Skift Daily Travel Briefing

Episode NotesWyndham executives say the company’s efforts to fend off Choice Hotels’ hostile bid weighted on its results in the fourth quarter, reports Senior Hospitality Editor Sean O’Neill.Wyndham CEO Geoff Ballotti said its fourth quarter could have been better without the distractions from Choice Hotels’ merger proposal. The company’s revenue and income in 2023 both fell from the previous year, which may have been a result of Wyndham devoting resources to prevent the hostile merger. Wyndham said it’s spent $75 million related to the deal so far, including answering antitrust queries from regulators. Next, Expedia Group has pulled a Vrbo ad in Canada because its use of a traditional folk song from Newfoundland and Labrador sparked an uproar, writes Executive Editor Dennis Schaal. The ad, which aired during both the Grammys and Super Bowl, used the folk song I’se the B’y as its theme. Schaal notes the ad was intended to take a dig at rival Airbnb. But the provincial government and local tourism executives demanded Expedia remove the ad because they believed using the folk song was disrespectful.Finally, Bali has implemented a tourist tax as part of its efforts to combat overtourism, writes Global Tourism Reporter Dawit Habtemariam.Visitors to the popular Indonesian destination have to pay about $10, which will go toward conservation efforts and improving the island’s infrastructure. Mark Howarth-Archer, an executive at tour operator G Adventures, said Bali’s infrastructure can’t handle the surge in tourists.

Episode NotesMarriott and Hilton have both released their annual financial reports for 2023. Senior Hospitality Editor Sean O’Neill lists 12 noteworthy takeaways after comparing the companies’ 10-K filings. The two hotel giants have a rivalry in terms of loyalty program membership numbers. Marriott currently has roughly 16 million more loyalty program members than Hilton. But O’Neill notes Hilton could overtake Marriott in 2025 if the two companies maintain their most recent growth rates this year. O’Neill adds that both companies were considerably more profitable in 2023 than they were six years prior. Next, Airbnb CEO Brian Chesky believes the company can create a new artificial intelligence interface that will help transform it into a cross-vertical company, writes Executive Editor Dennis Schaal.  Chesky said the planned interface could be one of the most innovative ever created. He added that it would enable Airbnb to become a cross-vertical company: Think Amazon when it expanded beyond books and Apple when it launched the app store. Chesky also said Airbnb would make announcements later this year regarding new products and services.  Finally, American Express has opened the world’s largest Centurion Lounge at Atlanta’s Hartsfield-Jackson International Airport, writes Airlines Editor Gordon Smith.The 26,000-square foot lounge, which includes indoor and outdoor areas, is American Express’ latest effort to target high-spending travelers. It also includes a whiskey bar serving cocktails designed by Centurion’s mixologist. American Express Travel President Audrey Hendley said a new Atlanta lounge was a major priority for the company. 

Episode NotesSome analysts had wondered if Airbnb could increase its supply of hosts and listings to meet the growing demand from travelers worldwide. That question has been put to rest, writes Executive Editor Dennis Schaal. Airbnb said during its fourth-quarter earnings call on Tuesday it has around 7.7 million active listings. That’s an increase of more than 1 million from the end of 2022. The company ended 2023 with a roster of more than 5 million hosts, also a jump of roughly 1 million from the previous year. Airbnb also said its supply of listings increased 18% in the fourth quarter from the same period in 2022. Next, Marriott had a banner 2023, especially in the luxury sector, reports Senior Hospitality Editor Sean O’Neill. Marriott said during its fourth-quarter earnings call that it generated $3 billion worth of net income and a 48% profit margin last year. The company was boosted by its strength in luxury. Marriott had a company record of 58 luxury signings last year. It says its portfolio of luxury hotels is 50% larger than its nearest competitor. Finally, billionaire investor Carl Icahn has again bought a stake in an airline — this time in JetBlue Airways, writes Airlines Reporter Meghna Maharishi. Icahn reported a 9% stake in JetBlue, making him the airline’s third-largest investor. JetBlue shares rose by more than 16% after news of Icahn’s stake became public. That’s welcome news for a company that has experienced its share of struggles in recent years, including declining revenues. Icahn acquired a more than 20% stake in Trans World Airlines in 1985. He helped TWA grow, but it was saddled with debt and filed for bankruptcy twice. 

Episode NotesThe Bahamas saw a drop in short-term rental bookings and hotel reservations in January after a U.S. State Department safety alert to travelers, writes Global Tourism Reporter Dawit Habtemariam.Habtemariam notes short-term rental bookings fell 7% in January from the same month in 2023. Meanwhile, hotels in the Bahamas also registered weekly occupancy declines from last year throughout the month. While higher average daily rates may have deterred bookings, those drops followed a U.S. Embassy alert warning Americans about crime in Nassau. A State Department spokesperson said the overall Travel Advisory for the Bahamas is at Level 2, which advises U.S. citizens to be cautious in the country due to crime. Next, Expedia Group’s equity stake in American Express Global Business Travel has taken a beating — to the tune of $326 million, reports Executive Editor Dennis Schaal. Expedia said on Monday the fair value of its equity stake in Amex GBT has dropped 40% since 2021. Expedia took a 19% stake in Amex GBT following its sale of corporate travel agency Egencia. However, Schaal notes Expedia may have benefited from the deal on several levels, including enabling it to offer hotel stays and vacation rentals to business travelers through Amex GBT.  Finally, flying taxis could take to the skies in Dubai by 2026 after local officials signed a deal with electric aircraft maker Joby Aviation, writes Airlines Editor Gordon Smith. Joby’s contract with Dubai’s Road and Transport Authority gives the company exclusive rights to operate flying taxis in Dubai for six years. Smith notes Joby believes it could even operate air taxis next year, ahead of the planned 2026 launch. Joby has also signed a deal with infrastructure company Skysports, which will build and run take-off and landing areas for flying taxis in Dubai. Still, it’s no sure thing: As with all pioneering technologies, progress in the sector has been peppered with pitfalls. 

Episode NotesExpedia Group will have a new CEO soon. Ariane Gorin, currently president of Expedia for Business, will succeed Peter Kern starting on May 13, writes Executive Editor Dennis Schaal.  Schaal reports Gorin will also take a seat on Expedia Group’s expanded board of directors, effective February 12. Expedia Group Chair Barry Diller said the company was looking for an internal candidate to succeed Kern. As president of Expedia for Business, the company’s business-to-business arm, Gorin was responsible for a large portion of Expedia Group’s revenue and profits.Meanwhile, Kern will continue to serve as Expedia Group’s vice chairman and a member of its board. Next, Spirit Airlines has experienced its share of struggles in recent years, including $1 billion worth of debt due next year. But CEO Ted Christie is refuting any talk the company could go bankrupt, writes Airlines Reporter Meghna Maharishi. Christie expressed confidence Spirit will survive during the airline’s fourth-quarter earnings call, citing steps it’s taking to strengthen its finances. It recently netted $419 million in cash through selling and leasing back 25 aircraft. In addition, Spirit plans to make adjustments to its network, including reducing service to less lucrative destinations. Finally, a spokesperson for Taylor Swift says she has bought double the carbon credits needed to offset emissions caused by her Eras Tour. However, it’s uncertain if carbon credits are effective in reducing emissions, writes Airlines Reporter Maharishi. A study from the Institute of Policy Studies found a private jet emits at least 10 times more carbon emissions than a commercial jetliner. As for carbon offsets, Maharishi notes they can include replanting trees in the rainforest or introducing energy-efficient methods to struggling communities. Commercial airlines often provide customers the opportunity to buy carbon offsets when purchasing flight tickets. But Maharishi cites research that revealed 78% of carbon reducing emissions projects could be considered “junk.” 

Episode NotesTaylor Swift’s massive influence on U.S. culture and the economy isn’t slowing down anytime soon. And as her ongoing Eras Tour continues to pack stadiums and boost tourism worldwide, Editor-in-Chief Sarah Kopit explains why Swift might be the most powerful person in travel.Swift’s impact on the travel sector is vast, with major influence over tourism dollars, hospitality spending and the short-term rental market.Kopit notes that each Swift concert has the economic impact of the Super Bowl – and it’s not just once a year. U.S. cities hosting a Eras Tour concert have seen their monthly hotel room revenue jump more than 7% on average. In addition, one short-rental executive said the Eras Tour has been responsible for double-digit increases in occupancy and average daily rates.Skift Research estimates the tour generated an incremental $1.2 billion for the U.S. travel industry in 2023 across flights, hotels, short-term rentals and other expenditures.Next, Hilton is considering making acquisitions, a shift from its longtime strategy of creating brands internally, writes Senior Hospitality Editor Sean O’Neill. Hilton CEO Christopher Nassetta said the current economic environment might be more conducive for acquisitions. O’Neill notes rumors have surfaced that Hilton is in talks to acquire both Graduate Hotels and NoMad Hotels, a luxury lifestyle hotels brand. Nassetta said Hilton intends to enter the luxury lifestyle sector this year. Finally, the upcoming Super Bowl between the San Francisco Chiefs and Kansas City Chiefs is driving a surge in short-term rental rates in Las Vegas, writes Short-Term Rental Reporter Srividya Kalyanaraman. Short-term rental demand in Las Vegas from February 9 to 11 is 87% higher than the same period in 2023, according to AirDNA. Kalyanaraman adds that average daily rates have increased 51% from last year. Meanwhile, searches for Airbnb rentals in the Las Vegas area during Super Bowl week have jumped 65% compared to the same period last year.  

Episode NotesA preliminary report from the National Transportation Safety Board has provided information about what possibly caused the January blowout aboard Alaska Airlines Flight 1282. Four bolts appeared to be missing on a door plug that blew off that Boeing 737 Max 9 jet, writes Airlines Reporter Meghna Maharishi. Maharishi notes it’s not exactly clear how the four bolts meant to keep the door plug intact went missing. The board said it plans to interview Boeing and aircraft supplier Spirit Aerosystems. The report said the door plug Spirit delivered to Boeing last August had come with certain defects.  Next, U.S.’ low-cost carriers have generally struggled in recent years. But Frontier Airlines believes its new three-point plan can help boost profitability, writes Airlines Editor Gordon Smith. Smith notes that Frontier is planning to thoroughly overhaul its network, with fewer flights to oversaturated markets such as Las Vegas and Orlando. Frontier is also looking to increase service to more lucrative destinations where it aims to charge higher fares.The second part of Frontier’s three-point plan is a new product called “BizFare,” which would enable businesses to save on corporate travel expenses. In addition, Frontier is unveiling a revamped website and app, which the company hopes will help boost sales on its platforms. Finally, Chinese travelers are showing less interest in visiting Europe this year, writes Global Tourism Reporter Dawit Habtemariam.A survey by the European Travel Commission found roughly 57% of Chinese travelers plan to travel to Europe in 2024. That’s a 14 percentage point drop from last year. Habtemariam notes one reason for the drop is Chinese travelers’ growing desire to explore locations closer to home, with several Asian destinations easing their visa policies. 

Episode NotesNearly 94% of 737 Boeing Max 9s are back in service after the aircraft was grounded for roughly three weeks in January, writes Airlines Reporter Meghan Maharishi. The Federal Aviation Administration said that 135 Max 9s have been inspected and returned to service following a blowout aboard an Alaska Airlines flight in early January. The grounding of the Max 9 forced United Airlines and Alaska — the only two U.S. carriers operating the aircraft — to cancel thousands of flights last month.Next, Brand USA, the U.S.’ tourism marketing agency, will air a Super Bowl ad internationally for the first time, writes Global Tourism Reporter Dawit Habtemariam.Habtemariam reports the 15-second ad will air in both Germany and the United Kingdom, two major sources of tourism for the U.S. Brand USA established a partnership with the NFL in Germany and the UK last year. Staci Mellman, the agency’s chief marketing officer, said partnering with the NFL has enabled it to tap into the growing number of international travelers interested in American football. We end today looking ahead to soccer’s World Cup in 2026. Officials in Dallas are disappointed they won’t get to host the final match but they still got one big win: hosting the most matches of any city, writes Global Tourism Reporter Habtemariam.Dallas will host nine matches during the tournament, including a semifinal. One local sports executive said the economic impact would be similar to that of nine Super Bowls. A study by the Boston Consulting Group found the 2026 World Cup should generate between $90 million and $480 million for the cities. 

Episode NotesSkift Research has published its Global Travel Outlook 2024, which sees Asia leading the travel industry’s growth while Europe’s travel boom will likely slow down.The forecast shows Asia Pacific growing 20% over 2023. Research Analyst Saniya Zanpure writes the region has gotten a big boost from China easing its strict Covid-era regulations in January 2023. Meanwhile, Europe’s travel revenue is projected to register only a 5% increase from last year, with Zanpure noting that Europe faces challenges such as inflation and climate-related concerns. Next, Frontier Airlines announced on Thursday that it’s launching a business fare as part of its strategy to attract corporate travelers, writes Airlines Reporter Meghna Maharishi. Frontier said that “BizFare” would enable businesses to save on corporate travel expenses. The ticket would be available through a company’s global distribution channel. Maharishi added the new fare could help Frontier cater to travelers that wouldn’t normally fly with an ultra-low-cost carrier for business trips. Finally, Royal Caribbean believes the new Icon of the Seas, the world’s largest cruise ship, will help the company better compete against destinations like Las Vegas and Orlando for family vacations, writes Global Tourism Reporter Dawit Habtemariam.Royal Caribbean Group CEO Jason Liberty said during the company’s fourth-quarter earnings call that it can hold its own against longtime popular tourist destinations. The $2 billion, 20-floor ship contains eight different sections, each with a different experience for guests. Liberty added Royal Caribbean plans to innovate further to reduce the value gap between the company and land-based vacations. 

Episode NotesBoeing CEO Dave Calhoun issued an apology for the recent Alaska Airlines blowout amid the reeling planemaker’s struggles with its 737 Max 9 aircraft, writes Airlines Reporter Meghna Maharishi. Calhoun said during Boeing’s fourth-quarter earnings call that the company has a lot of work to do to earn the public’s trust back. While Calhoun didn’t speculate on what possibly caused the blowout, he acknowledged Boeing was responsible. The 737 Max has been plagued with problems in recent years, and Max 9 was grounded by the Federal Aviation Administration for roughly three weeks in January.Boeing didn’t issue any financial targets for 2024, with Calhoun saying the company needs to “focus on every next airplane.” It is unclear how big of a financial hit Boeing will take.Next, GetYourGuide is rolling out its largest-ever advertising campaign as part of its strategy to challenge Viator in the U.S., reports Senior Hospitality Editor Sean O’Neill. GetYourGuide recently aired a 30-second commercial during the NFL playoffs and it plans to run more national TV ads during major events such as the Academy Awards. O’Neill writes that GetYourGuide’s ads aim to reach 70% of Americans this year. Only 25% of the company’s customers are located in the U.S. Finally, travelers can easily visit Machu Picchu again as protests blocking critical rail access to Peru’s most famous landmark are over, writes Global Tourism Reporter Dawit Habtemariam. Protesters had blocked rail service to Machu Picchu for five days in anger over the government’s contract with private company Joinnus to distribute tickets to tourist attractions. Peruvian officials signed an agreement on Tuesday night that includes ending the contract. A representative from Inca Rail said travelers can now book rail service to Machu Picchu.