Skift Daily Travel Briefing

Episode NotesJuly’s weaker-than-expected job growth sparked a selloff in global financial markets and raised concerns about a recession. Editor-in-Chief Sarah Kopit explains the impact on the travel industry. In the airline sector, Delta and United have gotten a boost from the rise in premium long-haul demand fueled by travelers more willing to spend freely. As of the second quarter, that support was still there. But if there is a recession, it could benefit low-cost carriers since they do well when budgets are tight.Kopit reports early signals from hotel earnings suggest signs of a second-half slowdown, adding the picture will be clearer when IHG, Hyatt and Hilton, among other companies, report this week. However, cruise executives said they haven’t seen any slowdown in bookings and guest spending. “Overall, the short answer is no cracks, no deterioration,” said the chief financial officer of Norwegian Cruise Line. Next, software company CrowdStrike said it didn’t cause the Delta Air Lines meltdown that resulted in thousands of flight cancellations and delays, said Airlines Reporter Meghna Maharishi. Delta CEO Ed Bastian recently told CNBC the airline would “have no choice” but to sue CrowdStrike. Bastian said he expects Delta to take a $500 million hit from the disruptions that stem from a loss in revenue and the amount it owes in compensation to passengers. Meanwhile, CrowdStrike lawyer Michael Carlinsky argued that Delta didn’t accept the company’s offer of onsite help and asked why Delta’s competitors recovered much more quickly. Finally, travelers have increasingly sought assistance from travel agents coming out of the pandemic. However, Booking Holdings CEO Glenn Fogel believes AI will eventually lead to a decline in traditional travel agents, writes Executive Editor Dennis Schaal.Fogel, speaking in an interview on the Decoder podcast, said the position of traditional travel agents will continue to be reduced “as we create the virtual travel agents and as we use all the skills we have in AI.” To compete, Fogel also said it will be important for Booking to offer a higher level of service for its best customers. However, Zane Kerby, CEO of the American Society of Travel Advisors, pushed back on Fogel’s prediction. Kerby said the customer service travel advisors provide can’t be replicated by AI, comparing online travel agencies to vending machines – a low cost, low service option. 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/

Episode NotesSpirit Airlines had a rough second quarter, posting a significantly higher loss than last year. CEO Ted Christie is promising big changes to the company’s operations, writes Airlines Editor Gordon Smith.  Spirit said it registered a roughly $193 million net loss during the second quarter — up from a $2.3 million loss last year. Airline Weekly Senior Analyst Jay Shabat said a surplus of domestic seats and an increase in operating costs have hurt Spirit’s bottom line. Spirit is making changes to hit its goal of $100 million in annual savings. The company has temporarily frozen pilot and flight attendant recruitment in addition to furloughing about 240 pilots. Spirit is also deferring all incoming orders with Airbus for deliveries that were due to arrive between the second quarter of 2025 and the end of 2026. Next, the Biden administration is proposing a rule that would prohibit airlines from charging junk fees to seat families together on flights, writes Airlines Reporter Meghna Maharishi. Airlines would be barred from charging fees to assign seats to children 13 years of age or younger next to their parents or accompanying adults. The Department of Transportation said the proposed rule could save a family of four as much as $200 if seat selection fees cost $25 each. Airlines would also have to give families the option of a refund if adjacent seats aren’t available at the time of booking. Finally, Saudi Arabia has revealed its plans for hotels, stadiums and airports as part of its bid for the 2034 FIFA World Cup, writes Middle East Reporter Josh Corder. The kingdom’s 245-page bid book calls for ten of thousands of additional hotel rooms and 11 new stadiums, among other investments. Saudi officials said that all five proposed host cities will have modern airports connecting more than 250 international destinations. However, the bid book does not mention alcohol, which is prohibited in Saudi Arabia. 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 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 executives are optimistic they’ll see growth throughout the year despite emerging headwinds, writes Senior Hospitality Editor Sean O’Neill.CEO Anthony Capuano said the company saw strong travel demand during the second quarter. Marriott said it expects its revenue per available room — a key hotel industry metric — to grow between 3% and 4% this year. But that’s down slightly from a previous forecast of up to 5%. And O’Neill notes Marriott faces several challenges, such as China’s struggling economy and the U.S. presidential election’s likely impact on travel patterns in November. Next, a U.S. Senate committee has advanced a bill that would create a national standard for hotel pricing in the U.S., writes Senior Hospitality Editor Sean O’Neill. The Hotel Fees Transparency Act would require hotels, short-term rentals and online travel agencies to display the total price of a stay, including all mandatory fees, upfront. The bill now awaits a full Senate vote, which would bring it one step closer to becoming law. The American Hotels & Lodging Association has come out in support of the bill, which O’Neill notes is a reversal of its long-time stance opposing legislation around so-called junk fees. Finally, Norwegian Cruise Line executives haven’t seen a reduction in guest spending, writes Global Tourism Reporter Dawit Habtemariam. Spending on Norwegian Cruise ships remained strong in large part due to onboard amenities such as specialty restaurants while pre-cruise bookings for amenities were up 15%. Chief Financial Officer Mark Kempa said the company benefits from having more time to sell products to guests than hotels do, for example. In addition, guests tend to book cruise trips much further in advance, making it easier for Norwegian Cruise to market onboard activities. 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 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.