Skift Daily Travel Briefing

Episode NotesAirbnb released its latest set of product enhancements on Wednesday — including Guest Favorites, new badges that identify customers’ favorite homes, reports Executive Editor Dennis Schaal.Schaal writes that Airbnb will place a Guest Favorites badge on 2 million of its properties. Those badges will help travelers pick stays based on homes’ ratings. Schaal notes that hosts will benefit from several other features as well. Airbnb said hosts will be able to create AI-powered photo tours of their homes in seconds. In addition, Airbnb said it’s overhauling ratings and reviews to make them more guest-friendly. Guests will be able to sort reviews by when they were written and their rating scores.  Next, Las Vegas’ Sphere arena opened to much fanfare in September, headlined by a U2 concert. But will it be a profitable venue? Newly released data highlighted the risks and rewards of the $2.3 billion structure, writes Travel Experiences Reporter Selene Brophy.  While Sphere Entertainment CEO James Dolan expressed optimism about the Sphere’s potential, Brophy notes analysts are uncertain if it will generate enough revenue to offset the enormous initial investments. Revenue from the Sphere’s opening didn’t cover its first quarter direct operating expenses.However, one media executive said the Sphere was on its way to becoming a global landmark due to the publicity it’s already received. Brophy adds its owners are hopeful upcoming major events in Las Vegas will help expose visitors to the venue. Finally, Singapore Airlines is coming off a strong September quarter. But the company is not resting on its laurels as its rivals continue their recoveries, reports Edward Russell, editor of Skift publication Airline Weekly.Singapore Airlines posted a $589 million operating profit during the quarter. Company executives attributed the success to strong peak summer travel demand and lower fuel prices. And Russell writes the carrier is developing a multi-part strategy to maintain a competitive advantage, including extending its network of airline partnerships around the world. Russell adds that Singapore Airlines is working to increase connectivity over the city-state’s Changi Airport. Singapore Airlines and budget subsidiary Scoot plan to serve 23 destinations in China by December. 

Episode NotesSome analysts have argued that Choice Hotels International is too reliant on acquisitions to grow. But despite its ongoing push to acquire Wyndham, Choice believes the organic growth of its development pipeline is healthy, reports Senior Hospitality Editor Sean O’Neill. Choice CEO Patrick Pacious said during its earnings call on Tuesday that he’s encouraged by the state of its pipeline. He noted that Choice averaged more than four openings per week through September. However, Joseph Greff, a J.P. Morgan analyst, said Choice Hotels’ legacy room count has registered, at best, only modest footprint growth. As for its third quarter performance, O’Neill writes Choice Hotels generated $92 million in net income.Next, Microsoft and travel technology company Amadeus are working together to develop artificial intelligence-related travel products. Travel Technology Reporter Justin Dawes highlights three of those innovations. Cyril Tetaz, Amadeus’ executive vice president of airline solutions, outlined what Microsoft and his company have in store in an interview with Skift. Their initiatives include personalized airline homepages for customers, a system for airline crew rescheduling, and a platform to simplify the work of an airline analyst. Tetaz added that Amadeus has many other initiatives in the works with Microsoft. Finally, luxury hospitality brand Inspirato is continuing to see losses mount. But the company believes it can become profitable by cutting costs, writes Short-Term Rental Reporter Srividya Kalyanaraman.Kalyanaraman reports Inspirato is burning cash at $15 million per quarter. It’s also grappling with a decrease in revenue. But Chief Financial Officer Robert Kaiden said Inspirato will save $50 million by the end of first quarter next year by cutting costs. He noted that roughly $30 million of those savings are expected from pruning the portfolio and terminating leases. Inspirato posted a net loss of $25 million in the third quarter. Its revenue also decreased 11% from last year. 

Episode NotesAirbnb has seen its listing numbers tumble in New York City due to a regulatory crackdown. But the short-term rental giant believes boutique hotels can help fill the gap, reports Executive Editor Dennis Schaal. Airbnb CEO Brian Chesky said during the company’s recent earnings call that adding boutique hotels to its New York City inventory was an opportunity given the decline in short-term rental listings for homes. He noted that boutique hotels are already listed on HotelTonight, the app Airbnb acquired in 2019. However, despite the possible boutique hotel push, Chesky said Airbnb’s core business will always be houses. Next, timeshare company Hilton Grand Vacations has offered to buy Bluegreen Vacations in a deal that could be worth $1.5 billion, reports Senior Hospitality Editor Sean O’Neill. Hilton Grand Vacations will offer $75 a share in an all-cash transaction. O’Neill reports Hilton Grand Vacations, which was spun off from Hilton in 2017, is looking to strengthen its position in the vacation ownership and experiences sector. Hilton Grand Vacations runs resorts primarily in the U.S., Europe and the Asia-Pacific region.Finally, Egypt was on track for a record tourism year in 2023. But it’s seen rising cancellations recently from American tourists due to the Israel-Hamas war, writes Global Tourism Reporter Dawit Habtemariam. Habtemarian reports that Egypt had welcomed roughly 10 million tourists in the first eight months of this year. However, travel companies that take American travelers to Egypt have reported a surge of recent cancellations. Kelly Torrens, an executive at Kensington Tours, said the current season will be lost for most tour operators working with the U.S. market.Although some tour operators are optimistic travel to Egypt will increase in 2024, Torrens acknowledged that bookings for Egypt trips next year are low compared to previous years. 

2023 has been a wild ride for travel stocks, with the Skift Travel 200 index up 6% from last year. Expedia Group had a record-breaking quarter with high net income and revenue. Despite China's economic difficulties, Hyatt remains optimistic about their hotel pipeline in the country.

Episode NotesAirbnb had a strong third quarter, recording its highest ever quarterly profits and setting a company record for revenue, writes Travel Technology Reporter Justin Dawes.The company reported net income of $1.6 billion, excluding a one-time income tax benefit. It also generated $3.4 billion worth of revenue, an 18% jump from last year. Dawes reports those record numbers were driven by 113 million bookings during the third quarter, a 14% year-over-year increase. In addition, Airbnb said it saw a 19% jump in its active listings last quarter, with Latin America and Asia-Pacific representing the regions with the highest growth. Next, American Airlines is looking to boost profitability as it flies to more underserved U.S. cities and enhances its loyalty program, writes Travel Experiences Reporter Selene Brophy.  American CEO Robert Isom said at the Skift Aviation Forum on Wednesday the carrier would increase service to smaller U.S. cities, citing Roanoke, Virginia and Lubbock, Texas as examples. Isom added that American was looking to strengthen its loyalty program, which lags behind competitors. He called it an “untapped opportunity.” Finally, United Airlines strongly believes that the international travel boom hasn’t peaked, reports Edward Russell, editor of Skift publication Airline Weekly. United Chief Commercial Officer Andrew Nocella said at the Forum on Wednesday that the company sees more opportunity for growth overseas. United recently ordered hundreds of new Boeing 787s and unveiled several transatlantic routes for next summer. Russell writes United saw record profits for both transatlantic and transpacific travel in the third quarter. However, Russell notes many airline industry insiders wonder if the international boom will continue. In addition, long-haul international routes cost more to operate than domestic flights, possibly leading to large losses. 

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode NotesMaui’s western region will fully reopen to tourism on Wednesday, two months after it was devastated by a massive wildfire. But Global Tourism Reporter Dawit Habtemariam writes the island still faces a long road to recovery.  Sherry Doung, executive director of the Maui Visitors & Convention Bureau, said the organization wasn’t expecting large numbers of travelers to come to western Maui. Scheduled airline seats to Maui for November and December are still substantially below 2022 levels. While Habtemariam reports that the huge post-disaster decline in tourism to Maui has stopped, visitor numbers aren’t expected to substantially increase for some time. Next, JetBlue Airways had a brutal third quarter, as weather-related disruptions and rising jet fuel costs dented its profits, reports Associate Editor Rashaad Jorden. JetBlue posted a $129 million net loss, excluding one-time accounting charges. The company reported during its earnings call on Tuesday that it generated $2.4 billion in revenue, an 8.2% decrease from the same period last year. JetBlue Chief Financial Officer Ursula Hurley described the magnitude of air traffic control and weather-related delays as staggering. However, the news coming out of the earnings call wasn’t all negative. JetBlue President Joanne Geraghty said the company has seen a surge in corporate bookings since Labor Day.Finally, Colorado legislators held a public hearing on a proposed bill that would significantly impact short-term rental properties in the state, writes Short-Term Rental Reporter Srividya Kalyanaraman.The bill, if passed, would result in short-term rental units being classified as a residential real property or a lodging property based on its use the previous year. Kalyanaraman reports that how a unit is classified would have a big impact on taxes that owners ultimately pay, with a substantial increase in the tax rates for short-term rentals.

Episode NotesVisa processing delays have hurt the travel industry’s recovery, especially in the U.S. and Europe. Associate Editor Rashaad Jorden turns to Ask Skift, our artificial intelligence chatbot, for more information about how lengthy visa waits are impacting tourism. Jorden reports visa delays for the U.S.’ top inbound markets top 400 days on average. U.S. Travel Association CEO Geoff Freeman said at the recent Skift Global Forum that the long visa wait times make the U.S. an unwelcoming environment for travelers and the U.S. is losing ground in the race to attract tourists. Meanwhile, lengthy visa waits for travel to Europe are driving more Indian travelers to visit destinations closer to home. One India-based travel executive said it’s taken travelers as long as 45 days to land an appointment for a Schengen visa. Next, the Four Seasons recently enhanced its latest marketing campaign that showcases employees’ efforts to enhance customers’ stays. Senior Hospitality Editor Sean O’Neill said the Four Seasons is looking to unveil more guest-centric tech, including mobile keys for all guest rooms. The company is also working to enable guests to pay check-out invoices from their phones. However, Marc Speichert, the Four Seasons’ executive vice president, said the hotel isn’t looking to add any large properties to its portfolio. Finally, African travel executives believe the continent’s growing middle class could significantly boost tourism, especially domestic tourism, writes Travel Experiences Reporter Selene Brophy.Brophy reports that South Africa in particular has had a surge in domestic tourism. The sector has seen a 31% jump in overnight trips during the first four months of 2023. And domestic travel spending in the country has increased 41% in the same period. Analysts believe the growth could be replicated around Africa. The World Bank estimated that the continent was home to a pre-pandemic middle class of 170 million people. In addition, Brophy writes Africa has the youngest population in the world, with more than 60% of Africans under the age of 25. 

Episode NotesWyndham Hotels & Resorts executives used strong language Thursday to explain to investors why they were rejecting the $9.8 billion hostile bid from Choice Hotels, reports Senior Hospitality Editor Sean O’Neill.  O’Neill writes Wyndham executives highlighted a lack of cash up-front and Choice’s alleged weaker performance as major concerns about a deal. In addition, Wyndham said any deal between the two companies would take more than 12 months to clear regulatory review.The prospects for a deal aren’t completely dead, but it faces long odds. “It’s hard for us to say no more than we’ve already said no,” said Stephen Holmes, chairman of Wyndham’s board. Next, Royal Caribbean executives are optimistic they’ll see strong demand for cruises in China when they return there next April, writes Global Tourism Reporter Dawit Habtemariam. Royal Caribbean International CEO Michael Bayley said during the third-quarter earnings call that the company has seen strong bookings for China sailings next year. Bayley added that bookings are already ahead of 2019 levels, a record year for Royal Caribbean. Habtemariam reports the company doesn’t expect a slowdown in consumer spending, with Royal Caribbean customers having a median household income of above six figures. Finally, a Dubai billionaire believes the city is home to too many millionaires and it doesn’t have enough resources to cater to its increasingly wealthy population, writes Middle East Reporter Josh Corder.Real estate magnate Mohamed Alabbar, one of Dubai’s wealthiest men, said the city’s growth isn’t sustainable. Corder reports Dubai’s population is expected to increase from the current 3.5 million to 5.5 million by 2030. A recent report stated the United Arab Emirates is expected to attract a large number of millionaires from India. Alabbar added one of Dubai’s problems is that the city is trying to build too much, too quickly.

Episode NotesHilton’s third-quarter earnings call suggested that U.S. hotel demand is returning to pre-pandemic norms. However, the company is seeing bookings surge at its overseas hotels, reports Senior Hospitality Editor Sean O’Neill.Hilton’s revenue per available room — an important industry metric — rose only 3% in the U.S. in the third quarter. But it jumped 39% in the Asia-Pacific region. Hilton also reported worldwide growth in revenue per available room across all customer segments. The company generated $379 million worth of net income in the third quarter, a roughly 10% jump from last year. Next, Taylor Swift’s Eras Tour has had an enormous impact on hotel bookings around the U.S. (and Kansas City Chiefs viewership), but what about the short-term rental industry? Short-Term Rental Reporter Srividya Kalyanaraman examines the boost Swift has provided the sector.Kalyanaraman reports that the Eras Tour contributed roughly $10 million to the short-term rental industry. In addition, the 20 U.S. cities that hosted shows during the Eras tour registered a 28% increase in revenue per available room. Jeff Breece, an executive at revenue management program Beyond Pricing, said cities also saw double-digit increases in occupancy and average daily rates.  Finally, vacation rental brand Vrbo has recently cut ties with a large number of hosts who have canceled guest bookings too frequently, reports Executive Editor Dennis Schaal. Tim Rosolio, an Expedia Group vice president, said at a conference this week that Vrbo, an Expedia Group brand, has essentially been getting rid of bad apples from its ranks. He said that unnecessary cancellations could not only anger guests but turn them off from booking a vacation rental again. Rosolio noted that Vrbo has always viewed how many properties it has as a bit of a vanity number. In addition, Vrbo has also decided to levy penalties of up to 50% of a gross booking against hosts who cancel too much.

Episode NotesTaylor Swift wasn’t the only major pop star responsible for a tourism boom this summer. Beyonce’s Renaissance Tour helped lift hotel bookings across the U.S. and Europe, writes Senior Hospitality Editor Sean O’Neill.O’Neill cites Cardiff, Wales, Cologne, Germany and Houston, Texas, as cities where hotel bookings surged during stops on Beyonce’s tour. Hotels in her hometown of Houston generated $18 million in revenue on the nights of her concerts, a 45% jump from the same weekend last year.  However, O’Neill notes some cities — including London, Boston, and Las Vegas — didn’t register a noticeable bump. He adds shows on weeknights during the school year were much less likely to drive travel demand. Next, Airbnb has been accused of violating a temporary restraining order in a New York City building, reports Executive Editor Dennis Schaal. The owner had placed the building on New York City’s so-called banned building list, which blocks short-term rentals. However, the contempt motion alleges that guests were seen in the apartment on October 17 and that the listing was still on Airbnb. Schaal writes the building owner asked the judge to impose penalties for an alleged violation related to a short-term rental listing. A hearing is scheduled for October 30 in a New York State court. Finally, prominent airline industry executives will gather for the Skift Aviation Forum in Fort Worth, Texas on November 1. Edward Russell, editor of Skift publication Airline Weekly, lists five topics he’s looking forward to discussing at the Forum.  Russell writes that, despite constant warnings about economic downturns, the global airline industry is continuing to make progress in its recovery. While he notes that corporate travel in the U.S. has plateaued in its rebound, international travel has continued to boom. Transatlantic demand set records this summer, and many industry figures expect transpacific to surge as well.