Skift Daily Travel Briefing

Paris is expecting to see a small bump in overseas visitors for the upcoming Summer Olympics, but no large-scale boom, writes Global Tourism Reporter Dawit Habtemariam. Less than 15% of the projected roughly 11 million Olympic visitors will be foreign, according to the city’s tourism board. Paris tourism chief Corinne Menegaux had previously told us that most Olympic ticket holders will be French. Habtemariam notes many travelers are avoiding the popular tourist destination because of the Olympics.  Meanwhile, international flight bookings to Paris for the Olympic period — from July 26 to August 11 — have increased by 8% from the same timeframe last year. That figure is a substantial decrease from the last pre-Covid Summer Olympics. Next, speaking of the French capital, Qantas will debut a roughly 17-hour nonstop flight from Perth to Paris on Friday, writes Airlines Editor Gordon Smith and Reporter Pranjal Pande. The Perth-Paris flights will operate four times a week prior to the second week of August, after which flights between the two cities will operate three times a week. Qantas currently operates ultra-long-haul flights from Perth to both London and Rome. The company has said that roughly nine in every 10 seats on its Perth-London route have been occupied. Finally, Senior Hospitality Editor Sean O’Neill provides more information about Marriott’s new online travel booking portal for small- to medium-sized businesses. The new booking platform is part of Marriott’s strategy to increase direct bookings from corporate travelers. A Marriott executive said existing booking tools don’t satisfy the needs of business travelers. Small- and medium-sized businesses have become a larger part of the company’s guest mix coming out of the pandemic. O’Neill notes Marriott sees an opportunity to simplify the often complicated business travel process, with companies increasingly looking for more efficient solutions. For more travel stories and deep dives into the latest trends, head to skift.com. 

Episode NotesAir travel is breaking records. But a recent Newsweek poll found that 44% of respondents won’t be traveling anywhere in the next three months, while 53% said they would’ve gone on vacation if the cost of living had been cheaper. Meanwhile, luxury hotel occupancy was up 1.8% in the first five months of 2024 while economy hotel occupancy was down 3.4%Next, Marriott has debuted an online travel booking portal for small-to medium-sized businesses. It’s part of the company’s strategy to attract more direct bookings for business travelers, reports Senior Hospitality Editor Sean O’Neill.  Marriott’s new platform will enable users to book hotels, flights and car rentals without having to rely on third-party services such as American Express Global Business Travel. The hotel giant’s business travel model provides customers discounted rates at Marriott properties worldwide as well as access to Marriott Bonvoy loyalty program benefits, among other features. Finally, the Indigenous Tourism Association of Canada is scaling down funding programs that support the country’s 10 provincial First Nations tourism bodies, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam reports the organization will receive $6.5 million from the federal government this year, a $4 million decrease from last year. CEO Keith Henry said he believes several First Nations tourism bodies won’t survive for much longer unless the organization secures funding from additional sources. Habtemariam adds the organization’s staff of 40 will be cut in half by September. Get more travel news at https://skift.comProducer/Presenter: Jose Marmolejos

Episode NotesBoeing will accept a guilty plea deal from the Department of Justice over charges the planemaker misled federal authorities on certain aspects of the 737 Max 8, which has been involved in fatal crashes. Airlines Reporter Meghna Maharishi lists three takeaways from Boeing’s deal with the Justice Department. Boeing will have to pay a more than $240 million criminal offense fine and invest at least $455 million in compliance and safety programs. The planemaker will be on probation for three years, during which it would need to install an independent monitor to oversee its compliance and safety.In addition, Boeing wouldn’t have any protection from any ongoing or future federal investigations. Next, Airbnb has unveiled a new ad urging travelers heading to Paris for the Olympics to avoid hotels to discover the true essence of the French capital, reports Executive Editor Dennis Schaal.Airbnb’s ad features a family of four dealing with common tourist come-ons outside of a hotel before the hotel collapses. The hotel gives way to an Airbnb, and afterwards, the family views an artist painting on a canvas and a couple dining, among other sights. The narrator then urges travelers to stay where the locals live instead of the touristy part of the city.Finally, the effectiveness of carbon offsets has been a contentious issue in the travel industry. Research Analyst Robin Gilbert-Jones explores the reasons carbon offsets are controversialand how they can be effectively evaluated. Travel brands are increasingly turning to carbon offsets — considered a way for companies to compensate for their own emissions by reducing them elsewhere — to help reduce the industry’s massive carbon footprint. However, Gilbert-Jones notes the carbon offset market has been described as the “wild west.” And one carbon credit may look like another but be much less effective at reducing CO2, which leads companies to seek out the cheapest credits available. Gilbert-Jones listed five recognized ways to measure the quality of a carbon offset, including verifiability. Verifiability means a legitimate third party can verify claims of carbon avoidance in offset projects. Get more travel news at https://skift.comProducer/Presenter: Jose Marmolejos

Presented by Brand USAEpisode NotesA growing number of companies have reduced their travel budgets in recent years, but that hasn’t slowed down business travel’s rebound, writes Reporter Christiana Sciaudone. Roughly 60% of travel buyers said their companies have cut their travel budgets in the past few years, according to a recent BCD Travel survey. In addition, 96% said their companies have introduced cost control policies. However, Sciaudone notes 2024 is shaping up to be a strong year for business travel. The global business travel market is expected to hit pre-Covid levels this year, according to British data analytics firm GlobalData. Roughly 220 million outbound business trips are projected to take place in 2024, up from 174 million last year. Next, American Airlines announced it’s reached a conditional purchase agreement with startup ZeroAvia for 100 hydrogen-electric engines, writes Airlines Reporter Meghna Maharishi. American CEO Robert Isom said the hydrogen-electric engines would help the company be more sustainable. ZeroAvia develops engines for commercial aircraft that can emit close to zero emissions. American joins rivals in making investments in ZeroAvia’s hydrogen-electric engines in recent years. However, a major issue with engines is that they can only power smaller aircraft. Maharishi notes most of the investment has been limited to regional jets since technology isn’t yet ready for hydrogen-electric engines to power larger planes. Finally, sports network ESPN has entered the experiences sector by launching a tour of Major League Baseball venues, writes Travel Experiences Reporter Jesse Chase-Lubitz. ESPN’s first tour — which runs over Labor Day weekend — will include stops at three stadiums and exclusive access to the network’s headquarters. Chase-Lubitz notes ESPN will make a determination about running more tours based on the success of its initial offering. An ESPN spokesperson at the Disney-owned network said it had seen growing demand for experiences tours. Get more travel news at https://skift.comProducer/Presenter: Jose Marmolejos

Episode NotesNat Pieper has the task of helping lead 13 airlines as the CEO of the oneworld alliance, one of the world’s three major airline groups. Pieper discussed the challenges he faces and industry trends in an interview with Airlines Editor Gordon Smith.Oneworld has opened airport lounges in Seoul and Amsterdam this year, but Pieper acknowledged he doesn’t have a magic number in mind for how many lounges he’d like to open. He did note that the revenue outlook this summer for oneworld looks healthy despite post-pandemic revenge travel having run its course. And he sees the premium travel experience as a trend that’s here to stay. Next, visitors to Japan no longer have free access to Mount Fuji’s popular Yoshida Trail, writes Global Tourism Reporter Dawit Habtemariam. Local authorities have implemented both a mandatory $12 fee to climb Mount Fuji on the trail and a daily cap of 4,000 hikers. Officials have also set up a new reservation system and entry gate to enforce the cap. A Japanese tourism executive said the measures are necessary to help protect Mount Fuji from congestion and overcrowding, with Habtemariam noting that revenue from the fee would go toward maintenance and safety measures, among other services. Finally, Indian consumers are spending an astronomical amount of money on weddings, writes Asia Editor Peden Doma Bhutia.Weddings are the second-largest consumption category in India, trailing only food and groceries, according to brokerage firm Jefferies. In addition, the average Indian spends twice as much on a marriage ceremony than 18 years of education. Bhutia notes an Indian household spends on average three times its annual income on weddings. India is the world’s largest wedding destination, hosting between 8 and 10 million wedding ceremonies annually. The country’s wedding industry is worth approximately $120 billion. Get more travel news at https://skift.com.

Presented by Brand USAEpisode NotesThe National Transportation Safety Board has blasted Boeing, arguing the planemaker shared sensitive information with the media, writes Airlines Editor Gordon Smith. The NTSB said that Boeing had violated the agency’s investigative rules by disclosing information to the press about the January blowout on an Alaska Airlines flight. The agency also said Boeing improperly speculated about possible causes of the blowout. As a result, Boeing will no longer have access to the investigative information that the federal agency produces as it continues its probe into the January 5 accident. In a statement, Boeing acknowledged that it overstepped and apologized. Next, short-term rental price comparison business HomeToGo plans to show total cost, including fees and taxes, to comply with California’s new junk fee law that starts on July 1, reports Executive Editor Dennis Schaal. HomeToGo CEO Patrick Andrae said his company is going further than Airbnb, which plans to display the nightly rates and fees upfront — but not taxes — in California. HomeToGo will display total cost throughout all of the U.S. Andrae added that showing all fees and taxes will be HomeToGo’s practice regardless of whether it’s processing a booking on its own channels or directing a guest to a third-party site to book.Finally, there were 539 direct passenger flights in December 2019 between India and China. However, there are currently zero. Asia Editor Peden Doma Bhutia examines the issue.China has been pushing to resume direct air links between the two countries, which was suspended during the pandemic. But India remains cautious due to strained diplomatic relations. Bhutia notes people looking to travel between India and China have to rely on pricey and time-consuming connecting flights through third countries, such as Hong Kong, Bangkok and Singapore.Get more travel news at https://skift.com. 

Presented by Brand USAEpisode NotesA Microsoft executive believes Xbox can teach the travel industry several things about the customer experience, writes Travel Technology Reporter Justin Dawes. Shane O’Flaherty, a Microsoft executive who spoke this week at hospitality tech event HITEC, said Xbox has found ways to drive digital engagement with consumers. O’Flaherty explained that Xbox tracks every player’s movement and constantly presents them content that will improve their experiences. So how might that approach work in travel? O’Flaherty provided an example of a hotel that knows some guests love whiskey might create an impromptu tasting event and send a note about the event to those guests. Next, activist investor Elliott Investment Management has blasted Southwest Airlines for its weaker second-quarter financial outlook, writes Airlines Reporter Meghna Maharishi. Elliott, which took a nearly $2 billion stake in Southwest earlier this month, argued the carrier is led by a team unable to adapt to the modern airline industry. Elliott added that Southwest more or less admitted it was struggling to adjust to a new environment. The hedge fund has also been calling for major leadership changes at Southwest, including the resignations of CEO Bob Jordan and chair Gary Kelly. Meanwhile, Maharishi notes Southwest expects to record operating revenues for the second quarter. Finally, real estate investor Blackstone has acquired Village Hotels from private equity firm KSL Capital Partners. The deal is part of Blackstone’s strategy to expand its footprint in the United Kingdom, writes Senior Hospitality Editor Sean O’Neill.The companies haven’t revealed the price or deal terms, but O’Neill notes the transaction is valued at around $1 billion. The deal adds 33 properties to Blackstone’s portfolio in the UK. Meanwhile, Village Hotels CEO Gary Davis said the deal would also enable his brand to expand. Get more travel news at https://skift.com.Presenter/Producer: Jane Alexander

Presented by Brand USAEpisode NotesThe U.S. hotel industry’s performance has had mixed fortunes so far this year. The luxury sector has experienced robust growth in demand and room rates while economy hotels have struggled, reports Senior Hospitality Editor Sean O’Neill. Luxury hotel occupancy was up 1.8% in the first five months of 2024, according to CoStar. However, economy hotel occupancy was down a little more than 3%. O’Neill writes affluent travelers might be benefitting from a recent sharp run-up in stock prices and increased home values, which might make them feel comfortable spending on luxury hotels. Meanwhile, O’Neill adds high inflation for core things for lower-income households may force them to prioritize essential expenses instead of discretionary travel. Next, the Lufthansa Group — the parent company of several major airlines — says it can’t afford the additional costs of the European Union’s new environmental regulations on its own. So Lufthansa is adding a surcharge of up to $77 to flights departing next year, writes Airlines Editor Gordon Smith. The surcharge starts at just a few euro – the highest is for first class on long-haul flights. Lufthansa says the surcharge is needed to cover a portion of rising costs due to new environmental requirements. Smith notes the European Union has enacted a new quota for Sustainable Aviation Fuel, which goes into effect on January 1. The surcharge will apply to any flight sold and operated by Lufthansa that departs from a European Union member state.  Finally, Oslo’s tourism board released a tongue-in-cheek ad that promotes the Norwegian capital by using dry humor, writes Global Tourism Reporter Dawit Habtemariam.The ad features an actor telling potential tourists: “I wouldn’t come here.” The actor tells you everything that’s wrong with Oslo – no lines at museums, no waits at restaurants – and in doing so shares exactly what makes it unique and beautiful. It’s an appealing message as so many cities are overrun with tourists.Anne-Signe Fagereng, Visit Oslo’s director of marketing, said the city needed a different approach in the competition to attract tourists. Get more travel news at https://skift.comProducer/Presenter: Jose Marmolejos

Presented by Brand USAEpisode NotesTravelers heading to New York City for the Fourth of July weekend aren’t booking as many short-term rentals as they did last year. Bookings are instead surging at destinations along the Atlantic coast, writes Global Tourism Reporter Dawit Habtemariam. AirDNA revealed that New York City is no longer a top 10 market for the holiday and has been replaced by coastal destinations in Delaware and Maryland. Short-term rental bookings at coastal destinations for this Fourth of July weekend are up more than 7% from last year. Bookings for urban destinations saw a 10% drop from last year’s holiday weekend, which AirDNA attributes to a decrease in supply.Next, Jeff Miller, the longtime CEO and president of Travel Portland, will retire in December, writes Global Tourism Reporter Dawit Habtemariam. Miller, who has led the organization for 19 years, has been an outspoken advocate for the city against what he’s seen as negative news coverage of Portland. He said widespread reports about civil unrest in the city has damaged Portland’s reputation among suburban residents. Miller added Portland has made progress in rebooking conventions that had pulled out after the unrest, but still has a long way to go. Finally, the post-pandemic tourism surge has helped make some services more expensive across the world. Associate Editor Rashaad Jorden turns to Ask Skift, our artificial intelligence chatbot, for more information about the link between the tourism boom and inflation. Jordan cites Iceland and Greece as two nations where inflation has been tied to an increase in visitor numbers. A 10% jump in visitors to Greece this year could cause the country’s property prices to increase close to 4%. In addition, inflation has been linked to tourism bumps from recent large concert tours, especially those of Taylor Swift and Beyonce. Get more travel news at https://skift.comProducer/Presenter: Jose Marmolejos

Presented by Brand USAEpisode NotesVenture capital investment in the travel industry hit its lowest level in a decade in 2023, one finding from a new Skift Research report examining the state of venture capital investment in travel. The travel industry had only $2.9 billion of venture capital investment in 2023, compared to nearly $9 billion in 2019. Senior Research Analyst Pravani Agarwal also notes the number of deals last year in the travel industry dropped more than 20% from the previous year. That’s the second steepest since the start of the pandemic.But while the trend is for fewer deals, they are on pace to be of a larger average size than 2023. This should lead to an overall increase in travel VC funding in 2024, Agarwal writes. The growth areas are in tours and experiences, AI & automation and hospitality employment.Next, starting July 1, Airbnb will display the total price before taxes of a stay in California to comply with the state’s new law banning junk fees, writes Executive Editor Dennis Schaal. Those junk fees would include host cleaning fees and Airbnb’s service fee, for example. Schaal notes that a guest outside of California booking an Airbnb in the state won’t automatically see the total price unless they choose to view it. The short-term rental giant rolled out a total price toggle button across the U.S. in May 2023. Finally, a growing number of corporate travel decision-makers are investing in artificial intelligence. Reporter Christina Sciaudone delves into how AI can solve problems in business travel. A Mastercard survey found that 90% of travel decision-makers plan to invest in AI and machine learning to improve operations and personalize employee travel. Suzanne Neufang, the CEO of the Global Business Travel Association, said AI can help overcome the complexities of corporate travel. FCM Travel, in particular, sees AI reshaping how it operates, including providing the company the opportunity to offer clients more personalized offerings. Get more travel news at https://skift.comProducer/Presenter: Jane Alexander