Skift Daily Travel Briefing

Episode NotesThe U.S. Department of Transportation has hit Southwest Airlines with a $140 million fine over consumer-protection violations during last year’s holiday travel meltdown, writes Airlines Reporter Meghna Maharishi. Maharishi reports the fine is 30 times larger than any previous DOT penalty for consumer-protection violations. The DOT said most of that money will go toward compensating future Southwest passengers for any disruptions. The department had concluded that Southwest didn’t do enough to protect travelers during a massive winter storm that forced airlines to cancel thousands of flights. Next, destinations worldwide are increasingly waving visitor visa requirements. Associate Editor Rashaad Jorden delves into the impact of visa-free travel on tourism, using our artificial intelligence chatbot Ask Skift and additional reporting.Jorden writes that destinations view lifting visa requirements as part of their strategy to increase visitor numbers. Visa processing delays have been a significant obstacle to the industry’s full recovery. Travel authorities in particular are looking to attract more visitors from India, with several nations having eliminated visa requirements for Indian travelers recently.Jorden cites China as one country that’s received a major boost from a visa-free travel policy. China’s foreign ministry recently said a policy that went into effect this month has helped increase tourism from the countries involved — including France, Germany and Italy. Finally, more older married women are embarking on trips without their spouses, writes Travel Experiences Reporter Selene Brophy. Brophy lists Boston-based tour operator Road Scholar — which specializes in educational group travel for older adults — as one company seeing a surge in married female guests traveling solo. Roughly 60% of Road Scholar’s solo traveler customers in 2022 were married women traveling without their spouses. Road Scholar has said the boom reflects the emergence of Baby Boomer female travelers. Brophy notes that younger female travelers are also largely eager to travel solo. A StudentUniverse survey found that 58% of Gen Z female travelers are extremely interested in solo international travel.  

Episode NotesMajor U.S. airlines have made improvements this year on cancellation rates. However, the industry has seen an enormous increase in passenger complaints, writes Airlines Reporter Meghna Maharishi. Consumer complaints against airlines in the first five months of 2023 topped 2022 levels during the same timeframe, according to a report from the U.S. Public Interest Research Group, with data from the U.S. Department of Transportation. Maharishi notes the DOT received so many complaints it had to delay the release of the data. U.S. travelers made more than 38,000 complaints, according to the reportRoughly 35% of consumer complaints pertained to flight issues, whether they be cancellations, delays or missed connections. Next, Middle East Reporter Josh Corder takes a look at Dubai, host of the Skift Global Forum East conference. The city has completed its journey from a “dot in the desert” to a global hub, believes one local tourism executive.Issam Kazim, CEO of Dubai Tourism, said at the Forum on Thursday the city’s expat residents are truly global citizens. Kazim attributed Dubai’s growth to the city’s entrepreneurial spirit. He also expressed optimism that Dubai will see further tourism growth, noting it views 2023 as its tourism benchmark.The CEO acknowledged that staffing remains an issue after many hotels and airlines downsized during the pandemic. Finally, destinations throughout Africa are ramping up their efforts to lure travelers from India, the world’s largest outbound travel market, writes Reporter Harriet Akinyi. Akinyi reports Kenya in particular is heavily targeting Indian travelers. Kenya attracted the most Indian visitors among all African countries in the first eight months of 2013. The Kenya Tourism Board recently welcomed more than 150 Indian tour operators for a conference that one Kenyan official said would help drum up interest in the country.  Akinyi also cited South Africa, Rwanda and Uganda — among others — as African nations increasing their efforts to welcome Indian visitors. South Africa’s Tourism Minister has called for visa requirements for Indian — as well as Chinese — nationals to be eased or eliminated. 

Episode NotesDubai is poised to become the next big name in luxury travel, and two of the city’s luxury hoteliers are looking to expand their properties globally, writes Middle East Reporter Josh Corder. Emaar Hospitality head Mark Kirby and Atlantis’ Global President Timothy Kelly spoke about their strategy in Dubai at the Skift Global Forum East conference on Wednesday. Kirby said Dubai has been a strong contributor to Emaar’s growth, and that the company wants to bring Dubai’s success overseas.Kelly expressed his desire for Atlantis to be a global brand, adding the goal is to open properties on every continent. Corder notes that Atlantis is in discussion with national governments about expansion rather than investors due to the scale of its planned projects. Next, China’s outbound travel recovery is currently at just over half of 2019 levels. A Trip.com executive believes cumbersome visa regulations are hurting outbound travel, reports Asia Editor Peden Doma Bhutia.Trip.com Managing Director Boon Sian Chiai said at the Skift Global Forum East on Wednesday that once visa issues are resolved, Chinese travelers will be eager to go overseas. Chai said that destinations with simplified entry procedures have a clear advantage in attracting Chinese visitors. He also urged hotels and destinations to provide services tailored to Chinese travelers, such as language support and digital payment options.Despite the struggles of Chinese outbound travel, Bhutia notes that domestic travel is 90% above 2019 levels. Finally, international travel spending in the U.S. still hasn’t recovered to pre-Covid levels, writes Global Tourism Reporter Dawit Habtemariam. International travelers spent $10.7 billion in October, roughly $1 billion less than the same month in 2019. Habtemariam notes one factor limiting travel to the U.S. has been affordability. Higher costs and the strong dollar have reduced the buying power of many international travelers who would come to the U.S. Habtemariam adds Americans traveling abroad have been spending more than prior to the pandemic. U.S. travelers spent $12.1 billion on travel and tourism-related goods and services in October. That’s up from $9.8 billion from October 2019.

Episode NotesChoice Hotels believes it’s taken another key step toward its planned takeover of Wyndham Hotels & Resorts. Choice Hotels said on Tuesday it had bought enough Wyndham stock to nominate candidates to Wyndham’s board, reports Senior Hospitality Editor Sean O’Neill. Choice Hotels said it purchased more than $110 million of Wyndham stock. In addition, it is putting forth an exchange offer to present to Wyndham shareholders for a vote next year. Wyndham said its board is reviewing the offer and would give a recommendation to its shareholders within 10 days. But Wyndham stated Choice’s offer seems to be unchanged from one it previously rejected. Next, Canada won’t surpass its pre-Covid visitor numbers until 2025. One reason why is China’s ongoing ban on group travel into Canada, writes Global Tourism Reporter Dawit Habtemariam. Meaghan Ferrigno, Destination Canada’s chief data and analytics officer, said Canada’s tourism industry would get a major boost from Beijing ending the ban. Ferrigno added that Destination Canada wasn’t currently marketing group travel in China, instead focusing on individual Chinese travelers. Tourists from China spent the most in Canada of any other group in 2019. Finally, flight attendants at Southwest Airlines recently overwhelmingly rejected a new contract. That’s a major sign of the widespread discontent many flight attendants are feeling, reports Edward Russell, editor of Skift publication Airline Weekly. Nearly two-thirds of Southwest flight attendants who voted rejected a contract that would have included pay increases of 36% over five years. Russell writes one issue was a lack of pay during the boarding and deplaning processes, with almost all U.S. flight attendants only being paid when an aircraft door is closed. American Airlines flight attendants have authorized a potential strike. Russell notes that if American flight attendants were to go through with one, it would have a significant impact on the U.S. airline industry. American flies nearly a fourth of all U.S. domestic flights. 

Episode NotesA large number of Americans are planning to travel this holiday season. How many? Roughly 115 million, according to the latest forecast from AAA, which predicts this holiday season will be one of its largest on record. It projects 7.5 million travelers will fly this year, topping the record set in 2019, noted Airlines Reporter Meghna Maharishi, who added that U.S. airlines are under pressure to be ready for any extreme weather. Winter storms caused airlines to cancel thousands of flights last year. Next, Hilton went public 10 years ago Monday in the hotel industry’s biggest IPO ever. Senior Hospitality Editor Sean O’Neill lists 10 takeaways from one of the industry’s most significant events.O’Neill notes one lesson for investors is that a well-priced public debut at the right company can be a great investment. In addition, Hilton used the proceeds from the IPO to pay down debt as well as help it expand. The company currently has twice as many rooms under development than it did at the time of the IPO.  Furthermore, Hilton now has 22 brands, up from 10 a decade ago, and it has chosen to develop them in-houseO’Neill writes that strategy contrasts with the acquisition-first approach of most hotel companies. Finally, Chinese travelers won’t be returning to New York City at pre-pandemic levels next year. Travel executives believe affordability and limited flights to the U.S. are hurting the recovery, writes Global Tourism Reporter Dawit Habtemariam. Peter van Berkel, chair of the International Inbound Travel Association, said it’s unaffordable for the average Chinese traveler to come to the U.S. Economy airfares from China to the U.S. can run more than $3,500, he stated during a panel discussion with New York City tourism leaders. Habtemariam also notes that flights between the U.S. and China haven’t recovered to 2019 numbers. However, Vijay Dandapani, CEO of the Hotel Association of New York City, expressed optimism that the city would see a major rebound in Chinese tourism next year. 

The podcast explores the decline in Middle East tourism due to the Israel-Hamas War and how the region's growth was previously boosted by expanded air connectivity and investments by tour operators. Additionally, the episode discusses the potential for artificial intelligence to revolutionize customer sales and internal operations in the travel industry, including a new AI-based trip planning tool from Accor. The podcast also mentions travel startup Klook raising $210 million in funding.

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode NotesNavan, a travel and expense management startup, has laid off 5% of employees at the company, accounting for about 145 people, writes travel tech reporter Justin Dawes.Kelly Soderlund, a spokesperson for Navan, said in an email that the layoff affected teams across departments. She said in a statement that Navan is “refocusing efforts to move faster toward profitability” as its enters the next phase of its company. Navan has raised well over $1 billion in venture capital, most recently $154 million in October 2022. Next, a summit about mental health highlighted the risk for pilots, writes airline reporter Edward Russell.The issue received new attention in October after an Alaska Airlines pilot Joseph Emerson nearly brought down a plane while suffering a mental health crisis. Emerson said that he had experienced depression-like symptoms since the death of a friend in 2018 — some five years before the incident.More than 55% of pilots have expressed reluctance to report mental health issues due to fear of career reprisals, according to researcher William HoffmanJennifer Homendy, chair of the National Transportation Safety Board, is firm that something needs to be done. She stated at the summit in Washington, D.C.: “There’s a culture right now, which is not surprising to me, that you either lie or you seek help. We can’t have that. That’s not safety.”Finally, advertisements on Google by Air France, Lufthansa, and Etihad were banned for giving what the U.K.’s Advertising Standards Authority said was “a misleading impression” of their environmental impact, writes airline reporter Meghna Maharishi.The ad by Etihad, for example, implied that customers can travel with “total peace of mind” regarding its environmental advocacy. The ASA said it did not have adequate evidence that that was true.Etihad and Lufthansa took down the ads following the ruling. The ASA said Air France “did not provide a substantive response” to its ruling.

The podcast discusses recent changes in Airbnb's business team, with the CFO and VP of Finance taking on new roles and the Global Head of Hosting leaving. Also mentioned are Selina's restructuring plan and a potential merger between Alaska and Hawaiian airlines.

Episode NotesAlaska Air Group said it would buy Hawaiian Airlines in an all-cash transaction valued at $1.9 billion, including Hawaiian’s debt. The parent company of Alaska Airlines and regional Horizon Air said it would continue to operate Hawaiian as an independent brand, reports Edward Russell, editor of Skift publication Airline Weekly. The proposed merger isn’t a sure thing, given that it faces antitrust review by the Biden Administration. Analysts noted that JetBlue recently attempted to merge with Spirit Airlines, but that deal has since been mired in legal review. Given that the route networks of Alaska and Hawaiian wouldn’t lead to the same concentration as the networks of JetBlue and Spirit, the probability is higher that the Alaska-Hawaiian deal will go through, reports Russell.Next, the American Society of Travel Advisors (ASTA) and American Airlines are going head-to-head in a complaint before the U.S. Department of Transport (DOT). The debate hinges on whether American Airlines has been wrong to withhold about 40% of fare inventory from travel agencies that fail to adopt its preferred booking technology, reports Selene Brophy, Skift’s experiences reporter.Last month, American Airlines defended itself to regulators about its assertive push of the so-called new distribution capability while accusing travel agents of standing in the way of innovation. Skift asked ASTA for the group’s response, which it published on Monday exclusively. ASTA said, “What’s lacking from American Airlines’s response is how atrocious their workflow is for new reservations.” “We fully support the adoption of modern retailing methods when the necessary technologies are ready and in place, and we’re thankful for other airline partners who recognize that and have taken a more responsible approach.”The complaint is under review by U.S. regulators, with a response expected next year.Finally, Travelport said Monday that it had raised $570 million in new equity from investors, writes Skift tech reporter Justin Dawes. The world’s third-largest travel technology company will add new major backers, including Davidson Kempner Capital Management and Canyon Partners, to its existing equity stakeholders, Siris Capital and Elliott Investment Management.With this new investment, Travelport will have a stronger balance sheet with the least debt amongst its peers, it said. Travelport competes with larger peers Amadeus and Sabre in helping travel agencies book flights from airlines. Once again, as with the other two stories of the day, the travel industry waits for regulators to decide what to do.

Episode NotesAmerican Airlines is planning to improve its in-flight Wi-Fi access on regional jets, allowing passengers to easily check emails, browse the internet, or stream videos.The carrier plans to install high-speed Wi-Fi on around 500 regional aircraft starting next year in partnership with satellite services provider Intelsat, writes Skift’s airline reporter, Meghna Maharishi.While American already has high-speed Wi-Fi available on 900 mainline aircraft, the carrier said it wants to the same Wi-Fi service and speeds on its regional aircraft, with the goal of increasing the total number of satellite-connected aircraft to more than 1,400. Next, Hyatt plans to improve its hotel loyalty program in January, reports senior hospitality editor Sean O’Neill. Hyatt’s most notable change will be to expand the ability of program members to give some benefits to friends and family in one-off gifts. Before this, only certain members were able to share perks, which the company said has been highly popular. Those members could only share their benefits by booking a trip on behalf of someone else, using points or certificates. But come January, they’ll be able to extend those benefits to someone who booked and paid for a trip on their own. Benefits include free breakfast and the possibility of a free late checkout.Finally, Trip.com Group said Thursday that it has selected Amazon Web Services as its “strategic cloud provider” in a multiyear deal meant to drive innovations in travel bookings, personalized recommendations, and customer service, writes Skift tech reporter Justin Dawes.China-based Trip.com Group owns Trip.com, Skyscanner, and other travel sites. AWS is hosting a conference this week in Las Vegas, where it announced the Trip.com partnership as well as a number of other new technologies for the travel industry. Trip.com Group plans to improve the booking process, optimize flight pricing, and create personalized travel planning capabilities for consumers, among a group of other projects the partners have been working on.