Skift Daily Travel Briefing

The World Economic Forum recently released its 2024 Travel & Tourism Index. Global Tourism Reporter Dawit Habtemariam and Senior Hospitality Editor Sean O’Neill profile five countries the organization named as among the most-improved economies for enabling travel and tourism development since 2019. Habtemariam and O’Neill highlight Albania, Indonesia, Egypt, Tanzania and El Salvador. In particular, Albania has seen a 141% increase in daily flight traffic since 2019. Meanwhile, Indonesian authorities boosted domestic tourism last year by launching a program that gave financial support to more than 170 festivals and cultural events. Habtemariam and O’Neill note that the World Economic Forum has recommended that tourism leaders develop strategies to combat challenges such as labor shortages and climate change. Next, the Four Seasons is betting that luxury travelers will be willing to make a long journey to the remote Pacific island of Palau, writes Columnist Colin Nagy. The Four Seasons is planning to open a permanent hotel development in Palau in the next few years. Armando Kraenzlin, a longtime Four Seasons general manager, described Palau as “one of the last true remaining frontiers.” The Great Barrier Reef Foundation reported that Palau is the only country to have protected 80% of its offshore marine environment. In addition, Nagy notes the Four Seasons has relocated its liveaboard ship, the Explorer, from the Maldives to Palau, as well as moved some diving instructors and marine biologists. Finally, airlines are scrambling to acquire the five new slots for long-distance flights departing from Reagan National Airport, writes Airlines Reporter Meghna Maharishi. President Joe Biden recently signed a bill with a provision approving the new slots. Maharishi reports the slots have to be allocated within 60 days of the act becoming law. American Airlines had already announced a partnership with San Antonio International Airport to launch flights between the city and Reagan National. In addition, Alaska Airlines plans to apply for flights between San Diego and the airport. San Diego is currently the largest market without nonstop service to Reagan National.  

Episode NotesMarriott and Hilton are in fierce competition regarding the growth of their portfolios and loyalty programs. But Marriott is the clear winner in terms of fees earned from services for hotel owners, writes Senior Hospitality Editor Sean O’Neill in this week’s Early Check-In. Hotel groups charge owners fees for managing or franchising hotels. Marriott generated $1.24 billion in gross fee revenue last year while Hilton generated $773 million. While Hilton’s fee revenue is growing faster than Marriott’s, O’Neill notes that Marriott’s lead is so large that it would take Hilton 40 years to catch up if current trends remained the same. Next, Google recently launched AI-driven search capabilities as well as a more advanced Gemini AI model. Skift CEO and founder Rafat Ali provided his take on the new offerings. Ali writes that AI Overview stands out as a key feature in Google Search, and provides comprehensive summaries for complex travel queries. One query – “What’s the best time to visit London?” – generated a curated overview with suggested itineraries, travel tips and related multimedia content. The travel information landscape is now infinitely more complex, as Google is pulling results from across many different media and display formats. Reddit as a source of competition for any travel information query is the biggest new change in search in 2024.Finally, Spirit Airlines has joined fellow ultra-low-cost carrier Frontier in dropping change and cancellation fees, writes Airlines Reporter Meghna Maharishi. Maharishi reports Spirit appeared to quietly remove most change and cancellation fees from its website this past weekend. Spirit now doesn’t charge any fare classes, except for group bookings. The company had charged between $69 and $119 to change or cancel a reservation, depending on the number of days before departing. Spirit said the move was part of its strategy to return to profitability. Spirit and Frontier are among a growing number of U.S. carriers that have eliminated change fees in recent years. American, Delta and United all scrapped change fees during the pandemic, except for the cheapest and most restrictive fares. 

Episode NotesAirlines have recently gotten a big boost from a segment many airlines thought would continue to struggle — business travel, writes Airlines Reporter Meghna Maharishi. Delta Air Lines said corporate bookings were up 14% in the first quarter. Delta President Glen Hauenstein said 90% of the companies it surveyed said they plan to increase travel in the second quarter. United Airlines and Alaska Airlines both recorded significant increases in corporate bookings during the first quarter, with Alaska stating business travel for the carrier has fully recovered to pre-Covid levels. Next, Chase now offers its cardholders something its rivals and online travel agencies don’t — the opportunity to book Southwest Airlines flights through its own travel platform, reports Executive Editor Dennis Schaal. A Chase spokesperson said this week that cardholders are able to book Southwest flights on Chase Travel using points or cash. Cardholders who wanted to book Southwest flights in the past would’ve had to phone Chase Travel customer service. Schaal notes Southwest’s official website was the only place to book its flights for years, adding that online travel agencies that tried to offer Southwest flights received cease and desist letters. It’s uncertain though if other credit card companies will enable cardholders to book Southwest flights through their travel portals. Finally, Saudi Arabia is looking to attract 70 million international tourists annually by 2030. They can’t all stay in the luxury hotels that get so much attention, writes Middle East Reporter Josh Corder.Fahd Hamidadin, CEO of the Saudi Tourism Authority, said that no more than 20% of visitors will be staying in four- or five-star hotels, adding that the real business of tourism is far from luxury. Indeed, an Accor executive said most people in the world are basically economy and mid-scale brand consumers. However, roughly 82% of the rooms in Saudi Arabia’s hotel pipeline are in the luxury and upscale categories, according to real estate consultancy firm Knight Frank.

Episode NotesThis year’s Summer Olympics are boosting short-term rental bookings in Paris, writes Reporter Elizabeth Casolo. Short-term rental bookings in Paris between July 26 through August 11 are up 46% compared to the prior two weeks, according to data analytics firm AirDNA. Bookings in Paris’ suburbs for the Olympics are up 112%.However, AirDNA Chief Economist Jamie Lane said short-term rental rates during the Olympics are beginning to drop. Lane added AirDNA expects rates to continue falling because hosts will get worried their units aren’t booked.  Next, Generation Z travelers are spending big on travel — especially hotels, writes Senior Hospitality Editor Sean O’Neill. Generator and Freehand hotel brands — both of which heavily target guests between the ages of 18 and 28 — saw revenue jump 15% in 2023 from the previous year. The two brands have seen bookings jump 40% this year in markets such as Miami, Madrid and New York. Alastair Thomann, CEO of the two brands, attributed that growth to spending by Gen Z travelers. O’Neill notes Gen Z is financially better off than young people in prior generations, with youth unemployment in the world’s seven most well-off countries the lowest since 1991. Next, Europe’s largest tour operator TUI is facing several challenges due to ongoing Boeing delivery delays, writes Travel Experiences Reporter Jesse Chase-Lubitz. TUI CEO Sebastian Ebel said the company received fewer Boeing jets than expected, which drove TUI to extend leases on older aircraft. Ebel added that maintenance expenses associated with older aircrafts helped drive up costs for TUI. However, he said the tour operator expects to receive compensation from Boeing. Despite the challenges brought about by delivery delays, TUI still had a strong second quarter. The company generated just below $4 billion of revenue, a 16% increase from last year.

Google's AI-powered trip planning updates include Gemini Advanced generating personalized vacation plans, Expedia CEO focusing on organic growth and international expansion, and Qantas discontinuing flights to Shanghai due to competition and low demand.

Episode NotesTravelers could have easy access to a robotic voice translator thanks to updates to ChatGPT. An OpenAI presentation explained how ChatGPT could serve as a human speech translator, the most significant travel-related feature in several updates unveiled on Monday, writes Travel Technology Reporter Justin Dawes. Dawes reports the upgraded translation capabilities are part of the new flagship GPT-4o model for ChatGPT. OpenAI said the new model is better at interacting with voice, photo and video than the previous model. The company said that a user, for example, could take a photo of a menu and ask ChatGPT to translate it. Next, several major airlines are suing the Biden administration over its new rule requiring carriers to disclose all fees associated with buying a ticket, writes Airlines Reporter Meghna Maharishi. Several carriers, including American, Delta, and United joined the suit along with Airlines for America, the trade group representing prominent U.S. airlines. The group said the new rule would create more confusion for consumers. Airlines for America added that it believed carriers already disclosed all fees to customers before ticket purchases. The Department of Transportation unveiled a rule in April requiring airlines disclose the prices of checked baggage, carry-ons and changing a reservation. Finally, European authorities have designated Booking.com’s parent company, Booking Holdings, as a “gatekeeper.” That means Booking.com will be subject to tighter regulation on the continent, reports Senior Hospitality Editor Sean O’Neill O’Neill notes the European Commission’s move will impose stricter rules on Booking.com regarding content moderation and make it easier for consumers to switch to other providers. Booking Holdings now has six months to submit a report outlining how it will comply with certain obligations. Non-compliance could result in fines of up to 10% of Booking Holdings’ total worldwide revenue.Producer/Presenter: Jose Marmolejos

Episode NotesThe U.S. government is investigating whether airlines have devalued frequent flyer miles, which would make booking reward tickets more difficult for customers, writes Airlines Reporter Meghna Maharishi. Consumer Financial Protection Bureau Rohit Chopra said at a hearing his agency has found some evidence of airlines and credit card companies devaluing points and miles. Chopra added the bureau found that airlines have sold inflated points to consumers while credit card issuers receive those same points at a lower price. The Department of Transportation announced last December it would investigate.  Another issue is whether loyalty programs of the biggest U.S. airlines have grown so big that smaller carriers can’t compete. Buttigieg acknowledged that would represent a competition concern. Transportation Secretary Pete Buttigieg said the agency had not reached any conclusions.Next, Hyatt received a boost from a surge in business travel as well as its loyalty program and all-inclusive resorts, reports Senior Hospitality Editor Sean O’Neill. Hyatt executives said during the company’s first-quarter earnings call that they saw revenue from transient business travelers increase from last year. The company also registered a 22% increase in loyalty program members. In addition, O’Neill notes Hyatt’s 2021 move to buy Apple Leisure Group seems to be paying off as Hyatt saw bookings surge at its all-inclusive resorts. Finally, the CEO of vacation rental operator Vacasa has told employees the company would suffer another round of layoffs, reports Executive Editor Dennis Schaal. CEO Rob Greyber sent a letter to staff stating Vacasa would experience a “significant restructuring” amid another difficult year for the vacation rental market. The letter didn’t say how many employees would be laid off. Schaal notes this is Vacasa’s fourth round of layoffs since Greyber took over as CEO in September 2022. 

Episode NotesAirbnb is ramping up its plans for international expansion. The short-term rental giant is looking to grow significantly beyond its five biggest markets, writes Executive Editor Dennis Schaal. CEO Brian Chesky said during its first-quarter earnings call that Airbnb is ready to step on the gas regarding international expansion. He cited Mexico, Brazil, China and Japan, among other countries, as markets the company is focusing on. Chesky said Airbnb recently updated its app in China, and the company is making similar improvements in Japan and South Korea.  Next, Tripadvisor executives said the company doesn’t have any plans for a sale at the moment despite having previously explored the possibility, writes Executive Editor Schaal. Tripadvisor made the announcement during its recent first-quarter earnings call. The company had formed a special committee to review potential deals after controlling shareholder Liberty Tripadvisor revealed in February it was exploring a potential sale. Skift reported earlier that private equity firm Apollo Global Management was looking into the deal. Meanwhile, the company offered a weaker outlook for its major businesses, which it attributed to changes in Google’s travel search results pages. Finally, Saudi Arabia is set to unveil a new cruise brand Aroya this December that aims to serve a domestic market, writes Middle East Reporter Josh Corder. Aroya ships will include cigar lounges, jacuzzis, wellness facilities among other features. However, Corder reports the company has no plans to add features that would appeal to overseas travelers - including alcohol. Aroya spokesperson Turky Kari said the company is targeting Arabian markets, adding wherever its ships travel, Aroya would follow Saudi law. 

Episode NotesThe 2026 World Cup, which will be co-hosted by the U.S., Canada, and Mexico, is shaping up to be a very corporate event. Several travel executives believe a lot of visitors for the tournament will be business travelers, writes Global Tourism Reporter Dawit Habtemariam.Lena Ross, chairwoman of the International Inbound Travel Association, said at the IPW travel trade show that big corporations would buy up ticket blocks and give them to clients. In addition, Oswaldo Freitas, CEO of tour operator Easy Time Travel, expressed concern that hospitality packages would be too expensive for fans looking to attend the World Cup. That’s okay for tour operators specialized in serving corporate groups. But some tour operators may experience financial pressure during the World Cup as their costs increase and profits drop for non-sports tours and packages.Next, Disney executives say they’re seeing strong attendance at the company’s theme parks but visitor numbers are slowing down after recent highs, writes Travel Experiences Reporter Jesse Chase-Lubitz. CEO Bob Iger said that theme park attendance is normalizing following records set late last year. He did express optimism that the company would see healthy growth in terms of bookings. Meanwhile, Chief Financial Officer Hugh Johnston, who also acknowledged a cooling off, said Disney would place greater emphasis on cruises, which he believes could be lucrative for the company. Finally, travel authorities in the Middle East are preparing to roll out a unified visa that will enable travelers to visit six Gulf countries. A unified visa could help the region attract big events, writes Middle East Reporter Josh Corder.Saudi Tourism Authority CEO Fahd Hamidaddin said at the Dubai Travel Market the kingdom could land events like Taylor Swift’s Eras Tour if the wider region promotes itself as a unified destination. Other officials at the conference said they would leverage the visa to develop travel packages and extend the length of stays in the region.Producer/Presenter: Jose Marmolejos

Episode NotesSkift has unveiled its list of the U.S.’s highest-paid tourism marketing CEOs. Visit California CEO Caroline Beteta took the top spot, writes Global Tourism Reporter Dawit Habtemariam. Beteta collected more than $1.5 million in compensation during the 2022 fiscal year. Former San Francisco Travel Association CEO Joseph D’ Alessandro came in second at just under $965,000. Skift used the 2022 fiscal year because it contains the most recent comprehensive up-to-date records.  Habtemariam notes Skift focused on CEOs from the top 20 cities and major tourism states with large, non-profit destination marketing organizations. Pay packages of CEOs of Brand USA and Destinations International were also included in Skift’s list. Next, Spirit Airlines CEO Ted Christie blasted the current state of the airline industry, describing it as a “rigged game,” writes Airlines Reporter Meghna Maharishi. Christie said during the company’s first-quarter earnings call that smaller non-legacy carriers like Spirit are struggling to return to profitability. He added that profits in the airline industry are concentrated around two companies. Maharishi notes the “Big 4” carriers — American, Delta, United and Southwest — have recorded record revenues since the pandemic. Spirit reported a $142 million first-quarter loss. Finally, Expedia Group has given a more complete explanation of the cause of a tech outage that took down several of its websites on Sunday, reports Executive Editor Dennis Schaal.Expedia Group had first blamed maintenance issues for the widespread outage. But Schaal writes that Monday Expedia acknowledged it was a “backend software issue.” Schaal also confirmed that the affected Expedia sites had a common backend technology stack, and the problem went beyond just the consumer-facing websites and included some internal operations.Producer/Presenter: Jose Marmolejos