Skift Daily Travel Briefing

Episode NotesThe world’s largest hotel groups have made huge strides in signing up guests for their loyalty programs in recent years. But which one has the largest loyalty program? Senior Hospitality Editor Sean O’Neill provides the answer. Marriott has the largest loyalty program membership with more than 210 million members as of June 30. Hilton, IHG and Wyndham occupy the next three spots, with each of them recording more than 100 million members. Skift reported earlier this year that Hilton has grown its loyalty program faster than Marriott, which could result in Hilton overtaking Marriott's membership count next year. Next, Expedia’s short-term rental platform Vrbo is portraying itself as a stress-free alternative to rivals like Airbnb in its latest campaign, writes reporter James Farrell.  Vrbo’s new campaign is centered around the slogan “Relax, you host on Vrbo.” While none of Vrbo’s ads directly mention Airbnb, Farrell notes Vrbo is taking veiled shots at its biggest rival, explaining the big differences between the two platforms — like Vrbo’s tendency to attract longer-term guests and its fledgling OneKey rewards program. Airbnb is considered an outlier in the hospitality industry due to its lack of a loyalty program. One Vrbo ad featuring a man and a boy relaxing in a fishing boat invites hosts to “sit back and attract repeat guests” at their properties. Finally, Visit Florida has removed an LGBTQ Travel page from its website. Global Tourism Reporter Dawit Habtemariam examines the impact of its move.The page provided information on LGBTQ-friendly beaches, destinations, businesses and museums. Habtemariam notes Visit Florida’s decision could further damage relations with LGBTQ travelers, two years after Governor Ron DeSantis signed into law a bill dubbed “Don’t Say Gay” by critics. . Former Visit St. Pete-Clearwater CEO David Downing said the DMO used to have strong marketing efforts with the LGBTQ community. Other destination marketing organizations in Florida have kept similar pages geared toward LGBTQ travelers on their websites. For more travel stories and deep dives into the latest trends, head to skift.com. 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 NotesHyatt announced plans on Tuesday to buy the five brands owned by Standard International, reports Senior Hospitality Editor Sean O’Neill.  Hyatt will pay $150 million upfront, with up to an additional $185 million over time as more properties join its portfolio. Hyatt won’t acquire any physical assets in the deal, but it is buying the management, franchise and license contracts for hotels with roughly 2,000 rooms. Hyatt and Standard International expect the deal to close this year, subject to approvals. Next, Marriott International and Sonder Holdings announced this week they had signed a 20-year strategic licensing deal that enables members of Marriott’s loyalty program to earn points at any Sonder property. O’Neill lists 10 things to know about the growing trend of loyalty licensing tie-ups. Although the past year has seen several new loyalty licensing deals, O’Neill notes those partnerships are far from a novel concept. IHG signed a license agreement with Las Vegas Sands in 2010. Hotels also see loyalty licensing deals as part of their plan to show an increase in room growth. In addition, major hotel groups have viewed loyalty licensing deals as a way to enter difficult-to-access markets — such as Las Vegas. Loyalty partnerships enable hotel groups to give guests access and allow gaming resorts to take advantage of hotel groups’ cost advantages in marketing and distribution. Finally, Despegar, Latin America’s largest online travel agency, is teaming up with pop star Shakira for upcoming marketing campaigns, reports Executive Editor Dennis Schaal.A Despegar spokesperson said the Colombia-born singer will be featured in reels and full-length videos on the company’s YouTube channel and social media accounts. Shakira will also appear on billboards across several Latin American cities. Schaal notes Despegar’s first campaign with Shakira is still under development. 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 NotesMarriott International and Sonder Holdings have signed a 20-year strategic licensing deal, reports Senior Hospitality Editor Sean O’Neill.Marriott will receive a royalty fee based on a percentage of Sonder’s gross room revenues. The deal will also increase the number of locations where Marriott Bonvoy loyalty program members can earn and redeem points. O’Neill adds Marriott will benefit from Sonder’s ability to run apartment buildings as licensed hotels, which has enabled Sonder to operate in some neighborhoods with limited hotels. Sonder gets new marketing and distribution power through the licensing deal. It has been on shaky ground: It has faced a Nasdaq delisting, conducted several rounds of layoffs and piled up losses.Next, Global Tourism Reporter Dawit Habtemariam writes that a crackdown on short-term rentals in Mallorca has led to a drop in bookings.Short-term rental bookings in Mallorca’s capital Palma fell 8% in July from last year, according to data analytics firm AirDNA. Mallorcan authorities enacted new restrictions on short-term rentals earlier this year, including imposing heavy fines on apartment buildings with at least 12 short-term rental units. In addition, large-scale protests against mass tourism erupted in July, with many protestors blaming short-term rentals for making Palma unaffordable for locals. Finally, data detailing the number of unique nonstop destinations served from each airport in the first half of this year has been released. Istanbul takes the top spot, writes Airlines Editor Gordon Smith.Istanbul Airport served 309 destinations nonstop during the first six months of 2024, according to aviation analytics firm Cirium. Smith notes the airport’s connectivity is helped by Turkish Airlines flying to more countries than any other carrier — 130 as of June 2024. Frankfurt Airport in Germany takes the runner-up spot, serving 296 destinations nonstop.The highest-ranking U.S. airport is Chicago-O’Hare, which is tied for fourth place with Amsterdam’s Schiphol Airport. 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 Skift Research team on Thursday unveiled its State of Travel 2024 report, a 400-page document with over 350 slides on industry performance and consumer and business trends in travel.The State of Travel 2024 is strong, reports head of research Seth Borko. Travel businesses are growing with healthy margins. The report contains information on, among other topics, the state of international travel after the pandemic. It contains detailed tourism figures for each major global region. In addition, the report examines some short-term issues, such as the likelihood of moderate growth in 2024 and beyond.   Next, Booking Holdings and Expedia spent an enormous amount on marketing last year — nearly $13 billion combined. But there are key differences in how they spend, writes Senior Research Analyst Pranavi Agarwal. As a share of expenses, Agarwal notes Expedia spent more on marketing last year than it did in 2019 while Booking spent less. Expedia also needed to spend more than Booking to drive bookings. Expedia spent nearly 6% of its gross bookings on marketing in 2023 while Booking spent 4.5%. Skift Research’s analysis shows Booking has a higher return on ad spend from Google’s sponsored listings than Expedia in every region.  Finally, Nashville has long been known as a popular destination for country music fans. But tourism officials in Tennessee’s capital are looking to branch out and attract mega events, writes Global Tourism Reporter Dawit Habtemariam. Deana Ivey, CEO of the Nashville Convention & Visitors Corp., said it is a key objective for the city. Nashville has its sights set on hosting the Super Bowl and Wrestle Mania, among other events. The city has already hosted the NASCAR Ally 400.   Ivey said another priority is attracting more international visitors. She acknowledged Nashville needs nonstop flights from its largest overseas markets to help boost visitor numbers. For more travel stories and deep dives into the latest trends, head to skift.com. 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 NotesTravel executives still believe artificial intelligence will transform the industry — even if it’s taking longer than expected. Travel Technology Reporter Justin Dawes provides recent insights from several executives on AI.Booking Holdings CEO said the latest advances in AI could help make connected trips — travel experiences in which consumers can book all parts of a trip in one place — a reality. AI has already significantly boosted revenue for Tripadvior. CEO Matthew Goldberg said travelers using its AI-powered trip planner have generated, on average, 15 times more revenue than TripAdvisor’s platform-wide average.  Airbnb CEO Brian Chesky said the company has been working on integrating AI for nearly two years since ChatGPT launched. One learning is that it will take years to rebuild Airbnb into a fully AI-powered digital travel concierge that learns and adapts to each individual user.Next, the U.S. Federal Trade Commission has finalized a rule that would discipline businesses for buying or selling fake reviews. Senior Hospitality Editor Sean O’Neill explains what the measure means for the travel industry. The FTC’s new rule prohibits the creation, purchase or sale of fake reviews, including those generated by AI. The agency could enact civil penalties of up to roughly $52,000 per violation against the creators and posters of fake content. O’Neill cites travel agencies, travel booking platforms and price-comparison services as travel brands that could face penalties if they don’t police fake reviews.  Fake reviews have long been an issue in the travel industry. Tripadvisor said it caught and removed more than 1 million reviews in 2022.  Finally, activist investor Elliott Investment Management has published a list of 10 candidates it would like to see serve on Southwest Airlines’ board, writes Airlines Gordon Smith.Smith notes four of the 10 candidates have held CEO roles in the airline industry. Elliott said in an open letter that the nominees would offer Southwest shareholders a different approach, arguing the carrier’s current board has delivered poor returns for shareholders. There are currently 15 members on Southwest’s board of directors.Elliott took a nearly $2 billion stake in Southwest in June, making it one of the carrier’s largest investors.For more travel stories and deep dives into the latest trends, head to skift.com. 

Gordon Smith, Airlines Editor, dives into Delta Air Lines' ambitious plan for free global Wi-Fi, discussing the challenges of international expansion while comparing it to competitors' services. He highlights Delta's successful domestic strategy and the ongoing satellite upgrades for better connectivity. The podcast also explores how luxury hotels in Paris experienced a significant occupancy surge during the Olympics, albeit amid a backdrop of overall sluggish summer tourism. It's a dynamic view of an evolving travel landscape!

Episode NotesDisney has unveiled expansion plans for its parks, cruise line and digital platforms, writes Travel Experiences Reporter Jesse Chase-Lubitz. Disney announced it will debut four new cruise ships between 2027 and 2031, an expansion that will increase its cruise line fleet to 13 ships. Meanwhile, the Disneyland Resort in California will feature a water-based Avatar attraction and Disney’s Animal Kingdom in Florida will be home to Indiana Jones and Encanto-themed attractions.  In addition, Disney is working with Epic Games to incorporate its characters into digital environments linked to the popular online game Fortnite. Next, India’s outbound travel market is projected to reach $55.4 billion by 2034. And the country’s clout in the global travel industry is expected to continue growing, writes Asia Editor Peden Doma Bhutia.Several travel executives addressed India’s role in global tourism during recent earnings calls. Accor CEO Sebastien Bazin said the number of Indian outbound travelers could double in the near future, which would have a big impact on Southeast Asia and Middle East hotel markets. And Airbnb CEO Brian Chesky said Airbnb is a crucial market, with the company seeing a 30% increase in nights booked in 2023 from the previous year. Finally, the three largest U.S.-based sellers of vacation ownership, or timeshares, have reported a pullback in consumer spending behavior, writes Senior Hospitality Editor Sean O’Neill. Executives at Hilton Grand Vacations, Marriott Vacations Worldwide and Wyndham Destinations said they noticed an increased consumer hesitancy to buy timeshares, particularly for new buyers in the bottom-third of income. O’Neill notes the pullback follows a high level of demand. The sector saw sales volume hit $11 billion last year, marking a full recovery from pre-Covid levels. Where will growth come from? “Global” was the most-used word by timeshare executives in recent earnings calls. Marriott Vacations Worldwide is planning a new resort in Thailand. Hilton Grand Vacations sees opportunities in boosting its sales of units to Japanese buyers. And Travel and Leisure Co. saw its international tour flow jump over 50% in the second quarter.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 NotesExpedia Group — like several other major travel brands — has seen “softening” travel demand recently, but it registered growth in several key metrics during the second quarter, writes Executive Editor Dennis Schaal. CEO Ariane Gorin said Expedia Group is facing a more challenging environment since July, leading the company to adjust its expectations for the rest of the year. But Expedia Group said room nights at flagship brand Expedia.com jumped 20% from last year. In addition, booked room nights grew 10% overall at Expedia Group, topping both Airbnb and Booking Holdings. Next, Delta argues the software company CrowdStrike’s offer of onsite help came too late to resolve the carrier’s IT outage, writes Airlines Reporter Meghna Maharishi. Delta lawyer David Boies said CrowdStrike didn’t provide an “automatic” solution to solve an IT outage that eventually became a meltdown for Delta. The airline canceled roughly 7,000 flights after a July 19 CrowdStrike outage. CrowdStrike said earlier this week that Delta declined its offer for onsite assistance. However, Delta claims CrowdStrike’s offer was “unhelpful and untimely.” Boies notes the offer came four days after the IT outage and by that time, Delta had already restored most of its critical systems. In a statement, Crowdstrike said “Delta continues to push a misleading narrative” and that if offered support within hours of the incident. Finally, Tripadvisor’s controlling shareholder is looking to do a deal with travel and tourism investment firm Certares, writes Executive Editor Dennis Schaal.Liberty Tripadvisor Holdings CEO Greg Maffei said the company is in “active discussions” with Certares about possible transactions. Schaal notes those “active discussions” would revolve around the $325 million preferred stock investment Liberty Tripadvisor must repay Certares by March 2025. Certares became a strategic investor in Liberty Tripadvisor in March 2020. For more travel stories and deep dives into the latest trends, head to skift.com. 

Episode NotesHilton has raised its forecast for a profit this year. However, the company believes the post-Covid travel surge is cooling off — especially in the U.S., reports Senior Hospitality Editor Sean O’Neill. CEO Christopher Nassetta said during Hilton’s second-quarter earnings call that domestic travel demand is “definitely softening.” However, he emphasized demand is “not cratering in any way.” Hilton expects its full-year revenue per available room to grow between 2% and 3% as Nassetta said the company expects to see growth in all segments during the full year. Next, Disney executives expect theme park attendance and revenue to soften in the next several months, writes Global Tourism Reporter Dawit Habtemariam. The company said it believes its theme parks and experiences division’s operating income will decline by mid-single digits compared to last year. Disney CEO Bob Iger said the lower income consumer is “feeling a little bit of stress” and that higher-income consumers are looking to travel overseas more. Habtemariam notes several travel executives have expressed concerns about a slowdown in U.S. domestic spending on travel. Finally, one year after one of the deadliest wildfires in Hawaii’s history, Maui faces a steep climb to make a full tourism recovery, writes Global Tourism Reporter Dawit Habtemariam.On August 8, 2023, a wildfire devastated the town of Lahaina, killed nearly 100 people and destroyed thousands of homes. The western portion of Maui, which was battered by the wildfire, didn’t fully reopen for tourism until November. Maui welcomed 1.1 million visitors in the first half of 2024, a 24% drop from last year. For more travel stories and deep dives into the latest trends, head to skift.com. 

Episode NotesAirbnb’s second-quarter earnings revealed the company’s growth slowed down in several key areas, writes Executive Editor Dennis Schaal.The company forecasts that guests are making bookings with shorter lead times, and it is seeing “some signs of slowing demand from U.S. guests.” Airbnb said that in the third quarter, it expects a “sequential moderation” in year-over-year nights and experiences booked compared with the 9% growth in the second quarter.But Schaal notes Airbnb can point to many positives during the second quarter, including an increase in active listings from 7 million last year to 8 million.Next, InterContinental Hotels Group said it’s not seeing signs of weakening demand outside of China, reports Senior Hospitality Editor Sean O’Neill. IHG CEO Elie Maalouf said the company hasn’t been impacted by a possible recession yet. IHG added the post-pandemic tourism surge has moderated and normalized to pre-Covid levels. The company reported a 3% rise in its revenue per available room — a key industry metric — during the first half of this year. While IHG saw its revenue per available room fall by 2.6% in China, O’Neill notes that drop didn’t dramatically impact its overall performance. Finally, travel stocks were the best performers on a bad day overall for the broader U.S. stock market this Monday. However, travel has been the worst performing group of stocks over the past year, making it one of the sectors most vulnerable to a recession, writes Head of Research Seth Borko. Borko notes concerns about a recession are clear in the performance of the Skift Travel 200, our own index of travel stocks. Cruise lines have been the best performing travel sector in 2024, followed by accommodations. Even though these businesses outperformed their travel peers, there is still no major travel subsector in the green so far. 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.