saudi Arabia.Next, Qantas’ new 10-minute long safety video has been largely panned by viewers who found it tedious among other complaints, writes Airlines Editor Gordon Smith.The new video features Qantas crew and passengers sharing some of their favorite destinations. But with renewed focus on pre-flight briefings in recent weeks, some commenters on social media have argued Qantas’ film lacks critical information regarding safety. Smith notes the Qantas video doesn’t have any in-cabin visuals of the actual airplane. However, Qantas executives said the video travelers see pre-flight will be shorter than the online version. Finally, Visit Orlando, one of the U.S.’ largest tourism boards, is about to see its marketing budget reduced by $15 million, writes Global Tourism Reporter Habtemariam. The Orange County Board of Commissioners approved a proposal to move that amount of tax funds from destination marketing to other projects. Visit Orlando CEO Casandra Matej said she was relieved the organization didn’t see a larger reduction in funding. Its leaders had warned the county commissioner board that cuts could result in fewer advertising projects.Visit Orlando will have an $85 million marketing budget for the 2025 fiscal year. 

Episode NotesUnited Airlines is taking another look at its fleet plan due to delivery delays with the Boeing 737 Max 10, writes Airlines Reporter Meghna Maharishi.The Max 10 hasn’t been certified by the Federal Aviation Administration yet. And given the Max 9 groundings, United executives said during the airline’s fourth-quarter earnings call on Tuesday that it’s unrealistic to expect deliveries will be on time. Maharishi notes United is focused on the Airbus A350. Meanwhile, United posted net income of $600 million during the fourth quarter. However, the Chicago-based carrier said Monday it expects a first-quarter loss due to the grounding of the Max 9 following a blowout aboard an Alaska Airlines flight earlier this month.  Next, Expedia CEO Peter Kern is urging hotel owners to clamp down on rogue wholesale rates, reports Executive Editor Sean O’Neill. Kern said at the Americas Lodging Investment Summit this week that hotels aren’t doing enough to keep their wholesale rates off of smaller retail travel sites. While hotels have long set aside certain rooms at discounted rates for contracted partners, Kern argued that some agencies are breaking the rules. Hotels may not be quick to respond because they benefit when rooms are full and it takes time and money to clamp down.Finally, Marriott CEO Anthony Capuano faces major challenges at the helm of the world’s largest hotel group, but he remains optimistic about the company’s future, reports Senior Hospitality Editor Sean O’Neill. Capuano said during an interview with Skift that he doesn’t see Marriott’s growth slowing down. Marriott has more than doubled its room count in the last 10 years, and Capuano said it’s targeting Europe, China and the Middle East as areas for growth. While O’Neill writes technology has changed faster than Marriott’s software has, Capuano expressed optimism the company’s tech transformation will be complete in the near future. Marriott will revamp its website and app to make comparison-shopping for hotels easier, among other updates. 

Episode NotesGlobal hotel dealmaking is expected to make a major rebound in 2024 thanks to a more positive financing environment, reports Senior Hospitality Editor Sean O’Neill. At least $58 billion in hotel deals are set to take place this year, according to investment advisory firm JLL Hotels & Hospitality. That would surpass 2023’s total by at least 15%. JLL believes one reason for the increased dealmaking is that struggling hotel owners are looking for buyers to take problem properties off their hands. The company expects hotels in major cities like London, Paris and New York to see the most investor interest. Next, Google is planning to change how it displays flight search results in European Union countries. But eDreams Odigeo, a major flights seller, argues Google’s plan isn’t going far enough to let rivals compete, reports Executive Editor Dennis Schaal. Spain-based eDreams Odigeo said Google’s plan will allow it to favor Google Flights over competing flight-selling services. Google is under orders from the European Union to increase competition in the travel retail sector. The tech giant said it plans to add new dedicated units that contain links from competitors, among other changes. Finally, the Federal Aviation Administration is asking airlines to inspect the door plugs on more Boeing jets, another blow for the beleaguered planemaker, writes Airlines Reporter Meghna Maharishi. The agency said in a safety alert the Boeing 737-900ER has an identical door plug design to one on the Boeing 737 Max 9. The 737 Max 9 has been grounded since a blowout aboard an Alaska Airlines flight earlier this month. Alaska, Delta Air Lines and United Airlines all operate the 737-900ER.However, the three airlines have said they don’t expect the inspections to impact their operations. 

Episode NotesThe 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’s been no discernable increase in available rental supply since the city’s rules went into effect last September. In addition, rents in New York City rose roughly 2% in December. Finally, Spirit Airlines faces an uncertain future following a federal judge’s decision to block its proposed merger with JetBlue Airways, writes Airlines Reporter Meghna Maharishi. Maharishi writes Spirit is on its own to deal with declining revenues and surging operating costs. The airline hasn’t turned a profit since 2019 and several analysts said it probably needs a buyer or another way to improve its financial situation. Spirit’s shares have dropped by nearly 70% since the judge’s ruling. Maharishi adds Frontier Airlines, which originally sought to merge with Spirit in 2022, could be a potential buyer. But some industry analysts believe it may be difficult for Frontier to launch a bid since it’s also in a financially weaker state compared to two years ago. 

Episode NotesA 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 it operates in, reports Executive Editor Dennis Schaal.Jay Carney, Airbnb’s global head of policy and communications, said the short-term rental company would like to avoid regulations like those implemented in New York City last September. The city enacted a law requiring hosts be present for stays shorter than 30 days, which Carney described as onerous. Former Baltimore Mayor Stephanie Rawlings-Blake, who once headed the U.S. Conference of Mayors, will chair the Airbnb council. Finally, Chinese travelers aren’t super enthusiastic about visiting the U.S. in 2024 despite Beijing’s efforts to address the hurdles restricting outbound travel from the country, reports Asia Editor Peden Doma Bhuta. Travel from China to the U.S. is expected to be 70% below pre-Covid levels this year, according to marketing technology company China Trading Desk. CEO Subramania Bhatt cited limited flight capacity and expensive airfare as factors deterring Chinese travelers from visiting the U.S. Bhatt added that a perception of high crime is also a concern for Chinese travelers.Bhatt said Chinese travelers are increasingly interested in destinations suited to last-minute bookings, which means distant locations are taking a backseat. 

Episode NotesA 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 afternoon, according to flight tracking site FlightAware. Southwest Airlines, United Airlines and American Airlines have been hit with the most disruptions thus far, although not all were caused by the weather. Maharishi adds airlines may not get a reprieve after the current storm passes, with another Arctic blast expected to hit the Southern and Plains regions of the U.S. later this week. Finally, Turkey is now charging tourists an admission fee to enter mosque and UNESCO World Heritage Site Hagia Sophia, writes Global Tourism Reporter Dawit Habtemariam.Tourists have to pay about $27 to enter the site, one of Turkey’s most famous attractions, starting this week. Hagia Sophia had admitted tourists free of charge since 2020, when services resumed at the mosque. Muslim visitors to Turkey can still worship for free at Hagia Sophia at appropriate times, noting the government has separated how tourists and worshippers enter the building. 

Episode NotesTripadvisor 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. represented six of the 24 that carried more than 1 million passengers last year, a sign of the boom in transatlantic travel. The Heathrow-JFK route was the busiest for the London airport, serving more than 3 million passengers. Meanwhile, Dubai and Doha took the next two spots for Heathrow’s busiest route in 2023. Finally, Thailand will be setting for the third season of the popular HBO show The White Lotus, which is expected to boost tourism to the kingdom, writes Global Tourism Reporter Dawit Habtemariam. Tourism Authority of Thailand and HBO have partnered to film and promote the Emmy-winning series. Thai officials didn’t disclose which hotel would be featured – the last two seasons were set at Four Seasons properties. Habtemariam notes that travel demand for Sicily boomed after the island was selected as the filming location for season two of The White Lotus. 

Episode NotesThe 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 that could help travelers explore new places.Apple Vision Pro has a setting that allows users to view landscapes, which Apple said could include several U.S. national parks. Those landscapes could be a backdrop while watching movies on a plane or at home. Dawes adds there’s also potential for third-party companies to build apps on the Vision Pro that could offer more virtual travel experiences. Finally, Greece has introduced a new tourist tax to help provide financial support for future disaster relief efforts, writes Global Tourism Reporter Dawit Habtemariam. Greece’s so-called “climate crisis resilience fee” replaces the previous hotel tax that the government had levied on travelers. Habtemariam notes the amount for the new tax varies by hotel category and time of year. Greek officials implemented the new tourist tax after the country suffered several natural disasters in 2023, including record rainfall that left at least 17 dead.  Habtemariam adds those disasters prompted some tour operators to cancel trips in Greece.